Tata Consultancy Services: A Systems Approach To Human Resource Development SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Tata Consultancy Services: A Systems Approach To Human Resource Development

Tata Consultancy Services Ltd (TCS), India's largest IT services provider, reached a major milestone when manpower strength crossed the 100,000-employee mark in October 2007. Based on a business model heavily reliant on low-wage software engineering talent, TCS tapped with great success, India's large pool of engineering graduates, mainly from top universities, for its human capital needs. These software project consultants formed the backbone of the company's service delivery system and the lynchpin of TCS' growth as a global IT company. TCS used a systems approach to design a training and development framework that had enabled the firm to scale up the human capital requirements to meet rapid business growth. By the end of March 2008, TCS' global employee strength was more than 111,000. Ninety percent of its IT consultants were Indian nationals, as were majority of the TCS consultants in the USA. However, as TCS followed its multinational clients and set up operations in China, the Chinese government expected TCS to tap on local engineering talent as much as possible. The challenge for TCS was whether the training framework it had used to build its India-based human resource pool would also be effective in the Chinese context where TCS hoped to grow its second global delivery hub after India.

Authors :: Beng Geok Wee, Ivy Buche

Topics :: Technology & Operations

Tags :: Business processes, International business, Organizational culture, Talent management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Tata Consultancy Services: A Systems Approach To Human Resource Development" written by Beng Geok Wee, Ivy Buche includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tcs Consultants facing as an external strategic factors. Some of the topics covered in Tata Consultancy Services: A Systems Approach To Human Resource Development case study are - Strategic Management Strategies, Business processes, International business, Organizational culture, Talent management and Technology & Operations.

Some of the macro environment factors that can be used to understand the Tata Consultancy Services: A Systems Approach To Human Resource Development casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, talent flight as more people leaving formal jobs, technology disruption, increasing transportation and logistics costs, increasing household debt because of falling income levels, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, etc

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Introduction to SWOT Analysis of Tata Consultancy Services: A Systems Approach To Human Resource Development

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tata Consultancy Services: A Systems Approach To Human Resource Development case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tcs Consultants, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tcs Consultants operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Tata Consultancy Services: A Systems Approach To Human Resource Development can be done for the following purposes –
1. Strategic planning using facts provided in Tata Consultancy Services: A Systems Approach To Human Resource Development case study
2. Improving business portfolio management of Tcs Consultants
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tcs Consultants

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Strengths Tata Consultancy Services: A Systems Approach To Human Resource Development | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Tcs Consultants in Tata Consultancy Services: A Systems Approach To Human Resource Development Harvard Business Review case study are -

Low bargaining power of suppliers

– Suppliers of Tcs Consultants in the sector have low bargaining power. Tata Consultancy Services: A Systems Approach To Human Resource Development has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tcs Consultants to manage not only supply disruptions but also source products at highly competitive prices.

Strong track record of project management

– Tcs Consultants is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Successful track record of launching new products

– Tcs Consultants has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tcs Consultants has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Organizational Resilience of Tcs Consultants

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tcs Consultants does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Innovation driven organization

– Tcs Consultants is one of the most innovative firm in sector. Manager in Tata Consultancy Services: A Systems Approach To Human Resource Development Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Digital Transformation in Technology & Operations segment

- digital transformation varies from industry to industry. For Tcs Consultants digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tcs Consultants has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Cross disciplinary teams

– Horizontal connected teams at the Tcs Consultants are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Sustainable margins compare to other players in Technology & Operations industry

– Tata Consultancy Services: A Systems Approach To Human Resource Development firm has clearly differentiated products in the market place. This has enabled Tcs Consultants to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Tcs Consultants to invest into research and development (R&D) and innovation.

High brand equity

– Tcs Consultants has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tcs Consultants to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Superior customer experience

– The customer experience strategy of Tcs Consultants in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Tcs Consultants has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Ability to lead change in Technology & Operations field

– Tcs Consultants is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Tcs Consultants in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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Weaknesses Tata Consultancy Services: A Systems Approach To Human Resource Development | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Tata Consultancy Services: A Systems Approach To Human Resource Development are -

Low market penetration in new markets

– Outside its home market of Tcs Consultants, firm in the HBR case study Tata Consultancy Services: A Systems Approach To Human Resource Development needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to strategic competitive environment developments

– As Tata Consultancy Services: A Systems Approach To Human Resource Development HBR case study mentions - Tcs Consultants takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Products dominated business model

– Even though Tcs Consultants has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Tata Consultancy Services: A Systems Approach To Human Resource Development should strive to include more intangible value offerings along with its core products and services.

High bargaining power of channel partners

– Because of the regulatory requirements, Beng Geok Wee, Ivy Buche suggests that, Tcs Consultants is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Capital Spending Reduction

– Even during the low interest decade, Tcs Consultants has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tcs Consultants is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tata Consultancy Services: A Systems Approach To Human Resource Development can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High cash cycle compare to competitors

Tcs Consultants has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Lack of clear differentiation of Tcs Consultants products

– To increase the profitability and margins on the products, Tcs Consultants needs to provide more differentiated products than what it is currently offering in the marketplace.

Need for greater diversity

– Tcs Consultants has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Tata Consultancy Services: A Systems Approach To Human Resource Development, it seems that the employees of Tcs Consultants don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Slow decision making process

– As mentioned earlier in the report, Tcs Consultants has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Tcs Consultants even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

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Opportunities Tata Consultancy Services: A Systems Approach To Human Resource Development | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study Tata Consultancy Services: A Systems Approach To Human Resource Development are -

Leveraging digital technologies

– Tcs Consultants can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Creating value in data economy

– The success of analytics program of Tcs Consultants has opened avenues for new revenue streams for the organization in the industry. This can help Tcs Consultants to build a more holistic ecosystem as suggested in the Tata Consultancy Services: A Systems Approach To Human Resource Development case study. Tcs Consultants can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Tcs Consultants in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Tcs Consultants can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Tata Consultancy Services: A Systems Approach To Human Resource Development, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Loyalty marketing

– Tcs Consultants has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Tcs Consultants can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Building a culture of innovation

– managers at Tcs Consultants can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Tcs Consultants can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Tcs Consultants to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Manufacturing automation

– Tcs Consultants can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Better consumer reach

– The expansion of the 5G network will help Tcs Consultants to increase its market reach. Tcs Consultants will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Developing new processes and practices

– Tcs Consultants can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tcs Consultants can use these opportunities to build new business models that can help the communities that Tcs Consultants operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.

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Threats Tata Consultancy Services: A Systems Approach To Human Resource Development External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Tata Consultancy Services: A Systems Approach To Human Resource Development are -

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Tcs Consultants will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Tcs Consultants in the Technology & Operations sector and impact the bottomline of the organization.

Regulatory challenges

– Tcs Consultants needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Tcs Consultants.

Easy access to finance

– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tcs Consultants can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Environmental challenges

– Tcs Consultants needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Tcs Consultants can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.

High dependence on third party suppliers

– Tcs Consultants high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tcs Consultants with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Increasing wage structure of Tcs Consultants

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Tcs Consultants.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Tcs Consultants in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Tcs Consultants needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Consumer confidence and its impact on Tcs Consultants demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

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Weighted SWOT Analysis of Tata Consultancy Services: A Systems Approach To Human Resource Development Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Tata Consultancy Services: A Systems Approach To Human Resource Development needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Tata Consultancy Services: A Systems Approach To Human Resource Development is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Tata Consultancy Services: A Systems Approach To Human Resource Development is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Tata Consultancy Services: A Systems Approach To Human Resource Development is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Tcs Consultants needs to make to build a sustainable competitive advantage.

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