Swot Analysis of "Professional Services, Module Four: Managing the Organization Through Processes" written by Thomas J. DeLong, Ashish Nanda, Scot Landry includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Processes Connect facing as an external strategic factors. Some of the topics covered in Professional Services, Module Four: Managing the Organization Through Processes case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Professional Services, Module Four: Managing the Organization Through Processes casestudy better are - – increasing commodity prices, wage bills are increasing, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Professional Services, Module Four: Managing the Organization Through Processes
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Professional Services, Module Four: Managing the Organization Through Processes case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Processes Connect, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Processes Connect 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Professional Services, Module Four: Managing the Organization Through Processes can be done for the following purposes –
1. Strategic planning using facts provided in Professional Services, Module Four: Managing the Organization Through Processes case study
2. Improving business portfolio management of Processes Connect
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 Processes Connect
Strengths Professional Services, Module Four: Managing the Organization Through Processes | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Processes Connect in Professional Services, Module Four: Managing the Organization Through Processes Harvard Business Review case study are -
Diverse revenue streams
– Processes Connect is present in almost all the verticals within the industry. This has provided firm in Professional Services, Module Four: Managing the Organization Through Processes case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the Professional Services, Module Four: Managing the Organization Through Processes Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Technology & Operations industry
– Professional Services, Module Four: Managing the Organization Through Processes firm has clearly differentiated products in the market place. This has enabled Processes Connect to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Processes Connect to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Processes Connect in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Processes Connect 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.
Training and development
– Processes Connect has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Professional Services, Module Four: Managing the Organization Through Processes Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Processes Connect has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Professional Services, Module Four: Managing the Organization Through Processes - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Processes Connect is one of the most innovative firm in sector. Manager in Professional Services, Module Four: Managing the Organization Through Processes Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Processes Connect in the sector have low bargaining power. Professional Services, Module Four: Managing the Organization Through Processes has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Processes Connect to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Processes Connect is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Thomas J. DeLong, Ashish Nanda, Scot Landry can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Processes Connect is one of the leading recruiters in the industry. Managers in the Professional Services, Module Four: Managing the Organization Through Processes are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Processes Connect 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 Processes Connect in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Professional Services, Module Four: Managing the Organization Through Processes | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Professional Services, Module Four: Managing the Organization Through Processes are -
Interest costs
– Compare to the competition, Processes Connect has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Professional Services, Module Four: Managing the Organization Through Processes, in the dynamic environment Processes Connect has struggled to respond to the nimble upstart competition. Processes Connect has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Professional Services, Module Four: Managing the Organization Through Processes that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Professional Services, Module Four: Managing the Organization Through Processes can leverage the sales team experience to cultivate customer relationships as Processes Connect is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Processes Connect supply chain. Even after few cautionary changes mentioned in the HBR case study - Professional Services, Module Four: Managing the Organization Through Processes, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Processes Connect vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Processes Connect is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Professional Services, Module Four: Managing the Organization Through Processes can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Professional Services, Module Four: Managing the Organization Through Processes, it seems that the employees of Processes Connect 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Processes Connect needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Processes Connect is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Processes Connect needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Processes Connect to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Professional Services, Module Four: Managing the Organization Through Processes HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Processes Connect has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Processes Connect, firm in the HBR case study Professional Services, Module Four: Managing the Organization Through Processes needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Processes Connect 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.
Opportunities Professional Services, Module Four: Managing the Organization Through Processes | 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 Professional Services, Module Four: Managing the Organization Through Processes are -
Creating value in data economy
– The success of analytics program of Processes Connect has opened avenues for new revenue streams for the organization in the industry. This can help Processes Connect to build a more holistic ecosystem as suggested in the Professional Services, Module Four: Managing the Organization Through Processes case study. Processes Connect can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Processes Connect 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.
Loyalty marketing
– Processes Connect 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Processes Connect in the consumer business. Now Processes Connect can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Processes Connect has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Professional Services, Module Four: Managing the Organization Through Processes - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Processes Connect to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Processes Connect can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Processes Connect is facing challenges because of the dominance of functional experts in the organization. Professional Services, Module Four: Managing the Organization Through Processes case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Processes Connect can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Processes Connect can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Processes Connect to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Processes Connect to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Processes Connect to increase its market reach. Processes Connect 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.
Buying journey improvements
– Processes Connect can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Professional Services, Module Four: Managing the Organization Through Processes suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Processes Connect can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Processes Connect can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Professional Services, Module Four: Managing the Organization Through Processes External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Professional Services, Module Four: Managing the Organization Through Processes are -
Regulatory challenges
– Processes Connect 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.
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. Processes Connect 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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Processes Connect business can come under increasing regulations regarding data privacy, data security, etc.
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.
Environmental challenges
– Processes Connect 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. Processes Connect can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Processes Connect can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Processes Connect can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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. Processes Connect needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Processes Connect
– 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 Processes Connect.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Professional Services, Module Four: Managing the Organization Through Processes, Processes Connect may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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 Processes Connect in the Technology & Operations sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Processes Connect can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Professional Services, Module Four: Managing the Organization Through Processes .
Technology acceleration in Forth Industrial Revolution
– Processes Connect has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Processes Connect needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of Professional Services, Module Four: Managing the Organization Through Processes 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 Professional Services, Module Four: Managing the Organization Through Processes 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 Professional Services, Module Four: Managing the Organization Through Processes 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 Professional Services, Module Four: Managing the Organization Through Processes 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 Professional Services, Module Four: Managing the Organization Through Processes 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 Processes Connect needs to make to build a sustainable competitive advantage.
