Case Study Description of Infosys Technologies: Improving Organizational Knowledge Flows
Knowledge is being discussed as one of the most important organizational resources. But these resources exist in specialized pockets dispersed across the organization, and dedicated knowledge management (KM) programs are required to improve their flow. However, high failure rates of such programs raise serious doubts about their ability to improve knowledge flows. This case traces the KM program of Infosys Technologies, Ltd - a Global Most Admired Knowledge Enterprise. The case describes how, in 1999, Infosys' top management detected a severe lack of organizational knowledge flows while implementing a program aimed at continuously improving their core business processes. A more detailed examination exposed that the lack of knowledge flows stifled the effectiveness of their organizational structure and their business model. Alarmed by these critical findings, Infosys initiated their KM program. A five-stage knowledge maturity model (KMM) was conceptualized to aid KM implementation. With people, processes, and technology as the three pillars of Infosys' KM program, KMM identified specific capabilities Infosys needed to develop in each of the five levels. Things worked fine till 2004 when Infosys began moving towards KMM Level 4, which required developing clear metrics to measure KM effectiveness, that is, improvements in knowledge flow. In the absence of such metrics, Infosys' Board of Directors started questioning company's financial investment in the KM program. The CEO, who championed the KM program, knew that he faced two key challenges - to convince the Board of future revenue prospects of the KM program, and to identify metrics for assessing improvements in organizational knowledge flows.
Swot Analysis of "Infosys Technologies: Improving Organizational Knowledge Flows" written by Nikhil Mehta, Sharon Oswald, Anju Mehta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Km Infosys facing as an external strategic factors. Some of the topics covered in Infosys Technologies: Improving Organizational Knowledge Flows case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Infosys Technologies: Improving Organizational Knowledge Flows casestudy better are - – challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Infosys Technologies: Improving Organizational Knowledge Flows
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Infosys Technologies: Improving Organizational Knowledge Flows case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Km Infosys, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Km Infosys 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 Infosys Technologies: Improving Organizational Knowledge Flows can be done for the following purposes –
1. Strategic planning using facts provided in Infosys Technologies: Improving Organizational Knowledge Flows case study
2. Improving business portfolio management of Km Infosys
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 Km Infosys
Strengths Infosys Technologies: Improving Organizational Knowledge Flows | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Km Infosys in Infosys Technologies: Improving Organizational Knowledge Flows Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Infosys Technologies: Improving Organizational Knowledge Flows 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.
Effective Research and Development (R&D)
– Km Infosys 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 Infosys Technologies: Improving Organizational Knowledge Flows - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Km Infosys digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Km Infosys 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.
Ability to recruit top talent
– Km Infosys is one of the leading recruiters in the industry. Managers in the Infosys Technologies: Improving Organizational Knowledge Flows 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
– Km Infosys 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 Km Infosys in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Km Infosys is one of the most innovative firm in sector. Manager in Infosys Technologies: Improving Organizational Knowledge Flows Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Km Infosys
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Km Infosys does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Km Infosys 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 Nikhil Mehta, Sharon Oswald, Anju Mehta 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.
Sustainable margins compare to other players in Technology & Operations industry
– Infosys Technologies: Improving Organizational Knowledge Flows firm has clearly differentiated products in the market place. This has enabled Km Infosys to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Km Infosys to invest into research and development (R&D) and innovation.
Training and development
– Km Infosys has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Infosys Technologies: Improving Organizational Knowledge Flows 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.
Diverse revenue streams
– Km Infosys is present in almost all the verticals within the industry. This has provided firm in Infosys Technologies: Improving Organizational Knowledge Flows 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.
Superior customer experience
– The customer experience strategy of Km Infosys in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Infosys Technologies: Improving Organizational Knowledge Flows | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Infosys Technologies: Improving Organizational Knowledge Flows are -
Need for greater diversity
– Km Infosys 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.
Low market penetration in new markets
– Outside its home market of Km Infosys, firm in the HBR case study Infosys Technologies: Improving Organizational Knowledge Flows needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Infosys Technologies: Improving Organizational Knowledge Flows, it seems that the employees of Km Infosys 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.
Increasing silos among functional specialists
– The organizational structure of Km Infosys is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Km Infosys needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Km Infosys to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Km Infosys products
– To increase the profitability and margins on the products, Km Infosys needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Km Infosys has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Infosys Technologies: Improving Organizational Knowledge Flows, is just above the industry average. Km Infosys needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High cash cycle compare to competitors
Km Infosys 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Infosys Technologies: Improving Organizational Knowledge Flows, in the dynamic environment Km Infosys has struggled to respond to the nimble upstart competition. Km Infosys has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Km Infosys 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.
Products dominated business model
– Even though Km Infosys 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 - Infosys Technologies: Improving Organizational Knowledge Flows should strive to include more intangible value offerings along with its core products and services.
Opportunities Infosys Technologies: Improving Organizational Knowledge Flows | 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 Infosys Technologies: Improving Organizational Knowledge Flows are -
Loyalty marketing
– Km Infosys 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.
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. Km Infosys 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. Km Infosys 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Km Infosys is facing challenges because of the dominance of functional experts in the organization. Infosys Technologies: Improving Organizational Knowledge Flows 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.
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. Km Infosys can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Km Infosys can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Km Infosys 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Km Infosys 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, Km Infosys 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, Infosys Technologies: Improving Organizational Knowledge Flows, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Km Infosys can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Infosys Technologies: Improving Organizational Knowledge Flows 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.
Creating value in data economy
– The success of analytics program of Km Infosys has opened avenues for new revenue streams for the organization in the industry. This can help Km Infosys to build a more holistic ecosystem as suggested in the Infosys Technologies: Improving Organizational Knowledge Flows case study. Km Infosys can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Km Infosys can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Km Infosys can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Km Infosys to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats Infosys Technologies: Improving Organizational Knowledge Flows External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Infosys Technologies: Improving Organizational Knowledge Flows are -
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. Km Infosys can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Km Infosys 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Regulatory challenges
– Km Infosys 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.
Environmental challenges
– Km Infosys 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. Km Infosys can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Infosys Technologies: Improving Organizational Knowledge Flows, Km Infosys 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 Km Infosys in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Km Infosys 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.
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.
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. Km Infosys 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.
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 Km Infosys.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Km Infosys 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 Infosys Technologies: Improving Organizational Knowledge Flows .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Km Infosys 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.
Weighted SWOT Analysis of Infosys Technologies: Improving Organizational Knowledge Flows 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 Infosys Technologies: Improving Organizational Knowledge Flows 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 Infosys Technologies: Improving Organizational Knowledge Flows 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 Infosys Technologies: Improving Organizational Knowledge Flows 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 Infosys Technologies: Improving Organizational Knowledge Flows 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 Km Infosys needs to make to build a sustainable competitive advantage.
