RosettaNet and ebXML: Betting on the Right eBusiness Standard SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of RosettaNet and ebXML: Betting on the Right eBusiness Standard
A major enterprise software company must select which technologies to support, based on their long-term and short-term viability and benefits. The protagonist is involved in the release of the B2B integration component of major enterprise software whose purpose is to facilitate communication between users and their business partners. To enable standardized, automated data exchange between business partners, the e-business component release must provide support for one or more e-business standards. Time and resource constraints, however, demand that the company support only one e-business standard in the first release. The protagonist must decide which e-business standard to support: ebXML or RosettaNet.
Authors :: F. Warren McFarlan, Veronika Belokhvostova
Swot Analysis of "RosettaNet and ebXML: Betting on the Right eBusiness Standard" written by F. Warren McFarlan, Veronika Belokhvostova includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ebxml Rosettanet facing as an external strategic factors. Some of the topics covered in RosettaNet and ebXML: Betting on the Right eBusiness Standard case study are - Strategic Management Strategies, Business processes, Financial analysis, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the RosettaNet and ebXML: Betting on the Right eBusiness Standard casestudy better are - – challanges to central banks by blockchain based private currencies, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
geopolitical disruptions, there is backlash against globalization, etc
Introduction to SWOT Analysis of RosettaNet and ebXML: Betting on the Right eBusiness Standard
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in RosettaNet and ebXML: Betting on the Right eBusiness Standard case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ebxml Rosettanet, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ebxml Rosettanet 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard can be done for the following purposes –
1. Strategic planning using facts provided in RosettaNet and ebXML: Betting on the Right eBusiness Standard case study
2. Improving business portfolio management of Ebxml Rosettanet
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 Ebxml Rosettanet
Strengths RosettaNet and ebXML: Betting on the Right eBusiness Standard | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ebxml Rosettanet in RosettaNet and ebXML: Betting on the Right eBusiness Standard Harvard Business Review case study are -
High brand equity
– Ebxml Rosettanet has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ebxml Rosettanet to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Ebxml Rosettanet is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Ebxml Rosettanet is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in RosettaNet and ebXML: Betting on the Right eBusiness Standard Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Technology & Operations field
– Ebxml Rosettanet 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 Ebxml Rosettanet in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Ebxml Rosettanet
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ebxml Rosettanet does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Ebxml Rosettanet 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard - 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
– Ebxml Rosettanet is one of the most innovative firm in sector. Manager in RosettaNet and ebXML: Betting on the Right eBusiness Standard Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Ebxml Rosettanet 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.
Analytics focus
– Ebxml Rosettanet 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 F. Warren McFarlan, Veronika Belokhvostova 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Ebxml Rosettanet digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ebxml Rosettanet 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.
Highly skilled collaborators
– Ebxml Rosettanet has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in RosettaNet and ebXML: Betting on the Right eBusiness Standard HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Ebxml Rosettanet is present in almost all the verticals within the industry. This has provided firm in RosettaNet and ebXML: Betting on the Right eBusiness Standard 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.
Training and development
– Ebxml Rosettanet has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in RosettaNet and ebXML: Betting on the Right eBusiness Standard 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.
Weaknesses RosettaNet and ebXML: Betting on the Right eBusiness Standard | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of RosettaNet and ebXML: Betting on the Right eBusiness Standard are -
Aligning sales with marketing
– It come across in the case study RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard can leverage the sales team experience to cultivate customer relationships as Ebxml Rosettanet is planning to shift buying processes online.
Interest costs
– Compare to the competition, Ebxml Rosettanet 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.
Slow decision making process
– As mentioned earlier in the report, Ebxml Rosettanet 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. Ebxml Rosettanet 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ebxml Rosettanet 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.
Lack of clear differentiation of Ebxml Rosettanet products
– To increase the profitability and margins on the products, Ebxml Rosettanet needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study RosettaNet and ebXML: Betting on the Right eBusiness Standard has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ebxml Rosettanet 's lucrative customers.
Slow to strategic competitive environment developments
– As RosettaNet and ebXML: Betting on the Right eBusiness Standard HBR case study mentions - Ebxml Rosettanet 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study RosettaNet and ebXML: Betting on the Right eBusiness Standard, is just above the industry average. Ebxml Rosettanet 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
Ebxml Rosettanet 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ebxml Rosettanet is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 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 Ebxml Rosettanet supply chain. Even after few cautionary changes mentioned in the HBR case study - RosettaNet and ebXML: Betting on the Right eBusiness Standard, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ebxml Rosettanet vulnerable to further global disruptions in South East Asia.
Opportunities RosettaNet and ebXML: Betting on the Right eBusiness Standard | 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ebxml Rosettanet is facing challenges because of the dominance of functional experts in the organization. RosettaNet and ebXML: Betting on the Right eBusiness Standard 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.
Using analytics as competitive advantage
– Ebxml Rosettanet 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ebxml Rosettanet to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Ebxml Rosettanet 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ebxml Rosettanet 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, RosettaNet and ebXML: Betting on the Right eBusiness Standard, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ebxml Rosettanet 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.
Building a culture of innovation
– managers at Ebxml Rosettanet 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.
Better consumer reach
– The expansion of the 5G network will help Ebxml Rosettanet to increase its market reach. Ebxml Rosettanet 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ebxml Rosettanet can use these opportunities to build new business models that can help the communities that Ebxml Rosettanet operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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 Ebxml Rosettanet in the consumer business. Now Ebxml Rosettanet can target international markets with far fewer capital restrictions requirements than the existing system.
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. Ebxml Rosettanet 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. Ebxml Rosettanet 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.
Buying journey improvements
– Ebxml Rosettanet can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. RosettaNet and ebXML: Betting on the Right eBusiness Standard 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ebxml Rosettanet 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 Ebxml Rosettanet to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Ebxml Rosettanet has opened avenues for new revenue streams for the organization in the industry. This can help Ebxml Rosettanet to build a more holistic ecosystem as suggested in the RosettaNet and ebXML: Betting on the Right eBusiness Standard case study. Ebxml Rosettanet can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats RosettaNet and ebXML: Betting on the Right eBusiness Standard External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study RosettaNet and ebXML: Betting on the Right eBusiness Standard are -
Technology acceleration in Forth Industrial Revolution
– Ebxml Rosettanet has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Ebxml Rosettanet 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ebxml Rosettanet 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.
Environmental challenges
– Ebxml Rosettanet 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. Ebxml Rosettanet can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Ebxml Rosettanet needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Ebxml Rosettanet.
Consumer confidence and its impact on Ebxml Rosettanet 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ebxml Rosettanet 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard .
Shortening product life cycle
– it is one of the major threat that Ebxml Rosettanet is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Ebxml Rosettanet 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. Ebxml Rosettanet 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.
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. Ebxml Rosettanet can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study RosettaNet and ebXML: Betting on the Right eBusiness Standard, Ebxml Rosettanet 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 .
Weighted SWOT Analysis of RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 RosettaNet and ebXML: Betting on the Right eBusiness Standard 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 Ebxml Rosettanet needs to make to build a sustainable competitive advantage.
