An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise
There is a dearth of research on the capabilities of innovative small-to-medium software enterprises (SMSEs). Understanding how SMSEs build and apply business and information systems (IS) capabilities is important, as such firms account for over 90% of software enterprises operating in Europe and the US. This paper elaborates and applies dynamic capability theory to explore and help understand the web of conditions and factors that shaped and influenced business and IS capability development and application in one European SMSE. Drawing on the overarching theory of dynamic capabilities, a theoretical model is presented that posits relationships among (1) a firm's past activities; (2) its integration, learning and reconfiguration, and transformation capabilities; (3) its financial, complementary, locational, and technological asset positions; and (4) the products and services that result, and which are of value to an SMSE's customers. The paper refines and elaborates the model by describing and enumerating the business and IS capabilities, assets, and products and services of the SMSE under study. To properly assess whether this firm's products and services were of value to its customers, research was also conducted at two customer sites in Ireland and the US, in addition to the investigation at the primary research site in Dublin. The study therefore informs both practitioners' and researchers' understandings of this complex and under-researched phenomenon: for practitioners, it highlights the characteristics required to build innovative software solutions; for researchers, it illustrates the patterns and regularities associated with the development and application of business and IS capabilities.
Swot Analysis of "An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise" written by Tom Butler, Ciaran Murphy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Capabilities Smse facing as an external strategic factors. Some of the topics covered in An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise casestudy better are - – increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, geopolitical disruptions, wage bills are increasing, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Capabilities Smse, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Capabilities Smse 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise can be done for the following purposes –
1. Strategic planning using facts provided in An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise case study
2. Improving business portfolio management of Capabilities Smse
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 Capabilities Smse
Strengths An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Capabilities Smse in An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise Harvard Business Review case study are -
Organizational Resilience of Capabilities Smse
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Capabilities Smse does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Capabilities Smse digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Capabilities Smse 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.
Analytics focus
– Capabilities Smse 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 Tom Butler, Ciaran Murphy 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.
Cross disciplinary teams
– Horizontal connected teams at the Capabilities Smse 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.
Effective Research and Development (R&D)
– Capabilities Smse 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise - 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
– Capabilities Smse is one of the most innovative firm in sector. Manager in An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Capabilities Smse in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Capabilities Smse is present in almost all the verticals within the industry. This has provided firm in An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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.
Strong track record of project management
– Capabilities Smse is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Capabilities Smse is one of the leading recruiters in the industry. Managers in the An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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.
High switching costs
– The high switching costs that Capabilities Smse 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.
Weaknesses An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise are -
Products dominated business model
– Even though Capabilities Smse 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 - An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Capabilities Smse 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise, in the dynamic environment Capabilities Smse has struggled to respond to the nimble upstart competition. Capabilities Smse has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Capabilities Smse is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Capabilities Smse products
– To increase the profitability and margins on the products, Capabilities Smse 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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 Capabilities Smse 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise HBR case study mentions - Capabilities Smse 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Tom Butler, Ciaran Murphy suggests that, Capabilities Smse 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.
Interest costs
– Compare to the competition, Capabilities Smse 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Capabilities Smse 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.
Opportunities An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise | 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise are -
Using analytics as competitive advantage
– Capabilities Smse 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Capabilities Smse to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Capabilities Smse is facing challenges because of the dominance of functional experts in the organization. An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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.
Manufacturing automation
– Capabilities Smse 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Capabilities Smse 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Capabilities Smse 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, An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Capabilities Smse can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Capabilities Smse can use these opportunities to build new business models that can help the communities that Capabilities Smse 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 Capabilities Smse in the consumer business. Now Capabilities Smse can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Capabilities Smse can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Capabilities Smse 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.
Learning at scale
– Online learning technologies has now opened space for Capabilities Smse 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.
Creating value in data economy
– The success of analytics program of Capabilities Smse has opened avenues for new revenue streams for the organization in the industry. This can help Capabilities Smse to build a more holistic ecosystem as suggested in the An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise case study. Capabilities Smse can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Capabilities Smse 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. Capabilities Smse 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise are -
Environmental challenges
– Capabilities Smse 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. Capabilities Smse can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Capabilities Smse.
Shortening product life cycle
– it is one of the major threat that Capabilities Smse is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Capabilities Smse business can come under increasing regulations regarding data privacy, data security, etc.
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. Capabilities Smse needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Regulatory challenges
– Capabilities Smse 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.
Technology acceleration in Forth Industrial Revolution
– Capabilities Smse has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Capabilities Smse 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.
High dependence on third party suppliers
– Capabilities Smse 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.
Stagnating economy with rate increase
– Capabilities Smse 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Capabilities Smse with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Capabilities Smse 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.
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.
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.
Weighted SWOT Analysis of An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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 An Exploratory Study on IS Capabilities and Assets in a Small-to-Medium Software Enterprise 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 Capabilities Smse needs to make to build a sustainable competitive advantage.
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