Tecnovate: Challenges of Business Process Outsourcing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tecnovate: Challenges of Business Process Outsourcing
Business Process Outsourcing (BPO) service provider, Tecnovate eSolutions Pvt. Ltd, was set up in India as a captive to provide contact center services, BPO services, and IT services to its parent company in the travel services sector. Outsourcing is a complex phenomenon and involves formal evaluation and planning before companies can take the leap. Can be used as a vehicle for understanding the risks and challenges involved in a real life outsourcing scenario. Focuses on the critical transition sub-phase of the outsourcing lifecycle and the evolving growth strategies of business process outsourcing.
Authors :: Vanita Yadav, Sangeeta Shah Bharadwaj, K.B.C. Saxena
Swot Analysis of "Tecnovate: Challenges of Business Process Outsourcing" written by Vanita Yadav, Sangeeta Shah Bharadwaj, K.B.C. Saxena includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Outsourcing Tecnovate facing as an external strategic factors. Some of the topics covered in Tecnovate: Challenges of Business Process Outsourcing case study are - Strategic Management Strategies, Growth strategy, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Tecnovate: Challenges of Business Process Outsourcing casestudy better are - – increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing government debt because of Covid-19 spendings, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Tecnovate: Challenges of Business Process Outsourcing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tecnovate: Challenges of Business Process Outsourcing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Outsourcing Tecnovate, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Outsourcing Tecnovate 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 Tecnovate: Challenges of Business Process Outsourcing can be done for the following purposes –
1. Strategic planning using facts provided in Tecnovate: Challenges of Business Process Outsourcing case study
2. Improving business portfolio management of Outsourcing Tecnovate
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 Outsourcing Tecnovate
Strengths Tecnovate: Challenges of Business Process Outsourcing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Outsourcing Tecnovate in Tecnovate: Challenges of Business Process Outsourcing Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Tecnovate: Challenges of Business Process Outsourcing 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.
Ability to lead change in Technology & Operations field
– Outsourcing Tecnovate 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 Outsourcing Tecnovate in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Outsourcing Tecnovate 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 Tecnovate: Challenges of Business Process Outsourcing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Outsourcing Tecnovate has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Tecnovate: Challenges of Business Process Outsourcing 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)
– Outsourcing Tecnovate 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 Tecnovate: Challenges of Business Process Outsourcing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Outsourcing Tecnovate 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 Outsourcing Tecnovate is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tecnovate: Challenges of Business Process Outsourcing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Outsourcing Tecnovate is present in almost all the verticals within the industry. This has provided firm in Tecnovate: Challenges of Business Process Outsourcing 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.
Analytics focus
– Outsourcing Tecnovate 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 Vanita Yadav, Sangeeta Shah Bharadwaj, K.B.C. Saxena 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
– Tecnovate: Challenges of Business Process Outsourcing firm has clearly differentiated products in the market place. This has enabled Outsourcing Tecnovate to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Outsourcing Tecnovate to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Outsourcing Tecnovate has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Outsourcing Tecnovate has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Outsourcing Tecnovate has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Outsourcing Tecnovate to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Outsourcing Tecnovate in the sector have low bargaining power. Tecnovate: Challenges of Business Process Outsourcing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Outsourcing Tecnovate to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Tecnovate: Challenges of Business Process Outsourcing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tecnovate: Challenges of Business Process Outsourcing are -
No frontier risks strategy
– After analyzing the HBR case study Tecnovate: Challenges of Business Process Outsourcing, 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.
Skills based hiring
– The stress on hiring functional specialists at Outsourcing Tecnovate 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.
Lack of clear differentiation of Outsourcing Tecnovate products
– To increase the profitability and margins on the products, Outsourcing Tecnovate needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Outsourcing Tecnovate 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.
Increasing silos among functional specialists
– The organizational structure of Outsourcing Tecnovate is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Outsourcing Tecnovate needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Outsourcing Tecnovate to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Outsourcing Tecnovate is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tecnovate: Challenges of Business Process Outsourcing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Outsourcing Tecnovate 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 - Tecnovate: Challenges of Business Process Outsourcing should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Tecnovate: Challenges of Business Process Outsourcing 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 Tecnovate: Challenges of Business Process Outsourcing can leverage the sales team experience to cultivate customer relationships as Outsourcing Tecnovate is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Outsourcing Tecnovate 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. Outsourcing Tecnovate 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.
Capital Spending Reduction
– Even during the low interest decade, Outsourcing Tecnovate 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Tecnovate: Challenges of Business Process Outsourcing, in the dynamic environment Outsourcing Tecnovate has struggled to respond to the nimble upstart competition. Outsourcing Tecnovate has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Tecnovate: Challenges of Business Process Outsourcing | 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 Tecnovate: Challenges of Business Process Outsourcing are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Outsourcing Tecnovate is facing challenges because of the dominance of functional experts in the organization. Tecnovate: Challenges of Business Process Outsourcing 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.
Buying journey improvements
– Outsourcing Tecnovate can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tecnovate: Challenges of Business Process Outsourcing 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.
Learning at scale
– Online learning technologies has now opened space for Outsourcing Tecnovate 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Outsourcing Tecnovate 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.
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. Outsourcing Tecnovate can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Outsourcing Tecnovate 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 Outsourcing Tecnovate to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Outsourcing Tecnovate 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 Tecnovate: Challenges of Business Process Outsourcing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Outsourcing Tecnovate to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Outsourcing Tecnovate 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, Tecnovate: Challenges of Business Process Outsourcing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Outsourcing Tecnovate 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. Outsourcing Tecnovate 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.
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 Outsourcing Tecnovate in the consumer business. Now Outsourcing Tecnovate can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Outsourcing Tecnovate has opened avenues for new revenue streams for the organization in the industry. This can help Outsourcing Tecnovate to build a more holistic ecosystem as suggested in the Tecnovate: Challenges of Business Process Outsourcing case study. Outsourcing Tecnovate 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, Outsourcing Tecnovate 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.
Building a culture of innovation
– managers at Outsourcing Tecnovate 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.
Threats Tecnovate: Challenges of Business Process Outsourcing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tecnovate: Challenges of Business Process Outsourcing 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. Outsourcing Tecnovate can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Outsourcing Tecnovate business can come under increasing regulations regarding data privacy, data security, etc.
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 Outsourcing Tecnovate.
Regulatory challenges
– Outsourcing Tecnovate 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.
High dependence on third party suppliers
– Outsourcing Tecnovate 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 acceleration in Forth Industrial Revolution
– Outsourcing Tecnovate has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Outsourcing Tecnovate 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.
Shortening product life cycle
– it is one of the major threat that Outsourcing Tecnovate is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Outsourcing Tecnovate 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 Tecnovate: Challenges of Business Process Outsourcing .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Outsourcing Tecnovate 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.
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.
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. Outsourcing Tecnovate needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Outsourcing Tecnovate 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 Outsourcing Tecnovate with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Tecnovate: Challenges of Business Process Outsourcing 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 Tecnovate: Challenges of Business Process Outsourcing 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 Tecnovate: Challenges of Business Process Outsourcing 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 Tecnovate: Challenges of Business Process Outsourcing 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 Tecnovate: Challenges of Business Process Outsourcing 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 Outsourcing Tecnovate needs to make to build a sustainable competitive advantage.
