Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation
Enterprise resource planning (ERP) systems introduce changes on a larger scale than most other systems. They link various components of the organization and modify its structure by deploying standardized processes and data models, which can lead to higher efficiency and significant cost savings. This case shows the adjustment dynamic between an ERP system and the other components of the organization. The project is a very large one, involving an investment of several hundred million dollars. The results are impressive. Bombardier implemented new processes through the use of the system, changed the roles of its employees, created a different way of looking at the organization and its activities and established new value indicators that helped crystallize the new behaviours.
Authors :: Benoit Aubert, Simon Bourdeau, Brett Walker
Swot Analysis of "Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation" written by Benoit Aubert, Simon Bourdeau, Brett Walker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Erp Crystallize facing as an external strategic factors. Some of the topics covered in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation case study are - Strategic Management Strategies, International business, IT, Project management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , there is backlash against globalization, increasing energy prices, challanges to central banks by blockchain based private currencies,
central banks are concerned over increasing inflation, technology disruption, etc
Introduction to SWOT Analysis of Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Erp Crystallize, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Erp Crystallize 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation can be done for the following purposes –
1. Strategic planning using facts provided in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation case study
2. Improving business portfolio management of Erp Crystallize
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 Erp Crystallize
Strengths Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Erp Crystallize in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation Harvard Business Review case study are -
Learning organization
- Erp Crystallize 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 Erp Crystallize is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Erp Crystallize is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Erp Crystallize in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Erp Crystallize 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
– Erp Crystallize 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 Benoit Aubert, Simon Bourdeau, Brett Walker 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.
Effective Research and Development (R&D)
– Erp Crystallize 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Technology & Operations industry
– Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation firm has clearly differentiated products in the market place. This has enabled Erp Crystallize to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Erp Crystallize to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Erp Crystallize in the sector have low bargaining power. Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Erp Crystallize to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Erp Crystallize is present in almost all the verticals within the industry. This has provided firm in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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.
Innovation driven organization
– Erp Crystallize is one of the most innovative firm in sector. Manager in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Erp Crystallize digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Erp Crystallize 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.
Training and development
– Erp Crystallize has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation are -
Skills based hiring
– The stress on hiring functional specialists at Erp Crystallize 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, it seems that the employees of Erp Crystallize 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Erp Crystallize 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Erp Crystallize 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.
Need for greater diversity
– Erp Crystallize 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.
High cash cycle compare to competitors
Erp Crystallize 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 strategic competitive environment developments
– As Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation HBR case study mentions - Erp Crystallize 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, in the dynamic environment Erp Crystallize has struggled to respond to the nimble upstart competition. Erp Crystallize has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, is just above the industry average. Erp Crystallize 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.
Capital Spending Reduction
– Even during the low interest decade, Erp Crystallize 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.
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 Erp Crystallize supply chain. Even after few cautionary changes mentioned in the HBR case study - Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Erp Crystallize vulnerable to further global disruptions in South East Asia.
Opportunities Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation | 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation are -
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. Erp Crystallize can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Erp Crystallize can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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.
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 Erp Crystallize in the consumer business. Now Erp Crystallize can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Erp Crystallize 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.
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. Erp Crystallize 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. Erp Crystallize 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Erp Crystallize can use these opportunities to build new business models that can help the communities that Erp Crystallize operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Erp Crystallize can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Erp Crystallize can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Erp Crystallize 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Erp Crystallize is facing challenges because of the dominance of functional experts in the organization. Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Erp Crystallize 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 Erp Crystallize to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Erp Crystallize has opened avenues for new revenue streams for the organization in the industry. This can help Erp Crystallize to build a more holistic ecosystem as suggested in the Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation case study. Erp Crystallize can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Erp Crystallize to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation are -
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 Erp Crystallize business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Erp Crystallize
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Erp Crystallize.
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
– Erp Crystallize 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, Erp Crystallize 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 .
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. Erp Crystallize needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Consumer confidence and its impact on Erp Crystallize 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, Erp Crystallize 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation .
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 Erp Crystallize.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Erp Crystallize 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.
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. Erp Crystallize 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.
High dependence on third party suppliers
– Erp Crystallize 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.
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. Erp Crystallize can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Erp Crystallize needs to make to build a sustainable competitive advantage.