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 - – challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing energy prices, increasing transportation and logistics costs, there is backlash against globalization, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion,
customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , 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 -
Ability to lead change in Technology & Operations field
– Erp Crystallize 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 Erp Crystallize in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
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.
Highly skilled collaborators
– Erp Crystallize 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Erp Crystallize 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.
Organizational Resilience of Erp Crystallize
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Erp Crystallize does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Operational resilience
– The operational resilience strategy in the Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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.
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.
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 -
Lack of clear differentiation of Erp Crystallize products
– To increase the profitability and margins on the products, Erp Crystallize needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
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.
Interest costs
– Compare to the competition, Erp Crystallize 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 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.
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.
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 bargaining power of channel partners
– Because of the regulatory requirements, Benoit Aubert, Simon Bourdeau, Brett Walker suggests that, Erp Crystallize 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.
Aligning sales with marketing
– It come across in the case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation can leverage the sales team experience to cultivate customer relationships as Erp Crystallize is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, 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.
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 -
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.
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.
Learning at scale
– Online learning technologies has now opened space for Erp Crystallize 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 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.
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.
Using analytics as competitive advantage
– Erp Crystallize 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 Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Erp Crystallize to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Leveraging digital technologies
– Erp Crystallize can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, 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.
Manufacturing automation
– Erp Crystallize 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.
Developing new processes and practices
– Erp Crystallize can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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 -
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.
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.
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.
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.
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 .
Stagnating economy with rate increase
– Erp Crystallize 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.
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 .
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Erp Crystallize with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Erp Crystallize in the Technology & Operations sector and impact the bottomline of the organization.
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.