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 - – geopolitical disruptions, increasing commodity prices, wage bills are increasing, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings,
challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
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.
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.
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.
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.
Ability to recruit top talent
– Erp Crystallize is one of the leading recruiters in the industry. Managers in the Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Erp Crystallize has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Erp Crystallize to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Successful track record of launching new products
– Erp Crystallize has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Erp Crystallize 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.
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.
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.
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.
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 -
Increasing silos among functional specialists
– The organizational structure of Erp Crystallize is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Erp Crystallize needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Erp Crystallize to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Erp Crystallize has relatively successful track record of launching new products.
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 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.
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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Erp Crystallize is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 Erp Crystallize 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 - Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation 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 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.
Low market penetration in new markets
– Outside its home market of Erp Crystallize, firm in the HBR case study Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Erp Crystallize 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, Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Erp Crystallize to increase its market reach. Erp Crystallize will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
Building a culture of innovation
– managers at Erp Crystallize 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 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 -
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.
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.
Shortening product life cycle
– it is one of the major threat that Erp Crystallize is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
