Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation
Organizations are continually challenged to increase efficiency and improve performance despite frequent cuts to personnel and budgets. These challenges force organizations to identify, develop, and diffuse various management innovations. Diffusion efforts are often met by resistance, reluctance, or ambivalence, resulting in what many consider to be a fool's errand. While management innovation may not be the forte of large, bureaucratic organizations, we present a case of study of a U.S. Air Force maintenance, repair, and overhaul organization that has recently, and successfully, diffused a large-scale management innovation. Results from the case study support the development of a diffusion of innovation framework that identifies important mechanisms associated with the acceptance, routinization, and assimilation of management innovation. The framework informs leaders of the diffusion process, while the recommended actions of relentless leadership, deliberate development of personnel, and enterprise involvement drive diffusion efforts and help leaders achieve desired results in innovation diffusion and associated performance improvement. Overall, we assert that the pursuit of management innovation is not necessarily beyond the art of the possible for business leaders.
Authors :: Matthew A. Douglas, Robert E. Overstreet, Benjamin T. Hazen
Swot Analysis of "Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation" written by Matthew A. Douglas, Robert E. Overstreet, Benjamin T. Hazen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diffusion Innovation facing as an external strategic factors. Some of the topics covered in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation case study are - Strategic Management Strategies, Innovation, Leadership, Manufacturing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation casestudy better are - – wage bills are increasing, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diffusion Innovation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diffusion Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation can be done for the following purposes –
1. Strategic planning using facts provided in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation case study
2. Improving business portfolio management of Diffusion Innovation
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 Diffusion Innovation
Strengths Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diffusion Innovation in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation Harvard Business Review case study are -
Diverse revenue streams
– Diffusion Innovation is present in almost all the verticals within the industry. This has provided firm in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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
– Diffusion Innovation 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 Matthew A. Douglas, Robert E. Overstreet, Benjamin T. Hazen 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.
Organizational Resilience of Diffusion Innovation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diffusion Innovation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Technology & Operations industry
– Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation firm has clearly differentiated products in the market place. This has enabled Diffusion Innovation to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Diffusion Innovation to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Diffusion Innovation is one of the leading recruiters in the industry. Managers in the Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Diffusion Innovation 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 Diffusion Innovation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Diffusion Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Diffusion Innovation 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.
Strong track record of project management
– Diffusion Innovation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Diffusion Innovation 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.
Training and development
– Diffusion Innovation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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.
Innovation driven organization
– Diffusion Innovation is one of the most innovative firm in sector. Manager in Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation are -
Need for greater diversity
– Diffusion Innovation 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Diffusion Innovation 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Diffusion Innovation 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Diffusion Innovation has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Matthew A. Douglas, Robert E. Overstreet, Benjamin T. Hazen suggests that, Diffusion Innovation 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.
High cash cycle compare to competitors
Diffusion Innovation 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.
Capital Spending Reduction
– Even during the low interest decade, Diffusion Innovation 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 Diffusion Innovation supply chain. Even after few cautionary changes mentioned in the HBR case study - Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Diffusion Innovation vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Diffusion Innovation, firm in the HBR case study Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diffusion Innovation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Diffusion Innovation 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 - Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation should strive to include more intangible value offerings along with its core products and services.
Opportunities Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation | 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation are -
Creating value in data economy
– The success of analytics program of Diffusion Innovation has opened avenues for new revenue streams for the organization in the industry. This can help Diffusion Innovation to build a more holistic ecosystem as suggested in the Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation case study. Diffusion Innovation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Diffusion Innovation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diffusion Innovation 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.
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 Diffusion Innovation in the consumer business. Now Diffusion Innovation can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Diffusion Innovation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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.
Using analytics as competitive advantage
– Diffusion Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diffusion Innovation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Diffusion Innovation 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diffusion Innovation is facing challenges because of the dominance of functional experts in the organization. Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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.
Better consumer reach
– The expansion of the 5G network will help Diffusion Innovation to increase its market reach. Diffusion Innovation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Diffusion Innovation 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 Diffusion Innovation to hire the very best people irrespective of their geographical location.
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. Diffusion Innovation 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. Diffusion Innovation 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Diffusion Innovation 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.
Leveraging digital technologies
– Diffusion Innovation 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.
Threats Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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. Diffusion Innovation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Diffusion Innovation 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.
Shortening product life cycle
– it is one of the major threat that Diffusion Innovation is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Diffusion Innovation 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.
Environmental challenges
– Diffusion Innovation needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Diffusion Innovation can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Diffusion Innovation 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, Diffusion Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation .
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. Diffusion Innovation 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 Diffusion Innovation
– 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 Diffusion Innovation.
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. Diffusion Innovation needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation, Diffusion Innovation 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 dependence on third party suppliers
– Diffusion Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Art of the Possible or Fool's Errand? Diffusion of Large-Scale Management Innovation 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 Diffusion Innovation needs to make to build a sustainable competitive advantage.
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