Creativity in Design: Experimenting and Innovating at teamLab Japan SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Creativity in Design: Experimenting and Innovating at teamLab Japan
In 2001, Toshiyuki Inoko founded the Japanese digital artist collaborative, teamLab, with an aim to achieve a balance between art, science, technology and creativity by creating original digital designs. This involves the use of extremely sophisticated digital media work which can be presented via computers, high definition monitors, and/or projections, depending on the space available for installation. From a small group of five friends that set up the company in 2001, teamLab has since grown to over 400 employees working on more than one hundred projects at any point in time. teamLab's business model appeared to have successfully harnessed the creativity and expertise of its people to deliver innovative and imaginative products that were becoming increasingly popular in the market. But how could the company ensure that it did not let the excitement and novelty of their products wear off, as it was this uniqueness that provided them with a strong competitive edge? Moreover, with growth and success came a different set of challenges. The team had grown, which meant that collaboration among the team members would have to be managed far more systematically, and processes would need to be implemented to manage the growing business effectively - but this could also potentially impede an intrinsically disorderly creative process. How best could Inoko successfully manage the spectacular growth of his company and the challenges that came with it, while nurturing the creative spark?
Swot Analysis of "Creativity in Design: Experimenting and Innovating at teamLab Japan" written by Ali Farhoomand, Havovi Joshi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Teamlab Inoko facing as an external strategic factors. Some of the topics covered in Creativity in Design: Experimenting and Innovating at teamLab Japan case study are - Strategic Management Strategies, Creativity, Design, Entrepreneurship, Organizational culture and Technology & Operations.
Some of the macro environment factors that can be used to understand the Creativity in Design: Experimenting and Innovating at teamLab Japan casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, wage bills are increasing, there is backlash against globalization, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, increasing energy prices, etc
Introduction to SWOT Analysis of Creativity in Design: Experimenting and Innovating at teamLab Japan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Creativity in Design: Experimenting and Innovating at teamLab Japan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Teamlab Inoko, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Teamlab Inoko 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 Creativity in Design: Experimenting and Innovating at teamLab Japan can be done for the following purposes –
1. Strategic planning using facts provided in Creativity in Design: Experimenting and Innovating at teamLab Japan case study
2. Improving business portfolio management of Teamlab Inoko
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 Teamlab Inoko
Strengths Creativity in Design: Experimenting and Innovating at teamLab Japan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Teamlab Inoko in Creativity in Design: Experimenting and Innovating at teamLab Japan Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Creativity in Design: Experimenting and Innovating at teamLab Japan 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.
Highly skilled collaborators
– Teamlab Inoko 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 Creativity in Design: Experimenting and Innovating at teamLab Japan HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Teamlab Inoko 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 Teamlab Inoko is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Creativity in Design: Experimenting and Innovating at teamLab Japan Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Teamlab Inoko 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 Ali Farhoomand, Havovi Joshi 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)
– Teamlab Inoko 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 Creativity in Design: Experimenting and Innovating at teamLab Japan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Teamlab Inoko has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Teamlab Inoko to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Teamlab Inoko 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.
Superior customer experience
– The customer experience strategy of Teamlab Inoko in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Teamlab Inoko 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
– Teamlab Inoko is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Teamlab Inoko is one of the most innovative firm in sector. Manager in Creativity in Design: Experimenting and Innovating at teamLab Japan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Teamlab Inoko in the sector have low bargaining power. Creativity in Design: Experimenting and Innovating at teamLab Japan has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Teamlab Inoko to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Creativity in Design: Experimenting and Innovating at teamLab Japan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Creativity in Design: Experimenting and Innovating at teamLab Japan are -
No frontier risks strategy
– After analyzing the HBR case study Creativity in Design: Experimenting and Innovating at teamLab Japan, 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.
Need for greater diversity
– Teamlab Inoko 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.
Slow to strategic competitive environment developments
– As Creativity in Design: Experimenting and Innovating at teamLab Japan HBR case study mentions - Teamlab Inoko 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.
Slow decision making process
– As mentioned earlier in the report, Teamlab Inoko has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Teamlab Inoko even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Teamlab Inoko 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Creativity in Design: Experimenting and Innovating at teamLab Japan, in the dynamic environment Teamlab Inoko has struggled to respond to the nimble upstart competition. Teamlab Inoko 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 Creativity in Design: Experimenting and Innovating at teamLab Japan, is just above the industry average. Teamlab Inoko 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.
Low market penetration in new markets
– Outside its home market of Teamlab Inoko, firm in the HBR case study Creativity in Design: Experimenting and Innovating at teamLab Japan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Creativity in Design: Experimenting and Innovating at teamLab Japan 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 Teamlab Inoko has relatively successful track record of launching new products.
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 Teamlab Inoko supply chain. Even after few cautionary changes mentioned in the HBR case study - Creativity in Design: Experimenting and Innovating at teamLab Japan, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Teamlab Inoko vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Teamlab Inoko 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.
Opportunities Creativity in Design: Experimenting and Innovating at teamLab Japan | 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 Creativity in Design: Experimenting and Innovating at teamLab Japan are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Teamlab Inoko 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.
Developing new processes and practices
– Teamlab Inoko 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.
Leveraging digital technologies
– Teamlab Inoko 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.
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. Teamlab Inoko 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. Teamlab Inoko 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.
Building a culture of innovation
– managers at Teamlab Inoko 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.
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. Teamlab Inoko can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Teamlab Inoko is facing challenges because of the dominance of functional experts in the organization. Creativity in Design: Experimenting and Innovating at teamLab Japan 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.
Manufacturing automation
– Teamlab Inoko 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.
Learning at scale
– Online learning technologies has now opened space for Teamlab Inoko 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Teamlab Inoko 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 Teamlab Inoko to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Teamlab Inoko 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Teamlab Inoko can use these opportunities to build new business models that can help the communities that Teamlab Inoko operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Loyalty marketing
– Teamlab Inoko has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Creativity in Design: Experimenting and Innovating at teamLab Japan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Creativity in Design: Experimenting and Innovating at teamLab Japan are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Teamlab Inoko with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Teamlab Inoko business can come under increasing regulations regarding data privacy, data security, etc.
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. Teamlab Inoko needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Regulatory challenges
– Teamlab Inoko 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.
Technology acceleration in Forth Industrial Revolution
– Teamlab Inoko has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Teamlab Inoko needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Teamlab Inoko 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. Teamlab Inoko can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
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 Creativity in Design: Experimenting and Innovating at teamLab Japan, Teamlab Inoko 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 .
Increasing wage structure of Teamlab Inoko
– 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 Teamlab Inoko.
Stagnating economy with rate increase
– Teamlab Inoko 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.
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. Teamlab Inoko can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Teamlab Inoko is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Creativity in Design: Experimenting and Innovating at teamLab Japan 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 Creativity in Design: Experimenting and Innovating at teamLab Japan 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 Creativity in Design: Experimenting and Innovating at teamLab Japan 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 Creativity in Design: Experimenting and Innovating at teamLab Japan 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 Creativity in Design: Experimenting and Innovating at teamLab Japan 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 Teamlab Inoko needs to make to build a sustainable competitive advantage.
