Fiserv Takes on the E-Billing Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fiserv Takes on the E-Billing Market
Fiserv, a pioneer in electronic payments, would like to increase the number of consumers who receive bills electronically. Currently, adoption is relatively low. To help guide their efforts, Fiserv managers have done extensive customer research and have segmented the market based on customer perceptions of e-billing. Students must recommend which segments to target and why. To support their recommendations, students must calculate the likely financial costs and benefits of adoption, estimate the likely returns for targeting different segments, and make targeting and positioning recommendations based on these calculations. Because Fiserv's direct customers are billers (such as utilities and credit card companies) and its end users are individual consumers, the case allows a focus on both B2B and B2C issues.
Authors :: Kent Grayson, Eric Leiserson, Sachin Waikar
Swot Analysis of "Fiserv Takes on the E-Billing Market" written by Kent Grayson, Eric Leiserson, Sachin Waikar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fiserv Billing facing as an external strategic factors. Some of the topics covered in Fiserv Takes on the E-Billing Market case study are - Strategic Management Strategies, Marketing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Fiserv Takes on the E-Billing Market casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, geopolitical disruptions, cloud computing is disrupting traditional business models,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Fiserv Takes on the E-Billing Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fiserv Takes on the E-Billing Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fiserv Billing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fiserv Billing 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 Fiserv Takes on the E-Billing Market can be done for the following purposes –
1. Strategic planning using facts provided in Fiserv Takes on the E-Billing Market case study
2. Improving business portfolio management of Fiserv Billing
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 Fiserv Billing
Strengths Fiserv Takes on the E-Billing Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fiserv Billing in Fiserv Takes on the E-Billing Market Harvard Business Review case study are -
Effective Research and Development (R&D)
– Fiserv Billing 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 Fiserv Takes on the E-Billing Market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Fiserv Billing 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 Fiserv Takes on the E-Billing Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Fiserv Billing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Fiserv Takes on the E-Billing Market 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.
Operational resilience
– The operational resilience strategy in the Fiserv Takes on the E-Billing Market 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.
Cross disciplinary teams
– Horizontal connected teams at the Fiserv Billing 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.
Diverse revenue streams
– Fiserv Billing is present in almost all the verticals within the industry. This has provided firm in Fiserv Takes on the E-Billing Market 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.
High switching costs
– The high switching costs that Fiserv Billing 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.
Ability to lead change in Technology & Operations field
– Fiserv Billing 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 Fiserv Billing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Fiserv Billing is one of the leading recruiters in the industry. Managers in the Fiserv Takes on the E-Billing Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Fiserv Billing 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 Fiserv Billing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fiserv Takes on the E-Billing Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Fiserv Billing is one of the most innovative firm in sector. Manager in Fiserv Takes on the E-Billing Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Fiserv Billing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fiserv Billing 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.
Weaknesses Fiserv Takes on the E-Billing Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fiserv Takes on the E-Billing Market are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Fiserv Takes on the E-Billing Market, is just above the industry average. Fiserv Billing 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fiserv Billing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fiserv Takes on the E-Billing Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Fiserv Billing 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.
Increasing silos among functional specialists
– The organizational structure of Fiserv Billing is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Fiserv Billing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fiserv Billing to focus more on services rather than just following the product oriented approach.
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 Fiserv Billing supply chain. Even after few cautionary changes mentioned in the HBR case study - Fiserv Takes on the E-Billing Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fiserv Billing vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Fiserv Takes on the E-Billing Market 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 Fiserv Billing 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Fiserv Takes on the E-Billing Market, in the dynamic environment Fiserv Billing has struggled to respond to the nimble upstart competition. Fiserv Billing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Fiserv Billing 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.
Aligning sales with marketing
– It come across in the case study Fiserv Takes on the E-Billing Market 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 Fiserv Takes on the E-Billing Market can leverage the sales team experience to cultivate customer relationships as Fiserv Billing is planning to shift buying processes online.
Lack of clear differentiation of Fiserv Billing products
– To increase the profitability and margins on the products, Fiserv Billing needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Fiserv Takes on the E-Billing Market HBR case study mentions - Fiserv Billing 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.
Opportunities Fiserv Takes on the E-Billing Market | 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 Fiserv Takes on the E-Billing Market are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fiserv Billing 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, Fiserv Takes on the E-Billing Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fiserv Billing 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.
Learning at scale
– Online learning technologies has now opened space for Fiserv Billing 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.
Creating value in data economy
– The success of analytics program of Fiserv Billing has opened avenues for new revenue streams for the organization in the industry. This can help Fiserv Billing to build a more holistic ecosystem as suggested in the Fiserv Takes on the E-Billing Market case study. Fiserv Billing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fiserv Billing 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 Fiserv Billing to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Fiserv Billing 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.
Manufacturing automation
– Fiserv Billing 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.
Leveraging digital technologies
– Fiserv Billing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fiserv Billing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Fiserv Billing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Fiserv Takes on the E-Billing Market 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.
Better consumer reach
– The expansion of the 5G network will help Fiserv Billing to increase its market reach. Fiserv Billing 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.
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 Fiserv Billing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fiserv Billing is facing challenges because of the dominance of functional experts in the organization. Fiserv Takes on the E-Billing Market 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.
Threats Fiserv Takes on the E-Billing Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fiserv Takes on the E-Billing Market are -
Environmental challenges
– Fiserv Billing 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. Fiserv Billing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Fiserv Billing 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.
Shortening product life cycle
– it is one of the major threat that Fiserv Billing is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Fiserv Billing.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fiserv Billing 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.
Consumer confidence and its impact on Fiserv Billing 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.
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. Fiserv Billing 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. Fiserv Billing 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.
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.
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 Fiserv Billing business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fiserv Billing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Fiserv Billing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Fiserv Takes on the E-Billing Market 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 Fiserv Takes on the E-Billing Market 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 Fiserv Takes on the E-Billing Market 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 Fiserv Takes on the E-Billing Market 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 Fiserv Takes on the E-Billing Market 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 Fiserv Billing needs to make to build a sustainable competitive advantage.