i2 has recently acquired Aspect Development and is incorporating Aspect's offerings into its TradeMatrix product for business-to-business e-commerce. TradeMatrix embeds i2's existing products for optimizing supply chain performance by applying advanced planning and scheduling (APS) algorithms. TradeMatrix also includes capabilities for collaborative product design and sourcing. Aspect was a leader in this field, having developed an extensive database of suppliers and techniques for searching it effectively. i2 has, over the course of its history, migrated far from its roots as a vendor of APS solutions and has clearly outpaced its early competition to become a leading B2B vendor. i2 paid a high price for Aspect, and clearly feels that Aspect possesses critically important capabilities and, by extension, the requirements for successful B2B software. i2 and Aspect hope that their combined strengths will make TradeMatrix the platform of choice for communities of collaborating businesses. To do this, however, they must successfully merge their two companies and cultures.
Swot Analysis of "i2 TradeMatrix" written by Andrew McAfee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that I2 Tradematrix facing as an external strategic factors. Some of the topics covered in i2 TradeMatrix case study are - Strategic Management Strategies, Internet, IT, Mergers & acquisitions, Organizational culture and Technology & Operations.
Some of the macro environment factors that can be used to understand the i2 TradeMatrix casestudy better are - – increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs,
supply chains are disrupted by pandemic , technology disruption, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in i2 TradeMatrix case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the I2 Tradematrix, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which I2 Tradematrix 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 i2 TradeMatrix can be done for the following purposes –
1. Strategic planning using facts provided in i2 TradeMatrix case study
2. Improving business portfolio management of I2 Tradematrix
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 I2 Tradematrix
Strengths i2 TradeMatrix | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of I2 Tradematrix in i2 TradeMatrix Harvard Business Review case study are -
Organizational Resilience of I2 Tradematrix
– The covid-19 pandemic has put organizational resilience at the centre of everthing that I2 Tradematrix does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the I2 Tradematrix 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.
Innovation driven organization
– I2 Tradematrix is one of the most innovative firm in sector. Manager in i2 TradeMatrix Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– I2 Tradematrix is one of the leading recruiters in the industry. Managers in the i2 TradeMatrix 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
- I2 Tradematrix 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 I2 Tradematrix is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in i2 TradeMatrix Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Technology & Operations industry
– i2 TradeMatrix firm has clearly differentiated products in the market place. This has enabled I2 Tradematrix to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped I2 Tradematrix to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the i2 TradeMatrix Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Analytics focus
– I2 Tradematrix 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 Andrew McAfee 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.
Superior customer experience
– The customer experience strategy of I2 Tradematrix in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– I2 Tradematrix is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that I2 Tradematrix 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.
Effective Research and Development (R&D)
– I2 Tradematrix 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 i2 TradeMatrix - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses i2 TradeMatrix | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of i2 TradeMatrix are -
Workers concerns about automation
– As automation is fast increasing in the segment, I2 Tradematrix 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.
Interest costs
– Compare to the competition, I2 Tradematrix has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study i2 TradeMatrix, in the dynamic environment I2 Tradematrix has struggled to respond to the nimble upstart competition. I2 Tradematrix has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As i2 TradeMatrix HBR case study mentions - I2 Tradematrix 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study i2 TradeMatrix, is just above the industry average. I2 Tradematrix 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.
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 I2 Tradematrix supply chain. Even after few cautionary changes mentioned in the HBR case study - i2 TradeMatrix, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left I2 Tradematrix vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of I2 Tradematrix is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. I2 Tradematrix needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help I2 Tradematrix to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, I2 Tradematrix is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study i2 TradeMatrix can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Andrew McAfee suggests that, I2 Tradematrix 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.
Products dominated business model
– Even though I2 Tradematrix 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 - i2 TradeMatrix should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study i2 TradeMatrix 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 I2 Tradematrix 's lucrative customers.
Opportunities i2 TradeMatrix | 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 i2 TradeMatrix are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects I2 Tradematrix can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, I2 Tradematrix 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, i2 TradeMatrix, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at I2 Tradematrix 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for I2 Tradematrix 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
– I2 Tradematrix 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.
Creating value in data economy
– The success of analytics program of I2 Tradematrix has opened avenues for new revenue streams for the organization in the industry. This can help I2 Tradematrix to build a more holistic ecosystem as suggested in the i2 TradeMatrix case study. I2 Tradematrix can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for I2 Tradematrix 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.
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. I2 Tradematrix can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– I2 Tradematrix 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, I2 Tradematrix is facing challenges because of the dominance of functional experts in the organization. i2 TradeMatrix 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
– I2 Tradematrix 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
– I2 Tradematrix 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, I2 Tradematrix can use these opportunities to build new business models that can help the communities that I2 Tradematrix operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Threats i2 TradeMatrix External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study i2 TradeMatrix are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents I2 Tradematrix with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for I2 Tradematrix in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– I2 Tradematrix 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. I2 Tradematrix can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology acceleration in Forth Industrial Revolution
– I2 Tradematrix has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, I2 Tradematrix 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.
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. I2 Tradematrix 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 I2 Tradematrix 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 I2 Tradematrix 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.
Stagnating economy with rate increase
– I2 Tradematrix 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.
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 I2 Tradematrix.
High dependence on third party suppliers
– I2 Tradematrix 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.
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. I2 Tradematrix needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 I2 Tradematrix business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of I2 Tradematrix
– 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 I2 Tradematrix.
Weighted SWOT Analysis of i2 TradeMatrix 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 i2 TradeMatrix 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 i2 TradeMatrix 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 i2 TradeMatrix 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 i2 TradeMatrix 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 I2 Tradematrix needs to make to build a sustainable competitive advantage.
