Case Study Description of Putnam Investments: Work@Home
Putnam Investments uses technology to enable many of its frontline service providers to work routinely and permanently from their homes. This case explores issues related to this strategy, from conceptualization to implementation and highlighting continuous improvement.
Swot Analysis of "Putnam Investments: Work@Home" written by Roger Hallowell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Putnam Conceptualization facing as an external strategic factors. Some of the topics covered in Putnam Investments: Work@Home case study are - Strategic Management Strategies, Human resource management, IT, Managing people, Organizational culture, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Putnam Investments: Work@Home casestudy better are - – cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing transportation and logistics costs,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Putnam Investments: Work@Home
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Putnam Investments: Work@Home case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Putnam Conceptualization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Putnam Conceptualization 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 Putnam Investments: Work@Home can be done for the following purposes –
1. Strategic planning using facts provided in Putnam Investments: Work@Home case study
2. Improving business portfolio management of Putnam Conceptualization
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 Putnam Conceptualization
Strengths Putnam Investments: Work@Home | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Putnam Conceptualization in Putnam Investments: Work@Home Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Putnam Conceptualization in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Technology & Operations industry
– Putnam Investments: Work@Home firm has clearly differentiated products in the market place. This has enabled Putnam Conceptualization to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Putnam Conceptualization to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Putnam Conceptualization 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 Putnam Investments: Work@Home HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Putnam Conceptualization has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Putnam Conceptualization has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Training and development
– Putnam Conceptualization has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Putnam Investments: Work@Home 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.
Analytics focus
– Putnam Conceptualization 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 Roger Hallowell 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Putnam Conceptualization digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Putnam Conceptualization 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.
Organizational Resilience of Putnam Conceptualization
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Putnam Conceptualization does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Putnam Investments: Work@Home 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.
Learning organization
- Putnam Conceptualization 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 Putnam Conceptualization is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Putnam Investments: Work@Home Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Technology & Operations field
– Putnam Conceptualization 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 Putnam Conceptualization in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Putnam Conceptualization in the sector have low bargaining power. Putnam Investments: Work@Home has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Putnam Conceptualization to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Putnam Investments: Work@Home | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Putnam Investments: Work@Home are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Putnam Investments: Work@Home 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 Putnam Conceptualization has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Putnam Conceptualization 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Putnam Investments: Work@Home, it seems that the employees of Putnam Conceptualization don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Aligning sales with marketing
– It come across in the case study Putnam Investments: Work@Home 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 Putnam Investments: Work@Home can leverage the sales team experience to cultivate customer relationships as Putnam Conceptualization is planning to shift buying processes online.
High cash cycle compare to competitors
Putnam Conceptualization 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.
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 Putnam Conceptualization supply chain. Even after few cautionary changes mentioned in the HBR case study - Putnam Investments: Work@Home, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Putnam Conceptualization vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Putnam Conceptualization 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.
Slow to strategic competitive environment developments
– As Putnam Investments: Work@Home HBR case study mentions - Putnam Conceptualization 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.
Increasing silos among functional specialists
– The organizational structure of Putnam Conceptualization is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Putnam Conceptualization needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Putnam Conceptualization to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Putnam Conceptualization 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Putnam Conceptualization is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Putnam Investments: Work@Home can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Putnam Investments: Work@Home | 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 Putnam Investments: Work@Home are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Putnam Conceptualization 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Putnam Conceptualization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Putnam Conceptualization 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.
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 Putnam Conceptualization in the consumer business. Now Putnam Conceptualization can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Putnam Conceptualization 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.
Using analytics as competitive advantage
– Putnam Conceptualization 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 Putnam Investments: Work@Home - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Putnam Conceptualization to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Putnam Conceptualization can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Putnam Conceptualization 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.
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. Putnam Conceptualization 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. Putnam Conceptualization 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.
Creating value in data economy
– The success of analytics program of Putnam Conceptualization has opened avenues for new revenue streams for the organization in the industry. This can help Putnam Conceptualization to build a more holistic ecosystem as suggested in the Putnam Investments: Work@Home case study. Putnam Conceptualization can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Putnam Conceptualization to increase its market reach. Putnam Conceptualization 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.
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. Putnam Conceptualization can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Putnam Conceptualization can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Threats Putnam Investments: Work@Home External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Putnam Investments: Work@Home are -
Stagnating economy with rate increase
– Putnam Conceptualization 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.
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. Putnam Conceptualization 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
– Putnam Conceptualization 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.
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. Putnam Conceptualization needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Putnam Conceptualization 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 Putnam Investments: Work@Home .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Putnam Conceptualization with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Putnam Investments: Work@Home, Putnam Conceptualization 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
– Putnam Conceptualization 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.
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 Putnam Conceptualization.
Increasing wage structure of Putnam Conceptualization
– 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 Putnam Conceptualization.
Technology acceleration in Forth Industrial Revolution
– Putnam Conceptualization has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Putnam Conceptualization 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.
Consumer confidence and its impact on Putnam Conceptualization 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.
Weighted SWOT Analysis of Putnam Investments: Work@Home 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 Putnam Investments: Work@Home 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 Putnam Investments: Work@Home 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 Putnam Investments: Work@Home 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 Putnam Investments: Work@Home 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 Putnam Conceptualization needs to make to build a sustainable competitive advantage.
