Case Study Description of Knowledge Management at Accenture
Accenture has long been seen as a leader in knowledge management, having received awards for many years. Over the years though, islands of knowledge have developed throughout the organization and the delivery infrastructure has become progressively more expensive. In 2004, the global knowledge management lead has been given the mandate to lead a revitalization of knowledge management. Outlines governance challenges in the global firm, the transition to a new IT infrastructure, and the strategic challenges and opportunities facing knowledge management within Accenture.
Swot Analysis of "Knowledge Management at Accenture" written by Darren Meister, Thomas H. Davenport includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knowledge Accenture facing as an external strategic factors. Some of the topics covered in Knowledge Management at Accenture case study are - Strategic Management Strategies, IT, Knowledge management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Knowledge Management at Accenture casestudy better are - – talent flight as more people leaving formal jobs, increasing energy prices, challanges to central banks by blockchain based private currencies, increasing commodity prices, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Knowledge Management at Accenture
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Knowledge Management at Accenture case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knowledge Accenture, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knowledge Accenture 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 Knowledge Management at Accenture can be done for the following purposes –
1. Strategic planning using facts provided in Knowledge Management at Accenture case study
2. Improving business portfolio management of Knowledge Accenture
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 Knowledge Accenture
Strengths Knowledge Management at Accenture | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knowledge Accenture in Knowledge Management at Accenture Harvard Business Review case study are -
Training and development
– Knowledge Accenture has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Knowledge Management at Accenture 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.
Cross disciplinary teams
– Horizontal connected teams at the Knowledge Accenture 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.
Sustainable margins compare to other players in Technology & Operations industry
– Knowledge Management at Accenture firm has clearly differentiated products in the market place. This has enabled Knowledge Accenture to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Knowledge Accenture to invest into research and development (R&D) and innovation.
Strong track record of project management
– Knowledge Accenture is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Knowledge Accenture digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Knowledge Accenture 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.
Diverse revenue streams
– Knowledge Accenture is present in almost all the verticals within the industry. This has provided firm in Knowledge Management at Accenture 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.
Highly skilled collaborators
– Knowledge Accenture 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 Knowledge Management at Accenture HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Knowledge Accenture is one of the leading recruiters in the industry. Managers in the Knowledge Management at Accenture 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
- Knowledge Accenture 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 Knowledge Accenture is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Knowledge Management at Accenture Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Knowledge Accenture 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 Darren Meister, Thomas H. Davenport can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Knowledge Accenture
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Knowledge Accenture does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Knowledge Accenture 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.
Weaknesses Knowledge Management at Accenture | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Knowledge Management at Accenture are -
Slow decision making process
– As mentioned earlier in the report, Knowledge Accenture 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. Knowledge Accenture 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 operating costs
– Compare to the competitors, firm in the HBR case study Knowledge Management at Accenture 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 Knowledge Accenture 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Knowledge Management at Accenture, in the dynamic environment Knowledge Accenture has struggled to respond to the nimble upstart competition. Knowledge Accenture has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Knowledge Accenture is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Knowledge Accenture needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Knowledge Accenture to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Knowledge Management at Accenture HBR case study mentions - Knowledge Accenture 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Knowledge Accenture is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Knowledge Management at Accenture can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Knowledge Management at Accenture, is just above the industry average. Knowledge Accenture 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 bargaining power of channel partners
– Because of the regulatory requirements, Darren Meister, Thomas H. Davenport suggests that, Knowledge Accenture 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Knowledge Accenture 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 Knowledge Management at Accenture 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 Knowledge Management at Accenture can leverage the sales team experience to cultivate customer relationships as Knowledge Accenture is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Knowledge Accenture, firm in the HBR case study Knowledge Management at Accenture needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Knowledge Management at Accenture | 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 Knowledge Management at Accenture are -
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 Knowledge Accenture 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.
Buying journey improvements
– Knowledge Accenture can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Knowledge Management at Accenture 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 Knowledge Accenture to increase its market reach. Knowledge Accenture 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. Knowledge Accenture can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Knowledge Accenture is facing challenges because of the dominance of functional experts in the organization. Knowledge Management at Accenture 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Knowledge Accenture can use these opportunities to build new business models that can help the communities that Knowledge Accenture operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Knowledge Accenture can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Knowledge Accenture 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 Knowledge Management at Accenture - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Knowledge Accenture to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Knowledge Accenture has opened avenues for new revenue streams for the organization in the industry. This can help Knowledge Accenture to build a more holistic ecosystem as suggested in the Knowledge Management at Accenture case study. Knowledge Accenture can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Knowledge Accenture 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knowledge Accenture 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 Knowledge Accenture 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.
Loyalty marketing
– Knowledge Accenture 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 Knowledge Management at Accenture External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Knowledge Management at Accenture are -
Increasing wage structure of Knowledge Accenture
– 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 Knowledge Accenture.
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 Knowledge Accenture in the Technology & Operations sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Knowledge Accenture with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Knowledge Accenture 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 Knowledge Management at Accenture .
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. Knowledge Accenture can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Knowledge Accenture has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Knowledge Accenture 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.
High dependence on third party suppliers
– Knowledge Accenture 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.
Stagnating economy with rate increase
– Knowledge Accenture 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.
Environmental challenges
– Knowledge Accenture 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. Knowledge Accenture can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Knowledge Accenture 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. Knowledge Accenture 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. Knowledge Accenture 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.
Weighted SWOT Analysis of Knowledge Management at Accenture 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 Knowledge Management at Accenture 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 Knowledge Management at Accenture 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 Knowledge Management at Accenture 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 Knowledge Management at Accenture 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 Knowledge Accenture needs to make to build a sustainable competitive advantage.
