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 - – increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, geopolitical disruptions, wage bills are increasing, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, 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 -
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.
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.
Operational resilience
– The operational resilience strategy in the Knowledge Management at Accenture 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
- 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.
Ability to lead change in Technology & Operations field
– Knowledge Accenture 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 Knowledge Accenture in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Knowledge Accenture in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Knowledge Accenture has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Knowledge Accenture 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.
Low bargaining power of suppliers
– Suppliers of Knowledge Accenture in the sector have low bargaining power. Knowledge Management at Accenture has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Knowledge Accenture to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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 -
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.
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.
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.
Products dominated business model
– Even though Knowledge Accenture 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 - Knowledge Management at Accenture should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Knowledge Accenture products
– To increase the profitability and margins on the products, Knowledge Accenture needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Knowledge Management at Accenture 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 Knowledge Accenture has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Knowledge Accenture 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.
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.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Knowledge Accenture has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities 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 -
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Knowledge Accenture 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, Knowledge Management at Accenture, 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 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.
Developing new processes and practices
– Knowledge Accenture 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.
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.
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.
Building a culture of innovation
– managers at Knowledge Accenture 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Knowledge Accenture 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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Knowledge Accenture can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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 -
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.
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 .
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.
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.
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 Knowledge Accenture business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
Consumer confidence and its impact on Knowledge Accenture 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Knowledge Management at Accenture, Knowledge Accenture 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 .
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.
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 Knowledge Accenture.
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.