The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data
Despite all the hoopla around Big Data these days, the fact is, there is nothing dramatically new about having data at our fingertips. What is new, the authors argue, is that modern technology has increased the types of data that can be collected and made it cheaper, easier and faster to collect, store and analyze that data. They define three key realms of data: Descriptive, Predictive and Prescriptive, and show that progressing to the Prescriptive realm is the best way to enable a 'scientific' approach to business. They show that data and analytics are only valuable if they are used to generate insights, learning and evidence that inform business decisions-and that managers have a critical role to play: ensuring that their organization's analytics are motivated by the key decisions and challenges facing managers.
Authors :: Bernardo Blum, Avi Goldfarb, Mara Lederman
Swot Analysis of "The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data" written by Bernardo Blum, Avi Goldfarb, Mara Lederman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Data Prescriptive facing as an external strategic factors. Some of the topics covered in The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data case study are - Strategic Management Strategies, IT, Strategy and Technology & Operations.
Some of the macro environment factors that can be used to understand the The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data casestudy better are - – increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing household debt because of falling income levels, there is increasing trade war between United States & China, increasing commodity prices,
cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Data Prescriptive, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Data Prescriptive 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data can be done for the following purposes –
1. Strategic planning using facts provided in The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data case study
2. Improving business portfolio management of Data Prescriptive
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 Data Prescriptive
Strengths The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Data Prescriptive in The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data Harvard Business Review case study are -
Highly skilled collaborators
– Data Prescriptive 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Data Prescriptive in the sector have low bargaining power. The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Data Prescriptive to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Data Prescriptive is present in almost all the verticals within the industry. This has provided firm in The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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.
Successful track record of launching new products
– Data Prescriptive has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Data Prescriptive 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.
High switching costs
– The high switching costs that Data Prescriptive has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Technology & Operations field
– Data Prescriptive 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 Data Prescriptive in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Data Prescriptive 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.
Analytics focus
– Data Prescriptive 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 Bernardo Blum, Avi Goldfarb, Mara Lederman 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 Data Prescriptive
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Data Prescriptive does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Data Prescriptive has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Data Prescriptive to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Technology & Operations industry
– The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data firm has clearly differentiated products in the market place. This has enabled Data Prescriptive to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Data Prescriptive to invest into research and development (R&D) and innovation.
Innovation driven organization
– Data Prescriptive is one of the most innovative firm in sector. Manager in The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data are -
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 Data Prescriptive supply chain. Even after few cautionary changes mentioned in the HBR case study - The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Data Prescriptive vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Data Prescriptive is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Data Prescriptive products
– To increase the profitability and margins on the products, Data Prescriptive needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data, is just above the industry average. Data Prescriptive 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 star products
– The top 2 products and services of the firm as mentioned in the The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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 Data Prescriptive has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Data Prescriptive 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. Data Prescriptive 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data, in the dynamic environment Data Prescriptive has struggled to respond to the nimble upstart competition. Data Prescriptive has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Data Prescriptive 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.
Skills based hiring
– The stress on hiring functional specialists at Data Prescriptive 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.
Products dominated business model
– Even though Data Prescriptive 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 - The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data HBR case study mentions - Data Prescriptive takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data | 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data are -
Buying journey improvements
– Data Prescriptive can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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.
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. Data Prescriptive 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. Data Prescriptive 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.
Learning at scale
– Online learning technologies has now opened space for Data Prescriptive 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.
Leveraging digital technologies
– Data Prescriptive 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.
Better consumer reach
– The expansion of the 5G network will help Data Prescriptive to increase its market reach. Data Prescriptive 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Data Prescriptive 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. Data Prescriptive can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Data Prescriptive 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, The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Data Prescriptive in the consumer business. Now Data Prescriptive can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Data Prescriptive 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.
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. Data Prescriptive can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Data Prescriptive to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Data Prescriptive to hire the very best people irrespective of their geographical location.
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 Data Prescriptive 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.
Threats The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data are -
Environmental challenges
– Data Prescriptive 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. Data Prescriptive can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data, Data Prescriptive 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 .
Increasing wage structure of Data Prescriptive
– 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 Data Prescriptive.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Data Prescriptive in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
Regulatory challenges
– Data Prescriptive 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.
Consumer confidence and its impact on Data Prescriptive 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 acceleration in Forth Industrial Revolution
– Data Prescriptive has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Data Prescriptive 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.
Shortening product life cycle
– it is one of the major threat that Data Prescriptive is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Data Prescriptive 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. Data Prescriptive 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.
High dependence on third party suppliers
– Data Prescriptive 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.
Weighted SWOT Analysis of The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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 The Path to Prescription: Closing the Gap Between the Promise and the Reality of Big Data 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 Data Prescriptive needs to make to build a sustainable competitive advantage.
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