Internet of Things: Convenience vs. privacy and secrecy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Internet of Things: Convenience vs. privacy and secrecy
In this article we introduce the Internet of Things to the broad managerial community and explore one of its central tensions: convenience vs. privacy and secrecy. We clarify the ways in which IoT differs from Web 2.0 and then highlight opportunities, challenges, and managerial guidance. In addition, we explore the prominent issue of privacy and secrecy. Due to substantial increases in amounts of consumer-related data and their accessibility as well as potential tradeoffs in benefits associated with IoT and in properties of humanness associated with the consumer experience, the managerial issue of privacy is elevated to a level never before realized-perhaps on par with, or worthy of inclusion as an element of, the classic marketing mix.
Authors :: Bruce D. Weinberg, George R. Milne, Yana G. Andonova, Fatima M. Hajjat
Swot Analysis of "Internet of Things: Convenience vs. privacy and secrecy" written by Bruce D. Weinberg, George R. Milne, Yana G. Andonova, Fatima M. Hajjat includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Privacy Secrecy facing as an external strategic factors. Some of the topics covered in Internet of Things: Convenience vs. privacy and secrecy case study are - Strategic Management Strategies, IT, Marketing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Internet of Things: Convenience vs. privacy and secrecy casestudy better are - – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , geopolitical disruptions, wage bills are increasing, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
increasing transportation and logistics costs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Internet of Things: Convenience vs. privacy and secrecy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Internet of Things: Convenience vs. privacy and secrecy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Privacy Secrecy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Privacy Secrecy 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 Internet of Things: Convenience vs. privacy and secrecy can be done for the following purposes –
1. Strategic planning using facts provided in Internet of Things: Convenience vs. privacy and secrecy case study
2. Improving business portfolio management of Privacy Secrecy
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 Privacy Secrecy
Strengths Internet of Things: Convenience vs. privacy and secrecy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Privacy Secrecy in Internet of Things: Convenience vs. privacy and secrecy Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Privacy Secrecy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Privacy Secrecy 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 recruit top talent
– Privacy Secrecy is one of the leading recruiters in the industry. Managers in the Internet of Things: Convenience vs. privacy and secrecy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Privacy Secrecy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Privacy Secrecy 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.
Successful track record of launching new products
– Privacy Secrecy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Privacy Secrecy 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.
Analytics focus
– Privacy Secrecy 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 Bruce D. Weinberg, George R. Milne, Yana G. Andonova, Fatima M. Hajjat 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.
Low bargaining power of suppliers
– Suppliers of Privacy Secrecy in the sector have low bargaining power. Internet of Things: Convenience vs. privacy and secrecy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Privacy Secrecy to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Privacy Secrecy is one of the most innovative firm in sector. Manager in Internet of Things: Convenience vs. privacy and secrecy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Privacy Secrecy 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.
Operational resilience
– The operational resilience strategy in the Internet of Things: Convenience vs. privacy and secrecy 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.
Strong track record of project management
– Privacy Secrecy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Privacy Secrecy is present in almost all the verticals within the industry. This has provided firm in Internet of Things: Convenience vs. privacy and secrecy 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.
Weaknesses Internet of Things: Convenience vs. privacy and secrecy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Internet of Things: Convenience vs. privacy and secrecy are -
Need for greater diversity
– Privacy Secrecy 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Internet of Things: Convenience vs. privacy and secrecy 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 Privacy Secrecy 's lucrative customers.
Slow to strategic competitive environment developments
– As Internet of Things: Convenience vs. privacy and secrecy HBR case study mentions - Privacy Secrecy 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.
High cash cycle compare to competitors
Privacy Secrecy 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.
Products dominated business model
– Even though Privacy Secrecy 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 - Internet of Things: Convenience vs. privacy and secrecy should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Privacy Secrecy 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. Privacy Secrecy 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 bargaining power of channel partners
– Because of the regulatory requirements, Bruce D. Weinberg, George R. Milne, Yana G. Andonova, Fatima M. Hajjat suggests that, Privacy Secrecy 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.
Increasing silos among functional specialists
– The organizational structure of Privacy Secrecy is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Privacy Secrecy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Privacy Secrecy to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Internet of Things: Convenience vs. privacy and secrecy, it seems that the employees of Privacy Secrecy 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.
Lack of clear differentiation of Privacy Secrecy products
– To increase the profitability and margins on the products, Privacy Secrecy needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Privacy Secrecy supply chain. Even after few cautionary changes mentioned in the HBR case study - Internet of Things: Convenience vs. privacy and secrecy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Privacy Secrecy vulnerable to further global disruptions in South East Asia.
Opportunities Internet of Things: Convenience vs. privacy and secrecy | 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 Internet of Things: Convenience vs. privacy and secrecy are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Privacy Secrecy can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Privacy Secrecy 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.
Building a culture of innovation
– managers at Privacy Secrecy 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Privacy Secrecy can use these opportunities to build new business models that can help the communities that Privacy Secrecy operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Learning at scale
– Online learning technologies has now opened space for Privacy Secrecy 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
– Privacy Secrecy 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
– Privacy Secrecy 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 Internet of Things: Convenience vs. privacy and secrecy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Privacy Secrecy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Privacy Secrecy 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Privacy Secrecy 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, Internet of Things: Convenience vs. privacy and secrecy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Privacy Secrecy 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.
Better consumer reach
– The expansion of the 5G network will help Privacy Secrecy to increase its market reach. Privacy Secrecy 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Privacy Secrecy 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Privacy Secrecy 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.
Threats Internet of Things: Convenience vs. privacy and secrecy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Internet of Things: Convenience vs. privacy and secrecy are -
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. Privacy Secrecy 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. Privacy Secrecy 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
– Privacy Secrecy 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.
Regulatory challenges
– Privacy Secrecy 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.
Environmental challenges
– Privacy Secrecy 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. Privacy Secrecy can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Privacy Secrecy in the Technology & Operations sector and impact the bottomline of the organization.
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.
Consumer confidence and its impact on Privacy Secrecy 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Privacy Secrecy 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 Internet of Things: Convenience vs. privacy and secrecy .
Shortening product life cycle
– it is one of the major threat that Privacy Secrecy is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Internet of Things: Convenience vs. privacy and secrecy, Privacy Secrecy 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 .
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. Privacy Secrecy can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Internet of Things: Convenience vs. privacy and secrecy 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 Internet of Things: Convenience vs. privacy and secrecy 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 Internet of Things: Convenience vs. privacy and secrecy 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 Internet of Things: Convenience vs. privacy and secrecy 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 Internet of Things: Convenience vs. privacy and secrecy 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 Privacy Secrecy needs to make to build a sustainable competitive advantage.