Electronic Service Delivery Implementation and Acceptance Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Electronic Service Delivery Implementation and Acceptance Strategy
In December 2000, the government of the Hong Kong Special Administrative Region (HKSAR) launched the Electronic Service Delivery (ESD) scheme, a flagship e-government project. The overall e-government strategy was to use a portal for the provision of electronic public services and commercial services, making the ESD portal (www.esd.gov.hk) a key element. The government contracted a single private operator to implement and provide ESD services for five years. The contract was awarded in November 1999 to ESD Services Ltd. (ESDSL). This case discusses how the HKSAR developed ESD's business model, which is a combination of government-to-citizen and business-to-citizen models, and how ESDSL is implementing it. Also focuses on the major challenges and issues that the private operator, ESDSL, faced in building, implementing, and managing an e-government project. ESD is in its second year of implementation and an immediate issue is the slow adoption of online transactions by the public, which is important in relation to the viability of the ESD's business model.
Swot Analysis of "Electronic Service Delivery Implementation and Acceptance Strategy" written by Ali F. Farhoomand, Marissa McCauley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Esd Esdsl facing as an external strategic factors. Some of the topics covered in Electronic Service Delivery Implementation and Acceptance Strategy case study are - Strategic Management Strategies, Government, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the Electronic Service Delivery Implementation and Acceptance Strategy casestudy better are - – technology disruption, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, increasing energy prices, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Electronic Service Delivery Implementation and Acceptance Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Electronic Service Delivery Implementation and Acceptance Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Esd Esdsl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Esd Esdsl 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 Electronic Service Delivery Implementation and Acceptance Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Electronic Service Delivery Implementation and Acceptance Strategy case study
2. Improving business portfolio management of Esd Esdsl
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 Esd Esdsl
Strengths Electronic Service Delivery Implementation and Acceptance Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Esd Esdsl in Electronic Service Delivery Implementation and Acceptance Strategy Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Esd Esdsl 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.
Training and development
– Esd Esdsl has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Electronic Service Delivery Implementation and Acceptance Strategy 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.
Superior customer experience
– The customer experience strategy of Esd Esdsl in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Esd Esdsl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Esd Esdsl 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.
Operational resilience
– The operational resilience strategy in the Electronic Service Delivery Implementation and Acceptance Strategy 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.
Effective Research and Development (R&D)
– Esd Esdsl has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Electronic Service Delivery Implementation and Acceptance Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Esd Esdsl is one of the most innovative firm in sector. Manager in Electronic Service Delivery Implementation and Acceptance Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Esd Esdsl is present in almost all the verticals within the industry. This has provided firm in Electronic Service Delivery Implementation and Acceptance Strategy 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.
Ability to recruit top talent
– Esd Esdsl is one of the leading recruiters in the industry. Managers in the Electronic Service Delivery Implementation and Acceptance Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Esd Esdsl 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 Ali F. Farhoomand, Marissa McCauley 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.
Successful track record of launching new products
– Esd Esdsl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Esd Esdsl 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.
Learning organization
- Esd Esdsl 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 Esd Esdsl is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Electronic Service Delivery Implementation and Acceptance Strategy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Electronic Service Delivery Implementation and Acceptance Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Electronic Service Delivery Implementation and Acceptance Strategy are -
Workers concerns about automation
– As automation is fast increasing in the segment, Esd Esdsl needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Esd Esdsl 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. Esd Esdsl 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Electronic Service Delivery Implementation and Acceptance Strategy 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 Esd Esdsl has relatively successful track record of launching new products.
Products dominated business model
– Even though Esd Esdsl 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 - Electronic Service Delivery Implementation and Acceptance Strategy should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Esd Esdsl, firm in the HBR case study Electronic Service Delivery Implementation and Acceptance Strategy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Electronic Service Delivery Implementation and Acceptance Strategy, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Electronic Service Delivery Implementation and Acceptance Strategy, in the dynamic environment Esd Esdsl has struggled to respond to the nimble upstart competition. Esd Esdsl has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Electronic Service Delivery Implementation and Acceptance Strategy, is just above the industry average. Esd Esdsl 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 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 Esd Esdsl supply chain. Even after few cautionary changes mentioned in the HBR case study - Electronic Service Delivery Implementation and Acceptance Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Esd Esdsl vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Electronic Service Delivery Implementation and Acceptance Strategy 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 Esd Esdsl 's lucrative customers.
Need for greater diversity
– Esd Esdsl 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.
Opportunities Electronic Service Delivery Implementation and Acceptance Strategy | 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 Electronic Service Delivery Implementation and Acceptance Strategy 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 Esd Esdsl 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.
Leveraging digital technologies
– Esd Esdsl 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.
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. Esd Esdsl 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. Esd Esdsl 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Esd Esdsl 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 Esd Esdsl to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Esd Esdsl 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Esd Esdsl is facing challenges because of the dominance of functional experts in the organization. Electronic Service Delivery Implementation and Acceptance Strategy 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.
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. Esd Esdsl can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Esd Esdsl can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Electronic Service Delivery Implementation and Acceptance Strategy 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Esd Esdsl 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. Esd Esdsl can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Esd Esdsl in the consumer business. Now Esd Esdsl can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Esd Esdsl 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.
Creating value in data economy
– The success of analytics program of Esd Esdsl has opened avenues for new revenue streams for the organization in the industry. This can help Esd Esdsl to build a more holistic ecosystem as suggested in the Electronic Service Delivery Implementation and Acceptance Strategy case study. Esd Esdsl can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Electronic Service Delivery Implementation and Acceptance Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Electronic Service Delivery Implementation and Acceptance Strategy are -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Electronic Service Delivery Implementation and Acceptance Strategy, Esd Esdsl 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 .
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 Esd Esdsl.
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.
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 Esd Esdsl in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Esd Esdsl 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. Esd Esdsl can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Consumer confidence and its impact on Esd Esdsl 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, Esd Esdsl 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 Electronic Service Delivery Implementation and Acceptance Strategy .
Technology acceleration in Forth Industrial Revolution
– Esd Esdsl has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Esd Esdsl 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.
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. Esd Esdsl 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Esd Esdsl 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.
High dependence on third party suppliers
– Esd Esdsl 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.
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. Esd Esdsl 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 Electronic Service Delivery Implementation and Acceptance Strategy 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 Electronic Service Delivery Implementation and Acceptance Strategy 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 Electronic Service Delivery Implementation and Acceptance Strategy 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 Electronic Service Delivery Implementation and Acceptance Strategy 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 Electronic Service Delivery Implementation and Acceptance Strategy 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 Esd Esdsl needs to make to build a sustainable competitive advantage.