Countering claims that cyberspace will bring the end of organizations in general and of the firm in particular, this article points to the role organizations play in fostering the production and synergistic development of knowledge. Formal organizations help turn the partial, situated insights of individuals and communities into robust, organizational knowledge. To organize knowledge in this way requires acknowledging the boundaries inevitably erected within organizations through the division of labor and the division of knowledge. Infrastructure for organizing knowledge must overcome these boundaries. Assuming that knowledge is a frictionless commodity possessed by individuals makes communications technologies and social organization curious antagonists. This article argues instead for compatible organizational and technological architectures that respond to and enhance the social production of knowledge.
Swot Analysis of "Organizing Knowledge" written by John Seely Brown, Paul Duguid includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knowledge Organizations facing as an external strategic factors. Some of the topics covered in Organizing Knowledge case study are - Strategic Management Strategies, Knowledge management, Organizational structure and Technology & Operations.
Some of the macro environment factors that can be used to understand the Organizing Knowledge casestudy better are - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, talent flight as more people leaving formal jobs, increasing commodity prices,
increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Organizing Knowledge
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Organizing Knowledge case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knowledge Organizations, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knowledge Organizations 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 Organizing Knowledge can be done for the following purposes –
1. Strategic planning using facts provided in Organizing Knowledge case study
2. Improving business portfolio management of Knowledge Organizations
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 Organizations
Strengths Organizing Knowledge | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knowledge Organizations in Organizing Knowledge Harvard Business Review case study are -
Diverse revenue streams
– Knowledge Organizations is present in almost all the verticals within the industry. This has provided firm in Organizing Knowledge 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.
Organizational Resilience of Knowledge Organizations
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Knowledge Organizations does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Knowledge Organizations 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 Organizing Knowledge - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Organizing Knowledge 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.
Cross disciplinary teams
– Horizontal connected teams at the Knowledge Organizations 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.
High brand equity
– Knowledge Organizations has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Knowledge Organizations to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Knowledge Organizations 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.
Innovation driven organization
– Knowledge Organizations is one of the most innovative firm in sector. Manager in Organizing Knowledge Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Technology & Operations field
– Knowledge Organizations 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 Organizations in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Knowledge Organizations in the sector have low bargaining power. Organizing Knowledge has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Knowledge Organizations to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Knowledge Organizations has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Knowledge Organizations 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.
Training and development
– Knowledge Organizations has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Organizing Knowledge 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 Organizing Knowledge | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Organizing Knowledge are -
Increasing silos among functional specialists
– The organizational structure of Knowledge Organizations is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Knowledge Organizations needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Knowledge Organizations to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Knowledge Organizations products
– To increase the profitability and margins on the products, Knowledge Organizations needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Organizing Knowledge, in the dynamic environment Knowledge Organizations has struggled to respond to the nimble upstart competition. Knowledge Organizations has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Knowledge Organizations supply chain. Even after few cautionary changes mentioned in the HBR case study - Organizing Knowledge, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Knowledge Organizations vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Knowledge Organizations 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 Knowledge Organizations 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 - Organizing Knowledge should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Knowledge Organizations is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Organizing Knowledge can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Organizing Knowledge 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 Organizations has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Organizing Knowledge HBR case study mentions - Knowledge Organizations 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.
Capital Spending Reduction
– Even during the low interest decade, Knowledge Organizations 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.
Aligning sales with marketing
– It come across in the case study Organizing Knowledge 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 Organizing Knowledge can leverage the sales team experience to cultivate customer relationships as Knowledge Organizations is planning to shift buying processes online.
Opportunities Organizing Knowledge | 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 Organizing Knowledge are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Knowledge Organizations 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Knowledge Organizations 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 Knowledge Organizations to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Knowledge Organizations 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 Organizing Knowledge - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Knowledge Organizations to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Knowledge Organizations 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.
Creating value in data economy
– The success of analytics program of Knowledge Organizations has opened avenues for new revenue streams for the organization in the industry. This can help Knowledge Organizations to build a more holistic ecosystem as suggested in the Organizing Knowledge case study. Knowledge Organizations can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Knowledge Organizations 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Knowledge Organizations 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, Organizing Knowledge, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Knowledge Organizations 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.
Developing new processes and practices
– Knowledge Organizations 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knowledge Organizations 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.
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 Knowledge Organizations in the consumer business. Now Knowledge Organizations can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Knowledge Organizations can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Knowledge Organizations can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Organizing Knowledge External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Organizing Knowledge are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Knowledge Organizations 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.
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 Organizations business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Knowledge Organizations needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Knowledge Organizations needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Knowledge Organizations with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Knowledge Organizations in the Technology & Operations sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Knowledge Organizations can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Knowledge Organizations 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.
Stagnating economy with rate increase
– Knowledge Organizations can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Knowledge Organizations 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.
High dependence on third party suppliers
– Knowledge Organizations 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.
Environmental challenges
– Knowledge Organizations 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 Organizations can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Knowledge Organizations
– 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 Organizations.
Weighted SWOT Analysis of Organizing Knowledge 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 Organizing Knowledge 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 Organizing Knowledge 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 Organizing Knowledge 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 Organizing Knowledge 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 Organizations needs to make to build a sustainable competitive advantage.