Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5
Megaprojects require investment of $1bn or more to build infrastructure, usually involving a complex system of production consisting of discrete, routine, and high-volume repetitive processes. Many of these processes can be progressively standardized and replicated to improve overall productive performance. This article presents the findings of research on design and production of London's Heathrow Airport Terminal 5 (T5). The findings were used to develop a conceptual framework-which we call the systems integration model-to identify the project and operational processes that contribute to success in delivering megaprojects. The systems integrator is the lead organization in a megaproject, responsible for establishing a governance structure, managing risk, and coordinating processes performed by a large network of external suppliers. Innovations based on the "recombination" and "replication" of processes can be introduced to improve megaproject performance.
Authors :: Andrew Davies, David Gann, Tony Douglas
Swot Analysis of "Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5" written by Andrew Davies, David Gann, Tony Douglas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Megaprojects Processes facing as an external strategic factors. Some of the topics covered in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 case study are - Strategic Management Strategies, Corporate governance, Financial management, International business, Risk management, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 casestudy better are - – talent flight as more people leaving formal jobs, geopolitical disruptions, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, technology disruption, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Megaprojects Processes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Megaprojects Processes 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 can be done for the following purposes –
1. Strategic planning using facts provided in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 case study
2. Improving business portfolio management of Megaprojects Processes
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 Megaprojects Processes
Strengths Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Megaprojects Processes in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 Harvard Business Review case study are -
Ability to recruit top talent
– Megaprojects Processes is one of the leading recruiters in the industry. Managers in the Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Megaprojects Processes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Megaprojects Processes 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.
Cross disciplinary teams
– Horizontal connected teams at the Megaprojects Processes 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
– Megaprojects Processes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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.
Learning organization
- Megaprojects Processes 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 Megaprojects Processes is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Megaprojects Processes is present in almost all the verticals within the industry. This has provided firm in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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.
Effective Research and Development (R&D)
– Megaprojects Processes 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 - 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
– Megaprojects Processes is one of the most innovative firm in sector. Manager in Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Megaprojects Processes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Megaprojects Processes 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.
High switching costs
– The high switching costs that Megaprojects Processes 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.
High brand equity
– Megaprojects Processes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Megaprojects Processes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 are -
No frontier risks strategy
– After analyzing the HBR case study Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5, 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.
Slow to strategic competitive environment developments
– As Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 HBR case study mentions - Megaprojects Processes 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.
Need for greater diversity
– Megaprojects Processes 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.
Aligning sales with marketing
– It come across in the case study Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 can leverage the sales team experience to cultivate customer relationships as Megaprojects Processes is planning to shift buying processes online.
High cash cycle compare to competitors
Megaprojects Processes 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Megaprojects Processes 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.
Increasing silos among functional specialists
– The organizational structure of Megaprojects Processes is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Megaprojects Processes needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Megaprojects Processes to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5, in the dynamic environment Megaprojects Processes has struggled to respond to the nimble upstart competition. Megaprojects Processes 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 Megaprojects Processes supply chain. Even after few cautionary changes mentioned in the HBR case study - Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Megaprojects Processes vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Megaprojects Processes 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.
Lack of clear differentiation of Megaprojects Processes products
– To increase the profitability and margins on the products, Megaprojects Processes needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 | 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 are -
Loyalty marketing
– Megaprojects Processes 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 Megaprojects Processes has opened avenues for new revenue streams for the organization in the industry. This can help Megaprojects Processes to build a more holistic ecosystem as suggested in the Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 case study. Megaprojects Processes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Megaprojects Processes 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Megaprojects Processes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Megaprojects Processes can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Megaprojects Processes 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.
Developing new processes and practices
– Megaprojects Processes 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, Megaprojects Processes 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, Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Megaprojects Processes 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. Megaprojects Processes 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Megaprojects Processes 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.
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. Megaprojects Processes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Megaprojects Processes 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Megaprojects Processes 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 Megaprojects Processes 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Megaprojects Processes 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.
Stagnating economy with rate increase
– Megaprojects Processes 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.
Increasing wage structure of Megaprojects Processes
– 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 Megaprojects Processes.
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.
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 Megaprojects Processes business can come under increasing regulations regarding data privacy, data security, 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5, Megaprojects Processes 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 .
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. Megaprojects Processes needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Megaprojects Processes 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 .
Environmental challenges
– Megaprojects Processes 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. Megaprojects Processes can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Megaprojects Processes 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.
Shortening product life cycle
– it is one of the major threat that Megaprojects Processes is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Megaprojects Processes.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Megaprojects Processes with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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 Innovation in Megaprojects: Systems Integration at London Heathrow Terminal 5 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 Megaprojects Processes needs to make to build a sustainable competitive advantage.
