Case Study Description of BGI: Data-driven Research
To maximize their effectiveness, color cases should be printed in color.BGI has the largest installed gene-sequencing capacity in the world, and to Zhang Gengyun, general manager of the Life Sciences Division, this represented an opportunity to apply his training as a plant breeder and his early career work as a biochemist to improving important parts of the world food supply. But his biggest challenge was in scaling up his organization to address the multitude of opportunities he wanted to address. Along with its massive investments in gene sequencing machines and computing resources for data analysis, BGI had built a large cadre of data scientists who could develop and run programs to sift through the mountains of genetic data that were being generated every day. But the approach raised other questions. Could people trained in traditional fields of botany, biochemistry, and animal husbandry simply use the BGI sequencing platform as a black box, much as people in other industries relied on specialization and a modular division of labor? Or did it take the kind of cross-training and cross-boundary work in which Zhang himself had invested two decades of his professional career? Could the data scientists in BGI's "factory" grow sufficiently to understand the science, and was that now even necessary?
Swot Analysis of "BGI: Data-driven Research" written by Willy Shih, Sen Chai includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bgi Sequencing facing as an external strategic factors. Some of the topics covered in BGI: Data-driven Research case study are - Strategic Management Strategies, IT, Market research, Research & development and Technology & Operations.
Some of the macro environment factors that can be used to understand the BGI: Data-driven Research casestudy better are - – there is backlash against globalization, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing commodity prices, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of BGI: Data-driven Research
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BGI: Data-driven Research case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bgi Sequencing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bgi Sequencing 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 BGI: Data-driven Research can be done for the following purposes –
1. Strategic planning using facts provided in BGI: Data-driven Research case study
2. Improving business portfolio management of Bgi Sequencing
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 Bgi Sequencing
Strengths BGI: Data-driven Research | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bgi Sequencing in BGI: Data-driven Research Harvard Business Review case study are -
Ability to recruit top talent
– Bgi Sequencing is one of the leading recruiters in the industry. Managers in the BGI: Data-driven Research are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Bgi Sequencing in the sector have low bargaining power. BGI: Data-driven Research has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bgi Sequencing to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Bgi Sequencing 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 Bgi Sequencing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Bgi Sequencing 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.
Operational resilience
– The operational resilience strategy in the BGI: Data-driven Research 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.
Sustainable margins compare to other players in Technology & Operations industry
– BGI: Data-driven Research firm has clearly differentiated products in the market place. This has enabled Bgi Sequencing to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Bgi Sequencing to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Bgi Sequencing is present in almost all the verticals within the industry. This has provided firm in BGI: Data-driven Research 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.
Highly skilled collaborators
– Bgi Sequencing has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in BGI: Data-driven Research HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Bgi Sequencing 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
– Bgi Sequencing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BGI: Data-driven Research 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.
Organizational Resilience of Bgi Sequencing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bgi Sequencing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Bgi Sequencing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses BGI: Data-driven Research | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BGI: Data-driven Research are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the BGI: Data-driven Research 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 Bgi Sequencing has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Bgi Sequencing is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Bgi Sequencing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bgi Sequencing to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Bgi Sequencing 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 - BGI: Data-driven Research should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study BGI: Data-driven Research, it seems that the employees of Bgi Sequencing 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih, Sen Chai suggests that, Bgi Sequencing 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.
Lack of clear differentiation of Bgi Sequencing products
– To increase the profitability and margins on the products, Bgi Sequencing needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Bgi Sequencing 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.
Capital Spending Reduction
– Even during the low interest decade, Bgi Sequencing 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.
Need for greater diversity
– Bgi Sequencing 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 BGI: Data-driven Research 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 Bgi Sequencing 's lucrative customers.
High cash cycle compare to competitors
Bgi Sequencing 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.
Opportunities BGI: Data-driven Research | 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 BGI: Data-driven Research are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bgi Sequencing can use these opportunities to build new business models that can help the communities that Bgi Sequencing operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Better consumer reach
– The expansion of the 5G network will help Bgi Sequencing to increase its market reach. Bgi Sequencing 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bgi Sequencing 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 Bgi Sequencing to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Bgi Sequencing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BGI: Data-driven Research 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 Bgi Sequencing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Bgi Sequencing 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 BGI: Data-driven Research - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bgi Sequencing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bgi Sequencing 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, BGI: Data-driven Research, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Bgi Sequencing has opened avenues for new revenue streams for the organization in the industry. This can help Bgi Sequencing to build a more holistic ecosystem as suggested in the BGI: Data-driven Research case study. Bgi Sequencing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Bgi Sequencing 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.
Learning at scale
– Online learning technologies has now opened space for Bgi Sequencing 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
– Bgi Sequencing 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.
Loyalty marketing
– Bgi Sequencing 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bgi Sequencing 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.
Threats BGI: Data-driven Research External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BGI: Data-driven Research are -
Consumer confidence and its impact on Bgi Sequencing 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.
Regulatory challenges
– Bgi Sequencing 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.
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 Bgi Sequencing in the Technology & Operations sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BGI: Data-driven Research, Bgi Sequencing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Increasing wage structure of Bgi Sequencing
– 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 Bgi Sequencing.
Technology acceleration in Forth Industrial Revolution
– Bgi Sequencing has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Bgi Sequencing 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.
Environmental challenges
– Bgi Sequencing 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. Bgi Sequencing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bgi Sequencing 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 BGI: Data-driven Research .
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. Bgi Sequencing 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 Bgi Sequencing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Bgi Sequencing 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.
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.
Stagnating economy with rate increase
– Bgi Sequencing 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.
Weighted SWOT Analysis of BGI: Data-driven Research 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 BGI: Data-driven Research 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 BGI: Data-driven Research 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 BGI: Data-driven Research 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 BGI: Data-driven Research 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 Bgi Sequencing needs to make to build a sustainable competitive advantage.
