Case Study Description of Timberjack Parts: Packaged Software Selection Project
This case provides a realistic, current, and detailed view of software procurement in an international business environment where the competition in enterprise-wide software solutions is growing. Focuses on the selection of packaged software to serve multiple sites within the context of a multinational company. Describes the creation of an RFP and the selection of a software vendor. Two software proposals are presented.
Authors :: F. Warren McFarlan, Darryl S. Romanow, Mark Keil
Swot Analysis of "Timberjack Parts: Packaged Software Selection Project" written by F. Warren McFarlan, Darryl S. Romanow, Mark Keil includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Software Selection facing as an external strategic factors. Some of the topics covered in Timberjack Parts: Packaged Software Selection Project case study are - Strategic Management Strategies, IT, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Timberjack Parts: Packaged Software Selection Project casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, geopolitical disruptions, there is increasing trade war between United States & China, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation,
wage bills are increasing, increasing energy prices, etc
Introduction to SWOT Analysis of Timberjack Parts: Packaged Software Selection Project
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Timberjack Parts: Packaged Software Selection Project case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Software Selection, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Software Selection 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 Timberjack Parts: Packaged Software Selection Project can be done for the following purposes –
1. Strategic planning using facts provided in Timberjack Parts: Packaged Software Selection Project case study
2. Improving business portfolio management of Software Selection
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 Software Selection
Strengths Timberjack Parts: Packaged Software Selection Project | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Software Selection in Timberjack Parts: Packaged Software Selection Project Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Software Selection in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Software Selection has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Software Selection to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Software Selection in the sector have low bargaining power. Timberjack Parts: Packaged Software Selection Project has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Software Selection to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Timberjack Parts: Packaged Software Selection Project 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.
High switching costs
– The high switching costs that Software Selection 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.
Diverse revenue streams
– Software Selection is present in almost all the verticals within the industry. This has provided firm in Timberjack Parts: Packaged Software Selection Project 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.
Sustainable margins compare to other players in Technology & Operations industry
– Timberjack Parts: Packaged Software Selection Project firm has clearly differentiated products in the market place. This has enabled Software Selection to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Software Selection to invest into research and development (R&D) and innovation.
Organizational Resilience of Software Selection
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Software Selection does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Software Selection 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 Software Selection is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Timberjack Parts: Packaged Software Selection Project Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Software Selection is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Software Selection digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Software Selection 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.
Innovation driven organization
– Software Selection is one of the most innovative firm in sector. Manager in Timberjack Parts: Packaged Software Selection Project Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Timberjack Parts: Packaged Software Selection Project | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Timberjack Parts: Packaged Software Selection Project are -
Need for greater diversity
– Software Selection 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.
Slow to strategic competitive environment developments
– As Timberjack Parts: Packaged Software Selection Project HBR case study mentions - Software Selection 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.
Lack of clear differentiation of Software Selection products
– To increase the profitability and margins on the products, Software Selection needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Software Selection is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Timberjack Parts: Packaged Software Selection Project 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 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 Software Selection supply chain. Even after few cautionary changes mentioned in the HBR case study - Timberjack Parts: Packaged Software Selection Project, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Software Selection vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Software Selection 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 - Timberjack Parts: Packaged Software Selection Project should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Software Selection has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Software Selection 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. Software Selection 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.
Aligning sales with marketing
– It come across in the case study Timberjack Parts: Packaged Software Selection Project 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 Timberjack Parts: Packaged Software Selection Project can leverage the sales team experience to cultivate customer relationships as Software Selection is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Software Selection, firm in the HBR case study Timberjack Parts: Packaged Software Selection Project needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Timberjack Parts: Packaged Software Selection Project 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 Software Selection 's lucrative customers.
Opportunities Timberjack Parts: Packaged Software Selection Project | 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 Timberjack Parts: Packaged Software Selection Project are -
Better consumer reach
– The expansion of the 5G network will help Software Selection to increase its market reach. Software Selection 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.
Loyalty marketing
– Software Selection 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Software Selection is facing challenges because of the dominance of functional experts in the organization. Timberjack Parts: Packaged Software Selection Project 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.
Building a culture of innovation
– managers at Software Selection 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.
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. Software Selection can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Software Selection 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.
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. Software Selection can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Software Selection can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Software Selection 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Software Selection can use these opportunities to build new business models that can help the communities that Software Selection operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Software Selection has opened avenues for new revenue streams for the organization in the industry. This can help Software Selection to build a more holistic ecosystem as suggested in the Timberjack Parts: Packaged Software Selection Project case study. Software Selection can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Software Selection can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Timberjack Parts: Packaged Software Selection Project 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Software Selection 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, Timberjack Parts: Packaged Software Selection Project, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Timberjack Parts: Packaged Software Selection Project External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Timberjack Parts: Packaged Software Selection Project are -
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. Software Selection 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.
Environmental challenges
– Software Selection 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. Software Selection can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
Stagnating economy with rate increase
– Software Selection 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.
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 Software Selection.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Software Selection 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Software Selection with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Software Selection can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Timberjack Parts: Packaged Software Selection Project, Software Selection 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 Software Selection
– 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 Software Selection.
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. Software Selection needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Software Selection has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Software Selection 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.
Weighted SWOT Analysis of Timberjack Parts: Packaged Software Selection Project 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 Timberjack Parts: Packaged Software Selection Project 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 Timberjack Parts: Packaged Software Selection Project 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 Timberjack Parts: Packaged Software Selection Project 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 Timberjack Parts: Packaged Software Selection Project 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 Software Selection needs to make to build a sustainable competitive advantage.
