From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions
This case describes the evolution of a software development firm's infrastructure supporting the development, delivery, and operation of applications over two decades. The firm in question is C3 Solutions (C3), a small Canadian software development firm active in a niche market within the transportation and logistics industry. Focusing on the transformation of C3's business model, the case provides before and after pictures of the infrastructures in place and illustrates the evolution of infrastructures in software development firms. C3's success was originally based on the development and sale of on-premises software. Due to pressures originating from within the company and its environment, this business model became difficult to sustain, and the organization's survival was threatened. In response, C3 carried out a profound transformation of its business model, becoming a provider of software-as-a-service (SaaS). To achieve this transformation, the company had to modify its information technology (IT) infrastructure.
Swot Analysis of "From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions" written by Gregory Vial, Suzanne Rivard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that C3 Software facing as an external strategic factors. Some of the topics covered in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions case study are - Strategic Management Strategies, IT and Technology & Operations.
Some of the macro environment factors that can be used to understand the From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing energy prices, challanges to central banks by blockchain based private currencies, there is backlash against globalization, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google,
technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the C3 Software, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which C3 Software 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions can be done for the following purposes –
1. Strategic planning using facts provided in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions case study
2. Improving business portfolio management of C3 Software
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 C3 Software
Strengths From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of C3 Software in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions Harvard Business Review case study are -
Effective Research and Development (R&D)
– C3 Software 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of C3 Software
– The covid-19 pandemic has put organizational resilience at the centre of everthing that C3 Software does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– C3 Software is one of the leading recruiters in the industry. Managers in the From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that C3 Software 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.
Low bargaining power of suppliers
– Suppliers of C3 Software in the sector have low bargaining power. From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps C3 Software to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– C3 Software is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– C3 Software has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled C3 Software to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– C3 Software is present in almost all the verticals within the industry. This has provided firm in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For C3 Software digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. C3 Software 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.
Successful track record of launching new products
– C3 Software has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. C3 Software 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.
Superior customer experience
– The customer experience strategy of C3 Software in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– C3 Software is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Gregory Vial, Suzanne Rivard can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions are -
Skills based hiring
– The stress on hiring functional specialists at C3 Software 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 to strategic competitive environment developments
– As From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions HBR case study mentions - C3 Software 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, C3 Software 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.
Products dominated business model
– Even though C3 Software 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 - From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 C3 Software has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, C3 Software 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, is just above the industry average. C3 Software needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of C3 Software is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. C3 Software needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help C3 Software to focus more on services rather than just following the product oriented approach.
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 C3 Software supply chain. Even after few cautionary changes mentioned in the HBR case study - From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left C3 Software vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, it seems that the employees of C3 Software 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 cash cycle compare to competitors
C3 Software 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions | 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for C3 Software 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 C3 Software to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for C3 Software 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, C3 Software is facing challenges because of the dominance of functional experts in the organization. From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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.
Loyalty marketing
– C3 Software 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects C3 Software can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– C3 Software can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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.
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 C3 Software in the consumer business. Now C3 Software can target international markets with far fewer capital restrictions requirements than the existing system.
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 C3 Software 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.
Using analytics as competitive advantage
– C3 Software 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help C3 Software to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for C3 Software 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, C3 Software 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, From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at C3 Software can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Creating value in data economy
– The success of analytics program of C3 Software has opened avenues for new revenue streams for the organization in the industry. This can help C3 Software to build a more holistic ecosystem as suggested in the From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions case study. C3 Software can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions are -
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 C3 Software.
Consumer confidence and its impact on C3 Software 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.
Stagnating economy with rate increase
– C3 Software 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.
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 C3 Software 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. C3 Software can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– C3 Software has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, C3 Software 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.
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. C3 Software needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for C3 Software in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– C3 Software 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, C3 Software 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions .
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 C3 Software business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents C3 Software with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. C3 Software 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.
Weighted SWOT Analysis of From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 C3 Software needs to make to build a sustainable competitive advantage.
