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 - – increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, geopolitical disruptions, wage bills are increasing,
increasing commodity prices, increasing household debt because of falling income levels, 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 -
Innovation driven organization
– C3 Software is one of the most innovative firm in sector. Manager in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- C3 Software 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 C3 Software is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
Training and development
– C3 Software has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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.
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.
Operational resilience
– The operational resilience strategy in the From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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
– From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions firm has clearly differentiated products in the market place. This has enabled C3 Software to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped C3 Software to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
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 -
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.
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.
No frontier risks strategy
– After analyzing the HBR case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, 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.
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.
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.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, in the dynamic environment C3 Software has struggled to respond to the nimble upstart competition. C3 Software has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions 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 From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions can leverage the sales team experience to cultivate customer relationships as C3 Software is planning to shift buying processes online.
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.
Slow decision making process
– As mentioned earlier in the report, C3 Software 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. C3 Software 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.
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 -
Leveraging digital technologies
– C3 Software 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, C3 Software can use these opportunities to build new business models that can help the communities that C3 Software operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Manufacturing automation
– C3 Software can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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.
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.
Developing new processes and practices
– C3 Software 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, 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.
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.
Better consumer reach
– The expansion of the 5G network will help C3 Software to increase its market reach. C3 Software 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.
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. C3 Software 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. C3 Software 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.
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. C3 Software can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. C3 Software can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 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.
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 -
Environmental challenges
– C3 Software 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. C3 Software can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
Shortening product life cycle
– it is one of the major threat that C3 Software is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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
– 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study From On-Premises Software to Software-as-a-Service: Transforming C3 Solutions, C3 Software 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 .
Regulatory challenges
– C3 Software needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
High 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.
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.
Increasing wage structure of C3 Software
– 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 C3 Software.
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.