Case Study Description of Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology
This case describes the process BorgWarner Transmission Systems undertook when an increase in demand required that it create new production lines in another country. To minimize inventory costs, the company engaged with a graduate student team from the University of Michigan's Tauber Institute for Global Operations for assistance with creating optimal operating procedures. The student team was tasked with developing a prediction tool to ensure a high probability that BorgWarner friction plate samples would pass pre-production verification testing. The case provides students with an overview of the production and quality assurance processes for friction plate manufacture, as well as data classification models for machine learning. Students then develop a reliable forecasting methodology to systematically evaluate process parameters and maximize test pass rates for friction plates.
Swot Analysis of "Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology" written by Prakash Sathe includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Borgwarner Friction facing as an external strategic factors. Some of the topics covered in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology casestudy better are - – wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing energy prices, digital marketing is dominated by two big players Facebook and Google,
central banks are concerned over increasing inflation, geopolitical disruptions, etc
Introduction to SWOT Analysis of Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Borgwarner Friction, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Borgwarner Friction 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology can be done for the following purposes –
1. Strategic planning using facts provided in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology case study
2. Improving business portfolio management of Borgwarner Friction
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 Borgwarner Friction
Strengths Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Borgwarner Friction in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology Harvard Business Review case study are -
Analytics focus
– Borgwarner Friction 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 Prakash Sathe 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.
Superior customer experience
– The customer experience strategy of Borgwarner Friction in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 brand equity
– Borgwarner Friction has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Borgwarner Friction to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Borgwarner Friction has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Borgwarner Friction 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.
Strong track record of project management
– Borgwarner Friction is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Borgwarner Friction is one of the most innovative firm in sector. Manager in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Borgwarner Friction digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Borgwarner Friction 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.
Ability to lead change in Technology & Operations field
– Borgwarner Friction 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 Borgwarner Friction in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Borgwarner Friction is one of the leading recruiters in the industry. Managers in the Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Borgwarner Friction has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Borgwarner Friction 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 Borgwarner Friction is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology are -
Lack of clear differentiation of Borgwarner Friction products
– To increase the profitability and margins on the products, Borgwarner Friction needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Borgwarner Friction, firm in the HBR case study Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology, it seems that the employees of Borgwarner Friction 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.
Interest costs
– Compare to the competition, Borgwarner Friction 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.
Slow decision making process
– As mentioned earlier in the report, Borgwarner Friction 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. Borgwarner Friction 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.
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 Borgwarner Friction supply chain. Even after few cautionary changes mentioned in the HBR case study - Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Borgwarner Friction vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Borgwarner Friction 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 - Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Borgwarner Friction 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.
Aligning sales with marketing
– It come across in the case study Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology can leverage the sales team experience to cultivate customer relationships as Borgwarner Friction is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Borgwarner Friction is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Borgwarner Friction needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Borgwarner Friction to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Borgwarner Friction 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.
Opportunities Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology | 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology are -
Loyalty marketing
– Borgwarner Friction 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.
Better consumer reach
– The expansion of the 5G network will help Borgwarner Friction to increase its market reach. Borgwarner Friction 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. Borgwarner Friction 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. Borgwarner Friction 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. Borgwarner Friction can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Borgwarner Friction 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, Borgwarner Friction is facing challenges because of the dominance of functional experts in the organization. Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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.
Leveraging digital technologies
– Borgwarner Friction 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.
Building a culture of innovation
– managers at Borgwarner Friction 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.
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 Borgwarner Friction 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.
Manufacturing automation
– Borgwarner Friction 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.
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. Borgwarner Friction can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Borgwarner Friction 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Borgwarner Friction can use these opportunities to build new business models that can help the communities that Borgwarner Friction operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Threats Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology are -
Regulatory challenges
– Borgwarner Friction 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.
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 Borgwarner Friction.
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 Borgwarner Friction in the Technology & Operations sector and impact the bottomline of the organization.
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. Borgwarner Friction needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Consumer confidence and its impact on Borgwarner Friction 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Borgwarner Friction 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology .
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.
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. Borgwarner Friction 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.
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 Borgwarner Friction business can come under increasing regulations regarding data privacy, data security, etc.
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. Borgwarner Friction 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology, Borgwarner Friction 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 .
Technology acceleration in Forth Industrial Revolution
– Borgwarner Friction has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Borgwarner Friction 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
– Borgwarner Friction 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. Borgwarner Friction can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 Fast-Tracking Friction Plate Validation Testing: BorgWarner Improves Efficiency with Machine Learning Methodology 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 Borgwarner Friction needs to make to build a sustainable competitive advantage.
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