Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action
Disruption from artificial intelligence (AI) is here, but many company leaders aren't sure what to expect from AI or how it fits into their business model. Yet with change coming at breakneck speed, the time to identify your company's AI strategy is now. MIT Sloan Management Review has partnered with The Boston Consulting Group to provide baseline information on the strategies used by companies leading in AI, the prospects for its growth, and the steps executives need to take to develop a strategy for their business.
Authors :: Sam Ransbotham, David Kiron, Philipp Gerbert, Martin Reeves
Swot Analysis of "Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action" written by Sam Ransbotham, David Kiron, Philipp Gerbert, Martin Reeves includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ai Artificial facing as an external strategic factors. Some of the topics covered in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action casestudy better are - – increasing household debt because of falling income levels, increasing transportation and logistics costs, geopolitical disruptions, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing commodity prices, wage bills are increasing,
increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ai Artificial, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ai Artificial 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action can be done for the following purposes –
1. Strategic planning using facts provided in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action case study
2. Improving business portfolio management of Ai Artificial
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ai Artificial
Strengths Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ai Artificial in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action firm has clearly differentiated products in the market place. This has enabled Ai Artificial to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ai Artificial to invest into research and development (R&D) and innovation.
Innovation driven organization
– Ai Artificial is one of the most innovative firm in sector. Manager in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Ai Artificial is one of the leading recruiters in the industry. Managers in the Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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.
Cross disciplinary teams
– Horizontal connected teams at the Ai Artificial are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Highly skilled collaborators
– Ai Artificial has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Ai Artificial 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 Ai Artificial is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Ai Artificial 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 Sam Ransbotham, David Kiron, Philipp Gerbert, Martin Reeves 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 Ai Artificial 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.
Organizational Resilience of Ai Artificial
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ai Artificial does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ai Artificial digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ai Artificial 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
– Ai Artificial has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ai Artificial 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.
Weaknesses Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action are -
Slow to strategic competitive environment developments
– As Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action HBR case study mentions - Ai Artificial 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.
Need for greater diversity
– Ai Artificial has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Ai Artificial has relatively successful track record of launching new products.
Products dominated business model
– Even though Ai Artificial 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 - Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
High cash cycle compare to competitors
Ai Artificial 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ai Artificial 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Sam Ransbotham, David Kiron, Philipp Gerbert, Martin Reeves suggests that, Ai Artificial is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High operating costs
– Compare to the competitors, firm in the HBR case study Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Ai Artificial 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action can leverage the sales team experience to cultivate customer relationships as Ai Artificial is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Ai Artificial 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. Ai Artificial 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action | 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ai Artificial can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Ai Artificial 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 Ai Artificial in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ai Artificial 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 Ai Artificial to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ai Artificial 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, Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action, 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 Ai Artificial 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.
Leveraging digital technologies
– Ai Artificial 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.
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 Ai Artificial in the consumer business. Now Ai Artificial can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ai Artificial 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.
Manufacturing automation
– Ai Artificial can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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 Strategy & Execution industry, but it has also influenced the consumer preferences. Ai Artificial can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ai Artificial can use these opportunities to build new business models that can help the communities that Ai Artificial operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Loyalty marketing
– Ai Artificial 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.
Threats Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Ai Artificial.
Stagnating economy with rate increase
– Ai Artificial 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.
Shortening product life cycle
– it is one of the major threat that Ai Artificial is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ai Artificial with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Ai Artificial 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 wage structure of Ai Artificial
– 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 Ai Artificial.
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. Ai Artificial needs to understand the core reasons impacting the Strategy & Execution 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 Ai Artificial in the Strategy & Execution industry. The Strategy & Execution 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ai Artificial can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Ai Artificial business can come under increasing regulations regarding data privacy, data security, etc.
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 Ai Artificial in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ai Artificial 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action .
Technology acceleration in Forth Industrial Revolution
– Ai Artificial has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ai Artificial needs to keep up with the evolution of technology in the Strategy & Execution 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Reshaping Business With Artificial Intelligence: Closing the Gap Between Ambition and Action 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 Ai Artificial needs to make to build a sustainable competitive advantage.
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