Finding Applications for Technologies Beyond the Core Business SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Finding Applications for Technologies Beyond the Core Business
Typically, authors Erwin Danneels and Federico Frattini observe, companies are more comfortable developing new products for the customers they already serve than they are with applying their technologies in new markets (a process they call "technology leveraging"). Only a small number of companies make a deliberate effort to tap the potential for business outside their core markets.Using examples from companies the authors have studied or advised, the article describes a four-step process for leveraging technology that involves: (1) characterizing the technology, (2) identifying potential applications, (3) choosing from among the identified applications, and (4) selecting the best entry mode. The first step involves "de-linking"the technology from the specific products in which it is currently used. To do this, the authors explain, companies need to identify the functions the technology can perform. A good characterization can broaden the scope of the potential opportunities and allow people to focus clearly on the technology's abilities and limits. In many settings, this step requires extensive testing and R&D investment. As they explain, "You can't look for new applications until you know what your technology can do vis-a-vis what competing solutions do." Once companies have specified what the technology is, they can begin exploring new settings where it might be applied. Although the authors recommend starting with desk research, the biggest benefits often come from getting out of the office and interacting with people. Trade shows, they say, provide an excellent way to see firsthand where the technology and its alternatives might be applied, and to hear about the pain points of the existing technologies. Another approach is to tap into communities of problem-solvers who might be able to provide suggestions. Although identifying opportunities with the most promise may appear to be straightforward, in practice, the authors note, it can be more involved. Companies often underestimate the challenges of applying the technology, which may be revealed only by building early prototypes. In bringing technology to new markets, the goal should be to find new application areas where your technology performs better on existing performance dimensions, introduces a new performance dimension, or delivers the desired outcome at a lower cost. The fourth and final step in leveraging technology involves determining the best way to develop and commercialize the products that use the technology. In bringing technology to market, companies need to decide whether to develop products themselves or work with a third party. This decision can have significant implications in terms of capital requirements, time to market, level of control, and required commitment. However, there are no universal guidelines that apply in every situation.
Swot Analysis of "Finding Applications for Technologies Beyond the Core Business" written by Erwin Danneels, Federico Frattini includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Technology Authors facing as an external strategic factors. Some of the topics covered in Finding Applications for Technologies Beyond the Core Business case study are - Strategic Management Strategies, Research & development and Technology & Operations.
Some of the macro environment factors that can be used to understand the Finding Applications for Technologies Beyond the Core Business casestudy better are - – challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, wage bills are increasing, etc
Introduction to SWOT Analysis of Finding Applications for Technologies Beyond the Core Business
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Finding Applications for Technologies Beyond the Core Business case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Technology Authors, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Technology Authors 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 Finding Applications for Technologies Beyond the Core Business can be done for the following purposes –
1. Strategic planning using facts provided in Finding Applications for Technologies Beyond the Core Business case study
2. Improving business portfolio management of Technology Authors
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 Technology Authors
Strengths Finding Applications for Technologies Beyond the Core Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Technology Authors in Finding Applications for Technologies Beyond the Core Business Harvard Business Review case study are -
Innovation driven organization
– Technology Authors is one of the most innovative firm in sector. Manager in Finding Applications for Technologies Beyond the Core Business Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Technology Authors is present in almost all the verticals within the industry. This has provided firm in Finding Applications for Technologies Beyond the Core Business 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
– Technology Authors has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Technology Authors to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Technology Authors 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 Finding Applications for Technologies Beyond the Core Business - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Technology Authors has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Finding Applications for Technologies Beyond the Core Business 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
- Technology Authors 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 Technology Authors is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Finding Applications for Technologies Beyond the Core Business Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Technology Authors in the sector have low bargaining power. Finding Applications for Technologies Beyond the Core Business has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Technology Authors to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Technology & Operations industry
– Finding Applications for Technologies Beyond the Core Business firm has clearly differentiated products in the market place. This has enabled Technology Authors to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Technology Authors to invest into research and development (R&D) and innovation.
Analytics focus
– Technology Authors 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 Erwin Danneels, Federico Frattini 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Technology Authors digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Technology Authors 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.
Superior customer experience
– The customer experience strategy of Technology Authors 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 Finding Applications for Technologies Beyond the Core Business 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.
Weaknesses Finding Applications for Technologies Beyond the Core Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Finding Applications for Technologies Beyond the Core Business are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Finding Applications for Technologies Beyond the Core Business 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 Technology Authors has relatively successful track record of launching new products.
Products dominated business model
– Even though Technology Authors 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 - Finding Applications for Technologies Beyond the Core Business should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Technology Authors 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, Technology Authors 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 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 Technology Authors supply chain. Even after few cautionary changes mentioned in the HBR case study - Finding Applications for Technologies Beyond the Core Business, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Technology Authors vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Technology Authors 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.
Low market penetration in new markets
– Outside its home market of Technology Authors, firm in the HBR case study Finding Applications for Technologies Beyond the Core Business 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 Finding Applications for Technologies Beyond the Core Business, it seems that the employees of Technology Authors 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 bargaining power of channel partners
– Because of the regulatory requirements, Erwin Danneels, Federico Frattini suggests that, Technology Authors 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.
Need for greater diversity
– Technology Authors 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.
No frontier risks strategy
– After analyzing the HBR case study Finding Applications for Technologies Beyond the Core Business, 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.
Opportunities Finding Applications for Technologies Beyond the Core Business | 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 Finding Applications for Technologies Beyond the Core Business are -
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 Technology Authors 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.
Creating value in data economy
– The success of analytics program of Technology Authors has opened avenues for new revenue streams for the organization in the industry. This can help Technology Authors to build a more holistic ecosystem as suggested in the Finding Applications for Technologies Beyond the Core Business case study. Technology Authors can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Technology Authors 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.
Better consumer reach
– The expansion of the 5G network will help Technology Authors to increase its market reach. Technology Authors 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.
Learning at scale
– Online learning technologies has now opened space for Technology Authors 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.
Using analytics as competitive advantage
– Technology Authors 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 Finding Applications for Technologies Beyond the Core Business - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Technology Authors to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Technology Authors in the consumer business. Now Technology Authors 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, Technology Authors 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.
Buying journey improvements
– Technology Authors can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Finding Applications for Technologies Beyond the Core Business 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.
Leveraging digital technologies
– Technology Authors 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Technology Authors 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Technology Authors 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 Technology Authors to hire the very best people irrespective of their geographical location.
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. Technology Authors can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Finding Applications for Technologies Beyond the Core Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Finding Applications for Technologies Beyond the Core Business are -
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.
Regulatory challenges
– Technology Authors 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.
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 Technology Authors business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Technology Authors 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Finding Applications for Technologies Beyond the Core Business, Technology Authors 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
– Technology Authors has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Technology Authors 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.
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 Technology Authors in the Technology & Operations sector and impact the bottomline of the organization.
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.
High dependence on third party suppliers
– Technology Authors 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.
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. Technology Authors 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Technology Authors 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 Finding Applications for Technologies Beyond the Core Business .
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. Technology Authors needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Technology Authors is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Finding Applications for Technologies Beyond the Core Business 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 Finding Applications for Technologies Beyond the Core Business 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 Finding Applications for Technologies Beyond the Core Business 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 Finding Applications for Technologies Beyond the Core Business 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 Finding Applications for Technologies Beyond the Core Business 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 Technology Authors needs to make to build a sustainable competitive advantage.