New Constructs: Disrupting Fundamental Analysis with Robo-Analysts SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New Constructs: Disrupting Fundamental Analysis with Robo-Analysts
Using machine-learning technology, New Constructs creates cleaned up financial statement data that removes accounting distortions. This powerful data aims to provide unparalleled insights into companies' true economic picture. Could they convince market participants of the data's value?
Swot Analysis of "New Constructs: Disrupting Fundamental Analysis with Robo-Analysts" written by Charles C.Y. Wang, Kyle Thomas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Constructs Data's facing as an external strategic factors. Some of the topics covered in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts case study are - Strategic Management Strategies, Financial management, IT and Finance & Accounting.
Some of the macro environment factors that can be used to understand the New Constructs: Disrupting Fundamental Analysis with Robo-Analysts casestudy better are - – increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, wage bills are increasing, technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings,
there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of New Constructs: Disrupting Fundamental Analysis with Robo-Analysts
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Constructs Data's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Constructs Data's 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts can be done for the following purposes –
1. Strategic planning using facts provided in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts case study
2. Improving business portfolio management of Constructs Data's
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Constructs Data's
Strengths New Constructs: Disrupting Fundamental Analysis with Robo-Analysts | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Constructs Data's in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts Harvard Business Review case study are -
Analytics focus
– Constructs Data's 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 Charles C.Y. Wang, Kyle Thomas 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.
Ability to recruit top talent
– Constructs Data's is one of the leading recruiters in the industry. Managers in the New Constructs: Disrupting Fundamental Analysis with Robo-Analysts are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Constructs Data's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Constructs Data's 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.
Effective Research and Development (R&D)
– Constructs Data's 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Constructs Data's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Constructs Data's 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.
High switching costs
– The high switching costs that Constructs Data's 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.
Strong track record of project management
– Constructs Data's 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
– Constructs Data's is one of the most innovative firm in sector. Manager in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Constructs Data's 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 Constructs Data's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Constructs Data's in the sector have low bargaining power. New Constructs: Disrupting Fundamental Analysis with Robo-Analysts has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Constructs Data's to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Finance & Accounting industry
– New Constructs: Disrupting Fundamental Analysis with Robo-Analysts firm has clearly differentiated products in the market place. This has enabled Constructs Data's to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Constructs Data's to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Constructs Data's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses New Constructs: Disrupting Fundamental Analysis with Robo-Analysts | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New Constructs: Disrupting Fundamental Analysis with Robo-Analysts are -
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 Constructs Data's supply chain. Even after few cautionary changes mentioned in the HBR case study - New Constructs: Disrupting Fundamental Analysis with Robo-Analysts, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Constructs Data's vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As New Constructs: Disrupting Fundamental Analysis with Robo-Analysts HBR case study mentions - Constructs Data's 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.
Interest costs
– Compare to the competition, Constructs Data's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study New Constructs: Disrupting Fundamental Analysis with Robo-Analysts, in the dynamic environment Constructs Data's has struggled to respond to the nimble upstart competition. Constructs Data's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Constructs Data's 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.
High cash cycle compare to competitors
Constructs Data's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study New Constructs: Disrupting Fundamental Analysis with Robo-Analysts, it seems that the employees of Constructs Data's 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.
Lack of clear differentiation of Constructs Data's products
– To increase the profitability and margins on the products, Constructs Data's needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Constructs Data's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Constructs Data's 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.
Increasing silos among functional specialists
– The organizational structure of Constructs Data's is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Constructs Data's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Constructs Data's to focus more on services rather than just following the product oriented approach.
Opportunities New Constructs: Disrupting Fundamental Analysis with Robo-Analysts | 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Constructs Data's is facing challenges because of the dominance of functional experts in the organization. New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Constructs Data's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Constructs Data's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Constructs Data's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Constructs Data's 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.
Better consumer reach
– The expansion of the 5G network will help Constructs Data's to increase its market reach. Constructs Data's 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.
Building a culture of innovation
– managers at Constructs Data's 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 Finance & Accounting segment.
Learning at scale
– Online learning technologies has now opened space for Constructs Data's 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.
Buying journey improvements
– Constructs Data's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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
– Constructs Data's 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.
Loyalty marketing
– Constructs Data's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Constructs Data's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Constructs Data's has opened avenues for new revenue streams for the organization in the industry. This can help Constructs Data's to build a more holistic ecosystem as suggested in the New Constructs: Disrupting Fundamental Analysis with Robo-Analysts case study. Constructs Data's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats New Constructs: Disrupting Fundamental Analysis with Robo-Analysts External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New Constructs: Disrupting Fundamental Analysis with Robo-Analysts are -
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Constructs Data's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Constructs Data's in the Finance & Accounting industry. The Finance & Accounting 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.
Increasing wage structure of Constructs Data's
– 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 Constructs Data's.
High dependence on third party suppliers
– Constructs Data's 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.
Regulatory challenges
– Constructs Data's 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 Finance & Accounting industry regulations.
Technology acceleration in Forth Industrial Revolution
– Constructs Data's has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Constructs Data's needs to keep up with the evolution of technology in the Finance & Accounting 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
– Constructs Data's 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. Constructs Data's can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Shortening product life cycle
– it is one of the major threat that Constructs Data's is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Constructs Data's.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Constructs Data's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Constructs Data's needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study New Constructs: Disrupting Fundamental Analysis with Robo-Analysts, Constructs Data's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Weighted SWOT Analysis of New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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 New Constructs: Disrupting Fundamental Analysis with Robo-Analysts 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 Constructs Data's needs to make to build a sustainable competitive advantage.