Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
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Case Study SWOT Analysis Solution
Case Study Description of Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search
The search for partners in open innovation settings often consumes substantial time and managerial attention. Yet, organizations tend to get trapped in local search, which typically leads to collaboration with partners already known to them. To improve the search for partners, this article develops a tool that exploits the power of state-of-the-art information technology. In a sample of 33 search queries conducted in six innovation intermediaries, it studies differences between search with and without the use of our tool. The tests confirm the tool's effectiveness and efficiency, and highlight the importance of searching with keywords that represent the core roles and activities of a firm, next to keywords referring to market and technology characteristics. Network visualization and semantic algorithms thus appear to facilitate the effort to identify distant partners. The article also finds that local partners are not that easy to find as commonly assumed.
Authors :: Freek Meulman, Isabelle M. M. J. Reymen, Ksenia S. Podoynitsyna, A. Georges L. Romme
Swot Analysis of "Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search" written by Freek Meulman, Isabelle M. M. J. Reymen, Ksenia S. Podoynitsyna, A. Georges L. Romme includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Search Partners facing as an external strategic factors. Some of the topics covered in Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search case study are - Strategic Management Strategies, Knowledge management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search casestudy better are - – there is increasing trade war between United States & China, increasing energy prices, geopolitical disruptions, central banks are concerned over increasing inflation, increasing transportation and logistics costs, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Search Partners, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Search Partners 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search can be done for the following purposes –
1. Strategic planning using facts provided in Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search case study
2. Improving business portfolio management of Search Partners
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Search Partners
Strengths Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Search Partners in Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search Harvard Business Review case study are -
Analytics focus
– Search Partners 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 Freek Meulman, Isabelle M. M. J. Reymen, Ksenia S. Podoynitsyna, A. Georges L. Romme 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.
Organizational Resilience of Search Partners
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Search Partners does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Search Partners 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Innovation & Entrepreneurship field
– Search Partners 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 Search Partners in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Search Partners in the sector have low bargaining power. Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Search Partners to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Search Partners has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Search Partners has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search firm has clearly differentiated products in the market place. This has enabled Search Partners to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Search Partners to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Search Partners 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Search Partners 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.
Diverse revenue streams
– Search Partners is present in almost all the verticals within the industry. This has provided firm in Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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.
Ability to recruit top talent
– Search Partners is one of the leading recruiters in the industry. Managers in the Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search are -
Slow to strategic competitive environment developments
– As Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search HBR case study mentions - Search Partners 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.
Products dominated business model
– Even though Search Partners 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 - Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Freek Meulman, Isabelle M. M. J. Reymen, Ksenia S. Podoynitsyna, A. Georges L. Romme suggests that, Search Partners 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.
Low market penetration in new markets
– Outside its home market of Search Partners, firm in the HBR case study Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Search Partners 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search, is just above the industry average. Search Partners needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Skills based hiring
– The stress on hiring functional specialists at Search Partners 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Search Partners 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search, it seems that the employees of Search Partners 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.
Slow decision making process
– As mentioned earlier in the report, Search Partners 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. Search Partners 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.
Interest costs
– Compare to the competition, Search Partners 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.
Opportunities Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search | 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search are -
Building a culture of innovation
– managers at Search Partners 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 Innovation & Entrepreneurship 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 Search Partners 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Search Partners 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. Search Partners 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Search Partners can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Search Partners 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.
Learning at scale
– Online learning technologies has now opened space for Search Partners 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Search Partners 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 Search Partners 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, Search Partners 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, Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Search Partners in the consumer business. Now Search Partners can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Search Partners 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Search Partners to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Search Partners to increase its market reach. Search Partners 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.
Leveraging digital technologies
– Search Partners 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.
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. Search Partners can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search are -
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. Search Partners needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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.
High dependence on third party suppliers
– Search Partners 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 Search Partners
– 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 Search Partners.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Search Partners with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Search Partners has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Search Partners needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Stagnating economy with rate increase
– Search Partners can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Search Partners business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search, Search Partners may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Search Partners 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search .
Regulatory challenges
– Search Partners 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 Innovation & Entrepreneurship industry regulations.
Consumer confidence and its impact on Search Partners 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.
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 Search Partners.
Weighted SWOT Analysis of Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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 Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search 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 Search Partners needs to make to build a sustainable competitive advantage.
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