Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees
Diogenes pioneered the use of technology to support trustees and boards in their role as fiduciaries of employee retirement funds. Typically, a multinational corporation with operations in 30-40 countries may have hundreds of pension plans, each with their own characteristics. Common among all of them is the opportunity to demonstrate conformance with globally recognized fiduciary best practices. The Diogenes Fiduciary Compliance System gathers and curates all relative documents and compares that information with the 21 practices and the 82 criteria of the ISO 9000 based Fi360 Prudent Practices. Using sophisticated statistical techniques including Bayesian Inference, the software continuously evaluates conformance to the Prudent Practices and reports on areas which need to be addressed. Reporting by exception, the user starts with a global view and can drill down by region, country, company, and plan to review the issues. A continuous audit log provides management with the information to support their role as fiduciaries by continuously monitoring their investments as required by the US Supreme Court's guidelines in the 2015 Tibble v. Edison International case. Board members can rest easily knowing that management meets the highest level of quality in support of their employees and shareholders.
Authors :: Bala Mulloth, Robert R. Patterson, John Whitworth
Swot Analysis of "Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees" written by Bala Mulloth, Robert R. Patterson, John Whitworth includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diogenes Fiduciary facing as an external strategic factors. Some of the topics covered in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees casestudy better are - – geopolitical disruptions, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, technology disruption, there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diogenes Fiduciary, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diogenes Fiduciary 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees can be done for the following purposes –
1. Strategic planning using facts provided in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees case study
2. Improving business portfolio management of Diogenes Fiduciary
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 Diogenes Fiduciary
Strengths Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diogenes Fiduciary in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees Harvard Business Review case study are -
Learning organization
- Diogenes Fiduciary 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 Diogenes Fiduciary is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Diogenes Fiduciary digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diogenes Fiduciary 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.
Strong track record of project management
– Diogenes Fiduciary is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Diogenes Fiduciary has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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
– Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees firm has clearly differentiated products in the market place. This has enabled Diogenes Fiduciary to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Diogenes Fiduciary to invest into research and development (R&D) and innovation.
High brand equity
– Diogenes Fiduciary has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Diogenes Fiduciary to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Diogenes Fiduciary is one of the most innovative firm in sector. Manager in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Diogenes Fiduciary 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Diogenes Fiduciary in the sector have low bargaining power. Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diogenes Fiduciary to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Diogenes Fiduciary 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.
Cross disciplinary teams
– Horizontal connected teams at the Diogenes Fiduciary 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
– Diogenes Fiduciary is present in almost all the verticals within the industry. This has provided firm in Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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.
Weaknesses Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees, it seems that the employees of Diogenes Fiduciary 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.
No frontier risks strategy
– After analyzing the HBR case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Capital Spending Reduction
– Even during the low interest decade, Diogenes Fiduciary 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.
Skills based hiring
– The stress on hiring functional specialists at Diogenes Fiduciary 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 operating costs
– Compare to the competitors, firm in the HBR case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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 Diogenes Fiduciary 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diogenes Fiduciary is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Diogenes Fiduciary supply chain. Even after few cautionary changes mentioned in the HBR case study - Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Diogenes Fiduciary vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Diogenes Fiduciary 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees, is just above the industry average. Diogenes Fiduciary 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.
Slow to strategic competitive environment developments
– As Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees HBR case study mentions - Diogenes Fiduciary 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Diogenes Fiduciary 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.
Opportunities Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees | 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees are -
Leveraging digital technologies
– Diogenes Fiduciary 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.
Manufacturing automation
– Diogenes Fiduciary can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
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. Diogenes Fiduciary can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diogenes Fiduciary is facing challenges because of the dominance of functional experts in the organization. Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Diogenes Fiduciary 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, Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Diogenes Fiduciary 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
– Diogenes Fiduciary 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diogenes Fiduciary to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diogenes Fiduciary in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Diogenes Fiduciary can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Diogenes Fiduciary 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.
Developing new processes and practices
– Diogenes Fiduciary can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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. Diogenes Fiduciary 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. Diogenes Fiduciary 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.
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 Diogenes Fiduciary in the consumer business. Now Diogenes Fiduciary can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees are -
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.
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 Diogenes Fiduciary.
Regulatory challenges
– Diogenes Fiduciary 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.
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.
Technology acceleration in Forth Industrial Revolution
– Diogenes Fiduciary has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Diogenes Fiduciary 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.
Consumer confidence and its impact on Diogenes Fiduciary 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees, Diogenes Fiduciary 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, Diogenes Fiduciary 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees .
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 Diogenes Fiduciary in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Diogenes Fiduciary is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Diogenes Fiduciary 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. Diogenes Fiduciary can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Diogenes Fiduciary with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Diogenes Fiduciary in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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 Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees 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 Diogenes Fiduciary needs to make to build a sustainable competitive advantage.
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