Can IT Be Too in Sync With Business Strategy? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Can IT Be Too in Sync With Business Strategy?
IT alignment can produce inertia -unless it's accompanied by the right culture. Sure, closely aligning IT with the rest of a company's strategy can cut costs and improve the ability to collect data, facilitating the creation of early-warning systems and operational dashboards. But a less regimented approach has its place, too, allowing responses to changing business and economic conditions that are swift and creative.
Authors :: Huigang Liang, Nianxin Wang, Yajiong Xue, Shilun Ge
Swot Analysis of "Can IT Be Too in Sync With Business Strategy?" written by Huigang Liang, Nianxin Wang, Yajiong Xue, Shilun Ge includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Regimented Sync facing as an external strategic factors. Some of the topics covered in Can IT Be Too in Sync With Business Strategy? case study are - Strategic Management Strategies, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Can IT Be Too in Sync With Business Strategy? casestudy better are - – technology disruption, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing commodity prices, wage bills are increasing, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Can IT Be Too in Sync With Business Strategy?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Can IT Be Too in Sync With Business Strategy? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Regimented Sync, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Regimented Sync 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 Can IT Be Too in Sync With Business Strategy? can be done for the following purposes –
1. Strategic planning using facts provided in Can IT Be Too in Sync With Business Strategy? case study
2. Improving business portfolio management of Regimented Sync
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 Regimented Sync
Strengths Can IT Be Too in Sync With Business Strategy? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Regimented Sync in Can IT Be Too in Sync With Business Strategy? Harvard Business Review case study are -
Effective Research and Development (R&D)
– Regimented Sync 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 Can IT Be Too in Sync With Business Strategy? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Regimented Sync is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Can IT Be Too in Sync With Business Strategy? 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.
Analytics focus
– Regimented Sync 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 Huigang Liang, Nianxin Wang, Yajiong Xue, Shilun Ge 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.
Sustainable margins compare to other players in Technology & Operations industry
– Can IT Be Too in Sync With Business Strategy? firm has clearly differentiated products in the market place. This has enabled Regimented Sync to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Regimented Sync to invest into research and development (R&D) and innovation.
Organizational Resilience of Regimented Sync
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Regimented Sync does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Regimented Sync has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Regimented Sync to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Regimented Sync 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 Regimented Sync is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Can IT Be Too in Sync With Business Strategy? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Regimented Sync in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Regimented Sync is present in almost all the verticals within the industry. This has provided firm in Can IT Be Too in Sync With Business Strategy? 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.
Successful track record of launching new products
– Regimented Sync has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Regimented Sync 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.
High switching costs
– The high switching costs that Regimented Sync 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.
Weaknesses Can IT Be Too in Sync With Business Strategy? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Can IT Be Too in Sync With Business Strategy? are -
Capital Spending Reduction
– Even during the low interest decade, Regimented Sync 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.
No frontier risks strategy
– After analyzing the HBR case study Can IT Be Too in Sync With Business Strategy?, 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.
High cash cycle compare to competitors
Regimented Sync 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.
Increasing silos among functional specialists
– The organizational structure of Regimented Sync is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Regimented Sync needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Regimented Sync to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Huigang Liang, Nianxin Wang, Yajiong Xue, Shilun Ge suggests that, Regimented Sync 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
– Regimented Sync 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 Can IT Be Too in Sync With Business Strategy?, is just above the industry average. Regimented Sync 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.
Low market penetration in new markets
– Outside its home market of Regimented Sync, firm in the HBR case study Can IT Be Too in Sync With Business Strategy? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Regimented Sync supply chain. Even after few cautionary changes mentioned in the HBR case study - Can IT Be Too in Sync With Business Strategy?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Regimented Sync vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Can IT Be Too in Sync With Business Strategy? 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 Regimented Sync 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Can IT Be Too in Sync With Business Strategy?, it seems that the employees of Regimented Sync 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.
Opportunities Can IT Be Too in Sync With Business Strategy? | 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 Can IT Be Too in Sync With Business Strategy? are -
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 Regimented Sync in the consumer business. Now Regimented Sync can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Regimented Sync 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 Can IT Be Too in Sync With Business Strategy? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Regimented Sync to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Regimented Sync can use these opportunities to build new business models that can help the communities that Regimented Sync operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Better consumer reach
– The expansion of the 5G network will help Regimented Sync to increase its market reach. Regimented Sync 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Regimented Sync 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, Regimented Sync 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.
Leveraging digital technologies
– Regimented Sync 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
– Regimented Sync can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Creating value in data economy
– The success of analytics program of Regimented Sync has opened avenues for new revenue streams for the organization in the industry. This can help Regimented Sync to build a more holistic ecosystem as suggested in the Can IT Be Too in Sync With Business Strategy? case study. Regimented Sync can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Regimented Sync 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.
Developing new processes and practices
– Regimented Sync can develop new processes and procedures in Technology & Operations 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 Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Regimented Sync 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. Regimented Sync 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.
Loyalty marketing
– Regimented Sync has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Can IT Be Too in Sync With Business Strategy? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Can IT Be Too in Sync With Business Strategy? are -
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 Regimented Sync in the Technology & Operations sector and impact the bottomline of the organization.
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 Regimented Sync.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Regimented Sync with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Regimented Sync can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Regimented Sync
– 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 Regimented Sync.
Stagnating economy with rate increase
– Regimented Sync 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Regimented Sync in the Technology & Operations industry. The Technology & Operations 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.
High dependence on third party suppliers
– Regimented Sync 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.
Environmental challenges
– Regimented Sync 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. Regimented Sync can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Regimented Sync 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 Regimented Sync business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Regimented Sync 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 Can IT Be Too in Sync With Business Strategy? .
Weighted SWOT Analysis of Can IT Be Too in Sync With Business Strategy? 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 Can IT Be Too in Sync With Business Strategy? 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 Can IT Be Too in Sync With Business Strategy? 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 Can IT Be Too in Sync With Business Strategy? 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 Can IT Be Too in Sync With Business Strategy? 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 Regimented Sync needs to make to build a sustainable competitive advantage.
