Viacom: Democratization of Data Science SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Viacom: Democratization of Data Science
In two short years, Viacom's Data Science & Advanced Analytics team built a web platform called Science Central that allowed employees from Viacom's 20+ cable networks to access television audience insights through three data science apps. In the past, employees would have approached the team to carry out these requests. Vice President of Data and Audience Development Fabio Luzzi, who oversaw the 10-person team, believed that making data science instantly available in accessible formats would allow teams to make better-informed decisions. By June 2017, the platform had 600 regular users, but Luzzi wanted to expand its reach. He considered whether the team should focus on strengthening the platform or devote more resources to custom analytics requests that would allow the team to explore new problems and develop new insights.
Swot Analysis of "Viacom: Democratization of Data Science" written by Shane Greenstein, Christine Snively includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Science Luzzi facing as an external strategic factors. Some of the topics covered in Viacom: Democratization of Data Science case study are - Strategic Management Strategies, Growth strategy, IT, Operations management, Strategic planning and Technology & Operations.
Some of the macro environment factors that can be used to understand the Viacom: Democratization of Data Science casestudy better are - – there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing energy prices, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, cloud computing is disrupting traditional business models,
digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Viacom: Democratization of Data Science
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Viacom: Democratization of Data Science case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Science Luzzi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Science Luzzi 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 Viacom: Democratization of Data Science can be done for the following purposes –
1. Strategic planning using facts provided in Viacom: Democratization of Data Science case study
2. Improving business portfolio management of Science Luzzi
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 Science Luzzi
Strengths Viacom: Democratization of Data Science | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Science Luzzi in Viacom: Democratization of Data Science Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Science Luzzi in the sector have low bargaining power. Viacom: Democratization of Data Science has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Science Luzzi to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Science Luzzi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Science Luzzi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Science Luzzi is one of the leading recruiters in the industry. Managers in the Viacom: Democratization of Data Science are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Science Luzzi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Science Luzzi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Science Luzzi is one of the most innovative firm in sector. Manager in Viacom: Democratization of Data Science Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Science Luzzi 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 Viacom: Democratization of Data Science HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Science Luzzi is present in almost all the verticals within the industry. This has provided firm in Viacom: Democratization of Data Science 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.
Learning organization
- Science Luzzi 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 Science Luzzi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Viacom: Democratization of Data Science Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Science Luzzi in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Science Luzzi 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 Viacom: Democratization of Data Science - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Technology & Operations industry
– Viacom: Democratization of Data Science firm has clearly differentiated products in the market place. This has enabled Science Luzzi to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Science Luzzi to invest into research and development (R&D) and innovation.
Analytics focus
– Science Luzzi 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 Shane Greenstein, Christine Snively 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.
Weaknesses Viacom: Democratization of Data Science | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Viacom: Democratization of Data Science are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Viacom: Democratization of Data Science, is just above the industry average. Science Luzzi 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.
Aligning sales with marketing
– It come across in the case study Viacom: Democratization of Data Science that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Viacom: Democratization of Data Science can leverage the sales team experience to cultivate customer relationships as Science Luzzi is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Science Luzzi, firm in the HBR case study Viacom: Democratization of Data Science needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Science Luzzi 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Viacom: Democratization of Data Science, in the dynamic environment Science Luzzi has struggled to respond to the nimble upstart competition. Science Luzzi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Science Luzzi 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Shane Greenstein, Christine Snively suggests that, Science Luzzi 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Science Luzzi 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.
Need for greater diversity
– Science Luzzi 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.
Lack of clear differentiation of Science Luzzi products
– To increase the profitability and margins on the products, Science Luzzi needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Science Luzzi 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.
Opportunities Viacom: Democratization of Data Science | 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 Viacom: Democratization of Data Science are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Science Luzzi 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.
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 Science Luzzi 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.
Better consumer reach
– The expansion of the 5G network will help Science Luzzi to increase its market reach. Science Luzzi 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.
Using analytics as competitive advantage
– Science Luzzi 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 Viacom: Democratization of Data Science - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Science Luzzi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Science Luzzi 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, Viacom: Democratization of Data Science, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Science Luzzi is facing challenges because of the dominance of functional experts in the organization. Viacom: Democratization of Data Science 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.
Creating value in data economy
– The success of analytics program of Science Luzzi has opened avenues for new revenue streams for the organization in the industry. This can help Science Luzzi to build a more holistic ecosystem as suggested in the Viacom: Democratization of Data Science case study. Science Luzzi can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Science Luzzi in the consumer business. Now Science Luzzi can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Science Luzzi can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Science Luzzi 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 Science Luzzi to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Science Luzzi 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Science Luzzi 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.
Building a culture of innovation
– managers at Science Luzzi can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Threats Viacom: Democratization of Data Science External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Viacom: Democratization of Data Science are -
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 Science Luzzi business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Science Luzzi 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.
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.
Environmental challenges
– Science Luzzi 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. Science Luzzi can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Science Luzzi 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 Viacom: Democratization of Data Science .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Science Luzzi will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Science Luzzi is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Science Luzzi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Science Luzzi in the Technology & Operations sector and impact the bottomline of the organization.
Increasing wage structure of Science Luzzi
– 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 Science Luzzi.
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 Science Luzzi.
Regulatory challenges
– Science Luzzi 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.
High dependence on third party suppliers
– Science Luzzi 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.
Weighted SWOT Analysis of Viacom: Democratization of Data Science 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 Viacom: Democratization of Data Science 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 Viacom: Democratization of Data Science 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 Viacom: Democratization of Data Science 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 Viacom: Democratization of Data Science 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 Science Luzzi needs to make to build a sustainable competitive advantage.