Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank
This case chronicled the digital transformation of DBS Bank in seeking regional growth amidst a new digital era in the Asian banking industry. Led by its CEO, DBS invested heavily in technology and undertook radical changes to 'rewire' the entire enterprise for digital innovation. Key thrusts of its digital transformation strategy involved the revamp of its Technology and Operations organization, the development of scalable digital platforms, the leverage on technology to redesign the customer experience, and the internal incubation and external partnering in seeking new digital innovation. However, questions remain whether DBS has done enough to put digital at the heart of banking? What should be the next steps in their digital strategy? Where should the bank direct its technology investment dollars? How can DBS systematically assess the opportunities and threats of digital disruption in the banking industry and devise a set of possible strategic responses? How can DBS stay at the forefront of digital innovation to become the Asian Bank of Choice for the New Asia?
Authors :: Siew-Kien Sia, Christina Soh, Peter Weill, Yvonne Chong
Swot Analysis of "Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank" written by Siew-Kien Sia, Christina Soh, Peter Weill, Yvonne Chong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dbs Digital facing as an external strategic factors. Some of the topics covered in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank case study are - Strategic Management Strategies, Innovation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dbs Digital, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dbs Digital 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank can be done for the following purposes –
1. Strategic planning using facts provided in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank case study
2. Improving business portfolio management of Dbs Digital
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dbs Digital
Strengths Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dbs Digital in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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.
Learning organization
- Dbs Digital 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 Dbs Digital is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Dbs Digital in the sector have low bargaining power. Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dbs Digital to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Dbs Digital 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.
Ability to recruit top talent
– Dbs Digital is one of the leading recruiters in the industry. Managers in the Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Dbs Digital has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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.
Analytics focus
– Dbs Digital 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 Siew-Kien Sia, Christina Soh, Peter Weill, Yvonne Chong 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.
Successful track record of launching new products
– Dbs Digital has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dbs Digital 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.
Organizational Resilience of Dbs Digital
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dbs Digital does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Finance & Accounting field
– Dbs Digital 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 Dbs Digital in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Dbs Digital is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Dbs Digital is present in almost all the verticals within the industry. This has provided firm in Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank are -
Lack of clear differentiation of Dbs Digital products
– To increase the profitability and margins on the products, Dbs Digital needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Siew-Kien Sia, Christina Soh, Peter Weill, Yvonne Chong suggests that, Dbs Digital 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank, is just above the industry average. Dbs Digital 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank, in the dynamic environment Dbs Digital has struggled to respond to the nimble upstart competition. Dbs Digital has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Dbs Digital 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 - Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank, it seems that the employees of Dbs Digital 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.
Low market penetration in new markets
– Outside its home market of Dbs Digital, firm in the HBR case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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 operating costs
– Compare to the competitors, firm in the HBR case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Dbs Digital 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank can leverage the sales team experience to cultivate customer relationships as Dbs Digital is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Dbs Digital 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. Dbs Digital 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.
Opportunities Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank | 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank are -
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 Dbs Digital to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dbs Digital 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dbs Digital 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, Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dbs Digital in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Manufacturing automation
– Dbs Digital can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Using analytics as competitive advantage
– Dbs Digital 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dbs Digital to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Dbs Digital to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Buying journey improvements
– Dbs Digital can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Dbs Digital can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Dbs Digital can develop new processes and procedures in Finance & Accounting 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dbs Digital can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dbs Digital 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. Dbs Digital 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.
Creating value in data economy
– The success of analytics program of Dbs Digital has opened avenues for new revenue streams for the organization in the industry. This can help Dbs Digital to build a more holistic ecosystem as suggested in the Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank case study. Dbs Digital can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Dbs Digital business can come under increasing regulations regarding data privacy, data security, etc.
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 Dbs Digital in the Finance & Accounting sector and impact the bottomline of the organization.
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. Dbs Digital needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank, Dbs Digital may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dbs Digital 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank .
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. Dbs Digital 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.
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 Dbs Digital.
Environmental challenges
– Dbs Digital 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. Dbs Digital can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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.
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.
Stagnating economy with rate increase
– Dbs Digital 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 Dbs Digital in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Dbs Digital 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Rewiring the Enterprise for Digital Innovation : The Case of DBS Bank 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 Dbs Digital needs to make to build a sustainable competitive advantage.
