Mind Over Matter? A Case for Artificial Intelligence SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mind Over Matter? A Case for Artificial Intelligence
There are few industries in which the effects of technological innovation be seen as clearly as they can in the healthcare industry. Developments in devices, services and networks are in turn creating even more opportunities and innovation. This case looks specifically at developments in Artificial Intelligence technologies, and the impact these might have on the treatment of certain diseases. With a particular focus on the treatment of diabetes, the case looks at the market potential of such innovations and the challenges the industry might expect to encounter going forward.
Swot Analysis of "Mind Over Matter? A Case for Artificial Intelligence" written by Philip Parker, Nao Maeda includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Artificial Intelligence facing as an external strategic factors. Some of the topics covered in Mind Over Matter? A Case for Artificial Intelligence case study are - Strategic Management Strategies, Technology and Global Business.
Some of the macro environment factors that can be used to understand the Mind Over Matter? A Case for Artificial Intelligence casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, wage bills are increasing, talent flight as more people leaving formal jobs, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization,
increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Mind Over Matter? A Case for Artificial Intelligence
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mind Over Matter? A Case for Artificial Intelligence case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Artificial Intelligence, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence can be done for the following purposes –
1. Strategic planning using facts provided in Mind Over Matter? A Case for Artificial Intelligence case study
2. Improving business portfolio management of Artificial Intelligence
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Artificial Intelligence
Strengths Mind Over Matter? A Case for Artificial Intelligence | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Artificial Intelligence in Mind Over Matter? A Case for Artificial Intelligence Harvard Business Review case study are -
Effective Research and Development (R&D)
– Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Artificial Intelligence 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 Philip Parker, Nao Maeda 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.
Cross disciplinary teams
– Horizontal connected teams at the Artificial Intelligence 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 lead change in Global Business field
– Artificial Intelligence 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 Artificial Intelligence in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Artificial Intelligence in the sector have low bargaining power. Mind Over Matter? A Case for Artificial Intelligence has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Artificial Intelligence to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Artificial Intelligence is one of the most innovative firm in sector. Manager in Mind Over Matter? A Case for Artificial Intelligence Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Artificial Intelligence 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.
Successful track record of launching new products
– Artificial Intelligence has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Artificial Intelligence 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.
Training and development
– Artificial Intelligence has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mind Over Matter? A Case for Artificial Intelligence 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 Global Business industry
– Mind Over Matter? A Case for Artificial Intelligence firm has clearly differentiated products in the market place. This has enabled Artificial Intelligence to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Artificial Intelligence to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Mind Over Matter? A Case for Artificial Intelligence 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Artificial Intelligence digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Artificial Intelligence 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.
Weaknesses Mind Over Matter? A Case for Artificial Intelligence | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mind Over Matter? A Case for Artificial Intelligence are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Artificial Intelligence is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mind Over Matter? A Case for Artificial Intelligence can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Artificial Intelligence, firm in the HBR case study Mind Over Matter? A Case for Artificial Intelligence needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Mind Over Matter? A Case for Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence can leverage the sales team experience to cultivate customer relationships as Artificial Intelligence is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mind Over Matter? A Case for Artificial Intelligence, in the dynamic environment Artificial Intelligence has struggled to respond to the nimble upstart competition. Artificial Intelligence has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mind Over Matter? A Case for Artificial Intelligence HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Artificial Intelligence has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mind Over Matter? A Case for Artificial Intelligence, is just above the industry average. Artificial Intelligence 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mind Over Matter? A Case for Artificial Intelligence, it seems that the employees of Artificial Intelligence 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.
Products dominated business model
– Even though Artificial Intelligence 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 - Mind Over Matter? A Case for Artificial Intelligence should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Artificial Intelligence is dominated by functional specialists. It is not different from other players in the Global Business segment. Artificial Intelligence needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Artificial Intelligence to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Artificial Intelligence 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. Artificial Intelligence 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.
High cash cycle compare to competitors
Artificial Intelligence 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.
Opportunities Mind Over Matter? A Case for Artificial Intelligence | 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 Mind Over Matter? A Case for Artificial Intelligence are -
Creating value in data economy
– The success of analytics program of Artificial Intelligence has opened avenues for new revenue streams for the organization in the industry. This can help Artificial Intelligence to build a more holistic ecosystem as suggested in the Mind Over Matter? A Case for Artificial Intelligence case study. Artificial Intelligence can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Artificial Intelligence can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Artificial Intelligence is facing challenges because of the dominance of functional experts in the organization. Mind Over Matter? A Case for Artificial Intelligence 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Artificial Intelligence 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. Artificial Intelligence 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Artificial Intelligence can use these opportunities to build new business models that can help the communities that Artificial Intelligence operates in. Secondly it can use opportunities from government spending in Global Business sector.
Buying journey improvements
– Artificial Intelligence can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mind Over Matter? A Case for Artificial Intelligence 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Artificial Intelligence in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Artificial Intelligence can develop new processes and procedures in Global Business 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.
Leveraging digital technologies
– Artificial Intelligence 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Artificial Intelligence can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Artificial Intelligence 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 Artificial Intelligence to hire the very best people irrespective of their geographical location.
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 Artificial Intelligence 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, Artificial Intelligence 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.
Threats Mind Over Matter? A Case for Artificial Intelligence External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mind Over Matter? A Case for Artificial Intelligence are -
Environmental challenges
– Artificial Intelligence 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. Artificial Intelligence can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Artificial Intelligence 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 Artificial Intelligence in the Global Business industry. The Global Business 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.
Increasing wage structure of Artificial Intelligence
– 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 Artificial Intelligence.
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 Artificial Intelligence in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Artificial Intelligence can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Artificial Intelligence.
Technology acceleration in Forth Industrial Revolution
– Artificial Intelligence has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Artificial Intelligence needs to keep up with the evolution of technology in the Global Business 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.
Regulatory challenges
– Artificial Intelligence 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 Global Business industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mind Over Matter? A Case for Artificial Intelligence, Artificial Intelligence may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
High dependence on third party suppliers
– Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence 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 Mind Over Matter? A Case for Artificial Intelligence 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 Artificial Intelligence needs to make to build a sustainable competitive advantage.
