The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities
The article presents a framework for exploring the drivers, structure, and dynamics of open data initiatives in the city context. Drawing on a case study of the city of Barcelona complemented with other cases, it develops a stepwise framework that can serve as a practical guide for both urban and private leaders to implement open data strategies. Following this model can enable managers to minimize risk and effectively harness the power of open data.
Authors :: Pascual Berrone, Joan E. Ricart, Carlos Carrasco
Swot Analysis of "The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities" written by Pascual Berrone, Joan E. Ricart, Carlos Carrasco includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Framework Data facing as an external strategic factors. Some of the topics covered in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities case study are - Strategic Management Strategies, Government, Innovation and Global Business.
Some of the macro environment factors that can be used to understand the The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities casestudy better are - – technology disruption, central banks are concerned over increasing inflation, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, there is backlash against globalization,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Framework Data, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Framework Data 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities can be done for the following purposes –
1. Strategic planning using facts provided in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities case study
2. Improving business portfolio management of Framework Data
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 Framework Data
Strengths The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Framework Data in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Framework Data in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Framework Data is one of the most innovative firm in sector. Manager in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Framework Data 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.
High brand equity
– Framework Data has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Framework Data to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Framework Data 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 Framework Data is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Framework Data is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Framework Data in the sector have low bargaining power. The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Framework Data to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Framework Data digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Framework Data 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.
Ability to lead change in Global Business field
– Framework Data 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 Framework Data in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Framework Data is present in almost all the verticals within the industry. This has provided firm in The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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.
Sustainable margins compare to other players in Global Business industry
– The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities firm has clearly differentiated products in the market place. This has enabled Framework Data to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Framework Data to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Framework Data 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities, in the dynamic environment Framework Data has struggled to respond to the nimble upstart competition. Framework Data 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 Framework Data has relatively successful track record of launching new products.
Need for greater diversity
– Framework Data 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.
Products dominated business model
– Even though Framework Data 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 - The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Lack of clear differentiation of Framework Data products
– To increase the profitability and margins on the products, Framework Data needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Framework Data is dominated by functional specialists. It is not different from other players in the Global Business segment. Framework Data needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Framework Data to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities, it seems that the employees of Framework Data 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Framework Data 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.
Slow to strategic competitive environment developments
– As The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities HBR case study mentions - Framework Data takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High operating costs
– Compare to the competitors, firm in the HBR case study The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 Framework Data 's lucrative customers.
Opportunities The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities | 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities are -
Buying journey improvements
– Framework Data can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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.
Leveraging digital technologies
– Framework Data 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Framework Data 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, The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities, 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, Framework Data is facing challenges because of the dominance of functional experts in the organization. The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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.
Better consumer reach
– The expansion of the 5G network will help Framework Data to increase its market reach. Framework Data 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.
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. Framework Data 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. Framework Data 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
– Framework Data 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.
Building a culture of innovation
– managers at Framework Data 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 Global Business segment.
Using analytics as competitive advantage
– Framework Data 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Framework Data to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Framework Data 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Framework Data 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Framework Data 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 Framework Data to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Framework Data can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 Framework Data in the Global Business sector and impact the bottomline of the organization.
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. Framework Data 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 Framework Data is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities, Framework Data 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 .
Technology acceleration in Forth Industrial Revolution
– Framework Data has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Framework Data 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Framework Data with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Framework Data business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Framework Data 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Framework Data 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities .
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.
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. Framework Data can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Framework Data needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Framework Data 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 The Open Kimono: Toward a General Framework for Open Data Initiatives in Cities 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 Framework Data needs to make to build a sustainable competitive advantage.