Case Study Description of PremiumSoft: Managing Creative People
PremiumSoft had been a competitive player in the SQL software market for 10 years. Like many software companies, PremiumSoft's business model required that it continuously evolve its current successful product lines through research and development. At the core of the business was its creative people: they were the company's largest asset. PremiumSoft had created a team-centric, informal work environment that promoted creativity and innovation and attracted the best candidates. As a small company, PremiumSoft had a mix of formal and informal controls when dealing with recruiting, retention, roles, and responsibilities. It had achieved success with hiring, retaining, and managing its current employees and wanted to ensure that it could maintain this success with future growth. In 2010, PremiumSoft's owners were looking to grow the business through the development of new software. This growth required an expansion of its staff by 25 percent and the addition of a new product line.
Swot Analysis of "PremiumSoft: Managing Creative People" written by Neale O'Connor, April Yu, Melissa Moi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Premiumsoft Premiumsoft's facing as an external strategic factors. Some of the topics covered in PremiumSoft: Managing Creative People case study are - Strategic Management Strategies, Corporate governance, Creativity, Entrepreneurship, Growth strategy, Human resource management, Innovation, Motivating people, Performance measurement and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the PremiumSoft: Managing Creative People casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , wage bills are increasing, technology disruption,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of PremiumSoft: Managing Creative People
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PremiumSoft: Managing Creative People case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Premiumsoft Premiumsoft's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Premiumsoft Premiumsoft's 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 PremiumSoft: Managing Creative People can be done for the following purposes –
1. Strategic planning using facts provided in PremiumSoft: Managing Creative People case study
2. Improving business portfolio management of Premiumsoft Premiumsoft's
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Premiumsoft Premiumsoft's
Strengths PremiumSoft: Managing Creative People | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Premiumsoft Premiumsoft's in PremiumSoft: Managing Creative People Harvard Business Review case study are -
High brand equity
– Premiumsoft Premiumsoft's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Premiumsoft Premiumsoft's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Premiumsoft Premiumsoft's is one of the leading recruiters in the industry. Managers in the PremiumSoft: Managing Creative People are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Premiumsoft Premiumsoft's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Premiumsoft Premiumsoft's 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.
High switching costs
– The high switching costs that Premiumsoft Premiumsoft's 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.
Low bargaining power of suppliers
– Suppliers of Premiumsoft Premiumsoft's in the sector have low bargaining power. PremiumSoft: Managing Creative People has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Premiumsoft Premiumsoft's to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– PremiumSoft: Managing Creative People firm has clearly differentiated products in the market place. This has enabled Premiumsoft Premiumsoft's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Premiumsoft Premiumsoft's to invest into research and development (R&D) and innovation.
Organizational Resilience of Premiumsoft Premiumsoft's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Premiumsoft Premiumsoft's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Premiumsoft Premiumsoft's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Premiumsoft Premiumsoft's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Premiumsoft Premiumsoft's 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.
Superior customer experience
– The customer experience strategy of Premiumsoft Premiumsoft's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Premiumsoft Premiumsoft's 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 Neale O'Connor, April Yu, Melissa Moi 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.
Training and development
– Premiumsoft Premiumsoft's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PremiumSoft: Managing Creative People 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.
Weaknesses PremiumSoft: Managing Creative People | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PremiumSoft: Managing Creative People are -
High operating costs
– Compare to the competitors, firm in the HBR case study PremiumSoft: Managing Creative People 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 Premiumsoft Premiumsoft's 's lucrative customers.
Need for greater diversity
– Premiumsoft Premiumsoft's 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.
Low market penetration in new markets
– Outside its home market of Premiumsoft Premiumsoft's, firm in the HBR case study PremiumSoft: Managing Creative People needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Premiumsoft Premiumsoft's 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.
Skills based hiring
– The stress on hiring functional specialists at Premiumsoft Premiumsoft's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study PremiumSoft: Managing Creative People, it seems that the employees of Premiumsoft Premiumsoft's 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.
Lack of clear differentiation of Premiumsoft Premiumsoft's products
– To increase the profitability and margins on the products, Premiumsoft Premiumsoft's needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Premiumsoft Premiumsoft's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study PremiumSoft: Managing Creative People, in the dynamic environment Premiumsoft Premiumsoft's has struggled to respond to the nimble upstart competition. Premiumsoft Premiumsoft's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study PremiumSoft: Managing Creative People, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Products dominated business model
– Even though Premiumsoft Premiumsoft's 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 - PremiumSoft: Managing Creative People should strive to include more intangible value offerings along with its core products and services.
Opportunities PremiumSoft: Managing Creative People | 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 PremiumSoft: Managing Creative People 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 Premiumsoft Premiumsoft's 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.
Buying journey improvements
– Premiumsoft Premiumsoft's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. PremiumSoft: Managing Creative People 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.
Building a culture of innovation
– managers at Premiumsoft Premiumsoft's 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 Innovation & Entrepreneurship segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Premiumsoft Premiumsoft's 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 Premiumsoft Premiumsoft's to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Premiumsoft Premiumsoft's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Premiumsoft Premiumsoft's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Premiumsoft Premiumsoft's can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Premiumsoft Premiumsoft's 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. Premiumsoft Premiumsoft's 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.
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 Premiumsoft Premiumsoft's in the consumer business. Now Premiumsoft Premiumsoft's can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Premiumsoft Premiumsoft's can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Better consumer reach
– The expansion of the 5G network will help Premiumsoft Premiumsoft's to increase its market reach. Premiumsoft Premiumsoft's 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.
Learning at scale
– Online learning technologies has now opened space for Premiumsoft Premiumsoft's 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.
Using analytics as competitive advantage
– Premiumsoft Premiumsoft's 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 PremiumSoft: Managing Creative People - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Premiumsoft Premiumsoft's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats PremiumSoft: Managing Creative People External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PremiumSoft: Managing Creative People are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study PremiumSoft: Managing Creative People, Premiumsoft Premiumsoft's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Regulatory challenges
– Premiumsoft Premiumsoft's 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 Innovation & Entrepreneurship industry regulations.
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.
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 Premiumsoft Premiumsoft's business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Premiumsoft Premiumsoft's has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Premiumsoft Premiumsoft's needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
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. Premiumsoft Premiumsoft's needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Premiumsoft Premiumsoft's 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 PremiumSoft: Managing Creative People .
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 Premiumsoft Premiumsoft's.
Stagnating economy with rate increase
– Premiumsoft Premiumsoft's 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 wage structure of Premiumsoft Premiumsoft's
– 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 Premiumsoft Premiumsoft's.
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 Premiumsoft Premiumsoft's in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Premiumsoft Premiumsoft's is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Premiumsoft Premiumsoft's 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.
Weighted SWOT Analysis of PremiumSoft: Managing Creative People 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 PremiumSoft: Managing Creative People 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 PremiumSoft: Managing Creative People 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 PremiumSoft: Managing Creative People 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 PremiumSoft: Managing Creative People 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 Premiumsoft Premiumsoft's needs to make to build a sustainable competitive advantage.