Infosys Technologies: Powered by Intellect, Driven by Values SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Infosys Technologies: Powered by Intellect, Driven by Values
Documents the evolution of Infosys Technologies, from its humble beginnings in 1981 to its position in 2004 as one of the most admired companies in India, with revenues exceeding $1 billion, profits of $270 million (CAGR in revenues and profits of approximately 60% over the past 10 years), and a workforce of more than 25,000 employees.
Swot Analysis of "Infosys Technologies: Powered by Intellect, Driven by Values" written by Rama Velamuri, Jordan Mitchell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Infosys Intellect facing as an external strategic factors. Some of the topics covered in Infosys Technologies: Powered by Intellect, Driven by Values case study are - Strategic Management Strategies, Entrepreneurship, Ethics, Globalization, Operations management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Infosys Technologies: Powered by Intellect, Driven by Values casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Infosys Technologies: Powered by Intellect, Driven by Values
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Infosys Technologies: Powered by Intellect, Driven by Values case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Infosys Intellect, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Infosys Intellect 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 Infosys Technologies: Powered by Intellect, Driven by Values can be done for the following purposes –
1. Strategic planning using facts provided in Infosys Technologies: Powered by Intellect, Driven by Values case study
2. Improving business portfolio management of Infosys Intellect
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Infosys Intellect
Strengths Infosys Technologies: Powered by Intellect, Driven by Values | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Infosys Intellect in Infosys Technologies: Powered by Intellect, Driven by Values Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Infosys Intellect digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Infosys Intellect 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.
Superior customer experience
– The customer experience strategy of Infosys Intellect in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Infosys Intellect 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.
Diverse revenue streams
– Infosys Intellect is present in almost all the verticals within the industry. This has provided firm in Infosys Technologies: Powered by Intellect, Driven by Values 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.
Ability to recruit top talent
– Infosys Intellect is one of the leading recruiters in the industry. Managers in the Infosys Technologies: Powered by Intellect, Driven by Values are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– Infosys Technologies: Powered by Intellect, Driven by Values firm has clearly differentiated products in the market place. This has enabled Infosys Intellect to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Infosys Intellect to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Infosys Technologies: Powered by Intellect, Driven by Values 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.
Organizational Resilience of Infosys Intellect
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Infosys Intellect does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Infosys Intellect has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Infosys Intellect to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Infosys Intellect 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 Infosys Intellect is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Infosys Technologies: Powered by Intellect, Driven by Values Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Infosys Intellect is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Infosys Intellect has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Technologies: Powered by Intellect, Driven by Values | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Infosys Technologies: Powered by Intellect, Driven by Values are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Infosys Technologies: Powered by Intellect, Driven by Values, in the dynamic environment Infosys Intellect has struggled to respond to the nimble upstart competition. Infosys Intellect has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Infosys Intellect, firm in the HBR case study Infosys Technologies: Powered by Intellect, Driven by Values needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Infosys Intellect 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.
High cash cycle compare to competitors
Infosys Intellect 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Infosys Intellect supply chain. Even after few cautionary changes mentioned in the HBR case study - Infosys Technologies: Powered by Intellect, Driven by Values, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Infosys Intellect vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Infosys Technologies: Powered by Intellect, Driven by Values, it seems that the employees of Infosys Intellect 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Intellect 's lucrative customers.
Slow to strategic competitive environment developments
– As Infosys Technologies: Powered by Intellect, Driven by Values HBR case study mentions - Infosys Intellect 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Infosys Technologies: Powered by Intellect, Driven by Values, is just above the industry average. Infosys Intellect needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Technologies: Powered by Intellect, Driven by Values can leverage the sales team experience to cultivate customer relationships as Infosys Intellect is planning to shift buying processes online.
Interest costs
– Compare to the competition, Infosys Intellect 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.
Opportunities Infosys Technologies: Powered by Intellect, Driven by Values | 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 Infosys Technologies: Powered by Intellect, Driven by Values are -
Better consumer reach
– The expansion of the 5G network will help Infosys Intellect to increase its market reach. Infosys Intellect 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Infosys Intellect can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Infosys Intellect can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Infosys Technologies: Powered by Intellect, Driven by Values 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.
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 Infosys Intellect 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.
Manufacturing automation
– Infosys Intellect can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Learning at scale
– Online learning technologies has now opened space for Infosys Intellect 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Infosys Intellect 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
– Infosys Intellect can develop new processes and procedures in Leadership & Managing People 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
– Infosys Intellect 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Infosys Intellect 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, Infosys Intellect 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, Infosys Technologies: Powered by Intellect, Driven by Values, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Infosys Intellect 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 Infosys Intellect to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Infosys Intellect can use these opportunities to build new business models that can help the communities that Infosys Intellect operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Infosys Technologies: Powered by Intellect, Driven by Values External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Infosys Technologies: Powered by Intellect, Driven by Values are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Infosys Intellect in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 Infosys Intellect.
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 Infosys Intellect 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 Infosys Intellect in the Leadership & Managing People sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Infosys Intellect with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Infosys Intellect 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.
Increasing wage structure of Infosys Intellect
– 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 Infosys Intellect.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Infosys Intellect 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 Infosys Technologies: Powered by Intellect, Driven by Values .
Stagnating economy with rate increase
– Infosys Intellect 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.
Shortening product life cycle
– it is one of the major threat that Infosys Intellect is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Infosys Intellect needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Environmental challenges
– Infosys Intellect 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. Infosys Intellect can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Weighted SWOT Analysis of Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Technologies: Powered by Intellect, Driven by Values 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 Infosys Intellect needs to make to build a sustainable competitive advantage.