Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap
This case addresses the issues of leadership and change management in the process of transforming an industry through an innovative public-private partnership approach to policy making. In 2005, the Governor of Arizona issued an Executive Order to create a roadmap for the state to achieve statewide electronic health data exchange between various entities in the health care delivery system. The Roadmap development project, a key initiative for Arizona, was led primarily by the State CIO. Being one of the first States to develop a statewide Roadmap, Arizona was being recognized as a national leader in the area of healthcare IT. While CIO and his team had successfully initiated a large-scale transformation within the state, they were now faced with the challenge of transforming the blueprint into reality. This case documents the process of creating this Roadmap and the issues that need to be addressed to achieve a true and lasting transformation in the healthcare arena.
Authors :: Lynda M. Applegate, Ajay Vinze, T.S. Raghu, Minu Ipe
Swot Analysis of "Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap" written by Lynda M. Applegate, Ajay Vinze, T.S. Raghu, Minu Ipe includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Roadmap Arizona facing as an external strategic factors. Some of the topics covered in Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap case study are - Strategic Management Strategies, Leadership, Policy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, technology disruption, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, wage bills are increasing,
increasing energy prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Roadmap Arizona, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Roadmap Arizona 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap can be done for the following purposes –
1. Strategic planning using facts provided in Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap case study
2. Improving business portfolio management of Roadmap Arizona
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 Roadmap Arizona
Strengths Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Roadmap Arizona in Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap Harvard Business Review case study are -
High switching costs
– The high switching costs that Roadmap Arizona 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Roadmap Arizona digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Roadmap Arizona 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.
Highly skilled collaborators
– Roadmap Arizona has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Roadmap Arizona in the sector have low bargaining power. Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Roadmap Arizona to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Roadmap Arizona in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Roadmap Arizona 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 Roadmap Arizona in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Roadmap Arizona is one of the leading recruiters in the industry. Managers in the Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Roadmap Arizona has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Roadmap Arizona 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.
High brand equity
– Roadmap Arizona has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Roadmap Arizona to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Roadmap Arizona 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Roadmap Arizona 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 Roadmap Arizona is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Roadmap Arizona is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap are -
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 Roadmap Arizona supply chain. Even after few cautionary changes mentioned in the HBR case study - Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Roadmap Arizona vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Roadmap Arizona 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. Roadmap Arizona 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.
Aligning sales with marketing
– It come across in the case study Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap can leverage the sales team experience to cultivate customer relationships as Roadmap Arizona is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap, is just above the industry average. Roadmap Arizona 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.
Slow to strategic competitive environment developments
– As Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap HBR case study mentions - Roadmap Arizona 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.
Increasing silos among functional specialists
– The organizational structure of Roadmap Arizona is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Roadmap Arizona needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Roadmap Arizona to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Roadmap Arizona 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.
Products dominated business model
– Even though Roadmap Arizona 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 - Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Roadmap Arizona has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Low market penetration in new markets
– Outside its home market of Roadmap Arizona, firm in the HBR case study Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap | 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Roadmap Arizona 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.
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. Roadmap Arizona can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Roadmap Arizona 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. Roadmap Arizona 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, Roadmap Arizona can use these opportunities to build new business models that can help the communities that Roadmap Arizona operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Roadmap Arizona 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, Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Roadmap Arizona 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Roadmap Arizona to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Roadmap Arizona 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.
Building a culture of innovation
– managers at Roadmap Arizona 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 Leadership & Managing People segment.
Loyalty marketing
– Roadmap Arizona 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.
Creating value in data economy
– The success of analytics program of Roadmap Arizona has opened avenues for new revenue streams for the organization in the industry. This can help Roadmap Arizona to build a more holistic ecosystem as suggested in the Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap case study. Roadmap Arizona can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Roadmap Arizona to increase its market reach. Roadmap Arizona 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.
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 Roadmap Arizona in the consumer business. Now Roadmap Arizona can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Roadmap Arizona 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 Roadmap Arizona to hire the very best people irrespective of their geographical location.
Threats Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap are -
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Roadmap Arizona can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Roadmap Arizona
– 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 Roadmap Arizona.
Shortening product life cycle
– it is one of the major threat that Roadmap Arizona is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Roadmap Arizona 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.
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 Roadmap Arizona in the Leadership & Managing People sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Roadmap Arizona 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.
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 Roadmap Arizona business can come under increasing regulations regarding data privacy, data security, etc.
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. Roadmap Arizona 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Roadmap Arizona 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Roadmap Arizona 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap, Roadmap Arizona may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Technology acceleration in Forth Industrial Revolution
– Roadmap Arizona has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Roadmap Arizona needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Environmental challenges
– Roadmap Arizona 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. Roadmap Arizona can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Transforming Arizona's Health Care System: Developing and Implementing the Health-e Connection Roadmap 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 Roadmap Arizona needs to make to build a sustainable competitive advantage.
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