Sogeti TeamPark - Designing Intelligent Organizations for the Future SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sogeti TeamPark - Designing Intelligent Organizations for the Future
Sogeti, a global leader in providing technological services chooses to invest in a social collaboration platform for its employees with a view towards bringing about business transformation. Partnering with IBM, the company launched "TeamPark." After the implementation, the company's central challenge was to encourage employee engagement levels and how to increase utilization of the platform. A further issue: Should the platform be opened up to clients and other stakeholders? There was a lot of deliberation around the way the community should be created - should it be restricted or open? If the company decided to open its information-sharing platform with its clients, how should it manage the issues of security and trust? Authors Veena Vohra, Manjari Srivastava and Sharon Pande are affiliated with NMIMS University.
Swot Analysis of "Sogeti TeamPark - Designing Intelligent Organizations for the Future" written by Veena Vohra, Manjari Srivastava, Sharon Pande includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sogeti Teampark facing as an external strategic factors. Some of the topics covered in Sogeti TeamPark - Designing Intelligent Organizations for the Future case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Sogeti TeamPark - Designing Intelligent Organizations for the Future casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, wage bills are increasing, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models,
technology disruption, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Sogeti TeamPark - Designing Intelligent Organizations for the Future
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sogeti TeamPark - Designing Intelligent Organizations for the Future case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sogeti Teampark, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sogeti Teampark 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future can be done for the following purposes –
1. Strategic planning using facts provided in Sogeti TeamPark - Designing Intelligent Organizations for the Future case study
2. Improving business portfolio management of Sogeti Teampark
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 Sogeti Teampark
Strengths Sogeti TeamPark - Designing Intelligent Organizations for the Future | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sogeti Teampark in Sogeti TeamPark - Designing Intelligent Organizations for the Future Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Sogeti Teampark 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 Sogeti Teampark in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Sogeti Teampark is one of the most innovative firm in sector. Manager in Sogeti TeamPark - Designing Intelligent Organizations for the Future Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Sogeti Teampark 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 Sogeti Teampark is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sogeti TeamPark - Designing Intelligent Organizations for the Future Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Sogeti Teampark 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.
Strong track record of project management
– Sogeti Teampark is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Sogeti Teampark digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sogeti Teampark 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 Sogeti Teampark 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.
Operational resilience
– The operational resilience strategy in the Sogeti TeamPark - Designing Intelligent Organizations for the Future 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.
Training and development
– Sogeti Teampark has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sogeti TeamPark - Designing Intelligent Organizations for the Future 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.
Effective Research and Development (R&D)
– Sogeti Teampark 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Sogeti Teampark in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Sogeti Teampark has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sogeti Teampark to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Sogeti TeamPark - Designing Intelligent Organizations for the Future | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sogeti TeamPark - Designing Intelligent Organizations for the Future are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sogeti TeamPark - Designing Intelligent Organizations for the Future, it seems that the employees of Sogeti Teampark 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.
Capital Spending Reduction
– Even during the low interest decade, Sogeti Teampark has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sogeti TeamPark - Designing Intelligent Organizations for the Future, is just above the industry average. Sogeti Teampark 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future HBR case study mentions - Sogeti Teampark 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.
Skills based hiring
– The stress on hiring functional specialists at Sogeti Teampark 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.
Increasing silos among functional specialists
– The organizational structure of Sogeti Teampark is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Sogeti Teampark needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sogeti Teampark to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Sogeti Teampark 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Sogeti Teampark 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.
Aligning sales with marketing
– It come across in the case study Sogeti TeamPark - Designing Intelligent Organizations for the Future 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future can leverage the sales team experience to cultivate customer relationships as Sogeti Teampark is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sogeti TeamPark - Designing Intelligent Organizations for the Future, in the dynamic environment Sogeti Teampark has struggled to respond to the nimble upstart competition. Sogeti Teampark 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 Sogeti Teampark, firm in the HBR case study Sogeti TeamPark - Designing Intelligent Organizations for the Future needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Sogeti TeamPark - Designing Intelligent Organizations for the Future | 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future are -
Buying journey improvements
– Sogeti Teampark can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sogeti TeamPark - Designing Intelligent Organizations for the Future 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sogeti Teampark 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.
Using analytics as competitive advantage
– Sogeti Teampark 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sogeti Teampark to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Sogeti Teampark can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Sogeti Teampark 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.
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 Sogeti Teampark 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sogeti Teampark 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, Sogeti TeamPark - Designing Intelligent Organizations for the Future, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Sogeti Teampark 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 Sogeti Teampark can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sogeti Teampark in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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. Sogeti Teampark 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. Sogeti Teampark 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, Sogeti Teampark can use these opportunities to build new business models that can help the communities that Sogeti Teampark operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Creating value in data economy
– The success of analytics program of Sogeti Teampark has opened avenues for new revenue streams for the organization in the industry. This can help Sogeti Teampark to build a more holistic ecosystem as suggested in the Sogeti TeamPark - Designing Intelligent Organizations for the Future case study. Sogeti Teampark can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Sogeti TeamPark - Designing Intelligent Organizations for the Future External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sogeti TeamPark - Designing Intelligent Organizations for the Future are -
Shortening product life cycle
– it is one of the major threat that Sogeti Teampark is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Sogeti Teampark can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Sogeti Teampark in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Sogeti Teampark needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Sogeti Teampark business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Sogeti Teampark 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sogeti Teampark 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.
Stagnating economy with rate increase
– Sogeti Teampark 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.
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 Sogeti Teampark.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sogeti Teampark 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sogeti TeamPark - Designing Intelligent Organizations for the Future, Sogeti Teampark 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 .
Regulatory challenges
– Sogeti Teampark 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 Leadership & Managing People industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sogeti Teampark with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Sogeti TeamPark - Designing Intelligent Organizations for the Future 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future 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 Sogeti TeamPark - Designing Intelligent Organizations for the Future 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 Sogeti Teampark needs to make to build a sustainable competitive advantage.
