eRecon Software Development at Hospital Corporation of America SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of eRecon Software Development at Hospital Corporation of America
On July 28, 2014, the eRecon technical team at Physician Services Group in Hospital Corporation of America, gathered in the main conference room just as it did every Monday morning. The goal of the meeting was to review the project plan and update task completion for the team's two-year undertaking - a six-phase, in-house development of a custom, web-based accounting software called eRecon. As the team members worked through each task and updated the percentage that they had completed to date, they grew increasingly concerned about obtaining the critical source data that they required from the human resources department. They were approaching their deadline, and it was unclear what the consequences would be if they did not obtain the data on time, and what impact the delay would have on the completion deadline of December 8, 2014, for the next phase. With 125 end users patiently waiting on eRecon's completion, could the technical team ensure the success of the project? Kenneth J. Klassen is affiliated with Brock University.
Swot Analysis of "eRecon Software Development at Hospital Corporation of America" written by Kenneth J. Klassen, Leanne Rayo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Erecon Completion facing as an external strategic factors. Some of the topics covered in eRecon Software Development at Hospital Corporation of America case study are - Strategic Management Strategies, Internet, IT, Operations management, Product development, Project management, Security & privacy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the eRecon Software Development at Hospital Corporation of America casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing energy prices, supply chains are disrupted by pandemic ,
increasing commodity prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of eRecon Software Development at Hospital Corporation of America
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in eRecon Software Development at Hospital Corporation of America case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Erecon Completion, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Erecon Completion 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 eRecon Software Development at Hospital Corporation of America can be done for the following purposes –
1. Strategic planning using facts provided in eRecon Software Development at Hospital Corporation of America case study
2. Improving business portfolio management of Erecon Completion
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 Erecon Completion
Strengths eRecon Software Development at Hospital Corporation of America | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Erecon Completion in eRecon Software Development at Hospital Corporation of America Harvard Business Review case study are -
Organizational Resilience of Erecon Completion
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Erecon Completion does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Erecon Completion in the sector have low bargaining power. eRecon Software Development at Hospital Corporation of America has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Erecon Completion to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– eRecon Software Development at Hospital Corporation of America firm has clearly differentiated products in the market place. This has enabled Erecon Completion to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Erecon Completion to invest into research and development (R&D) and innovation.
Innovation driven organization
– Erecon Completion is one of the most innovative firm in sector. Manager in eRecon Software Development at Hospital Corporation of America Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Erecon Completion 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 eRecon Software Development at Hospital Corporation of America HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the eRecon Software Development at Hospital Corporation of America 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.
High brand equity
– Erecon Completion has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Erecon Completion to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Erecon Completion 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 Erecon Completion 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.
Effective Research and Development (R&D)
– Erecon Completion 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 eRecon Software Development at Hospital Corporation of America - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Erecon Completion is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Erecon Completion 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 Kenneth J. Klassen, Leanne Rayo 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.
Weaknesses eRecon Software Development at Hospital Corporation of America | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of eRecon Software Development at Hospital Corporation of America 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 Erecon Completion supply chain. Even after few cautionary changes mentioned in the HBR case study - eRecon Software Development at Hospital Corporation of America, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Erecon Completion vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study eRecon Software Development at Hospital Corporation of America, 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 Erecon Completion, firm in the HBR case study eRecon Software Development at Hospital Corporation of America needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Erecon Completion 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.
Products dominated business model
– Even though Erecon Completion 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 - eRecon Software Development at Hospital Corporation of America should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Erecon Completion 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. Erecon Completion 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Erecon Completion is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study eRecon Software Development at Hospital Corporation of America can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study eRecon Software Development at Hospital Corporation of America, in the dynamic environment Erecon Completion has struggled to respond to the nimble upstart competition. Erecon Completion has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Erecon Completion 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study eRecon Software Development at Hospital Corporation of America, is just above the industry average. Erecon Completion 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the eRecon Software Development at Hospital Corporation of America 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 Erecon Completion has relatively successful track record of launching new products.
Opportunities eRecon Software Development at Hospital Corporation of America | 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 eRecon Software Development at Hospital Corporation of America 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 Erecon Completion 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Erecon Completion can use these opportunities to build new business models that can help the communities that Erecon Completion operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Erecon Completion in the consumer business. Now Erecon Completion can target international markets with far fewer capital restrictions requirements than the existing system.
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. Erecon Completion 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 Erecon Completion can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Erecon Completion 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.
Creating value in data economy
– The success of analytics program of Erecon Completion has opened avenues for new revenue streams for the organization in the industry. This can help Erecon Completion to build a more holistic ecosystem as suggested in the eRecon Software Development at Hospital Corporation of America case study. Erecon Completion can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Erecon Completion can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Erecon Completion to increase its market reach. Erecon Completion 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Erecon Completion 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Erecon Completion 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 Erecon Completion to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Erecon Completion 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.
Developing new processes and practices
– Erecon Completion 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.
Threats eRecon Software Development at Hospital Corporation of America External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study eRecon Software Development at Hospital Corporation of America are -
Shortening product life cycle
– it is one of the major threat that Erecon Completion is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Erecon Completion has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Erecon Completion 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study eRecon Software Development at Hospital Corporation of America, Erecon Completion 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 .
Environmental challenges
– Erecon Completion 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. Erecon Completion can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
High dependence on third party suppliers
– Erecon Completion 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.
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. Erecon Completion can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Erecon Completion 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 eRecon Software Development at Hospital Corporation of America .
Increasing wage structure of Erecon Completion
– 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 Erecon Completion.
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. Erecon Completion needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Erecon Completion 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.
Regulatory challenges
– Erecon Completion 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 Erecon Completion with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Erecon Completion.
Weighted SWOT Analysis of eRecon Software Development at Hospital Corporation of America 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 eRecon Software Development at Hospital Corporation of America 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 eRecon Software Development at Hospital Corporation of America 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 eRecon Software Development at Hospital Corporation of America 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 eRecon Software Development at Hospital Corporation of America 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 Erecon Completion needs to make to build a sustainable competitive advantage.
