Case Study Description of Infosys' Relationship Scorecard: Measuring Transformational Partnerships
This case analyzes Infosys' innovative approach to measuring performance in client relations. Infosys' strategy is evolving to build transformational partnerships from its original position as an outsourcer of end-to-end IT projects. A transformational partner helps clients to devise and implement strategies that will allow them to achieve a competitive advantage. The traditional paradigm of service-level agreements (SLAs), while sufficient for Infosys' needs early on, is not able to achieve the level of understanding that transformational partnerships require. Infosys applies the principles of the Balanced Scorecard (BSC) to produce a feedback mechanism that allows the partnership to grow to the benefit of both parties.
Authors :: Katherine Miller, Robert S. Kaplan, F. Asis Martinez-Jerez
Swot Analysis of "Infosys' Relationship Scorecard: Measuring Transformational Partnerships" written by Katherine Miller, Robert S. Kaplan, F. Asis Martinez-Jerez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Infosys Transformational facing as an external strategic factors. Some of the topics covered in Infosys' Relationship Scorecard: Measuring Transformational Partnerships case study are - Strategic Management Strategies, Customers, Operations management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Infosys' Relationship Scorecard: Measuring Transformational Partnerships casestudy better are - – technology disruption, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Infosys' Relationship Scorecard: Measuring Transformational Partnerships
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Infosys' Relationship Scorecard: Measuring Transformational Partnerships case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Infosys Transformational, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Infosys Transformational 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' Relationship Scorecard: Measuring Transformational Partnerships can be done for the following purposes –
1. Strategic planning using facts provided in Infosys' Relationship Scorecard: Measuring Transformational Partnerships case study
2. Improving business portfolio management of Infosys Transformational
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 Transformational
Strengths Infosys' Relationship Scorecard: Measuring Transformational Partnerships | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Infosys Transformational in Infosys' Relationship Scorecard: Measuring Transformational Partnerships Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Infosys Transformational in the sector have low bargaining power. Infosys' Relationship Scorecard: Measuring Transformational Partnerships has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Infosys Transformational to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Infosys Transformational 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.
Highly skilled collaborators
– Infosys Transformational 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 Infosys' Relationship Scorecard: Measuring Transformational Partnerships HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Infosys Transformational in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Infosys Transformational has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Infosys Transformational 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.
Learning organization
- Infosys Transformational 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 Transformational is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Infosys' Relationship Scorecard: Measuring Transformational Partnerships Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Infosys Transformational 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.
Analytics focus
– Infosys Transformational 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 Katherine Miller, Robert S. Kaplan, F. Asis Martinez-Jerez 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.
Strong track record of project management
– Infosys Transformational is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Infosys Transformational
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Infosys Transformational does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Infosys Transformational is one of the leading recruiters in the industry. Managers in the Infosys' Relationship Scorecard: Measuring Transformational Partnerships are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Infosys Transformational 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 Infosys Transformational in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Infosys' Relationship Scorecard: Measuring Transformational Partnerships | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Infosys' Relationship Scorecard: Measuring Transformational Partnerships are -
Products dominated business model
– Even though Infosys Transformational 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 - Infosys' Relationship Scorecard: Measuring Transformational Partnerships should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Infosys Transformational, firm in the HBR case study Infosys' Relationship Scorecard: Measuring Transformational Partnerships needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Infosys Transformational 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. Infosys Transformational 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.
Interest costs
– Compare to the competition, Infosys Transformational 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.
Lack of clear differentiation of Infosys Transformational products
– To increase the profitability and margins on the products, Infosys Transformational needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Infosys Transformational is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Infosys' Relationship Scorecard: Measuring Transformational Partnerships can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Infosys' Relationship Scorecard: Measuring Transformational Partnerships HBR case study mentions - Infosys Transformational 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.
Need for greater diversity
– Infosys Transformational has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Infosys' Relationship Scorecard: Measuring Transformational Partnerships, is just above the industry average. Infosys Transformational 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 Infosys' Relationship Scorecard: Measuring Transformational Partnerships 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 Infosys Transformational has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Infosys' Relationship Scorecard: Measuring Transformational Partnerships, it seems that the employees of Infosys Transformational 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.
Opportunities Infosys' Relationship Scorecard: Measuring Transformational Partnerships | 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' Relationship Scorecard: Measuring Transformational Partnerships are -
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 Transformational can use these opportunities to build new business models that can help the communities that Infosys Transformational operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Loyalty marketing
– Infosys Transformational 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.
Building a culture of innovation
– managers at Infosys Transformational 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.
Creating value in data economy
– The success of analytics program of Infosys Transformational has opened avenues for new revenue streams for the organization in the industry. This can help Infosys Transformational to build a more holistic ecosystem as suggested in the Infosys' Relationship Scorecard: Measuring Transformational Partnerships case study. Infosys Transformational can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Infosys Transformational 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 Transformational to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Infosys Transformational 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' Relationship Scorecard: Measuring Transformational Partnerships, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Infosys Transformational can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Infosys' Relationship Scorecard: Measuring Transformational Partnerships 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.
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 Infosys Transformational in the consumer business. Now Infosys Transformational can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Infosys Transformational 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Infosys Transformational 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.
Manufacturing automation
– Infosys Transformational 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.
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 Transformational 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Infosys Transformational is facing challenges because of the dominance of functional experts in the organization. Infosys' Relationship Scorecard: Measuring Transformational Partnerships case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Infosys' Relationship Scorecard: Measuring Transformational Partnerships External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Infosys' Relationship Scorecard: Measuring Transformational Partnerships are -
Regulatory challenges
– Infosys Transformational 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.
Increasing wage structure of Infosys Transformational
– 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 Transformational.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Infosys Transformational 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.
Consumer confidence and its impact on Infosys Transformational 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.
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 Transformational needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Infosys Transformational 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' Relationship Scorecard: Measuring Transformational Partnerships .
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. Infosys Transformational 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Infosys Transformational with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Transformational business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Infosys Transformational 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.
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 Transformational.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Infosys' Relationship Scorecard: Measuring Transformational Partnerships 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' Relationship Scorecard: Measuring Transformational Partnerships 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' Relationship Scorecard: Measuring Transformational Partnerships 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' Relationship Scorecard: Measuring Transformational Partnerships 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' Relationship Scorecard: Measuring Transformational Partnerships 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 Transformational needs to make to build a sustainable competitive advantage.