Case Study Description of Palantir Philanthropy Engineering: Software to Improve Lives
By 2014, Palantir Technologies, a fast growing Silicon Valley company with global impact at the heart of its mission, had spent several years donating the same software to nonprofits that it sold to commercial customers to help solve some of the world's most pressing problems. It had consolidated these philanthropic activities in 2011, when Jason Payne, a long-time software engineer at the company, made an internal transition to found the company's Philanthropy Engineering Program. Palantir developed software that pulled diverse and extensive data into a unified platform, allowing customers to generate new insights by analyzing and exploring their data. The company's software could be used across a wide range of sectors. It helped organizations detect fraud, defend against cyber attacks, drive operational planning and strategic decision-making, track disease outbreaks, improve standards of care, and respond to crime. Palantir had recognized early on that its suite of applications were also extremely valuable to social sector organizations-those with the potential to make significant global impact, but that lacked the resources to purchase Palantir's technology. The company therefore decided not only to make its software and engineering support freely available to these organizations, but also to engage closely with them to support their work. It was an approach to corporate philanthropy that differed significantly from the traditional model.
Authors :: Laura Arrillaga-Andreessen, Sarah Murray
Swot Analysis of "Palantir Philanthropy Engineering: Software to Improve Lives" written by Laura Arrillaga-Andreessen, Sarah Murray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Palantir Software facing as an external strategic factors. Some of the topics covered in Palantir Philanthropy Engineering: Software to Improve Lives case study are - Strategic Management Strategies, Joint ventures and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Palantir Philanthropy Engineering: Software to Improve Lives casestudy better are - – increasing household debt because of falling income levels, technology disruption, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Palantir Philanthropy Engineering: Software to Improve Lives
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Palantir Philanthropy Engineering: Software to Improve Lives case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Palantir Software, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Palantir Software 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 Palantir Philanthropy Engineering: Software to Improve Lives can be done for the following purposes –
1. Strategic planning using facts provided in Palantir Philanthropy Engineering: Software to Improve Lives case study
2. Improving business portfolio management of Palantir Software
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 Palantir Software
Strengths Palantir Philanthropy Engineering: Software to Improve Lives | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Palantir Software in Palantir Philanthropy Engineering: Software to Improve Lives Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Palantir Software 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 Palantir Software in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Palantir Software is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Palantir Software 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.
Innovation driven organization
– Palantir Software is one of the most innovative firm in sector. Manager in Palantir Philanthropy Engineering: Software to Improve Lives Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Palantir Software 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.
High brand equity
– Palantir Software has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Palantir Software to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Palantir Software in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Palantir Software 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 Laura Arrillaga-Andreessen, Sarah Murray 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Palantir Philanthropy Engineering: Software to Improve Lives firm has clearly differentiated products in the market place. This has enabled Palantir Software to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Palantir Software to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Palantir Software in the sector have low bargaining power. Palantir Philanthropy Engineering: Software to Improve Lives has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Palantir Software to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Palantir Software is present in almost all the verticals within the industry. This has provided firm in Palantir Philanthropy Engineering: Software to Improve Lives case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Palantir Software digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Palantir Software 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.
Weaknesses Palantir Philanthropy Engineering: Software to Improve Lives | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Palantir Philanthropy Engineering: Software to Improve Lives are -
Skills based hiring
– The stress on hiring functional specialists at Palantir Software 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Palantir Software 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.
Capital Spending Reduction
– Even during the low interest decade, Palantir Software 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Palantir Philanthropy Engineering: Software to Improve Lives, in the dynamic environment Palantir Software has struggled to respond to the nimble upstart competition. Palantir Software has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Palantir Philanthropy Engineering: Software to Improve Lives has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Palantir Software 's lucrative customers.
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 Palantir Software supply chain. Even after few cautionary changes mentioned in the HBR case study - Palantir Philanthropy Engineering: Software to Improve Lives, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Palantir Software vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Palantir Software is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Palantir Philanthropy Engineering: Software to Improve Lives can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Palantir Philanthropy Engineering: Software to Improve Lives, is just above the industry average. Palantir Software 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 Palantir Philanthropy Engineering: Software to Improve Lives HBR case study mentions - Palantir Software 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Palantir Philanthropy Engineering: Software to Improve Lives 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 Palantir Software has relatively successful track record of launching new products.
High cash cycle compare to competitors
Palantir Software 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.
Opportunities Palantir Philanthropy Engineering: Software to Improve Lives | 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 Palantir Philanthropy Engineering: Software to Improve Lives are -
Creating value in data economy
– The success of analytics program of Palantir Software has opened avenues for new revenue streams for the organization in the industry. This can help Palantir Software to build a more holistic ecosystem as suggested in the Palantir Philanthropy Engineering: Software to Improve Lives case study. Palantir Software can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Palantir Software 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.
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. Palantir Software can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Palantir Software 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, Palantir Philanthropy Engineering: Software to Improve Lives, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Palantir Software 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. Palantir Software 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.
Developing new processes and practices
– Palantir Software 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Palantir Software can use these opportunities to build new business models that can help the communities that Palantir Software operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Palantir Software 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Palantir Software can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Palantir Software in the consumer business. Now Palantir Software can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Palantir Software to increase its market reach. Palantir Software 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Palantir Software is facing challenges because of the dominance of functional experts in the organization. Palantir Philanthropy Engineering: Software to Improve Lives 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.
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. Palantir Software can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Palantir Philanthropy Engineering: Software to Improve Lives External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Palantir Philanthropy Engineering: Software to Improve Lives are -
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. Palantir Software 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.
Regulatory challenges
– Palantir Software 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.
Stagnating economy with rate increase
– Palantir Software 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 Palantir Software.
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. Palantir Software 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, Palantir Software 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 Palantir Philanthropy Engineering: Software to Improve Lives .
High dependence on third party suppliers
– Palantir Software high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Palantir Software
– 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 Palantir Software.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Palantir Philanthropy Engineering: Software to Improve Lives, Palantir Software 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
– Palantir Software 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. Palantir Software can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Palantir Software 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.
Weighted SWOT Analysis of Palantir Philanthropy Engineering: Software to Improve Lives 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 Palantir Philanthropy Engineering: Software to Improve Lives 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 Palantir Philanthropy Engineering: Software to Improve Lives 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 Palantir Philanthropy Engineering: Software to Improve Lives 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 Palantir Philanthropy Engineering: Software to Improve Lives 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 Palantir Software needs to make to build a sustainable competitive advantage.
