Minding the Analytics Gap SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Minding the Analytics Gap
In an increasingly data-driven business environment, many executives must make critical decisions based on analyses that use data and statistical methods that they do not fully understand. How can executives with limited analytics expertise become adept consumers of analytics under such conditions? This question has become an important management issue as senior executives increasingly recognize the importance of analytics to creating business value. The authors'research -based on a survey of 2,719 managers in organizations from around the world -found that the foremost barrier to creatingbusiness value from analytics is not data management or complex modeling skills. Instead, the number one barrier mentioned by survey respondents involved translating analytics into business actions -in other words, making business decisions based on the results, not producing the results themselves. With more access to useful data, companies are increasingly using sophisticated analytical methods. That, the authors argue, means there's often a gap between an organization's capacity to produce analytical results and its ability to apply them effectively to business issues. Much can be done to make analytics more consumable for managers. At the individual level, data analysts can learn more about the business; in fact, about a third (34%) of the survey respondents reported that their organizations train analytics professionals to understand business issues. Organizations can also systemically improve infrastructure and processes; improved data quality, for example,can make it easier to turn data into competitive advantage. Managers can also take steps to become savvier at understanding analytical results. In fact, managers and executives are working to become more knowledgeable about data and analytics: Many of the survey respondents reported that their organizations develop analytical skills through on-the-job (58%) or formal (23%) training. Almost half the respondents (49%) reported that their organizations train managers to make better use of analytics. Beyond training, other known steps include: identifying trustworthy analytics professionals within the organization, requiring straightforward explanations and asking detailed questions. However, the authors'research indicates that, despite their efforts, managers continue to find it difficult to keep pace with their organization's analysts for two reasons: burgeoning analytics sophistication and competing demands for managerial attention. What's more, when an organization's capacity to produce increasingly sophisticated analytics outpaces managers'abilities to understand, discomfort is created -managers find they must make decisions based on complex analytical insights that they do not yet fully understand. But, despite this discomfort, these managerial decisions must be made. The authors conclude by suggesting five ways that managers can increase their comfort in consuming analytics. This is an MIT Sloan Management Review article.
Authors :: Sam Ransbotham, David Kiron, Pamela Kirk Prentice
Swot Analysis of "Minding the Analytics Gap" written by Sam Ransbotham, David Kiron, Pamela Kirk Prentice includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Analytics Respondents facing as an external strategic factors. Some of the topics covered in Minding the Analytics Gap case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Minding the Analytics Gap casestudy better are - – talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Minding the Analytics Gap
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Minding the Analytics Gap case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Analytics Respondents, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Analytics Respondents 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 Minding the Analytics Gap can be done for the following purposes –
1. Strategic planning using facts provided in Minding the Analytics Gap case study
2. Improving business portfolio management of Analytics Respondents
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 Analytics Respondents
Strengths Minding the Analytics Gap | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Analytics Respondents in Minding the Analytics Gap Harvard Business Review case study are -
Successful track record of launching new products
– Analytics Respondents has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Analytics Respondents 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.
Strong track record of project management
– Analytics Respondents is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Analytics Respondents is one of the leading recruiters in the industry. Managers in the Minding the Analytics Gap are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Minding the Analytics Gap 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.
Organizational Resilience of Analytics Respondents
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Analytics Respondents does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Analytics Respondents 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 Minding the Analytics Gap - 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 Analytics Respondents 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 Analytics Respondents 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
– Analytics Respondents has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Analytics Respondents to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Analytics Respondents in the sector have low bargaining power. Minding the Analytics Gap has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Analytics Respondents to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Analytics Respondents 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 Analytics Respondents is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Minding the Analytics Gap Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Analytics Respondents digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Analytics Respondents 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 Minding the Analytics Gap | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Minding the Analytics Gap are -
Need for greater diversity
– Analytics Respondents 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.
Capital Spending Reduction
– Even during the low interest decade, Analytics Respondents 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.
Interest costs
– Compare to the competition, Analytics Respondents 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.
Aligning sales with marketing
– It come across in the case study Minding the Analytics Gap 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 Minding the Analytics Gap can leverage the sales team experience to cultivate customer relationships as Analytics Respondents is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Sam Ransbotham, David Kiron, Pamela Kirk Prentice suggests that, Analytics Respondents is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Minding the Analytics Gap, in the dynamic environment Analytics Respondents has struggled to respond to the nimble upstart competition. Analytics Respondents has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Analytics Respondents products
– To increase the profitability and margins on the products, Analytics Respondents needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Analytics Respondents is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Analytics Respondents needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Analytics Respondents to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Analytics Respondents 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.
Skills based hiring
– The stress on hiring functional specialists at Analytics Respondents 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.
Products dominated business model
– Even though Analytics Respondents 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 - Minding the Analytics Gap should strive to include more intangible value offerings along with its core products and services.
Opportunities Minding the Analytics Gap | 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 Minding the Analytics Gap are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Analytics Respondents 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, Minding the Analytics Gap, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Analytics Respondents 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.
Better consumer reach
– The expansion of the 5G network will help Analytics Respondents to increase its market reach. Analytics Respondents 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.
Developing new processes and practices
– Analytics Respondents 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Analytics Respondents can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Analytics Respondents 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 Analytics Respondents to hire the very best people irrespective of their geographical location.
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 Analytics Respondents 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.
Buying journey improvements
– Analytics Respondents can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Minding the Analytics Gap 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, Analytics Respondents 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.
Leveraging digital technologies
– Analytics Respondents 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.
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. Analytics Respondents can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Analytics Respondents 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.
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. Analytics Respondents can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Minding the Analytics Gap External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Minding the Analytics Gap 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. Analytics Respondents 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Analytics Respondents 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.
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.
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. Analytics Respondents needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Environmental challenges
– Analytics Respondents 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. Analytics Respondents can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Minding the Analytics Gap, Analytics Respondents 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 .
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 Analytics Respondents business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Analytics Respondents 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. Analytics Respondents can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Analytics Respondents has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Analytics Respondents 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.
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 Analytics Respondents.
Regulatory challenges
– Analytics Respondents 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.
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 Minding the Analytics Gap 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 Minding the Analytics Gap 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 Minding the Analytics Gap 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 Minding the Analytics Gap 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 Minding the Analytics Gap 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 Analytics Respondents needs to make to build a sustainable competitive advantage.
