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 - – supply chains are disrupted by pandemic , there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions,
increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Minding the Analytics Gap firm has clearly differentiated products in the market place. This has enabled Analytics Respondents to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Analytics Respondents to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Analytics Respondents 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.
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.
Diverse revenue streams
– Analytics Respondents is present in almost all the verticals within the industry. This has provided firm in Minding the Analytics Gap 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.
Training and development
– Analytics Respondents has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Minding the Analytics Gap Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– 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.
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.
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.
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.
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.
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.
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 -
Workers concerns about automation
– As automation is fast increasing in the segment, Analytics Respondents 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Minding the Analytics Gap, it seems that the employees of Analytics Respondents 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.
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.
Slow decision making process
– As mentioned earlier in the report, Analytics Respondents 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. Analytics Respondents 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Minding the Analytics Gap 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 Analytics Respondents has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Minding the Analytics Gap HBR case study mentions - Analytics Respondents 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.
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.
Low market penetration in new markets
– Outside its home market of Analytics Respondents, firm in the HBR case study Minding the Analytics Gap needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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 -
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.
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.
Using analytics as competitive advantage
– Analytics Respondents has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Minding the Analytics Gap - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Analytics Respondents to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. 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.
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.
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.
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.
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.
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. Analytics Respondents 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. Analytics Respondents 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.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Analytics Respondents 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.
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 -
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Analytics Respondents with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Analytics Respondents 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 Minding the Analytics Gap .
Shortening product life cycle
– it is one of the major threat that Analytics Respondents is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 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.
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.
Increasing wage structure of Analytics Respondents
– 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 Analytics Respondents.
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.
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.
Consumer confidence and its impact on Analytics Respondents 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.
Stagnating economy with rate increase
– Analytics Respondents 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.
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.