Case Study Description of EdGE Networks: Making HR Intelligent
Innovations in big data and machine learning have begun diffusing into various functions at the workplace. The case touches upon the challenges of instituting a culture change within HR divisions of large organizations that might not have fully embraced technology-led hiring that is backed by solid analytics. Using the backdrop of a large IT firm (HCL Technologies), the case provides an appropriate context to debate if technology offerings such as HIREalchemy from EdGE Networks can galvanize the talent acquisition function. Can leveraging such IT help the HR function break out of its "administrative" image, and emerge as a strategic contributor to the organization's direction-setting exercises? Will such technologies dis-intermediate the recruitment function, and potentially disrupt the L&D function? While engaging the learner on these questions, the case also provides an insight into the ground realities of industry sectors such as IT/ITeS that rely on a well-oiled people supply chain.
Swot Analysis of "EdGE Networks: Making HR Intelligent" written by Debolina Dutta, Shankar Venkatagiri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Function Hr facing as an external strategic factors. Some of the topics covered in EdGE Networks: Making HR Intelligent case study are - Strategic Management Strategies, IT, Talent management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the EdGE Networks: Making HR Intelligent casestudy better are - – geopolitical disruptions, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic ,
there is backlash against globalization, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of EdGE Networks: Making HR Intelligent
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EdGE Networks: Making HR Intelligent case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Function Hr, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Function Hr 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 EdGE Networks: Making HR Intelligent can be done for the following purposes –
1. Strategic planning using facts provided in EdGE Networks: Making HR Intelligent case study
2. Improving business portfolio management of Function Hr
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 Function Hr
Strengths EdGE Networks: Making HR Intelligent | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Function Hr in EdGE Networks: Making HR Intelligent Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Function Hr 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.
Effective Research and Development (R&D)
– Function Hr 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 EdGE Networks: Making HR Intelligent - 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 EdGE Networks: Making HR Intelligent 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.
Superior customer experience
– The customer experience strategy of Function Hr in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Function Hr is present in almost all the verticals within the industry. This has provided firm in EdGE Networks: Making HR Intelligent 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.
Low bargaining power of suppliers
– Suppliers of Function Hr in the sector have low bargaining power. EdGE Networks: Making HR Intelligent has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Function Hr to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Function Hr has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Function Hr 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
- Function Hr 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 Function Hr is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in EdGE Networks: Making HR Intelligent Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Function Hr 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Function Hr digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Function Hr 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– EdGE Networks: Making HR Intelligent firm has clearly differentiated products in the market place. This has enabled Function Hr to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Function Hr to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Function Hr is one of the leading recruiters in the industry. Managers in the EdGE Networks: Making HR Intelligent are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses EdGE Networks: Making HR Intelligent | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EdGE Networks: Making HR Intelligent are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study EdGE Networks: Making HR Intelligent, is just above the industry average. Function Hr 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 EdGE Networks: Making HR Intelligent HBR case study mentions - Function Hr 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.
Interest costs
– Compare to the competition, Function Hr 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.
Capital Spending Reduction
– Even during the low interest decade, Function Hr 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.
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 Function Hr supply chain. Even after few cautionary changes mentioned in the HBR case study - EdGE Networks: Making HR Intelligent, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Function Hr vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Function Hr 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. Function Hr 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.
Aligning sales with marketing
– It come across in the case study EdGE Networks: Making HR Intelligent 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 EdGE Networks: Making HR Intelligent can leverage the sales team experience to cultivate customer relationships as Function Hr is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study EdGE Networks: Making HR Intelligent, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Function Hr 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.
High operating costs
– Compare to the competitors, firm in the HBR case study EdGE Networks: Making HR Intelligent 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 Function Hr 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Debolina Dutta, Shankar Venkatagiri suggests that, Function Hr 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.
Opportunities EdGE Networks: Making HR Intelligent | 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 EdGE Networks: Making HR Intelligent are -
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. Function Hr 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. Function Hr 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.
Buying journey improvements
– Function Hr can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. EdGE Networks: Making HR Intelligent 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.
Developing new processes and practices
– Function Hr 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.
Better consumer reach
– The expansion of the 5G network will help Function Hr to increase its market reach. Function Hr 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Function Hr can use these opportunities to build new business models that can help the communities that Function Hr operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Function Hr can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Function Hr has opened avenues for new revenue streams for the organization in the industry. This can help Function Hr to build a more holistic ecosystem as suggested in the EdGE Networks: Making HR Intelligent case study. Function Hr can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Function Hr is facing challenges because of the dominance of functional experts in the organization. EdGE Networks: Making HR Intelligent 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Function Hr 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Function Hr can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Function Hr 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.
Building a culture of innovation
– managers at Function Hr 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.
Using analytics as competitive advantage
– Function Hr 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 EdGE Networks: Making HR Intelligent - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Function Hr to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats EdGE Networks: Making HR Intelligent External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EdGE Networks: Making HR Intelligent are -
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. Function Hr needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Function Hr 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.
Shortening product life cycle
– it is one of the major threat that Function Hr is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Function Hr business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Function Hr with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Function Hr 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.
Environmental challenges
– Function Hr 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. Function Hr can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Function Hr
– 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 Function Hr.
Regulatory challenges
– Function Hr 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study EdGE Networks: Making HR Intelligent, Function Hr 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Function Hr 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 EdGE Networks: Making HR Intelligent .
Stagnating economy with rate increase
– Function Hr 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 EdGE Networks: Making HR Intelligent 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 EdGE Networks: Making HR Intelligent 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 EdGE Networks: Making HR Intelligent 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 EdGE Networks: Making HR Intelligent 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 EdGE Networks: Making HR Intelligent 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 Function Hr needs to make to build a sustainable competitive advantage.
