Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance
This case describes the effective information technology (IT) business alignment considerations that led to the successful implementation of a telecommunication platform designed to efficiently route cell phone calls in a financial institution in Chile. The company had several branches throughout the country, including its headquarters in Santiago. This initiative was part of a Technology Cost Savings strategy generated in response to the 2008 crisis. The idea behind it was to align internal business leaders with the IT team in order to optimize these costs, realizing a more efficient telecommunication platform, and to work together, as several cost-reducing initiatives were being executed at the same time. Achievements were thoroughly reviewed by the board of directors, and thus pressure to clean up the house was high. At that time, when users called a cellular phone from a landline, the call was charged using a fee much higher than a mobile company rate. The goal of the project was naturally to optimize these charges. An automatic call routing was designed, discussed and executed with the participation of the business leaders, based on each branch's demand and projected growth. The case relates the project lifecycle: the mistakes made at the beginning, the initial platform tests and bottlenecks, the rejection and frustration of the business, and a posterior crisis control and recovery phase. IT alignment and sponsorship from the directors were crucial, as there was no way back. All these factors, plus the additional IT activities competing for business attention, made this project both a challenging and learning experience.
Swot Analysis of "Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance" written by Gustavo Vinueza includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Call Telecommunication facing as an external strategic factors. Some of the topics covered in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance case study are - Strategic Management Strategies, Manufacturing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance casestudy better are - – technology disruption, wage bills are increasing, increasing household debt because of falling income levels, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Call Telecommunication, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Call Telecommunication 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance can be done for the following purposes –
1. Strategic planning using facts provided in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance case study
2. Improving business portfolio management of Call Telecommunication
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 Call Telecommunication
Strengths Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Call Telecommunication in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance Harvard Business Review case study are -
Diverse revenue streams
– Call Telecommunication is present in almost all the verticals within the industry. This has provided firm in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance firm has clearly differentiated products in the market place. This has enabled Call Telecommunication to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Call Telecommunication to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Call Telecommunication digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Call Telecommunication 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.
Superior customer experience
– The customer experience strategy of Call Telecommunication in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Call Telecommunication 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.
Training and development
– Call Telecommunication has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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.
Strong track record of project management
– Call Telecommunication 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
– Call Telecommunication is one of the leading recruiters in the industry. Managers in the Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Call Telecommunication 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 Call Telecommunication is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Call Telecommunication in the sector have low bargaining power. Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Call Telecommunication to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Call Telecommunication has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Call Telecommunication 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.
Weaknesses Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance, in the dynamic environment Call Telecommunication has struggled to respond to the nimble upstart competition. Call Telecommunication has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Call Telecommunication is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Call Telecommunication needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Call Telecommunication to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Call Telecommunication 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.
Lack of clear differentiation of Call Telecommunication products
– To increase the profitability and margins on the products, Call Telecommunication needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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 Call Telecommunication has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Call Telecommunication 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.
Interest costs
– Compare to the competition, Call Telecommunication 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.
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 Call Telecommunication supply chain. Even after few cautionary changes mentioned in the HBR case study - Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Call Telecommunication vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance, 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.
Need for greater diversity
– Call Telecommunication 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.
High cash cycle compare to competitors
Call Telecommunication 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance | 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Call Telecommunication can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Call Telecommunication to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Call Telecommunication is facing challenges because of the dominance of functional experts in the organization. Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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.
Better consumer reach
– The expansion of the 5G network will help Call Telecommunication to increase its market reach. Call Telecommunication 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.
Learning at scale
– Online learning technologies has now opened space for Call Telecommunication 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Call Telecommunication 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
– Call Telecommunication 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.
Creating value in data economy
– The success of analytics program of Call Telecommunication has opened avenues for new revenue streams for the organization in the industry. This can help Call Telecommunication to build a more holistic ecosystem as suggested in the Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance case study. Call Telecommunication can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Call Telecommunication 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, Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Call Telecommunication in the consumer business. Now Call Telecommunication can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Call Telecommunication 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Call Telecommunication 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 Call Telecommunication to hire the very best people irrespective of their geographical location.
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. Call Telecommunication can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance, Call Telecommunication 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 .
High dependence on third party suppliers
– Call Telecommunication 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.
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 Call Telecommunication business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Call Telecommunication 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.
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. Call Telecommunication 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.
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. Call Telecommunication can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Call Telecommunication is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Call Telecommunication in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Call Telecommunication.
Stagnating economy with rate increase
– Call Telecommunication 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.
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. Call Telecommunication needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Call Telecommunication 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.
Weighted SWOT Analysis of Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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 Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance 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 Call Telecommunication needs to make to build a sustainable competitive advantage.
