Capturing the Value of Synchronized Innovation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Capturing the Value of Synchronized Innovation
This is an MIT Sloan Management Review article. In industries where innovation is highly distributed, companies often attempt to gain market advantages by coordinating their product introductions with those of other companies in hopes of generating increased sales and customer satisfaction. Synchronization can take a number of forms, and the implementation costs vary widely. Moreover, keeping part of a company's operations synchronized with those of another can present substantial challenges involving control. The challenges are magnified when capturing the benefits of synchrony depends on many other players in the industry network. Understanding what it takes to coordinate critical activities across industry networks can be extremely helpful, particularly in technology-intensive industries, where innovation is distributed and companies are strategically interdependent. Sony and Microsoft, leading manufacturers of video game consoles, for example, often try to coordinate product releases with game manufacturers such as Electronic Arts. The network of relationships among companies within an industry plays a key role in producing synchronization. Such relationships can range from intense collaborations to arm's-length alliances involving less interaction. Enterprises synchronize their product development work in three different ways: by planning the synchrony proactively with a few other partner organizations; by reacting to signals by other companies; or by combining these two approaches to create a hybrid approach. In industries that produce highly complex products, industry leaders can overcome the weaknesses of planned and reactive synchronization by blending the two approaches. This involves proactively engaging with the company or companies they absolutely must coordinate with and "signaling"their intentions to a selected group of other companies in hopes that the broader network of companies will respond.
Swot Analysis of "Capturing the Value of Synchronized Innovation" written by Jason P. Davis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Synchronization Synchrony facing as an external strategic factors. Some of the topics covered in Capturing the Value of Synchronized Innovation case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Capturing the Value of Synchronized Innovation casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion,
increasing commodity prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Capturing the Value of Synchronized Innovation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Capturing the Value of Synchronized Innovation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Synchronization Synchrony, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Synchronization Synchrony 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 Capturing the Value of Synchronized Innovation can be done for the following purposes –
1. Strategic planning using facts provided in Capturing the Value of Synchronized Innovation case study
2. Improving business portfolio management of Synchronization Synchrony
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 Synchronization Synchrony
Strengths Capturing the Value of Synchronized Innovation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Synchronization Synchrony in Capturing the Value of Synchronized Innovation Harvard Business Review case study are -
Strong track record of project management
– Synchronization Synchrony 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 lead change in Leadership & Managing People field
– Synchronization Synchrony is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Synchronization Synchrony in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Synchronization Synchrony in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Synchronization Synchrony digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Synchronization Synchrony 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
– Capturing the Value of Synchronized Innovation firm has clearly differentiated products in the market place. This has enabled Synchronization Synchrony to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Synchronization Synchrony to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Synchronization Synchrony has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Synchronization Synchrony 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.
Effective Research and Development (R&D)
– Synchronization Synchrony 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 Capturing the Value of Synchronized Innovation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Synchronization Synchrony is one of the most innovative firm in sector. Manager in Capturing the Value of Synchronized Innovation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Synchronization Synchrony 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 Synchronization Synchrony is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Capturing the Value of Synchronized Innovation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Synchronization Synchrony has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Capturing the Value of Synchronized Innovation 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.
Ability to recruit top talent
– Synchronization Synchrony is one of the leading recruiters in the industry. Managers in the Capturing the Value of Synchronized Innovation 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
– Synchronization Synchrony is present in almost all the verticals within the industry. This has provided firm in Capturing the Value of Synchronized Innovation 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.
Weaknesses Capturing the Value of Synchronized Innovation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Capturing the Value of Synchronized Innovation are -
High bargaining power of channel partners
– Because of the regulatory requirements, Jason P. Davis suggests that, Synchronization Synchrony 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.
Skills based hiring
– The stress on hiring functional specialists at Synchronization Synchrony 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 Synchronization Synchrony 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 - Capturing the Value of Synchronized Innovation should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Synchronization Synchrony 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. Synchronization Synchrony 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Capturing the Value of Synchronized Innovation, in the dynamic environment Synchronization Synchrony has struggled to respond to the nimble upstart competition. Synchronization Synchrony has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Synchronization Synchrony 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 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 Synchronization Synchrony supply chain. Even after few cautionary changes mentioned in the HBR case study - Capturing the Value of Synchronized Innovation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Synchronization Synchrony vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Synchronization Synchrony 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 operating costs
– Compare to the competitors, firm in the HBR case study Capturing the Value of Synchronized Innovation 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 Synchronization Synchrony 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Synchronization Synchrony, firm in the HBR case study Capturing the Value of Synchronized Innovation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Synchronization Synchrony is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Synchronization Synchrony needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Synchronization Synchrony to focus more on services rather than just following the product oriented approach.
Opportunities Capturing the Value of Synchronized Innovation | 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 Capturing the Value of Synchronized Innovation are -
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. Synchronization Synchrony can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Synchronization Synchrony can use these opportunities to build new business models that can help the communities that Synchronization Synchrony operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Synchronization Synchrony in the consumer business. Now Synchronization Synchrony can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Synchronization Synchrony 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 Capturing the Value of Synchronized Innovation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Synchronization Synchrony to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Synchronization Synchrony can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Capturing the Value of Synchronized Innovation 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, Synchronization Synchrony 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.
Better consumer reach
– The expansion of the 5G network will help Synchronization Synchrony to increase its market reach. Synchronization Synchrony 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.
Loyalty marketing
– Synchronization Synchrony 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.
Creating value in data economy
– The success of analytics program of Synchronization Synchrony has opened avenues for new revenue streams for the organization in the industry. This can help Synchronization Synchrony to build a more holistic ecosystem as suggested in the Capturing the Value of Synchronized Innovation case study. Synchronization Synchrony can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Synchronization Synchrony 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. Synchronization Synchrony 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 Synchronization Synchrony can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Synchronization Synchrony can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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 Synchronization Synchrony 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.
Threats Capturing the Value of Synchronized Innovation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Capturing the Value of Synchronized Innovation are -
High dependence on third party suppliers
– Synchronization Synchrony 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.
Shortening product life cycle
– it is one of the major threat that Synchronization Synchrony is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Synchronization Synchrony with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Synchronization Synchrony business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Synchronization Synchrony has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Synchronization Synchrony 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Capturing the Value of Synchronized Innovation, Synchronization Synchrony 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 .
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. Synchronization Synchrony can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Synchronization Synchrony 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.
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.
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 Synchronization Synchrony.
Stagnating economy with rate increase
– Synchronization Synchrony 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Synchronization Synchrony 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 Capturing the Value of Synchronized Innovation .
Weighted SWOT Analysis of Capturing the Value of Synchronized Innovation 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 Capturing the Value of Synchronized Innovation 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 Capturing the Value of Synchronized Innovation 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 Capturing the Value of Synchronized Innovation 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 Capturing the Value of Synchronized Innovation 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 Synchronization Synchrony needs to make to build a sustainable competitive advantage.
