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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, there is increasing trade war between United States & China, increasing commodity prices, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , 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 -
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.
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.
Analytics focus
– Synchronization Synchrony is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Jason P. Davis can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Synchronization Synchrony
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Synchronization Synchrony does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Low bargaining power of suppliers
– Suppliers of Synchronization Synchrony in the sector have low bargaining power. Capturing the Value of Synchronized Innovation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Synchronization Synchrony to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Capturing the Value of Synchronized Innovation 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.
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.
High brand equity
– Synchronization Synchrony has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Synchronization Synchrony to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
Highly skilled collaborators
– Synchronization Synchrony 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 Capturing the Value of Synchronized Innovation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Synchronization Synchrony is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Capturing the Value of Synchronized Innovation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 to strategic competitive environment developments
– As Capturing the Value of Synchronized Innovation HBR case study mentions - Synchronization Synchrony 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.
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.
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.
Interest costs
– Compare to the competition, Synchronization Synchrony 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 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.
No frontier risks strategy
– After analyzing the HBR case study Capturing the Value of Synchronized Innovation, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Synchronization Synchrony 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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Capturing the Value of Synchronized Innovation, is just above the industry average. Synchronization Synchrony 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.
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 -
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Synchronization Synchrony is facing challenges because of the dominance of functional experts in the organization. Capturing the Value of Synchronized Innovation 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.
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.
Leveraging digital technologies
– Synchronization Synchrony 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.
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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Synchronization Synchrony 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.
Developing new processes and practices
– Synchronization Synchrony 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.
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.
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 -
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Synchronization Synchrony 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.
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 .
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.
Consumer confidence and its impact on Synchronization Synchrony 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.
Increasing wage structure of Synchronization Synchrony
– 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 Synchronization Synchrony.
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.
Environmental challenges
– Synchronization Synchrony 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. Synchronization Synchrony can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Regulatory challenges
– Synchronization Synchrony 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.
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 .
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.
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.