Digital Data Streams: Creating Value from the Real-Time Flow of Big Data SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Digital Data Streams: Creating Value from the Real-Time Flow of Big Data
There is no escaping the Big Data hype. Vendors are peddling Big Data solutions; consulting firms employ Big Data specialists; Big Data conferences are aplenty. There is a rush to extract golden nuggets (of insight) from mountains (of data). By focusing merely on the mountain (of Big Data), these adventurers are overlooking the source of the revolution-namely, the many digital data streams (DDSs) that create Big Data-and the opportunity to improve real-time decision making. This article discusses the characteristics of DDSs, describes their common structure, and offers guidelines to enable firms to profit from their untapped potential.
Authors :: Frederico Pigni, Gabriele Piccoli, Richard T. Watson
Swot Analysis of "Digital Data Streams: Creating Value from the Real-Time Flow of Big Data" written by Frederico Pigni, Gabriele Piccoli, Richard T. Watson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Data Ddss facing as an external strategic factors. Some of the topics covered in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data case study are - Strategic Management Strategies, Decision making, Growth strategy, IT and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Digital Data Streams: Creating Value from the Real-Time Flow of Big Data casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, increasing commodity prices, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Digital Data Streams: Creating Value from the Real-Time Flow of Big Data
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Data Ddss, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Data Ddss 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data can be done for the following purposes –
1. Strategic planning using facts provided in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data case study
2. Improving business portfolio management of Data Ddss
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 Data Ddss
Strengths Digital Data Streams: Creating Value from the Real-Time Flow of Big Data | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Data Ddss in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Data Ddss 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 Data Ddss in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Data Ddss 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 Data Ddss is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Data Ddss in the sector have low bargaining power. Digital Data Streams: Creating Value from the Real-Time Flow of Big Data has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Data Ddss to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Data Ddss 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.
High brand equity
– Data Ddss has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Data Ddss to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Data Ddss has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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.
Cross disciplinary teams
– Horizontal connected teams at the Data Ddss 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)
– Data Ddss 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Data Ddss digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Data Ddss 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
– Digital Data Streams: Creating Value from the Real-Time Flow of Big Data firm has clearly differentiated products in the market place. This has enabled Data Ddss to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Data Ddss to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Data Ddss is present in almost all the verticals within the industry. This has provided firm in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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.
Ability to recruit top talent
– Data Ddss is one of the leading recruiters in the industry. Managers in the Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Digital Data Streams: Creating Value from the Real-Time Flow of Big Data are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, in the dynamic environment Data Ddss has struggled to respond to the nimble upstart competition. Data Ddss has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, is just above the industry average. Data Ddss 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.
Need for greater diversity
– Data Ddss 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.
Interest costs
– Compare to the competition, Data Ddss 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Data Ddss 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Frederico Pigni, Gabriele Piccoli, Richard T. Watson suggests that, Data Ddss 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.
Products dominated business model
– Even though Data Ddss 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 - Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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, Data Ddss 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. Data Ddss 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.
No frontier risks strategy
– After analyzing the HBR case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, 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.
Low market penetration in new markets
– Outside its home market of Data Ddss, firm in the HBR case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Data Ddss 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.
Opportunities Digital Data Streams: Creating Value from the Real-Time Flow of Big Data | 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Data Ddss can use these opportunities to build new business models that can help the communities that Data Ddss operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Data Ddss to increase its market reach. Data Ddss 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.
Developing new processes and practices
– Data Ddss 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Data Ddss can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Data Ddss 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.
Using analytics as competitive advantage
– Data Ddss 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Data Ddss 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, Data Ddss is facing challenges because of the dominance of functional experts in the organization. Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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.
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 Data Ddss in the consumer business. Now Data Ddss can target international markets with far fewer capital restrictions requirements than the existing system.
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. Data Ddss can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Data Ddss 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. Data Ddss 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
– Data Ddss can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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.
Leveraging digital technologies
– Data Ddss 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 Data Ddss 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.
Threats Digital Data Streams: Creating Value from the Real-Time Flow of Big Data External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data are -
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
– Data Ddss 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. Data Ddss can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Data Ddss in the Leadership & Managing People sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Data Ddss 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Data Ddss 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data .
Increasing wage structure of Data Ddss
– 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 Data Ddss.
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 Data Ddss.
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. Data Ddss 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.
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. Data Ddss needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Data Ddss 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.
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. Data Ddss can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, Data Ddss 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 .
Technology acceleration in Forth Industrial Revolution
– Data Ddss has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Data Ddss 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.
Weighted SWOT Analysis of Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Data Ddss needs to make to build a sustainable competitive advantage.