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 - – challanges to central banks by blockchain based private currencies, geopolitical disruptions, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing government debt because of Covid-19 spendings,
wage bills are increasing, increasing household debt because of falling income levels, 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 -
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.
Successful track record of launching new products
– Data Ddss has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Data Ddss 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.
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.
Operational resilience
– The operational resilience strategy in the Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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.
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.
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.
Superior customer experience
– The customer experience strategy of Data Ddss in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Innovation driven organization
– Data Ddss is one of the most innovative firm in sector. Manager in Digital Data Streams: Creating Value from the Real-Time Flow of Big Data Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
Highly skilled collaborators
– Data Ddss 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 Digital Data Streams: Creating Value from the Real-Time Flow of Big Data HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Data Ddss
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Data Ddss does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Data Ddss is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
Slow to strategic competitive environment developments
– As Digital Data Streams: Creating Value from the Real-Time Flow of Big Data HBR case study mentions - Data Ddss 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Data Ddss has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Digital Data Streams: Creating Value from the Real-Time Flow of Big Data can leverage the sales team experience to cultivate customer relationships as Data Ddss is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Data Ddss 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.
Lack of clear differentiation of Data Ddss products
– To increase the profitability and margins on the products, Data Ddss needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, it seems that the employees of Data Ddss don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Data Ddss 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Digital Data Streams: Creating Value from the Real-Time Flow of Big Data 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 Data Ddss 's lucrative customers.
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 -
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.
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.
Manufacturing automation
– Data Ddss 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.
Creating value in data economy
– The success of analytics program of Data Ddss has opened avenues for new revenue streams for the organization in the industry. This can help Data Ddss to build a more holistic ecosystem as suggested in the Digital Data Streams: Creating Value from the Real-Time Flow of Big Data case study. Data Ddss can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Data Ddss can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Data Ddss 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 Data Ddss to hire the very best people irrespective of their geographical location.
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.
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 Data Ddss 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Data Ddss 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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Data Ddss 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, Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Data Ddss 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.
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 .
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.
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.
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.
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.
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 Data Ddss business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Data Ddss 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.
Shortening product life cycle
– it is one of the major threat that Data Ddss is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
Stagnating economy with rate increase
– Data Ddss can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of 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.