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 - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
increasing commodity prices, talent flight as more people leaving formal jobs, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Analytics focus
– Data Ddss 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 Frederico Pigni, Gabriele Piccoli, Richard T. Watson 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.
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 -
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.
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.
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.
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.
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.
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 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.
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 Data Ddss supply chain. Even after few cautionary changes mentioned in the HBR case study - Digital Data Streams: Creating Value from the Real-Time Flow of Big Data, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Data Ddss vulnerable to further global disruptions in South East Asia.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Data Ddss 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Data Ddss in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 .
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.
