Showing posts with label SWOT. Show all posts
Showing posts with label SWOT. Show all posts

Sunday, April 26, 2009

Gap analysis methodology for identifying future ICT related eGovernment research topics – case of “ontology and semantic web” in the context of eGover

http://ecom.fov.uni-mb.si/proceedings.nsf/Proceedings/874F789164F6DD6DC12572EE007A6BB2/$File/Paper95.pdf

This study evaluates the the gaps between the current state of government e-services to those proposed by numerous European conventions. The authors review how they defined and identified those gaps, how they were interrelated, and the methodology used to draw conclusions.

The use of information and communication technologies (ICT) currently employed by governments is poor. The future needs demands placed on governments to meet constituent demands require the streamlined implementation of ICT. The results of this study are part of the eGovRTD2020 project for which this work was commissioned.

For the sake of the study, a gap was identified as either expressing a mismatch between issues of consideration, or an issue of research currently not under consideration. There are five main steps the authors undertook to identify gaps and actions toward future scenarios. Generally speaking, they are:
  • where are we at?
  • where can we go?
  • how do we get there from here?
  • this is how we get there.
  • this is what we need to do to get there
The researchers then grouped the gap areas together and conducted conclusions on how they were interrelated (the later via a SWOT-esque approach).

The authors highlight four key steps they considered while conducting their gap analysis. They are:
  • understand the current environment
  • understand the broader context of the environment (for a holistic view)
  • base the results on a clear assessment framework
  • support the analysis quantitatively

Wednesday, March 18, 2009

Summary Findings: Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis -- 2 Stars Out Of 5


Note: This post represents the synthesis of the thoughts, procedures and experiences of others as represented in the 12 articles read in advance of (see previous posts) and the discussion among the students and instructor during the Advanced Analytic Techniques class at Mercyhurst College on 18 MAR 2009 regarding the SWOT technique. This technique was evaluated based on its overall validity, simplicity, flexibility and its ability to effectively use unstructured data.


Definition:


SWOT is the result of structured brainstorming on the Strengths, Weaknesses, Opportunities, and Threats of an organization or, as an intelligence analysis technique, of a competitor, enemy or rival. While not designed to generate an estimative conclusion by itself, SWOT serves as a possible convergent-thinking technique in the early stages of strategy formulation.

Strengths:
  • Easy
  • Inclusive
  • Familiar tool
  • Informative
  • Flexible
  • An effective prelude to forecasting analysis
  • No software necessary
Weaknesses
  • The general concept is agreed upon, but sub-steps need to be more clearly defined
  • Not a forecasting method
  • Some validity concerns regarding the level of analysis
  • Can consume resources (time consuming, lengthy lists, etc)
  • Lacks strict guidelines on how to prioritize lengthy lists
  • Threats and opportunities can oftentimes lead to guesswork
  • Open to bias
  • Too basic
How-To:
  • Designate a team to conduct the technique
    • Designate sub-teams for each matrix field
  • Collect empirical and anecdotal data on the target
  • Conduct a structured brainstorming session
  • Sort data and place into relevant field in the matrix
    • Prioritize and weight data for importance
  • Cross-fertilize data and identify relationships across matrix fields
  • Synthesize conclusions
  • Disseminate
      Experience:

      Our experience with applying the method to the situation regarding the Mercyhurst College Institute of Intelligence Studies tracks very closely with the comments and observations in both the class and in the articles read. From thiis discussion and experience, the list of strengths and weaknesses emerged.

      We did the exercise in class over a period of about 20 minutes. While we did not have adequate time to fully explore the nuances of the method, this exercise did give us a sense of the challenges inherent in applying this method. The final product, generated using the Mindmeister mind mapping program is below:



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      Monday, March 16, 2009

      How To Do A SWOT Analysis

      SWOT is a planning tool used to understand strengths, weaknesses, opportunities, and threats involved in a project or in a business. It involves identifying the internal and external factors that are supportive or unfavorable to achieving an objective. SWOT analysis can be graphically represented with a matrix or a grid. Although SWOT appears to be an easy model, an effective and meaningful SWOT analysis requires time and resources. One person cannot do this method effectively; it requires a team effort. SWOT is not an analysis; rather it is summary of a previous set of analyses (mini-brainstorming activities).

      A SWOT analysis produces information that is helpful in pairing an organization’s goals and programs with the social environment in which it operates.

      *Strengths—internal attributes within an organization’s control
      *Weaknesses—within the organization’s control but detract from its ability
      *Opportunities—external factors that present opportunities within the environment
      *Threats—external factors that place the organization at risk

      SWOT’s strength as a model lies in its flexibility and experienced application. For example, a SWOT analysis can be used for workshops, brainstorming, problem solving, planning, evaluation, and competitor evaluation. The analytic method aims to reveal a company’s competitive advantages, analyze prospects for sales, prepare the company for future problems, and allow for the development of contingency plans.

      To conduct a SWOT analysis:
      1) Collection information—list all strengths and weaknesses
      2) List all opportunities that might exist in the future as well as all threats that may exist
      3) Review the SWOT matrix to create an action plan to address the four areas.

      Due to SWOT’s subjective characteristics, two people rarely draft the same final version of a SWOT analysis. In order to strengthen a SWOT analysis, be realistic about a company’s strengths and weaknesses, avoid gray areas, avoid complexity, and always analyze in relation to competitors. Other capabilities needed to complete an effective SWOT analysis include trust in group members, team diversity, and time.

      http://www.rapidbi.com/created/how-to-do-a-swot-analysis.html

      Sunday, March 15, 2009

      Case Study: SWOT Analysis In Action At Škoda

      Škoda, a small car company originating in Czechoslovakia in 1895, needed to seek out a strong foreign partner to aid the company amid economic hard times. Škoda chose Volkswagen AG due to its reputation for strength, quality, and reliability. Volkswagen AG comprises Volkswagen, Audi, Škoda, SEAT, Lamborghini, Bentley, and other brands. To improve its performance, Škoda conducted a brand positioning examination (establishing a distinctive image) by obtaining market research data from both internal and external audits, allowing Škoda to conduct a SWOT analysis.

      SWOT Analysis stands for:
      *Strengths—the internal elements of the business that contribute to growth
      *Weaknesses—the attributes that will hinder a business or make it vulnerable
      *Opportunities—the external conditions that could enable future growth
      *Threats—the external factors which could negatively affect business

      Strengths
      To identify its strengths, Škoda gathered research from customers and reliable independent surveys. Škoda found that the company excelled at satisfying its customers when it focused on the “owner experience” rather than on sales alone. Almost all of Škoda’s customers would recommend Škoda to a friend, meaning that Škoda had a clearly identifiable strength. As a result, Škoda manufactured cars that their customers could enjoy, which is different from simply maximizing sales. Škoda branded themselves as a quality product that satisfies its customers.

      Weaknesses
      Škoda’s analysis showed that in order to grow the business needed to address questions about how the small company (1.7% market share) fit into the highly competitive market. An out-dated perception of the Škoda brand, related to the company’s Eastern European origins, contributed to the business’ small size. By 1999, Volkswagen AG ownership changed this negative attitude about Škoda. However, Škoda still lacked a strong appeal. Škoda realized that the company needed to cease defensive campaigns illustrating what the brand was not and begin new campaigns illustrating what Škoda had to offer. The change was simple: Škoda new that its owners were happy with their cars.

      Opportunities
      Škoda realized that its competitors’ marketing approaches focused on the product (car) itself. Škoda, conversely, focused its attention on emphasizing the owner’s experience with their cars and the customers’ satisfaction with Škoda vehicles. This SWOT analysis helped Škoda to differentiate its product from its competitors.

      Threats

      In the UK market, there are 50 different car makers selling 200 models. In this large and competitive market, Škoda needed to ensure that its message would not be lost or drowned out within the crowded environment. As a result, Škoda manufactured seven different cars, each one appealing to a different segment of the market (city car, luxurious car, family car, etc) with subsequent levels of pricing.

      Conclusion
      Škoda’s SWOT analysis helped the company to discover that Škoda customers were happy with their cars, the brand was no longer seen as a poor, outdated car, the company was able to operate within a niche in the market, and that a change in public perception was vital to Škoda’s ability to expand within a highly competitive market.

      SWOT analysis brings order and structure to random information. The SWOT model helps managers to look internally and externally. It examines that key internal weaknesses and focuses on strengths managers can utilize to seize opportunities and combat threats.

      Author's Note: This case study simply provides a real world example of a company who used SWOT analysis successfully to redefine its market strategy. The case study did not provide a critique of the structured method.

      http://www.thetimes100.co.uk/downloads/skoda/skoda_13_full.pdf

      Wednesday, March 11, 2009

      Conducting a Proper SWOT Analysis: Going Beyond the Book

      Conducting a Proper SWOT Analysis: Going Beyond the Book

      At the most basic level, a SWOT analysis involves collecting data and information about one's organization and industry (competitors, etc.), processing and assessing the relevant data, and creating four lists. The four lists (usually the ultimate product of a SWOT analysis) are comprised of the answers to four separate questions:
      • Strengths: "What does the firm do well?"
      • Weaknesses: "What does the firm lack or do badly?"
      • Opportunities: "What are the factors that can be exploited to the firm's advantage?"
      • Threats: "What are the factors that can potentially reduce a firm's performanc, strengths or reason for existence?"
      There are four critical factors that analysts should consider prior to executing a SWOT analysis:
      1. Frequency. When and how often is it appropriate to carry out this type of analysis? Because of SWOT's inherent practicality and ease of use, it may be executed daily. An effective SWOT analysis would have to be continuosly modified, as elements in the organization's internal and external environments are constantly changing. Revising SWOT analyses on a daily basis would force analysts into a tedious routine of executing SWOT whenever new information emerges. Thus, it is necessary to conduct an analysis on when its use is most effective and appropriate for the organization. Opportunities to conduct SWOT include: periods of strategic review and planning; in reaction to competitors' launching of a new product; to assess and seize opportunities within the industry to remain competitive.
      2. Information. It is important to consider what information is relevant, and how it is being obtained. Analysts conducting an effective SWOT analysis must assess the organization's strengths and weaknesses largely based upon relevant internal information; obtained from sources such as management or the organization's consultant. Additionally, analysts should exploit market research, industry literature, press releases (from competitors and other industry reporting), and growing or declining industry trends. All information relevant to the analysis must be reviewed, verified, and updated before dissemination of the final SWOT analysis findings.
      3. Personnel. Who, and how many people are involved in the process? Because of its relative simplicity to execute, one individual may conduct a SWOT analysis. However, to guarantee a "balanced perspective," a minimum of four people should conduct a SWOT. The candidates with the most seniority are in the best position to assess the organization's strengths. Those assigned to assess the organization's weaknesses should be objective and able to maintain an impartial position when identifying internal flaws and shortcomings. Opportunities should be evaluated by creative thinkers and positive individuals who are able to consider and evaluate consequences in the long-term scope. Those tasked with addressing threats must be extremely knowledgeable about both the organization and the overall industry. In order to prevent bias and a group's influence over the others, those tasked with assessing seperate components should work in separate physical locations.
      4. Dissemination. How should the results of a SWOT analysis be presented to executives? Analysts may present the findings in the form of a "shopping list" of internal and external factors that will likely impact the organization in the short or long-term. This product may include a multi-page document. Analysts may also create a 3-by-3 matrix with internal factors (strengths and weaknesses) listed on the left-hand side, and external factors listed across the top of the matrix. This product can be presented on one page, allowing the decision maker to visually match the elements being analyzed.

      Strategy: Create and Implement the Best Strategy for Your Business (Ch. 1&2)

      Harvard Business School. Strategy: Create and Implement the Best Strategy for Your Business. Boston: Harvard Business School Publishing, 2005.

      The Strategy volume of Harvard's Business Essentials dedicates the opening two chapters to SWOT analysis.
      This reading serves as a primer to strategic thinking for business students and leaders. The authors imply that SWOT should be the basis for goal and strategy development within a firm. The first chapter focuses on the external analysis of factors that influence analysis and, ultimately, strategic goals of a company; the second focuses on the analysis of internal factors.

      External factors are the threats and opportunities that exist throughout the company's external environment. This portion of the SWOT analysis considers factors such as customers (current and future), competition, supply chains, regulations, potential mergers, pricing, uncertainty, technology, and macroeconomic trends. These factors may be perceived as either threats or opportunities, depending on their level of impact to the company, as evidenced by the analysis. The product here is the ability to evaluate potential strategic options. Additionally, the key to an effective analysis is to be cognizant of the company's relative position in the competitive arena. This chapter reinforces these notions about the external environment with a brief discussion of the importance of incorporating Porter's Five Forces Model in order to gauge one's position in the competitive arena.

      The Strengths and Weaknesses component of the SWOT analysis is an internal assessment of the company. Strengths and weaknesses can be identified by evaluating the company's brand power, employee and management culture, financial condition, cost structure, and technical skills, among others.

      The book provides a nine-step guide to executing and organizing the collective information:
      1. Select a well-respected person to head the analysis. He or she should be expected to remain objective.
      2. Establish a SWOT team of individuals from throughout the company.
      3. Collectively brainstorm the strengths of the company.
      4. Record strengths on a flip chart, avoiding duplication.
      5. Consolidate ideas together on a wall. Combine possible duplicated answers under common headings.
      6. Define the strengths (remain focused on strengths and not solutions).
      7. Identify the top 3.
      8. Summarize on a single flip chart page.
      9. Repeat steps 2-6 for weaknesses.
      The book suggests following the same steps for conducting the external analysis of the firm, but it recommends integrating some individuals (suppliers, consultants, etc.) from outside the company to help identify the opportunities and threats. Once the findings are completed, the team should construct a consolidated report for executives and management personnel to consider when modifying strategy.