COM333 – IKBS3 SWOT Analysis

Identify key opportunities and Threats SWOT Analysis –Model for assessing Strengths, Weaknesses, Opportunities and Threats –Strength and weaknesses and the way to classify internal circumstances of the organisation –Opportunities and threats are ways of defining the external environment.

Considering (analysing) the interaction between internal and external factors will assist the strategic analysis and provide strategic choice –Help to avoid taking a high risk strategy (exploit an opportunity), if the business have a significant weakness in that area. Organisation should apply SWOT analysis to competitors, suppliers and customers –Assessing competitors will help the organisation to capitalise upon their weaknesses and avoid going head on against their strength.

The aim of SWOT analysis is use the strategic pointers in order –To use the existing business strength To exploit opportunities To create new opportunities To counteract threats –And to repair the weaknesses SWOT matrix –Systematic way of matching the environmental threats and opportunities with the organisational strength and weaknesses

SWOT analysis is a conventional approach to the consideration of –What are our weak/ strong products, divisions, attitudes, etc? –Are there gaps/ opportunities we can go for? –Are there dangers/ threats we need protection from? –Are we strong in the right way to exploit the opportunity

Assessing the SW of Information System –Approach to IS –Use of IS –Delivery of IS –Data management –Technical skills

Sample questions for assessing the SW of Information System –Approach to IS IS seen as necessary evil or scarce resource or as a transferring aid Whether the organisation seeks to lead the filed, follow the flock or float with the tide –Use of IS The number of systems which are poor quality or not easy to use which are batch rather than on-line Proportion of the system which are administrative or head office in nature rather than assisting the delivery of products or services at the sharp end

–Delivery of IS The proportion of resources tied up in maintenance The planning of new systems – technology driven rather than information-need driven Role of users and departments Use of modern system development techniques –Data management The degree of redundancy and dis-aggregation of data The use of DBMS Approach to the modelling and design of data –Technical skills Technical support available Growth in demand Responsibilities for voice communication, office systems and performance monitoring

Strategy cannot be implemented in isolation –It is important to consider the impact of an action upon customers/suppliers as well as competitors SWOT can be used to weigh up the risks involved with IS

Attack Go for it Beware Don’t do it Explore If have time Protect Watch yourself Situation IS faces Strength Weakness Threat Opportunity Evaluation of IS capability The figure shows the type of risk exposure created by the internal and external factors and the type of response that might be most appropriate to deal with each type of risk

Attack –Opportunity and strength –Organisation can use IS to attack it’s competitors with a good prospect of success Protect –Threats and weakness –Protects itself from its vulnerability to attacks from its competitors

Beware –Value adding opportunity and weakness –Following this strategy Less assurance of success than others in the sector with more adequate IS Explore –Strength and threats –Organisation with strong IS resources in threatening opportunities should explore avenues Maintain the quality against the opening up of opportunities Identify the overlooked potential

These techniques focuses on issues Less guidance on action Risk associated with SWOT analysis –Attitude There is a tendency to be less than honest in the appraisals Feel the need to cover up feared weaknesses by proclaiming the perceived strengths.