1. Information Technology Planning and Management (ITPM)
إدارة وتخطيط تكنولوجيا المعلومات
Naji Shukri Alzaza
University of Palestine
March 2010
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010

2. Strengths, Weaknesses, Opportunities, and Threats
SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010

3. Overview Strengths and weaknesses are generally internal factors.
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Overview
Strengths and weaknesses are generally internal factors.
Opportunities and Threats are generally external issues.
Planning and Organizing Tool
organizational strategic planning
public policy development
personal career planning
Helps focus on key issues
helps focus the commercialization research
feeds into commercialization strategy

4. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Strengths
Consider from both the view of the firm (product) as well as from customers and competitors
Realistic and not modest
One’s strength is another’s weakness
Questions:
What are the firm’s advantages over others?
What does the firm do well?
What makes you stand out from your competitors?

5. Weaknesses Consider from internal and external viewpoint
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Weaknesses
Consider from internal and external viewpoint
Be truthful so that weaknesses may be overcome as quickly as possible
One’s strength is another’s weakness
Questions.
What is done poorly?
What can be improved?
What should be avoided?

6. Opportunities and Threats
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Opportunities and Threats
Primarily external in nature
Represent characteristics of:
the research environment
growth in potential markets
changes in the competitive, economic, political/legal, technological, or socio-cultural environments
A threat to some is an opportunity to another.

7. Questions!! Questions on opportunities: Questions on threats:
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Questions!!
Questions on opportunities:
Is there a product/service area that others have not yet covered?
Are there emerging trends that fit with your company's strengths?
Questions on threats:
Are your competitors becoming stronger?
Are there emerging trends that amplify one of your weaknesses?

8. Strengths could be!! In general marketing expertise
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Strengths could be!!
In general
marketing expertise
location of your business
innovative product
company image
any other aspect that adds value to your product or service
In IT
technological capability: speed, efficiency, precision, power, etc.
stage of development relative to competitors: Copyrights, prototype.
characteristics of the lead researcher: commercialization focus, reputation, other complimentary work.
cost

9. Weaknesses could be!! In general lack of marketing expertise
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Weaknesses could be!!
In general
lack of marketing expertise
undifferentiated products and service (i.e. in relation to your competitors)
location of your business
damaged reputation
In IT
technological weakness: lack of speed, efficiency, precision or power
lead researcher uninterested in commercialization
stage of development or uncertainty with regard to technological capabilities
cost

10. Opportunities could be!!
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Opportunities could be!!
In general
a developing market such as the Internet.
mergers, joint ventures or strategic alliances
a new international market
a market vacated by an ineffective competitor
any external factor that may create demand or the possibility for increased profitability
In IT
a new or untapped market
an old market needing technological advances
a recent technological development that can be used as a catalyst for others (possibly through licensing)
change in regulatory environment that creates demand for new technology

11. Threats could be!! In general a new competitor in your market
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Threats could be!!
In general
a new competitor in your market
price wars with competitors
a competitor has a new, innovative product or service
competitors have superior access to channels of distribution
In IT
other ongoing research or commercialization efforts
a large existing competitor
market volatility (unstable) (because we are new market entrants)
market access (for supplies or customers)

12. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Caution!!
SWOT analysis can be very subjective.
Do not rely on it too much.
Two people rarely come-up with the same final version of SWOT.

13. Suggestions for conducting SWOT
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Suggestions for conducting SWOT
Be realistic; no need to inflate strengths or be in denial about shortcomings.
Distinguish between where your technology is today, and where it could be in the future.
Be specific… Avoid grey areas.
Always analyze in the context of your competitive environment.
Keep your SWOT short and simple.

14. Using the SWOT Analysis
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Using the SWOT Analysis
Weaknesses should be looked at in order to convert them into strengths.
Try to match your strengths with external opportunities.
Threats should be converted into opportunities.
Strengths and opportunities should be matched.

15. Expanding Your SWOT Analysis
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Expanding Your SWOT Analysis
Delve deeper into the details of the technology.
Include more detailed competitor information in the analysis.
Take a closer look at the business environment.
Expand the reach of a SWOT analysis through surveys.

16. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Where Do I Start?
Try to determine why your company might be troubled and what short-term and long-term steps can be taken to improve performance.

17. The Decision Form The decision form is unforgiving!
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
The Decision Form
The decision form is unforgiving!
Make sure you ALWAYS carefully check over your decisions.
Turn in all decisions on disks
Paying careful attention to use the correct units.
ALL GROUPS MUST TURN IN THEIR DECISIONS ON TIME!!!

18. Keys to Success Develop a strategy and act accordingly.
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Keys to Success
Develop a strategy and act accordingly.
A premium quality producer can charge more for a product, but will have greater expenses on quality, technology, etc.
A low cost producer should have lower overhead, but must still put out a product with good value.
The best companies will develop strategies and consistently implement their strategy.

19. Keys to Success… First mover advantage Know your competition.
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Keys to Success…
First mover advantage
Know your competition.
The price you can charge is directly related to the value/price relationships of the other firms in the industry.
Generally speaking, it is better to be well positioned in your market. For example, be THE highest priced/ differentiated competitor or THE low cost/ volume producer.

20. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Keys to Success…
Spend some on all major expense areas (major areas are marketing, operations technology and new product research).
Do not give up if you don’t first succeed.
Many companies that start off in the hole can rebound by the end of the semester.
Make sure you control your debt.
Know your strategy in relation to other companies.

21. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Keys to Success…
Pricing and capacity are the two most important decisions to manage.
Managing cash and debt are the next most important.

22. The first decision you will make is naming your company
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Give your work a name!
The first decision you will make is naming your company
You want your name to have some sort of meaning and stand out in stakeholders mind’s.
Organizational image and reputation “السُمعة” can be sources of competitive advantage.

23. Limitations of SWOT Analysis
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Limitations of SWOT Analysis
Assessment of opportunities and threats will be biased by managers’ perceptions of their firm’s strengths and weaknesses
Evaluation of a firm’s position is subjective
It rarely results in clear recommendations
Managers encounter widespread disagreement about whether environmental events should be interpreted as an opportunity or threat

24. SWOT Analysis -What to Look For
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
SWOT Analysis -What to Look For
Potential Resource Strengths
Powerful strategy
Strong financial condition
Strong brand name image/reputation
Widely recognized market leader
Proprietary technology
Cost advantages

25. SWOT Analysis -What to Look For!!
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Potential Resource Strengths
Potential Resource Weaknesses
Potential Company Opportunities
Potential External Threats
Powerful strategy
Strong financial condition
Strong brand name image/reputation
Widely recognized market leader
Proprietary technology
Cost advantages
Strong advertising
Product innovation skills
Good customer service
Better product quality
Alliances or Partners
No clear strategic direction
Obsolete facilities
Weak balance sheet; excess debt
Higher overall costs than rivals
Missing some key skills/competencies
Subpar profits
Internal operating problems . . .
Falling behind in Research & Development
Too narrow product line
Weak marketing skills
Serving additional customer groups
Expanding to new geographic areas
Expanding product line
Transferring skills to new products
Vertical integration
Take market share from rivals
Acquisition of rivals
Alliances or partners to expand coverage
Openings to exploit new technologies
Openings to extend brand name/image
Entry of potent new competitors
Loss of sales to substitutes
Slowing market growth
Adverse shifts in exchange rates & trade policies
Costly new regulations
Vulnerability to business cycle
Growing leverage of customers or suppliers
Reduced buyer needs for product
Demographic changes

26. Potential internal strengths Potential internal weaknesses
SWOT Checklist
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Potential internal strengths
Potential internal weaknesses
Many product lines?
Obsolete, narrow product lines?
Broad market coverage?
Rising manufacturing costs?
Manufacturing competence?
Decline in R&D innovations?
Good marketing skills?
Poor marketing skills?
Good materials management systems?
Poor materials management systems?
R&D skills and leadership?
Loss of customer good will?
Information system competencies
Inadequate information systems?
Human resource competencies?
Inadequate human resources?
Brand name reputation?
Loss of brand name capital?
Portfolio management skills?
Growth without direction?
Cost of differentiation advantage?
Bad portfolio management?
New-venture management expertise?
Loss of corporate direction?
Appropriate management style?
Infighting among divisions?
Appropriate organizational structure?
Loss of corporate control?
Appropriate control systems?
Inappropriate organizational structure and control systems?
Ability to manage strategic change?
High conflict and politics?
Well-developed corporate strategy?
Poor financial management?

27. Potential environmental opportunities Potential environmental threats
SWOT Checklist
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Potential environmental opportunities
Potential environmental threats
Expand core business(es)?
Attacks on core business(es)?
Exploit new market segments?
Increases in domestic competition?
Widen new market segments?
Increases in foreign competition?
Extend cost or differentiation advantage?
Change in consumer taste?
Diversify into new growth businesses?
Fall in barriers to entry?
Expand into foreign markets?
Rise in new or substitute products?
Apply R&D skills in new areas?
Increase in industry rivalry?
Enter new related businesses?
New forms of industry competition?
Vertically integrate forward?
Potential for takeover?
Vertically integrate backward?
Existence for corporate raiders?
Enlarge corporate portfolio?
Increase in regional competition?
Overcome barriers to entry?
Changes in demographic factors?
Reduce rivalry among competitors?
Changes in economic factors?
Make profitable new acquisitions?
Downturn in economy?
Apply brand name capital in new areas?
Rising labor costs?
Seek fast market growth?
Slower market growth?

28. Dell Case Study SWOT Analysis
Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Dell Case Study
SWOT Analysis
dies

29. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Strengths
Dell is the World's largest PC maker. Profits for the 3 months to July were in excess of $1 billion US, representing a growth of around 28%. For the last couple of years it has held its position as market leader (it took it from rivals Hewlett-Packard). The Dell brand is one of the best known and renowned computer brands in the World.
Dell cuts out the retailer and supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers. So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by Dell. PC's are assembled using relatively cheap labour. You can even keep track of your delivery by contacting customer services, based in India. The finished goods are then dropped off with the customer by courier. Dell has total command of the supply chain.

30. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Weaknesses
The company has such a huge range of products and components from many suppliers from a plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires.
Dell is a computer maker, not a compute manufacturer. It buys from a group of concentrated hi-tech component manufacturers. Whilst this is a tremendous advantage in terms of business operations, allowing Dell to focus on marketing and logistics, the company is reliant on a few large suppliers, and to an extent is locked in for periods of time (i.e. unable to switch supply dues to the lack of large suppliers in the World).

31. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Opportunities
Kevin Rollins replaced Michael Dell in 2004 as Dell's Chief Executive Officer. Dell remained the company's Chairman. Despite founder Dell's massive success, new blood and a change in management thinking could lead the company into a new, even more profitable period. Dell was born in 1965, and founded Dell in with $1000 whilst studying at the University of Texas. He became the youngest Fortune 500 CEO in 1992, and will be a tough act to follow.
Dell is pursuing a diversification strategy by introducing many new products to its range. This initially has meant good such as peripherals including printers and toners, but now also included LCD televisions and other non-computing goods. So Dell compete against iPod and other consumer electronics brands.
Dell is making and selling low-cost, low-price computers to PC retailers in the United States. The PC's are unbranded and should not be recognised as being Dell when the consumer makes a purchase. Rebranding and rebadging for retailers, although a departure for Dell, gives the company new market segments to attack with the associated marketing costs.

32. Naji ShukriAlzaz, ITPM, University of Palestine, March 2010
Threats
The single biggest problem for Dell is the competitive rivalry that exists in the PC market globally. As with all profitable brands, retaliation from competitors and new entrants to the market pose potential threats. Dell sources from Far Eastern nations where labour costs remain low, but there is nothing stopping competitors doing the same - even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not a PC manufacturer.
Dell, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value. Changes in exchange rates could leave the company exposed to potential loses in parts of its supply chain.