Innovation in Business Process Management Cordys Innovation Case Study
- Length: 6 pages
- Sources: 4
- Subject: Business
- Type: Case Study
- Paper: #76828468
Excerpt from Case Study :
Innovation in Business Process Management
Cordys: Innovation in Business Process Management
SWOT analysis identifying the issues facing CORDYS
The main strong point for Cordys is their UNIX programming software, which has made customers more independent of Cordys. The software is strong and has an incredible speed. Cordys has a provision of integrating different languages compared to similar programming software; features have been added to the localized programming software. Cordys' information is well organized. The company boasts on their products, which are their major strength that has generated a great user base. This has improved trust to their shareholders and customers. Moreover, Cordys are engaged in development work, which (workers have been allowed 25% of their time to focus on personal projects) encourages innovation thus, keeps Cordys in a moving condition (Saxena, & Bharadwaj, 2010).
The management at Cordys has admitted that it is increasingly becoming impossible to strike the difference between average content, good content, and real good content. This is because the programming software lacks the capability of checking whether all the information is credible. This has led to the emergence of strategies of optimizing software. Even in the case where a businessperson is more credible, competitors who might exhibit knowledge about algorithms of Cordys might acquire more business. Cordys deal with software where information is maintained through organized strategies. Therefore, it is easy to manipulate the information. Many users are not familiar with many products offered by Cordys such as UNIX and ERP solutions (Brocke, & Rosemann, 2010).
The increased use of programming software such as UNIX and upcoming technological trends have revolutionized the 21st Century for all human beings who are questing for knowledge and information. Cordys provide programs such as UNIX and ERP, which enables companies to do automatic upgrading thus making the process superfluous rather than the manual risky upgrading. This has proven to be a key customer attraction and a source of revenue. Cordys obtains 98% of its revenue from Oracle, HP, and IBM. The company has been regularly involved in acquiring new programs such as UNIX. Such programs are being utilized in over 90 companies. Moreover, Cordys boasts of an enormous customer base such that any product addition becomes popular than any other original idea. For instance, ERP solutions have been given a double traffic just because it is associated with Cordys. Therefore, Cordys has been submerged in the river of opportunities (Fleischmann, 2011).
Cordys is facing harsh competition posed by other software providers such as Google and Salesforce.com. These two companies have demonstrated massive growth with their turn over increasing by 20% in the first fiscal year. These are potential emerging threats to Cordys. Frequent changes in customer preferences have led to a high expectation of high standard products, which companies such as Oracle, Google, IBM, and back office have focused on as their primary agenda. All emerging industry players are following emerging technological trends. In this industry, Cordys have taken the time and failed to mitigate current technology: this poses a major threat (Johnson, Scholes, Whittington, 2008). More importantly, Cordys have maintained their focus on other industry players such as Oracle and SAP. With the company's strong and fast programming software, it exhibits a unique long-term competitive advantage in the industry thus; diverting from this would be the worst threat for Cordys (Saxena, & Bharadwaj, 2010).
2. PESTEL analysis at CORDYS
The government released a list of blacklisted and banned software companies that feature information about culture and politically sensitive topics. This was used for blacklisting individuals in the list (Cruz-Cunha, & Varajao, 2011). The government issued an order requiring all software providers to issue IP addresses, phone numbers and account numbers of their customers. The government asked these providers to issue websites used by customers under the law of pledge of self-regulation and professional industry ethics. Cyber cafes were required to set up software, which could block sensitive information, and patrons visiting this content had to display their real identification documents (Johnson, Scholes, Whittington, 2008). The government has launched a $100 million system of surveillance known as Gold Shield that seeks to monitor how the civilians use software. This led to the creation of over 4,000 job opportunities for mentoring and censoring software in the country. Law enforcer made frequent appearances on the screens reminding software developers and users to hold back from the access of sensitive content (Fleischmann, 2011).
The country lacks full-bloomed media. In addition, most software users are 25 years old. This age group is mostly associated with entertainment software. Most software users in the country use software to find entertainment and songs. This situation has been worsened by the increasing gap between users of software in the rural and urban areas (Brocke, & Rosemann, 2010).
Only last year, 70% of software consumers were male while the remaining 30% were female. Reports indicate that most software consumers are aged between 18 to 24 years and are well educated. The usage of programming software is concentrated in coastal provinces and cities.
Currently, the government is monitoring the traffic of all foreign software through installation of routers at every border. In this regard, law enforcers have facilitated the project of enabling the borders to filter sensitive software. Advanced technological improvements have forced existing and emerging software companies to follow benchmarks wet by the industry.
A report on world information technology revealed that there is a low intellectual protection of property, judicial independence, quality competition, property rights and legal framework efficiency in the software industry. The police have been deployed to monitor and censor the development of software (Johnson, Scholes, Whittington, 2008).
The increasing environmental population in the country presents a huge market potential for Cordys.
Different stakeholders have different levels of involvement in the company. Cordys has identified their stakeholders according to their relationship with the company such as functional linkage (suppliers of raw materials), enabling linkages (regulatory businesses and investors), normative linkages (competitors and industry players) and lastly, diffused linkages (media and non-governmental organizations). Employees and investors are vital and fundamental for the operations of Cordys. For this reason, the company has prioritized the stakeholders according to their relationship with the firm. In this regard, investors and employees are the most important stakeholders. (Fleischmann, 2011).
The software industry has multiple well-established players such as Google and Oracle who have focused on profits, development of new products and innovations. These companies are the major sources of products offered in the industry. The economy is improving and the software industry is changing. This is because of new product innovations, industry, and financial climate. The industry is attractive thus providing software companies with the capability to reinvent themselves and continue to develop innovations and inventions. Further, these industries have gained the capacity of expanding into new industries (Cruz-Cunha, & Varajao, 2011).
3. Porter's five forces analysis
Computer software is an attractive sector involving many players. Nevertheless, in order for any company to attain a viable influence, it calls for both resources and innovation. This poses a challenge to the entry of new players: it allows existing players to have the ease of branching into another industry (Brocke, & Rosemann, 2010).
Low power of suppliers
The bargaining power of suppliers is low and is likely to remain down as long as Cordys maintain their strong dominance position in the market. Because they are using the ad system, which generates more income, both the receiver and advertisers are clients of Cordys. Cordys' UNIX and ERP software have been increasingly gaining popularity and generating surplus sales. Thus, suppliers of Cordys' products seek to ensure that a good relationship with Cordys is maintained. This has pushed suppliers to an extremely powerless position in the market (Saxena, & Bharadwaj, 2010).
There is a strong buyer power in both the computer software and internet industries. Competitors are many hosting alternatives for Cordys' offerings. Advertisers contribute about 90% of Cordys income although the services are not charged. If consumers decide to use alternative services, the number of advertisers could drop down thus affecting Cordys' bottom line. In addition, so many companies are creating business management software that provides consumers with the option of not purchasing Cordys' products. This has enabled buyers to have the potential of controlling prices if they reach a consensus that Cordys' products are too high (Fleischmann, 2011).
Rivalry among competing firms
While Cordys have the largest competitors such as Oracle, Google, SAP and saleforce.com, it is still holding the commanding position in the industry. Studies reveal that Cordys' UNIX and ERP software are the most widely used in the industry. Further, the company's innovation such as ERP is used as bench setting in the industry. Oracle and salesforce.com make frequent updates on their services yet they have focused on capturing the success of Cordys (Johnson, Scholes, Whittington, 2008). During the introduction of Cordys' ERP solutions, the company placed itself competitively against Google and Oracle. It remains true that…