Innovation training needs of small and micro enterprises in local environments
Author: Amaia San Cristobal, INVESLAN (Bilbao, Spain)
SWOT ANALYSIS
Based on the information in the module, this contribution intends to focus on the
implementation of SWOT in micro companies.
Please, check this proposal containing a set of inputs that can support you in
the analysis of your company in order to define its position regarding to
innovation.
STRENGHTS
WEAKNESSES
-
Have you a resource that your
competitors don’t have?
-
Is the specialisation of human
resources enough?
-
Have you a method to produce a product with lower cost?
Has the company a weak financial
environment?
-
Have you a skilled and trained staff?
-
-
Are the company’s competences clearly
defined and identified?
Has the innovation concept a clear
objective? Is it well defined?
-
Is the company too small for dealing
with new opportunities?
-
Has the company access to technology?
-
Has the company good training system
and culture?
-
Has your company a low technological
level?
-
- Has the company an innovation
culture?
-
Has the company a well defined policy
for human resources development?
OPPORTUNITIES
-
THREATS
Has the company’s economic and social
environment a dynamic trend?
Do policies for public and private
promotion of competitiveness and
growth in the local-regional area exist?
-
Do several activities branches as driving
forces exist?
-
Are there programmes and initiatives for
promoting innovation in the area?
-
Is the company’s working area a
scenario that could encourage the
networking (between public and private
companies/bodies)?
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-
Has the area a lack of infrastructures?
-
Are a high number of small and micro
enterprises with a low level of
innovation in the area?
-
Is a collaborative culture between
different organisms that support
innovation lacking?
Innovation training needs of small and micro enterprises in local environments
Author: Amaia San Cristobal, INVESLAN (Bilbao, Spain)
STEPS FOR SWOT ANALYSIS
Why not use the SWOT analysis in your company for helping take some
decisions about your company’s future? It could be a really motivational and
empowering activity that can support you with to define the future strategy of
your company/organisation. Please, follow these steps for SWOT analysis on
innovation:
Duration: Between 30 minutes and two hours.
Before you start: Please check all contents regarding to SWOT analysis contained in
this guide (Module 2.2.SWOT Analysis).
Step one: Organise a company team. Remember that the team should be formed by all
staff members that have any interest about the objective tackle by the analysis. When the
team was formed by five members or over, you will need a team leader in order to
facilitate the process implementation.
Step two: Refer to the SWOT analysis notes and other resources related to it, which you
can find in this guide. Ensure that all participants have enough information about the
SWOT process.
Step three: Define the analysis objective. Confirm that all members understand the
objective of the exercise. It's important that the teams understand and pursue the same
objective.
Step four: Clarify what will happen after the exercise with the team’s analysis outcomes,
thus the team’s members will know to where lead their efforts, suggestions and
recommendations.
Step five: Start analysing the company’s environment regarding to the objective
proposed.
Step five: Define the SWOT Matrix.
This SWOT exercise is very flexible - use it to suit the situation, the group, and what the
organization needs.
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Innovation training needs of small and micro enterprises in local environments
Author: Amaia San Cristobal, INVESLAN (Bilbao, Spain)
INNOVATION CHAIN – STRENGTHS AND WEAKNESSES
The innovation chain involves different steps that companies have to consider in order to
improve their environment. As you can see in the different chapters of the guide (and
especially for the business environment of micro-companies) some of the most relevant
elements for developing innovation are the following: creativity, decision making, product
development, human resources management, marketing, and networking.
But what are the strengths and weaknesses of each of these steps in the innovation
chain of a micro company?
STRENGTHS
Creativity
Decision making
Product development
WEAKNESSES
-
Better scenarios for
working, all ideas
can be considered.
-
Small communities
where the critic can
hinder the process;
-
Motivated staff
facilitating the
participation.
-
-
More practical
approach.
Lack of resources
(especially time,
human resources;
guidance to apply
creativity
techniques…).
-
More flexible
environments;
-
-
Easier identification
of problems;
Lack of criteria
(appropriate training
or guidance) for
identify some topics;
-
Easier identification
of short term
solutions;
-
Difficulties to take
long term decisions;
-
Higher risks to take
decisions (due the
lack of resources);
More dynamic
environment for
answer to specific
needs;
-
Lack of technological
resources;
-
Lack of skilled staff;
-
Financial difficulties
(high inversions);
-
-
Close to the final
user it can improve
the product
development;
-
Opportunities to offer
a specific and
tailored product.
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Innovation training needs of small and micro enterprises in local environments
Author: Amaia San Cristobal, INVESLAN (Bilbao, Spain)
Human resources
management
Marketing
Networking
-
More flexible training
opportunities;
-
Lack of a training
culture;
-
More collaborative
working environment
that promotes the
know how transfer;
-
Difficulties to keep
the human capital;
-
Lack of skilled
human resources.
-
Difficulties for a good
job description and
analysis.
-
Difficulties for large
scale activities;
-
Marketing is a cost,
not an investment;
-
Lack of information;
-
Effective exchange
of know how;
Bureaucratic
processes;
-
Public promotion of
these collectives;
Lack of resources
(financial, staff);
-
Lack of cooperative
culture;
-
The companies are
close to the final
user;
-
Possibility of direct
marketing;
-
Companies’ good
attitude;
-
New forms of
networking.
Case of practical implementation
A small consultancy on learning solutions is analysing to design a new training solution
based on a virtual world for continuous training in companies. The company’s director
has decided to develop a SWOT analysis to determinate which will be the next steps of
the company regarding this question.
1. Organisation of company team: The director wanted to involve the more relevant
staff regarding to this topic. Finally, the team was formed of four people: the director, a
senior consultant on e-learning, a technician on ICT solutions and the company financial
responsible.
2. Information to the team about SWOT analysis: The director sent some information
and materials about the SWOT analysis, and agreed with the team the date for a SWOT
session.
3. Defining the objective: To design a new training solution based in a virtual world.
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Innovation training needs of small and micro enterprises in local environments
Author: Amaia San Cristobal, INVESLAN (Bilbao, Spain)
4. Start analysis: The team started the analysis of both, internal external conditions, for
the objective proposed.
5. Define the SWOT matrix: After the analysis, the team has elaborated the following
SWOT matrix:
STRENGHTS
WEAKNESSES
The company has previous experience in
design e-learning tools.
The final tool needs a high technological
component.
There are not competitors for this type of
new solutions in the area.
The staff does not have the skills and
competences for developing this type of
technology.
The company has a good reputation
between the possible future users of this
type of training.
The staff is trained and has experience in
this type of work.
The company was the first in the
development of this type of solution in the
area.
OPPORTUNITIES
The technology has a high cost.
The new training solution is too innovative
and is not introduced in the market yet.
There is an overload of projects in the
company.
The company has lost part of its staff.
THREATS
The public policies are promoting this type
of methodologies for training.
Some training providers are working in
similar methodological solutions.
The public accepted this type of
technologies.
The companies haven’t got both skilled
employees and technological access to use
this type of methodologies.
Financial support exists for promoting this
type of tools.
The companies are receptive for this type
of methodologies.
The e-learning solutions are continuously
changing, and need prompt developments.
Step five: After analysing the matrix, the company has decided the main action lines
about the development of the new training tool:
-
The company will be the first to market this type of methodology in the area.
-
The personal of the company will start to define the main components of the new
learning tool.
-
The company will contract two technicians for developing the technological
components of the new training tool.
-
The consultants will analyse the business environment of the area to adapt the
new training solution to the final users.
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Innovation training needs of small and micro enterprises in local environments
Author: Amaia San Cristobal, INVESLAN (Bilbao, Spain)
-
The financial department search for public and private financial support.
-
The director will contact to companies, which can be interested in the new solution
-
The training tool will be ready in the next 10 months for market.
FURTHER BIBLIOGRAPHY
ALLIO, R. J. (2006): Strategic thinking: the ten big ideas. Strategy & Leadership. Vol. 34
No. 4, pp. 413.
MINTZBERG, H. (1994). The Rise and Fall of Strategic Planning. Prentice Hall, London.
OCDE (2005): Oslo Manual Guidelines for Collecting and Interpreting Innovation Data.
3rd edition.
PESONEN, P (2009): Innovation and dynamic strategy. VTT Publication. VTT,Espoo,
Finland
PORTER, M.E. (1980): Competitive Strategy. The Free Press, NY.
PORTER, M.E. & STERN, S. (2001): "Innovation: Location Matters", MIT Sloan
Management Review, Summer 2001, Vol. 42, No. 4, pp. 28-36
STENFORS, S. & TANNER, L. (2007): High level decision support in companies: Where
is the support for creativity and innovation? An essay in: Stenfors, S. 2007. Strategy tools
and strategy toys: Management tools in strategy work. HSE Print.
WEB SITES:
Cliff Notes: Web site with several resources about management:
http://www.cliffsnotes.com/study_guide/The-External-Environment.topicArticleId8944,articleId-8859.html#ixzz12BeAMxzW
Leadership Resource Centre Leader’s toolbox: web site with some methodologies for
supporting processes in companies
http://www.ashpfoundation.org/leadershiptoolkit/index.html
Thinking made Easy. Business – Marketing – Management: Forum with discussion about
SWOT analysis http://ivythesis.typepad.com/term_paper_topics/swot
Mind Tools – SWOT analysis: the web site contains resources addressed to improve the
skills of managerial staff and containing interesting information about SWOT analysis too.
http://www.mindtools.com/pages/article/newTMC_05.htm
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