Harvard Case - Sattva eTech: Managing Uncertainties in the Project Network
"Sattva eTech: Managing Uncertainties in the Project Network" Harvard business case study is written by Tarun Jain, Jishnu Hazra. It deals with the challenges in the field of Operations Management. The case study is 11 page(s) long and it was first published on : Mar 1, 2017
At Fern Fort University, we recommend Sattva eTech implement a comprehensive operations strategy focused on agility, resilience, and predictability to navigate the uncertainties inherent in their project network. This strategy will involve a combination of project management, supply chain management, technology and analytics, and organizational change initiatives.
2. Background
Sattva eTech is a rapidly growing software development company facing challenges related to managing project timelines, resource allocation, and client expectations in a volatile market. The company operates in a complex project network with multiple projects running concurrently, each with unique requirements and dependencies. The case study highlights the company's struggles with fluctuating project demands, resource constraints, and the potential for delays due to unforeseen events.
The main protagonists of the case study are:
- Anurag Sharma: CEO of Sattva eTech, concerned about the company's ability to scale and maintain profitability in the face of uncertainty.
- Rajeev Kumar: Head of Operations, tasked with improving project execution and resource management.
- Siddharth Singh: Head of Technology, responsible for leveraging technology to enhance operational efficiency.
3. Analysis of the Case Study
To understand the challenges Sattva eTech faces, we can apply a framework that considers the interplay of operations strategy, project management, and supply chain management.
Operations Strategy:
- Agility: Sattva eTech needs to develop a flexible and adaptable operations strategy to respond quickly to changing project demands and market conditions. This includes flexible staffing models, agile project methodologies, and rapid prototyping capabilities.
- Resilience: The company must build resilience into its operations to mitigate the impact of unexpected events. This requires robust risk management processes, diverse sourcing strategies, and redundant resources to ensure continuity of operations.
- Predictability: Sattva eTech needs to improve the predictability of project timelines and costs. This involves accurate demand forecasting, efficient resource allocation, and effective project planning and control.
Project Management:
- Project Portfolio Management: Sattva eTech needs to establish a comprehensive project portfolio management system to prioritize projects, allocate resources effectively, and manage dependencies between projects.
- Agile Methodologies: Implementing agile project management methodologies like Scrum or Kanban can help the company adapt to changing requirements, improve collaboration, and deliver value incrementally.
- Risk Management: A robust risk management framework should be implemented to identify, assess, and mitigate potential risks associated with each project. This includes developing contingency plans and establishing clear communication protocols.
Supply Chain Management:
- Vendor Management: Sattva eTech needs to develop a strong vendor management strategy to ensure reliable and timely delivery of resources. This includes establishing clear contracts, performance monitoring, and supplier relationship management.
- Inventory Management: Implementing an effective inventory management system can help Sattva eTech optimize resource utilization and reduce waste. This could involve Just-in-Time (JIT) inventory for critical resources and demand forecasting to anticipate future needs.
- Logistics and Transportation: Sattva eTech should optimize its logistics and transportation processes to ensure timely and efficient delivery of resources and finished products. This could involve outsourcing logistics to specialized providers or implementing technology-based solutions for tracking and monitoring shipments.
4. Recommendations
1. Implement a Project Portfolio Management System:
- Develop a comprehensive project portfolio management system to prioritize projects based on strategic alignment, profitability, and resource availability.
- Utilize a centralized platform to track project progress, resource allocation, and dependencies across all projects.
- Implement a standardized project initiation process to ensure that all projects are properly defined, scoped, and approved before commencement.
2. Embrace Agile Project Management:
- Adopt agile methodologies like Scrum or Kanban for software development projects to enhance flexibility, collaboration, and responsiveness to changing requirements.
- Train project managers and team members on agile principles and practices to ensure successful implementation.
- Establish a culture of continuous improvement by regularly reviewing and adapting agile processes to optimize project performance.
3. Strengthen Risk Management:
- Develop a robust risk management framework to identify, assess, and mitigate potential risks associated with each project.
- Implement a risk register to track identified risks, their likelihood, impact, and mitigation strategies.
- Conduct regular risk reviews to update the risk register and ensure that mitigation plans are effective.
4. Optimize Supply Chain Management:
- Establish a strategic vendor management process to select and manage reliable suppliers who can meet the company's quality and delivery requirements.
- Implement a robust procurement process to ensure efficient sourcing, negotiation, and contract management.
- Explore opportunities for outsourcing logistics to specialized providers to improve efficiency and reduce costs.
5. Leverage Technology and Analytics:
- Implement an Enterprise Resource Planning (ERP) system to streamline operations, improve data visibility, and enable better decision-making.
- Leverage data analytics to gain insights into project performance, resource utilization, and demand patterns.
- Explore the use of artificial intelligence (AI) to automate repetitive tasks, predict project delays, and optimize resource allocation.
6. Foster Organizational Change:
- Communicate the need for change and the benefits of the new operations strategy to all stakeholders.
- Provide training and support to employees to ensure they have the skills and knowledge to adapt to the new processes.
- Establish clear roles and responsibilities to ensure accountability and effective collaboration.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Sattva eTech's core competencies in software development and its mission to deliver high-quality solutions to clients.
- External Customers and Internal Clients: The recommendations aim to improve customer satisfaction by ensuring timely project delivery and meeting client expectations. They also aim to improve employee satisfaction by streamlining processes and reducing workload.
- Competitors: The recommendations help Sattva eTech stay competitive by enhancing its agility, resilience, and predictability.
- Attractiveness: The recommendations are expected to improve project profitability by reducing costs, optimizing resource utilization, and mitigating risks.
6. Conclusion
By implementing these recommendations, Sattva eTech can navigate the uncertainties of its project network and achieve sustainable growth. The company will be better equipped to manage fluctuating project demands, optimize resource allocation, and deliver high-quality solutions to clients on time and within budget.
7. Discussion
Alternatives not selected:
- Outsourcing all software development: This option could potentially reduce costs but would also lead to loss of control over core competencies and intellectual property.
- Adopting a purely waterfall project management approach: This option would provide more predictability but would be less flexible and adaptable to changing requirements.
Risks and key assumptions:
- Resistance to change: Employees may resist adopting new processes and technologies.
- Implementation challenges: Implementing the recommended changes requires careful planning and execution to avoid disruptions.
- Technology adoption: The success of the recommendations relies on the effective adoption and implementation of new technologies.
8. Next Steps
Timeline with key milestones:
- Month 1: Conduct a comprehensive assessment of current operations and identify key areas for improvement.
- Month 2: Develop a detailed implementation plan for the recommended strategies.
- Month 3: Begin implementation of the project portfolio management system and agile methodologies.
- Month 6: Implement the risk management framework and vendor management strategy.
- Month 9: Roll out the ERP system and start leveraging data analytics.
- Month 12: Continue monitoring progress, adapt strategies as needed, and measure the impact of the implemented changes.
By following these steps, Sattva eTech can successfully navigate the uncertainties of its project network and achieve its growth objectives while maintaining its reputation for quality and innovation.
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Case Description
SATTVA eTECH is an electronics company involved in design and development of embedded new products. The senior manager of the company is working on the planning and execution of a defense project. Further, the manager is also evaluating the various alternative strategies to tackle uncertainties in the project network.
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