Harvard Case - Bahwan CyberTek in 2018: Developing dt360
"Bahwan CyberTek in 2018: Developing dt360" Harvard business case study is written by Robert Burgelman, Sheila Melvin. It deals with the challenges in the field of Service Management. The case study is 22 page(s) long and it was first published on : Nov 11, 2018
At Fern Fort University, we recommend Bahwan CyberTek (BCT) prioritize a strategic approach to developing and launching dt360, focusing on a phased rollout with a strong emphasis on service quality, customer experience management, and service innovation. This strategy should be supported by a robust marketing strategy and organizational change management plan to ensure successful adoption and market penetration.
2. Background
Bahwan CyberTek (BCT) is a leading IT services company in the Middle East, with a strong focus on providing digital transformation solutions. In 2018, BCT launched dt360, a comprehensive suite of digital transformation services aimed at helping clients across various industries navigate the complexities of the digital world. However, the case study highlights challenges BCT faced in successfully launching and scaling dt360.
The main protagonists of the case are:
- Mr. Abdullah Bahwan, the founder and chairman of BCT, who has a strong vision for the company's future and is committed to driving innovation.
- Mr. Nasser Al-Bahwan, the CEO of BCT, who is responsible for the day-to-day operations of the company and is tasked with implementing the company's strategic vision.
- Mr. Mohammed Al-Bahwan, the head of BCT's digital transformation division, who is responsible for developing and launching dt360.
3. Analysis of the Case Study
The case study highlights several key challenges BCT faced in developing and launching dt360:
- Lack of a clear strategy: BCT lacked a well-defined strategy for developing and launching dt360, leading to confusion and inconsistency in its approach.
- Limited market research: BCT did not conduct sufficient market research to understand the needs and preferences of its target customers.
- Insufficient internal communication: BCT struggled to effectively communicate the value proposition of dt360 to its internal stakeholders, resulting in limited buy-in and support.
- Inadequate training and development: BCT's employees lacked the necessary skills and knowledge to effectively deliver dt360 services, leading to service quality issues.
- Weak marketing and branding: BCT's marketing strategy was not effective in raising awareness and generating demand for dt360.
To analyze these challenges, we can utilize several frameworks:
- Porter's Five Forces: This framework can be used to analyze the competitive landscape for BCT's dt360 offering, identifying potential threats and opportunities.
- SWOT Analysis: This framework can be used to identify BCT's strengths, weaknesses, opportunities, and threats related to dt360.
- Value Chain Analysis: This framework can be used to analyze BCT's value chain and identify areas for improvement in its service delivery process.
- SERVQUAL Model: This framework can be used to assess the quality of BCT's services and identify gaps between customer expectations and perceptions.
4. Recommendations
To overcome these challenges and successfully launch and scale dt360, BCT should implement the following recommendations:
1. Develop a Clear Strategy:
- Define a clear value proposition: BCT needs to clearly define the value proposition of dt360 for its target customers, highlighting its unique benefits and differentiating it from competitors.
- Identify target markets: BCT should identify specific target markets for dt360 based on industry, size, and digital maturity.
- Develop a phased rollout plan: BCT should implement a phased rollout strategy for dt360, starting with a pilot program in a select group of customers before scaling up to a wider audience.
- Establish key performance indicators (KPIs): BCT should define clear KPIs to track the success of dt360, including customer satisfaction, revenue growth, and market share.
2. Enhance Customer Experience Management:
- Conduct thorough market research: BCT needs to conduct comprehensive market research to understand the needs and preferences of its target customers.
- Implement a customer journey mapping process: BCT should map out the customer journey for dt360, identifying key touchpoints and opportunities for improvement.
- Develop a service blueprinting process: BCT should create a service blueprint for dt360, outlining the steps involved in delivering the service and identifying potential points of failure.
- Invest in service quality training: BCT should invest in training and development programs for its employees to enhance their service quality skills and knowledge.
- Establish a robust service recovery process: BCT should implement a well-defined service recovery process to address customer complaints and ensure customer satisfaction.
3. Drive Service Innovation:
- Foster a culture of innovation: BCT should encourage a culture of innovation within its organization, promoting creativity and experimentation.
- Invest in research and development: BCT should allocate resources for research and development to explore new service offerings and technologies.
- Partner with industry experts: BCT should collaborate with industry experts and technology providers to develop innovative service solutions.
- Implement a continuous improvement program: BCT should establish a continuous improvement program to identify areas for service innovation and optimize its service delivery process.
4. Implement a Robust Marketing Strategy:
- Develop a strong brand identity: BCT should develop a strong brand identity for dt360, highlighting its key differentiators and value proposition.
- Utilize a mix of marketing channels: BCT should leverage a mix of marketing channels, including online advertising, content marketing, social media, and public relations, to reach its target audience.
- Develop targeted marketing campaigns: BCT should develop targeted marketing campaigns for specific industry segments and customer personas.
- Measure marketing campaign effectiveness: BCT should track the effectiveness of its marketing campaigns and adjust its strategy as needed.
5. Manage Organizational Change:
- Communicate the vision for dt360: BCT should clearly communicate the vision for dt360 to its employees, highlighting its benefits and importance.
- Provide training and support: BCT should provide comprehensive training and support to its employees to help them understand and implement dt360.
- Empower employees: BCT should empower its employees to take ownership of dt360 and contribute to its success.
- Recognize and reward success: BCT should recognize and reward employees for their contributions to dt360, fostering a culture of achievement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with BCT's core competencies in IT services and its mission to drive digital transformation.
- External customers and internal clients: The recommendations focus on understanding and meeting the needs of both external customers and internal clients, ensuring alignment and buy-in.
- Competitors: The recommendations consider the competitive landscape for digital transformation services and aim to differentiate BCT's offering.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to lead to increased revenue, market share, and customer satisfaction, contributing to BCT's overall business growth.
6. Conclusion
By implementing these recommendations, BCT can overcome the challenges it faced in developing and launching dt360, transforming it into a successful and profitable business unit. This will require a strong commitment from BCT's leadership team, a clear vision for the future, and a willingness to embrace change and innovation.
7. Discussion
Other alternatives not selected include:
- Outsourcing dt360 development: BCT could have outsourced the development of dt360 to a third-party vendor, but this would have limited their control over the product and potentially resulted in higher costs.
- Focusing on a single industry: BCT could have focused on a single industry for dt360, but this would have limited their market reach and potential for growth.
Risks and key assumptions:
- Market acceptance: There is a risk that the market may not accept dt360, leading to lower than expected sales and revenue.
- Competition: There is a risk that competitors will launch similar offerings, putting pressure on BCT's market share.
- Technology changes: There is a risk that technology changes may render dt360 obsolete, requiring BCT to invest in ongoing development and innovation.
8. Next Steps
BCT should implement the recommendations outlined in this report in a phased manner, starting with the development of a clear strategy and a comprehensive market research plan. They should then focus on enhancing customer experience management and driving service innovation. Finally, they should implement a robust marketing strategy and manage organizational change effectively.
Timeline with key milestones:
- Quarter 1: Develop a clear strategy and conduct market research.
- Quarter 2: Implement customer journey mapping and service blueprinting processes.
- Quarter 3: Launch a pilot program for dt360 and begin training employees.
- Quarter 4: Develop and implement a marketing strategy and manage organizational change.
By taking these steps, BCT can successfully launch and scale dt360, positioning itself as a leading provider of digital transformation solutions in the Middle East.
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Case Description
Bahwan CyberTek (BCT) was an IP-enabled technology company founded in 1999 by Sheikah Hind Bahwan (Hind) and S. Durgaprasad (DP). Over the years, it had grown into a global provider of innovative software products and services and had become a $275 million group with more than 2,950 business and technology professionals. BCT was privately held, based in Chennai, India, with operations in the United States, the Middle East, North Africa, and Asia. BCT had worked with more than 1,000 customers, including Fortune 500 companies, and delivered its innovative software solutions to companies in North America, the Middle East, Africa, and Asia. In 2016, BCT began to seriously ponder how it could carve out an identity for itself in the digital space, thereby leveraging and capitalizing on the great and growing amount of knowledge it had created. "From day one we were building our IP," said Hind, "and that is why we are consolidating all our knowledge in the separate company, and that is the company that will go public or get investors: dt360. It is already registered as a separate company. So we have now restructured and are moving forward." In addition to establishing a home for its growing IP, BCT also wanted to build an entity that could best deliver transformation value to its clients along with the capability to scale fast with state-of-the-art and emerging technologies. And, it wanted to enable its own workforce to embrace these new technologies, thereby keeping them current and relevant in the rapidly evolving market. So, with these multiple potential benefits in mind, BCT officially established dt360 (the name was intended to represent digital transformation across 360 degrees) as a wholly owned subsidiary in late 2017. In 2018, BCT's top management was considering the strategic and organizational challenges they confronted in further developing and leading the newly formed company.
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