Digital Economy - the Need for Change (harverd Business Review Case Study)

Q: What are DE's competitive advantages?

DE's consulting services had the international credibility of the founding executives through their publications.

This research firm used to differentiate themselves from their competitors with their profound research skills and its organizational characteristics that they are the research expert. Their unique service offerings are their knowledge archives. And their value proposition is that they are the top of the industry when collecting valuable information and providing the best data to the clients.

Unfortunately, DE's line of services didn't catch up with the growing market demand. Their lack of implementation or consulting services based on their research results prevents them from proper market positioning in the current market and their original value proposition hasn't been perceived as a unique service that is valuable to the customers.

In conclusion, DE actually does not have any competitive advantages in the current market.

Q: How ready is DE's executive management team for change? What are some factors that could hinder change?

DE's executive management did not seem to be ready for change nor want to consolidate its team with WI since DE is too proud of their previous success as an academic achiever.

DE believes that they are not a full strategy service provider or "implementation shop" but rather a team of "scholars" who put significant emphasis on their academic accomplishment and research experiences.

Their 10 years of innovative academic research, business framework development and successful publications worldwide are the core of their value proposition and their work is all in research results, not the aftercare based on the studies.

Also, those top management members had tendency to micromanage every single process and reviewed quality of the services/presentations in order to avoid any negative image on their public image.

Now that DE team have to downsize their teams of 70 to 20 by the end of the deal with WI, DE members may not be able to be as detailed oriented as they wish for any future projects.

Content of the service offerings have shifted from the research publications to the service implementation, and the management style may be forced to changed to macro-vision (peripheral vision) in order to work with small groups of people; those changes are the main factors that WI non-founder executives will face some difficulties when they are meeting the DE executives in the board room in that morning.

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