Current Situation
The case is about a software application which is used by football clubs to access real time match data about players and matches to assist in in-game decisions. Scout 7 helps in overcoming challenges such as real-time decision making through prior evaluation of the opponents’ moves that are made available by the organization’s thousands of saved records. Decisions regarding which players to use in future games can aid in recruitment and training plans which help in the financial planning of the organization deploying this software.
The fact is that any software designed for such analysis for a dynamic game such as football can only predict or analyze to a limit but there is still a lot of potential that the collected data can achieve. The challenge at hand is how to come up with the right questions for obtaining a better analytic approach. This means identifying the right approach to analysis and finding a way forward to grasp the opportunities that a technology driven decision making industry promises to players like Scout7 Technologies.
External Environment
The external environment of the data driven decision making industry has seen changes in its technological, social and cultural aspects as discussed below.
Technological Environment
The business operates in a highly technology driven environment where advancements in technology are underway and give rise to improved information processing, data sharing and identification of ways to get more from the collected data. With the increase in demand and the increase in volume of data, newer methods of processing data are also being evolved. This is decreasing the dependency on manual analysis and automatic data processing is the future of business decisions making.
Social Environment
The social outlook has also changed from traditional views to ones which are more accepting of technology in decision making. For instance, in the past the data driven decision making industry was dependent on collection of data in the form of actual real time viewing of matches and then storing the collected information manually in reports of files. Teams of scouts were involved in collection of data which had to be shared with the chief scout in the form of a report. The social outlook is now more accepting of a technology driven data analysis where there is no longer any reliance on what was seen on TV or in real matches. The role of the scouts has also changed where they are now treated as other employees in a nine to five job, accessing and evaluating the performance of players from the collected footage of hundreds of matches rather than being sent to view these live matches and give their personal reports.
Cultural Environment
The football industry in England can be called rather diverse culturally as players are selected from countries such as Spain, Mexico, France, Netherlands and Italy for premier leagues or Football league clubs. This suggests that with technological changes suggesting ease in transmission of data, the English sports culture does not have barriers to entry for international players. This shows an example of globalization not only in employment trends but also in sharing of resources.
Competitive Environment: Porter’s Five Forces Analysis
The competition in the industry and the competitive forces in the external environment can be studied through Porter’s five forces analysis (appendix 1) (Porter, 2013)for the data driven decision making industry.
With the changes seen in the sports industry showing a greater reliance on data driven decision making, an overview of this industry is shared analyzing where the bargaining power lies.
When it comes to data driven decision making in the sports industry, the actors include the ‘scouts and analysts’, the players, the clubs making use of the data driven technology, and the researchers finding ways of improving the technology and these will be discussed later........................
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