DB FPX 8405 Assessment 3

Business Problem Assessment

Student name

Capella University

DB-FPX8405 Effective Organizational Leadership

Professor Name

Submission Date

Executive Summary

This analysis discusses three business issues that are interrelated and that CapraTek is encountering in its strategic change process of transitioning to smart home technology as opposed to continuing to produce server components. The leadership dilemma is the most acute problem because organizational resistance to change management has a cascading effect that increases the challenges of information systems integration and consumer marketing (Hubbart, 2023). The information systems issue is an issue of scaling between the existing manufacturing processes of the server manufacturing machines and the consumer-focused smart home technology platforms, emerging as a problem in the operational aspects, which slows the market entry.

The consumer confidence and the prompting of the adoption of smart homes marketing problem is to generate a B2B well-developed experience and transition it to the multifaceted consumer interaction of B2C (Bamberger et al., 2025). The interconnected problems are a vicious circle of influence in which the resistance to the leadership prescriptions dispenses technological investment, system constraints hamper the marketing performance, and failure to place in the market reinforces the doubt of the organization. The synergies should be addressed through strategic intervention, which rests on a series of established models such as the 8-Step Change Model introduced by Kotter in a bid to preserve the core values of CapraTek, such as cooperation, respect, accountability, integrity and innovativeness.

Identification of Business Problems

Leadership Problem: Change Management and Digital Transformation Resistance

The main leadership business issue is that CapraTek may fail to successfully resolve organizational resistance to digital transformation efforts as the company moves into the smart home technology space, and this may undermine innovation adoption and competitive positioning in the fast-evolving technology industry. The dilemma is indicative of wider industry issues of how to deal with the complex technological change and stay an organisation aligned with its employees. According to the research conducted by Valtonen and Holopainen (2025), it is evident that change management in organisations is often a problem when there is a technological shift, and the implementation of digital transformation can usually fail because of the lack of leadership support and opposition from employees.

The market of the IoT and smart home requires CapraTek to be able to work within the dynamic technological environment and ensure the integrity and commitment of the workforce to the organisation. Oludapo et al. (2024) claim that the failure of many digital transformation initiatives is caused by inadequate leadership, and hardware manufacturers, including CapraTek, do not find it easy to enter the consumer-focused technology services. It is possible to define the leadership problem as the primary cause of further operation failure since inefficient change management will spread to the whole information systems integration and marketing effectiveness, and the values of both CapraTek and innovation and teamwork are directly threatened by the issue.

Information Systems Problem: Legacy System Integration and Scalability

The business problem that is of critical importance to the information systems is the issue that CapraTek faces in terms of integrating the current server manufacturing processes with new smart home technology platforms that might introduce bottlenecks and communication challenges that discourage smooth data flow and interoperability of the systems. The difficulty is an example of the general industry issues regarding the use of technology upgrades without affecting the daily operations of manufacturing organisations.

The hardware-to-software transition companies face numerous challenges when integrating the legacy systems because when venturing into IoT and smart home markets, they need fast data interaction services (Allioui and Mourdi, 2023). The challenge of integration worsens the leadership issues because it establishes physical obstacles to strategic implementation and, at the same time, limits the marketing performance by providing poor customer data analytics.

Yaqub and Alsabban (2023) state that the business model integration challenges experienced by hardware manufacturers switching to wireless services add to the operational costs and reduce the speed of product release. The technological dis-alignment poses a threat to the value of innovation at CapraTek as it restricts the responsiveness of the organisation to the market demands, as well as introduces operational inefficiencies that undermine the competitive positioning in the smart home market.

Marketing Problem: Consumer Trust and Smart Home Technology Adoption

The basic business issue of marketing concerns is that CapraTek may initially struggle to establish consumer confidence and stimulate the use of integrated smart home systems because most consumers fear the loss of privacy, security, and technology complexity, and this may restrict market penetration and growth in revenues.

The challenge focuses on the critical marketing hurdles CapraTek has to tackle in order to gain market credibility and consumer confidence in a business where the adoption rate is slackening compared to the projected initial adoption. As research performed by Xiao et al. (2024) shows, consumer hesitance is caused by the fear of privacy, security, and usability, which is a significant challenge to address with the help of the latest marketing methods offered by the company, like CapraTek.

The information systems and leadership concerns also play a part in the marketing problem since poor leadership would result in poor market positioning, and systems integration would limit the quality of customer experience. Companies with a history of involvement in traditional hardware manufacturing have the additional difficulty of developing consumer trust and might require a different approach to marketing than that used in the B2B relationship (Dwivedi et al., 2021). The existing marketing concepts that CapraTek developed to assist the business in obtaining the procurement processes are inadequate to attract consumer adoption patterns and emotional decision-making factors that are relevant in marketing smart houses.

Fishbone Diagram Depicting Leadership Problem

Figure 1

Leadership Business Problem Illustration

Note. The fishbone diagram shows the logical root cause analysis of the leadership issue in CapraTek and shows how organizational resistance to digital change was reduced to a wide issue into six key factor categories with actionable causes.

The fishbone diagram is a systematic approach to recognizing root causes that were contributing to the challenges of leadership transformation at CapraTek by way of an all-inclusive procedure of examination. The graphic illustration shows that the combination of several organizational variables leads to resistance to change management in the process of migrating to smart home technology. The methodology category indicates the inadequacy of change management frameworks because the absence of experience of transformation is one of the primary reasons behind leadership challenges (Müller et al., 2024).

Personnel issues include low levels of digital leadership and unwillingness to adapt to new management strategies that will ensure success in the consumer market. The factors of technology include the use of the outdated means of communication and the absence of digital tools of collaboration that will impede the successful coordination of leadership. The environmental factors are the market pressure to make rapid change and the threat of competition which further pressures the leadership capability. There are such material factors as the lack of training materials and inadequate recording of transformation processes. The factors of equipment are lack of proper technological infrastructure to aid in leadership communication and decision making. It has been demonstrated that a low quality of technological infrastructure has a significant impact on the ability to manage organizational change when it comes to the implementation of digital transformation initiatives (Rizana et al., 2025). The interdependence of the factors demonstrates how the problem of leadership is permeating the processes of CapraTek and creating systemic barriers to the success of smart home market entry and becoming a threat to organizational values of teamwork and innovation.

Summary

The three problems identified form a reinforcing cycle that will lead to increasing transformation failure risk to CapraTek exponentially. The main trigger is leadership resistance, which hinders the required investments in information systems and produces ambiguous strategic focus of marketing efforts. The failed implementation of information systems offers concrete evidences to leadership cynicism and at the same time constrains marketing performance due to poor customer experiences. The fact that marketing questions the change of leadership is even more problematic as it makes the opposition against change visible and makes the conservative process of decision-making stronger and the willingness to invest in changing the technological infrastructure weaker. The leverage intervention point is the leadership issue, where the change management can underpin the decisions to invest in information systems and enable making any strategic sense out of marketing.

However, the information systems issue poses the largest long-term competitive risk since the lack of alignment with the technology architecture offers sustainable disadvantages that cannot be addressed by the changes in leadership and marketing only. In order to address the issue of leadership challenges and, simultaneously, to invest in the hybrid technological infrastructure that would integrate the efficiency of manufacturing and the service opportunities of the consumers, CapraTek is recommended to use the 8-Step Change Model created by Kotter (Mouazen et al., 2023). Strategic intervention relying on the established change management models, investment in technological infrastructure, and building of marketing capabilities that will help sustain the key values of CapraTek, teamwork, innovation, and customer excellence in the ever-changing smart home technology market environment should be the key to success in the transformation.

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