Digital Transformation in IKEA

Digital Transformation in IKEA

Santiago Elias Poisot 00406310

Generals

Ikea started as a tiny mail order company in Sweden, but nowadays is a home furnishing brand that is stablished al around the world. Thier vision is, create a better everyday life for the many people, this means that thier market is everyone, of course homeless people isn´t their target but everyone else who has a house, apartment or a room is their target. Thier business idea is to offer a wide range of well-designed, funtional home furnishing products at proces so low that as many people as possible will be able to afford them. Thier valuea are, Togetherness, caring for people and planet, cost-consciousness, simplicity, responsability, renew and improve. As you can see tehir main target is people with not much money, since their prices are low, but having a great quality in their prodcuts

A need in enterprises is defined as what resurces or methodsrequiere to reach their business goals

Their needs

When all the digitalization began, IKEA found that they were missing in some points, such as sourcing materials, supply chain, warehouse, fullfillment centers, e-commerce, delivery services, in-store experience

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One of their solutions was simplifying their IT architecture by a parallel processing and a modular approach to techology

They also focused in understanding the market, and seeing how the digital and physical worls can combined for a better digital transformation.

VR in IKEA

They made digital their internal and external operations, this by making a digital platform where old a new clients can see the products, as well as they managed to make the in-store experience more realistic with digitalization, by adding VR and AR in order for clients to customiza new interior and see the results before buying. Online shopping has also been very important towards solving their needs, since for them to buy raw materials and for them to make marketing and sell products all around the world.

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"Most things still remain to be done. A glorious future! "

-Ingvar KampradIKEA founder

Conclusion

Finally, as a conclsuion I want to comment that IKEA is clear example of what it takes to make a digital transformation in all the areas, since they made this transformation in all their areas as I mentioned before they digitilize internal and external operations, also 80% of their new clients starts in online shops, this menas that their success nowadays is becuase of the transformation, because all those clients would have been lost with out their digital platform, this menas for me that digital transformation is crucial for companies in order to maintain and success in the market, of course each company has their own needs, but as this world is trending towards a digital world, companies also have to do it, and that is why some compaies are growing faster than others, and all is because how fast they cn adapt into technology

Keypoints

• Always take into consideration the company´s DNA
• Analyse the company´s needs
• Search for ways to solve all your needs
• Have an open mind towards digitalization
• Adapting is crucial for a transformation
• IKEA managed to make a successful digital transformation in all their areas

Sources

IKEA. (2023). The IKEA vision and values. Obtenido de https://www.ikea.com/us/en/this-is-ikea/about-us/the-ikea-vision-and-values-pub9aa779d0 Indeed. (2023). What are business needs? Obtenido de https://www.indeed.com/career-advice/career-development/business-needs#:~:text=Business%20needs%20are%20what%20resources,through%20analysis%20and%20critical%20thinking. Zwan, R. v. (2023). 19 Examples of Digital Transformation Companies. Obtenido de https://www.yenlo.com/blogs/examples-digital-transformation-companies/#4_Digitization_with_Disney

This transformation was done similar to LEGO, in a way where they were top in the market but allthe digitalization made them lose position in the market, but they managed to focus in the need mentioned before and continue with tehir DNA, but this time adapting towards the culture and the market in trending. After all, the digital transformation is what is making companies survive and maintain in the market, examples such as Blockbusters is perfect to see what happens to comapnies that doesn´t make a digital transformation, this is why companies have to see tehir needs and what is changing in their market in order to adapt and transform witut losing their DNA such as what IKEA did.