Successful Innovation - How Ikea Innovates Case Study

• Type Assignment
• Downloads639
• Pages14
• Words3611

Task 1: Techno Skill Analysis for IKEA Development

Digital technology and skill-based fap analysis are an essential part of the organization's aim and purposes to navigate the modern environment of appearing digital data trends. The data analysis includes the systematic process of a corporation’ existing advanced technological abilities and the training skills possessed by its workforce, determining the gap analysis that requires essential part and evolution. The digital trends of this data process are evolving the more imperative part, as the part of organizations must stay agile and adaptive to harness the advantages of the latest and modern technologies. The following procedure of modern technological and skill base gap analysis regarding the part of emerging digital trends:

Determination of Emerging Digital Trends

The procedure starts with a complete ability to understand the present and upcoming modern part of data trends relevant to the corporation. In the case of IKEA, these movements involve denoting or containing a reality base in retail, analytics of data for consumer insight, able to be maintained at a certain rate, best practices, and improvements in the e-commerce base.

SWOT Analysis

A SWOT analysis assists then part of the internal factors that affect the business part and external factors base. A SWOT analysis assists in determining the part of strengths, weaknesses, opportunities, and threats for a particular project of the IKEA business plan. Opportunities and threats are considered external characteristics in a SWOT analysis, whereas strengths and weaknesses are regarded as internal traits. Even while the organization's internal characteristics influence its strengths and weaknesses, consider the point of view of those who are not part of the same team.

Figure 1.1: SWOT Analysis

(Source: medium.com, 2024)

Determine one's and other people's strengths and weaknesses, particularly those of people it works with or serves (Rame et al. 2023). It is utilized for both staying ahead of current market trends and strategic planning. This phase includes the part of developing the organization’s present value of the technological part in strengths and weaknesses in the light of emerging trends base.

Skills Inventory

An inventory of current employees' abilities, training, and work history is referred to as a skills inventory. These inventories are used by IKEA to evaluate the ability of its present workforce to accomplish business objectives. Strategic planning can be helped by knowledge of the IKEA present workforce and prospective skill requirements.Choosing the abilities, it's important to include in the list based on the approach taken by the company is the first step. These talents, for instance, may be divided into three categories: leadership, soft skills, and technical skills. An inventory of knowledge and skills is a thorough, exhaustive list that highlights the special skill set required for consideration for a certain position. Even though some of the aforementioned abilities apply to a wide range of occupations, correspondingly need to add others that are simply closely connected or appropriate to particular roles.

Benchmarking

Benchmarking involves comparing the corporation’s advanced technological abilities and best training skills with the corporation's standards and challenges. In the case of IKEA, benchmarking against the different furniture retailers or e-commerce giants makes available an understanding of where the organization refers in the representation of digital technology. Benchmarking is the practice of evaluating goods, services, and procedures to those of companies that have been identified as leading the way in one or more functional fields.

Stakeholder Feedback and Suggestions for Development Areas

Collecting feedback from the internal source of the part of stakeholders, involving all steps, assists in the ability to understand the organization’s actual digital technology. Based on the evolution part, the analysis upskilling base program invests related fresh technologies. In the case of IKEA, Suggestions to include training analysis initiatives in the analytics of data for more satisfy the customer developing abilities for integrating augmented reality in the user experience base. Addressing these recognized gaps via the approaches of investment and initiatives that position IKEA at the forefront of the advanced technological innovation in the effects corporation. The advanced technological and training base skills gap analysis at IKEA has unveiled the part of multiple wide areas that require and enhance the corporation to stay innovative and challenging in digital technology.

Data Analytics

Gap Assessment

IKEA displays the strength of the supply chain management process, but there is a remarkable gap in the capabilities of data analytics.

Recommendations

IKEA established more channels and a more efficient method for automating data to gain a greater understanding of consumer behavior and ad success. This essential data helped to make decisions with more confidence and clarity, quickly transforming the multinational corporation into a real multiple channels of communication retailer (Sikder et al. 2023).

E-commerce Expansion

Gap Assessment

IKEA maintains a global presence, but there is a perceived weakness in its e-commerce abilities, specifically in the wide area of the digital customization selection base.

Recommendations

E-commerce recommendation engines improve user experience by lowering barriers to entry, boosting retention of customers, and offering a more tailored buying journey. On the other hand, as engines of recommendation are an important conversion tool, businesses gain more revenue from sales.

Employee Upskilling

Gap Assessment

Stakeholder survey feedback recommended a requirement for better training in the part of digital tools and modern technologies in the middle of the IKEA employees.

Recommendations

The perfect upgrading program should be comprehensive, impartial, and adaptable to the needs of different team members. It ought to encompass an extensive spectrum of abilities, emphasizing both routine office abilities such as communication and more specialized abilities like data interpretation. Giving workers the chance to learn is one of the best methods for IKEA corporations to support upskilling and new skills. Providing training sessions, courses, and education programs relevant to a user's profession or sector is a method to do this.

Augmented Reality (AR) Integration

Gap Assessment

The analysis represents a possible opportunity for IKEA to be part of integrating an augmented reality base for digital furniture placement base, improving the consumer's shopping experience.

Recommendations

The development and implementation of an Augmented Reality for digital application part that enables consumers to graph furniture in the part of homes before purchasing. This innovation part can analyze the gap in the middle of the digital and in-store related, boosting the consumer's engagement.

Online Shopping Experience

Gap Assessment

IKEA maintains a digital presence, so there is a possible opportunity for all parts of the shopping experience for consumers.

Recommendations

The continuous part of improving online shopping enhances the user's interrelation of the digital platform, maximizing the overall internet source and mobile devices, and incorporating characteristics that streamline the shopping purchasing procedures. Also, consider the part of executing personalized suggestions based on the consumer's review and the past purchase base. Discipline expertise in the representation of IKEA’s action or process of innovating expeditions needs a profound ability to understand the furniture and retail corporation, along with the versatile collection of skulls based to navigate the modern technology (Vukman et al. 2024).

Knowledge of the Furniture and Retail Industry:

Discipline expertise starts with a comprehensive ability to understand retail corporations and furniture. One of the most important managements that represents the supply chain management, product design, retail operations, and integral elements of IKEA’s accomplishment of an aim or purpose.

Technological Process

In digital technology, discipline expertise covers a larger area to a highly developed awareness of the existing part of advanced technological trends.

Figure 1.2: Stages of Technological Process

(Source: view.genial.ly, 2024)

Professionals are required to stay up-to-date on the series of actions or steps taken to achieve a particular of developing analytics of data, “augmented reality”, and e-commerce-wide areas emphasized in the advanced technological and skills base gap analysis of IKEA.

Adaptability and Response to Change

An essential part of the discipline expertise is the capability to acclimate to modification swiftly and effectively. Becoming adaptable allows individuals to be open to new concepts, challenge the status quo, and be prepared to defy assumptions. Adaptive individuals don't fear change since they will prepare before time for any modifications that are needed.

Strategic Alignment with Industry Best Practices

Discipline expertise includes aligning IKEA’s best practices with the corporation's best practices. Aligning an organization's everyday operations, initiatives, and goals with its goal, vision, and strategy can be referred to as strategic coordination. Simply guaranteeing that every aspect of the organization is working for a shared set of goals, fills the gap among the development and implementation of strategies.

Collaborative Skills

In the case of IKEA, collaboration is vital for integrating augmented reality characteristics into the part of user interaction or implementing analytics of data tools effectively. The ability to work successfully with others to accomplish a shared objective is known as collaboration ability. On the other hand, it goes beyond simply doing a task with an assortment of individuals (Xing and Liu, 2023). Furthermore, it involves developing bonds with the team, settling disputes, and fostering an atmosphere at work where everyone is valued and feels represented.

Continuous Learning and Development

Continuous learning is the ongoing expansion of knowledge and skill sets. The presentation of professional development in the workplace part, it's on the subject of developing new skills and knowledge, while also reinforcing what has been earlier learned. Individuals are required to proactively attempt to find an understanding about appearing in advanced technologies, corporation base trends, and improvements in working best practices.

Task 2: Innovative Tech-Skill Synergy for IKEA Advancement

Organizations like IKEA must continuously evolve to stay competitive in the digital landscape. If you're struggling with similar strategic assessments, seeking Help with My Assignment can provide valuable insights and expert guidance to refine your analysis. Understanding emerging trends and technological advancements is crucial for sustainable business growth.

2.1 Innovative solution relevant to the identified technological and skills gap on IKEA

It is essential to initiate the implementation of innovative solutions that will enhance the capabilities of the company while helping guarantee long-term success in the retail market, which is constantly changing (Bargoniet al. 2023). This is necessary in order to solve the technological and worker shortages that IKEA has identified. Taking advantage of the company's continual dedication to reaching high standards and pleasing the expectations of customers, an abundance of imaginative ways may be used to correct perceived inadequacies.

• Technological Gaps: In order to address novel gaps, IKEA may provide a coordinated computerized platform that optimizes several aspects of a consumer's journey. This stage may include augmented reality (AR) software applications that enable users to realistically notice equipment in their living areas before making a purchase (Broekhuizen et al. 2023). Such innovation not only enhances the customer experience but also aligns with the current trend of online buying. In addition, incorporating “Internet of Things (IoT) devices” into furniture may provide valuable insights about consumer pReferences and use patterns, allowing IKEA to enhance its product offers and create more customized services.

Besides, the utilization of present-day information analytics innovations may help IKEA in picking up noteworthy bits of knowledge from customer information, which in turn empowers the company to form choices that are way better educated and to create showcasing plans that are more focused on (Coffay and Bocken, 2023). This strategy, which is fueled by information, has the potential to make strides in stock administration, as well as enhance supply chains and foresee client demands, subsequently settling operational wasteful aspects.

• Skills Gaps: IKEA can fill the skills gap by launching a comprehensive training and development program focused on digital knowledge and new technologies. IKEA can work with schools and subject matter experts to create special classrooms to improve the skills of its employees (Perotti et al. 2023). This helps companies ensure that all employees are familiar with the latest technology that is relevant to their work. Companies can also create new internal departments or cross-functional teams that encourage employees to collaborate and share their knowledge. This approach promotes a long-term learning mindset and helps employees keep up with new technologies and adapt to industry changes.

Moreover, the adoption of educational programs helps expedite the dissemination of information inside a business's walls (Rame et al. 2023). Experienced professionals may serve as mentors to their colleagues, providing guidance and sharing insights on advancements in technology as well as innovations.

Through the usage of these mechanical and skill-based arrangements, IKEA can develop an adaptable workforce, prepared for the long term, and able to explore the challenges posed by progressions in retail innovation (Sikder et al. 2023). Not as it were do these imaginative fixes settle the recognized issues, but they also cement IKEA's position as an industry pioneer in grasping inventive advances and cultivating a culture of consistent improvement.

2.2 The potential benefit of implementation on IKEA

Introducing the suggested creative approach at IKEA could potentially greatly improve operations, employee satisfaction, as well as the experience of customers (Denning and Dunham, 2012).

• IKEA strengthens the precision and transparency of its supply chain by using advanced technologies like RFID as well as IoT in its inventory management system. IKEA can optimize inventory, minimize waste, and decrease excess or out-of-stock situations by monitoring inventory as well as product movement throughout real time (Rame et al. 2023). The improved inventory management capabilities may lead to substantial cost savings by increasing how to use resources along with lowering inventory expenditure.
• Entire training programs to educate personnel on how to utilize the new inventory administration system as well as develop more familiarity with the Internet might assist with building a more adaptable and accommodating organization. Empowered and tech-savvy employees may more successfully satisfy changing client expectations, manage issues promptly, and foster new ideas (Sikder et al. 2023). This may improve employee satisfaction, retention, as well as productivity.
• It is possible that the construction of innovation centers or digital laboratories at IKEA can act as a catalyst for the company and its continuous improvement and ideation processes. IKEA can capitalize on the collective intelligence of its employees by providing space for cross-functional collaboration and experimentation. In this way, the company can identify and take advantage of emerging trends, anticipate market changes, and create creative solutions that meet the ever-changing demands of customers (Victor, 2023). IKEA's proactive approach to innovation can help the company maintain its competitive advantage in the ever-changing retail industry drive long-term growth and increase profitability.

In a nutshell, the many potential advantages of using the suggested cutting-edge techniques at IKEA extend beyond achieving organizational effectiveness to include empowering employees, promoting consumer pleasure, and strategically placing the company's products in the market (Vukman, 2023). Through the use of technology and the cultivation of a culture centered on ongoing research and development, IKEA can create fresh avenues for expansion while continuing to hold its position of strength within the retail industry as a whole.

Task 3: Identifying Implementation Hurdles for Innovative Solutions at IKEA

This section explores the barriers to implementing innovation and digital transformation at IKEA, including employee resistance, financial constraints, interoperability issues, and the need for continuous learning. It highlights IKEA’s strategies to overcome these challenges, emphasizing cultural adaptation, cost-benefit analysis, and seamless technology integration to drive long-term growth and success.

3.1 The barriers to implementation of innovation, technological and or behavioral impact on IKEA

The successful implementation of pioneering approaches, primarily those about technology advancement, often experiences diverse hindrances (Denning and Dunham, 2012). IKEA's digital transformation has been triumphant in large part because of culture. As a senior executive, Martin Coppola was expected to demonstrate that she shared IKEA's values, motivated her team without an individualistic goal, along with offering straightforward instructions that staff members could follow (Xing and Liu, 2023). By stressing the value of vulnerability, flexibility, and resilience, she has developed a culture that encourages the company's continuous transformation operations. A number of factors may impede the effective implementation of a system for inventory oversight in conjunction with the advancement of technology goals in the particular instance of IKEA. IKEA has perceived the imperative significance of joining computerized innovation in all angles of its commerce because it is experiencing an advanced change (Clausing and Fey, 2004). As a result, the change arrangement has broadened its reach, presently counting numerous angles such as client contacts, stock administration, and authoritative assignments, as well as modernizing the supply chain as well.

A number of the most substantial challenges is the possibility of rejection of change on the part of workers. There can be a possibility staff member may have feelings of apprehension, perhaps reluctance to accept those modifications as the organization continues to implement cutting-edge technology as well as restructure long-standing procedures (Xing and Liu, 2023). The justifications for this reluctance could stem from apprehension about something that is not known, worries concerning the stability of one's employment, or an abundance of confidence in an individual's capacity to adapt to new technological developments. IKEA has made changing its organizational methods a priority in order to overcome this obstacle.

Figure 3.1.1: Barriers to innovation and change

(Source: Xing and Liu, 2023)

An aid barrier is the upfront financial commitment demanded to execute the suggested specialized system. The association may have financial difficulties as a result of the procurement as well as integration of RFID along with IOT technologies, especially with the accompanying expenditures for training courses. IKEA should do a thorough cost-benefit analysis to provide justification for these expenditures. This statement should highlight the permanent advantages and “return on investment (ROI)” associated with improved efficiency in operation as well as decreased expenditures over an extended amount of time (Cobbenhagen, 2000). When it comes to IKEA’s digital transformation, information, and statistical analysis have been more seamlessly incorporated into the organization's decision-making processes, which has made it possible for them to contribute a significant part to the business's overall accomplishments. Through the use of data, the organization has been able to modernize the way it operates in the areas of management of inventories, logistics, fulfillment, and supply chain management as a whole. Because of this, new methods of working have recently been implemented, and as a result, there has been a more significant value in flexibility and resilience.

Figure 3.1.2: Barriers to the management

(Source: Denning and Dunham, 2012)

Problems regarding interoperability combining new technologies as well as existing information technology equipment may provide a supplementary technological challenge. IKEA knows that as it automates and digitizes its operations, it must provide support to its employees and help them transition to other roles within the company (Denning and Dunham, 2012). IKEA's goal is to empower employees to do what they love and explore new opportunities within the company by freeing employees from repetitive tasks. Establishing a seamless integration of the procedure that minimizes disruption to ongoing operations is critical. When referring to information technology, IKEA must make investments in an adequate foundation and work with technology partners that can provide technologies that are both extensible as well as compatible with each other.

The company should also cultivate a work environment that places a high value on the lifelong pursuit of knowledge and provide staff members an appropriate amount of support and equipment in order to help them acquire the abilities that they need. IKEA has had to bring about quick changes to deal with store closings and more people shopping online for the reason of the broad COVID-19 outbreak (Dodgson and Rothwell, 1995). This has made the company's endeavors to adopt progressive change go faster. Because of this involvement, the company has gained respect for being adaptable and adaptable, qualities that are going to keep guiding its growth and change through the years to come (Denning and Dunham, 2012). Finally, IKEA's electronic transformation journey has become an outstanding illustration of how a retailer with a long history is capable of responding to changing market conditions and customer needs. In order to reinvent itself for a long time to come, IKEA has stuck to its core values while also adopting technological advances as well as homes. In the digital age, this has made it possible for the business in question to have even greater achievement.

List of the references

• Bargoni, A., Santoro, G., Petruzzelli, A.M. and Ferraris, A., 2024. Growth hacking: A critical review to clarify its meaning and guide its practical application. Technological Forecasting and Social Change, 200, p.123111.
• Broekhuizen, T., Dekker, H., de Faria, P., Firk, S., Nguyen, D.K. and Sofka, W., 2023. AI for managing open innovation: Opportunities, challenges, and a research agenda. Journal of Business Research, 167, p.114196.
• Coffay, M. and Bocken, N., 2023. Sustainable by design: An organizational design tool for sustainable business model innovation. Journal of Cleaner Production, 427, p.139294.
• Perotti, F.A., Dhir, A., Ferraris, A. and Kliestik, T., 2023. Investigating digital technologies’ implementation in circular businesses: Evidence from the going circular path. Journal of Management & Organization, pp.1-31.
• Rame, R., Purwanto, P. and Sudarno, S., 2023. Transforming The Furniture Industry in The Digital Age. Jurnal Riset TeknologiPencegahanPencemaranIndustri, 14, pp.53-69.
• Sikder, M.R., Saif, S.J.A., Nadim, S.A., Tarik, K.I.B. and Islam, R., 2023. Integrating Circular Economy and Industry 5.0 for Sustainable Supply Chain Management in the Food Industry. Supply Chain Insider| ISSN: 2617-7420 (Print), 2617-7420 (Online), 9(1).
• Victor, N.O.C., 2023. Exploring the Use of AI in Sustainable Sourcing: Insights into the Impact and Potential of Artificial Intelligence.
• Vukman, K., Klari?, K., Greger, K. and Peri?, I., 2024. Driving Efficiency and Competitiveness: Trends and Innovations in ERP Systems for the Wood Industry. Forests, 15(2), p.230.
• Xing, Y. and Liu, Y., 2023. Integrating product-service innovation into green supply chain management from a life cycle perspective: a systematic review and future research directions. Technovation, 126, p.102825.

Books

• Clausing, D. and Fey, V., 2004. Effective innovation. New York: ASME press.
• Cobbenhagen, J., 2000. Successful innovation: towards a new theory for the management of small and medium-sized enterprises. Edward Elgar Publishing.
• Denning, P.J. and Dunham, R., 2012. The innovator's way: Essential practices for successful innovation. MIT Press.
• Dodgson, M. and Rothwell, R., 1995. The handbook of industrial innovation. Edward Elgar Publishing.

Websites

• Medium.com, (2024). SWOT Analysis: Definition, Benefits, and Effective Implementation for Business Products and Brands Available at: https://medium.com/@samsulliwan/swot-analysis-what-why-and-how-to-use-it-for-business-products-and-brands-35fac2ccf619 [Accessed on: 02/02/2024]
• View.genial.ly, (2024). Stages of Technological Process Available at: https://view.genial.ly/59c80e9d89ef480db86f0465/interactive-content-stages-technological-process [Accessed on: 02/02/2024]