Leadership in Digital Disruption: IKEA Case Study Analysis Report

This report examines the concept of digital transformation and its impact on leadership, using IKEA as a case study. It explores how digital technologies are implemented to improve operations, enhance customer loyalty, and foster innovation. The report highlights IKEA's strategic initiatives, such as the acquisition of TaskRabbit and the development of smart home solutions, to illustrate how the company captures customer insights through methods like Net Promoter Scores and adapts to market changes. It also emphasizes the importance of fast decision-making in navigating digital disruption, referencing the financial resilience of TaskRabbit and the need for effective management of organizational changes and research for digitization of services. The report concludes by underscoring the significance of a well-defined plan and effective research for achieving organizational goals in a digitally transforming environment, with references to relevant academic literature.

Leading Through Digital
Disruption

Table of Contents
Introduction..................................................................................................................................3
The Case for Change...................................................................................................................3
Capture Insights...........................................................................................................................4
Make Fast Decisions....................................................................................................................4
REFERENCES................................................................................................................................6

Introduction
In all aspects of a company's activities, digital transformation is the introduction of digital
technologies. This leads to enormous improvements in the way it operates and can also have a
huge effect on consumer loyalty and product consistency. Fresh, creative goods and services are
steeping because of digital transformation. In multiple aspects of the operation of a company, the
implications of digital transformation can be seen: the way workers operate, how corporate
operations work, and how data is processed, evaluated, and used. Any company might require to
take bold actions to be ready for experiments and often mistakes in order to experience digital
transformation. Initially, it may seem like it is real insane to give up proven business processes,
but it is insanity caused by the periods when digital technologies are necessary. New technology
solutions are evolving at a fast rate in the industry. This can be referred to as the second digital
transition wave.' There is an increasing proliferation in robotics, computer learning, big data and
artificial intelligence. Thirty-seven percent of firms have adopted AI in some way, according to
Gartner, translating to a 270 percent rise over the last four years.
The Case for Change
IKEA is a multi-national conglomerate that, among other useful products and sometimes
home services, designs and sells ready-to-assemble furniture, kitchen appliances and home
accessories. Created by 17-year-old Ingvar Kamprad in Sweden in 1943, IKEA has been the
world's leading manufacturer of furniture since 2008. The brand used for the community is an
acronym composed of the initials of the founder (Ingvar Kamprad), as well as those of Elmtaryd,
the small farm where he had been founded, and Agunnaryd, the nearby village.
One of the digital transformation examples showing how Digital transformation will alter a
conventional company is the Swedish furniture sector. IKEA is improving the retail environment
of its consumers for the better due to modern technology and optimising the prices in the
process.
The company purchased TaskRabbit in 2017. This is a website that lets consumers look for
individuals to assist with the installation or distribution to your apartment of furniture bought at
IKEA. Due of this, clients who can't do these things on their own are more likely to use the
company's resources.

Furthermore, IKEA has agreed to implement a proposal for a smart house. This includes
advanced kitchen appliances and decoration for the furniture business magnate. In the IKEA
Place programme, the organisation often uses Augmented Reality to make it easy for clients to
select furniture and digitally "furnish" the apartment before making purchases in the shop. This
change within the organisation is helping to make it easier for customers to use services.
The Space10 initiative, which is a research centre and exhibition centre, is another example
of IKEA's digital transformation. It was there that the company proposed as a residential and
leisure space the idea of autonomous vehicles. IKEA, however does not plan to build vehicles
alone, it only generates designs for their interior.
Capture Insights
Gather customer feedback: Collecting customer reflection is an important way for
organisations to consider their product(s) and brand's resonance with consumers to prevent
deflation. The Net Promoter Score is one of the key ways corporations obtain this information in
a qualitative manner (NPS)
Understanding the global market: Some method with medium companies to consider customer
demand movements is to constantly track the challenging market. Businesses also have this in
order to learn "best practises" or whether to adapt to be a direct competitor.
Make Fast Decisions
Decision makers discourage corporations from making premature decisions that impede
the development of businesses. Since they maximise connectivity, human resources and supply
chain management, they are an integral part of every organisation. Efficient decision-makers
manage difficult problems and choose the best approach in the long run to provide their
enterprise with the most advantages. A good decision maker, in short, can change a business. In
any niche, bad decision-making will have significant implications for corporations. Effective
management decision-making lets firms secure revenues, create new leads, optimise their
marketing processes and improve exposure. When new changes are organised within IKEA then
it is easy to manage the processes in effective manner and make the work possible. TaskRabbit
enjoys what Rose calls financial resilience, as it partners with Ikea to expand and seek to add
more taskers and clients who need it in markets outside the U.S. To be included on the website,
taskers pay a premium, but take home the whole revenue received from the rates they send. In
order to use TaskRabbit, users incur a premium. When assignments are done, paying taskers

more efficiently is something the company is actively considering. The business still deals with a
decent number of taskers that have been there since the times of IKEA, better and faster
payments will go an ahead and make a gig staff much more committed to a specific site.it is very
important for IKEA to manage the working effectively for conducting the researches proper and
managing consumer insight. Key drivers within change for IKEA has to be managed properly for
completing goals. It is very essential for IKEA to develop a proper plan and attain organisational
goals. There is requirement of managing organisational work and manage to have effective
research for digitisation of services. It is effective for IKEA to manage the working and develop
effective way to reach the targets and goals.

REFERENCES
Books and Journals
Gupta, P.K., Prasanna, D.V. and Raghunath, S.S., How Artificial Intelligence Can Undermine
Security: An Overview of the Intellectual Property Rights and Legal Problems
Involved. In Applications in Ubiquitous Computing (pp. 37-58). Springer, Cham.
Al-Zghool, M., An evaluation of IKEA’s global position and marketing standing.
Kibe, G. and Sondén Karestrand, L., 2019. Convenient Consumption in a Platform E
conomy: A Qualitative Study on Service Convenience and Community Platforms.
Frenken, K. and Schor, J., 2019. Putting the sharing economy into perspective. In A Research
Agenda for Sustainable Consumption Governance. Edward Elgar Publishing.
Gipson Rankin, S., 2020. Technological Tethereds: Potential Impact of Untrustworthy Artificial
Intelligence in Criminal Justice Risk Assessment Instruments. UNM School of Law
Research Paper, (2020-06).
Saner, R., Yiu, L. and Nguyen, M., 2019, June. Platform Cooperatives: The Social and Solidarity
Economy and the Future of Work. In Presented at UNTFSSE International
Conference in Geneva (Vol. 25, p. 26).
Adams, T.J., 2019, September. Is Temporary Becoming Forever?. In New Labor Forum (Vol.
28, No. 3, pp. 110-115). Sage CA: Los Angeles, CA: SAGE Publications.