Digital Disruption and Transformation: IKEA Case Study Report, 2024

This report examines the digital transformation of IKEA, a multinational conglomerate known for its ready-to-assemble furniture. The report begins by establishing the case for change, highlighting the importance of digital technology in today's market and its impact on business growth. It then delves into how IKEA captures customer insights through feedback, social media analysis, and web traffic data to understand customer needs and preferences. The report also explores the decision-making process within IKEA, emphasizing the need for timely and effective strategies to meet customer demands and maintain a competitive edge. The case study of IKEA demonstrates how businesses can leverage digital technologies to enhance customer experience and drive organizational success. The report concludes by summarizing the key findings and emphasizing the significance of digital transformation in the current business landscape.

Leading Through Digital
Disruption

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
The Case for Change..............................................................................................................4
Capture Insights......................................................................................................................4
Make Fast Decisions...............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The world has turned digital and it is required by companies to use the digital technology to
compete in this market. New ideas and creativity helps the business to grow and achieve success.
Through digital transformation business are able to attain the goals and objectives. The report
talks about the use of digital transformation in relation to IKEA.
MAIN BODY
The Case for Change
Digital transformation means using digital technology to make changes in the product and
services that is done through replacing the non-digital processes in digital ones that makes the
operations faster. Digital transformation has increased the opportunity in the business also it
leads to the growth of business organisation. IKEA is a multinational conglomerate that is
famous for its designs and sells ready-to-assemble furniture, kitchen appliances and home
accessories, among other useful goods and occasionally home services. It is famous and
operating since 1943. With the use of digital technology the business organisations are able to
attract more and more customers and to compete easily in this dynamic environment.
Digital transformation in relation to IKEA is the change the conventional company in this
Swedish furniture sector. The company is planning to use technology and operate effectively.
IKEA had purchased TaskRabbit that is a website that helps individuals to assist the furniture
that is bought by the company. The clients that are unable to do the setup take advantage of this
scheme that is provided. The digital technology has helped the customers of IKEA to visualise
the furniture in the apartments before purchasing it. This helps the company to attract more
customers and gain more customers.
The business faces threats of not able to satisfy the customer demands and gain market
share. In relation to IKEA, the company was unable to carter the needs and wants of the
customers in an efficient manner. The competition is also growing and to compete in the market
it is important to use the digital technology and make a positive image in the market.
Capture Insights
It is important to know about the customer’s insights their needs and demands, preferences
and study of human behaviour to that helps to company to make goods and products and make

the business successful and attain all the goals and objectives. The following insights used by the
company are discussed below:
Gather customer feedback:
To make improvement in the product and innovates a product it is important to take
feedback from customers. Company can make product development effectively if they know the
needs and wants of the customers. Feedback helps the company to tell the problems that the
customers faced and the things they require in relation to product and service. Net Promoter
Score is one of the methods that is used by companies to gather feedback from customers.
Social Mention
This tool is used by companies to make real time analysis of social media platforms. That
helps the companies to make good presence on social media and attract more customers. The use
of hangtag’s, keywords makes it easier for companies to gain more customers and increase
market share.
Google Analytical
It is most commonly used software by the companies to check the traffic in the organisation
and check performance of various web pages. It tells about how many visitors are on the page
and the time spends on the website. This gives the real picture of the company and makes it easy
to make strategies to improve the performance.
Understanding the global market
As the company has global presence and wants to make goodwill in the market. The
companies face many challenges in the operations in the global market and to compete
effectively it is essential to understand the global market. The better the strategies made by the
company more will be the effectiveness in the operations of the company.
Make Fast Decisions
It is vital to make good decisions ads the success of the business depends on the decision
made by the company. The decision making of the company should be given in right hands and
timelyt making of decision makes the organisation able to achieve the goals and objectives on
time. To efficiently solve the problems of the customers it is important to formulate best decision
making process of the organisation. The better the decisions taken by the company the more is
the sales, profitrs of the company and will lead to success of the organisation. IKEA has
developed plans that has helped the organisation to know about the strategies that are required by

the company to use digitalisation. It is important to make proper research and then make decision
for betterment of the company.
Rational Decision Making Model
The company uses those methods that are beneficial for the company. In relation to IKEA
they took idea of visual furniture’s that has helped its clients to set the furniture in apartment
without actually setting it up. The use technology in the market has attracted more customers and
is important for business to be successful. The decision is made by analysing the information and
collecting the data that is required for making effective decision making. This is a updated model
for decision making. As it is important for companies to make decision after analysing the
market and the trends in the market that would contribute to growth of the company. The better
the decision making the more is the company able to compete with all its competitors. It relation
to the IKEA the company has global presence and to compete in future. The use of digital
technology has increased the image of company in the market.
The use of technology is important for business to compete in this dynamic world and the
tools and techniques are used by organisations to take efficient decisions that are vital for the
success of the company.
CONCLUSION

REFERENCES
Books and Journals