Exploring digitalization in relation to an established business model
Activities | Definition/meaning | Steps | Description | Case example |
---|---|---|---|---|
Interpreting | Ways of understanding and making sense of digitalization and the changes it was considered to imply | Differentiating | Distinguishing and delimiting digitalization from other concepts | Distinguishing, clarifying and separating digitalization from e-commerce, emphasizing similarities and differences |
Combining | Making connections between digitalization and other trends and concepts | Relating digitalization to other trends and developments such as urbanization and technological development | ||
Concretising | Making digitalization less abstract, e.g. by concretizing, defining and making actionable | Making digitalization manageable by relating it to present and ongoing specific activities within and outside the company | ||
Interrelating | Assessing digitalization in relation to the existing business model | Visualising | Creating illustrations of what the future might look like through a concrete situation which everyone could easily relate to | Introducing a future oriented vision of what digitalization could look like from the point of view of the customer (journey) |
Mapping | Different views and perspectives both across different parts of the company as well as from the outside | Inviting and involving senior executives and various functions, and discussing issues related to roles and responsibilities | ||
Evaluating | Assessing the impact of digitalization on the existing ways of doing business by focusing on what it would mean in terms of transformation in particular | Bringing in different perspectives – both internal and external – when assessing the implications of digitalization for the ways of doing business | ||
Integrating | Digitalization of the business model in practice (e.g. minor modifications, renovating, innovating, shifting into a completely new business model) | Practicing | Developing and trying different solutions to be able to test and to learn from them | Taking the visual vision to practice, in order to try out new concepts in practice |
Reviewing | Sharing of knowledge between different parts of the organization, to learn from practice | Learning from the experiences, and transferring these internally within the organization | ||
Revising | Connecting and evaluating the changes back to the established business model in order to provide continuity | Re(in)novation. Bringing lessons learnt back to the project group and interrelating it to the company origin and “essence” |
Benner , M.J. and Tushman , M.L. ( 2003 ), “ Exploitation, exploration, and process management: the productivity dilemma revisited ”, Academy of Management Review , Vol. 2 , pp. 238 - 256 .
Berends , H. , Smits , A. , Reymen , I. and Podoynitsyna , K. ( 2016 ), “ Learning while (re) configuring: business model innovation processes in established firms ”, Strategic Organization , Vol. 14 No. 3 , pp. 181 - 219 .
Blom , A. ( 2019 ), “ One size fits all?: Understanding shopper responses towards integration activities in omnichannel retailing ”, Dissertation , Stockholm School of Economics , Stockholm .
Burt , S. , Johansson , U. and Dawson , J. ( 2016 ), “ International retailing as embedded business models ”, Journal of Economic Geography , Vol. 16 No. 3 , pp. 715 - 747 .
Burt , S. , Dawson , J. , Johansson , U. and Hultman , J. ( 2021 ), “ The changing marketing orientation within the business model of an international retailer – IKEA in China over 10 years ”, The International Review of Retail, Distribution and Consumer Research , Vol. 31 No. 2 , pp. 229 - 255 .
Caboni , F. and Hagberg , J. ( 2019 ), “ Augmented reality in retailing: a review of features, applications and value ”, International Journal of Retail and Distribution Management , Vol. 47 No. 11 , pp. 1125 - 1140 .
Charmaz , K. ( 2014 ), Constructing Grounded Theory , Sage Publications , Thousand Oaks, CA .
Dennis , C. , Michon , R. , Brakus , J.J. , Newman , A. and Alamanos , E. ( 2012 ), “ New insights into the impact of digital signage as a retail atmospheric tool ”, Journal of Consumer Behavior , Vol. 11 , pp. 454 - 466 .
Doz , Y. ( 2011 ), “ Qualitative research for international business ”, Journal of International Business Studies , Vol. 42 No. 5 , pp. 582 - 590 .
Dubois , A. and Gadde , L.-E. ( 2002 ), “ Systematic combining: an abductive approach to case research ”, Journal of Business Research , Vol. 55 No. 7 , pp. 553 - 560 .
Dyer , J.W.G. and Wilkins , A.L. ( 1991 ), “ Better stories, not better constructs, to generate better theory: a rejoinder to eisenhardt ”, Academy of Management Review , Vol. 16 No. 3 , pp. 613 - 619 .
Edvardsson , B. and Enquist , B. ( 2011 ), “ The service excellence and innovation model: lessons from IKEA and other service frontiers ”, Total Quality Management and Business Excellence , Vol. 22 No. 5 , pp. 535 - 551 .
Eisenhardt , K.M. ( 1989 ), “ Building theory from case study research ”, Academy of Management Review , Vol. 14 No. 4 , pp. 532 - 550 .
Frasquet , M. , Brusset , X. , Kotzab , H. and Teller , C. ( 2021 ), “ Guest editorial ”, International Journal of Retail and Distribution Management , Vol. 49 No. 7 , pp. 813 - 816 .
Friesl , M. and Larty , J. ( 2018 ), “ The exploration phase of replication strategies: the role of autonomous action for reverse knowledge flows ”, British Journal of Management , Vol. 29 No. 3 , pp. 411 - 427 .
Fuentes , C. , Bäckström , K. and Svingstedt , A. ( 2017 ), “ Smartphones and the reconfiguration of retailscapes: stores, shopping, and digitalization ”, Journal of Retailing and Consumer Services , Vol. 39 , pp. 270 - 278 .
Garnier , M. and Poncin , I. ( 2019 ), “ Do enriched digital catalogues offer compelling experiences, beyond websites? A comparative analysis through the IKEA case ”, Journal of Retailing and Consumer Services , Vol. 47 , pp. 361 - 369 .
Ghauri , P. and Grönhaug , K. ( 2002 ), Research Methods in Business Studies: A Practical Guide , Financial Times Prentice Hall , Harlow .
Grewal , D. , Ahlbom , C.P. , Beitelspacher , L. , Noble , S.M. and Nordfält , J. ( 2018 ), “ In-store mobile phone use and customer shopping behavior: evidence from the field ”, Journal of Marketing , Vol. 82 No. 4 , pp. 102 - 106 .
Grewal , D. , Noble , S.M. , Roggeveen , A.L. and Nordfalt , J. ( 2020 ), “ The future of in-store technology ”, Journal of the Academy of Marketing Science , Vol. 48 , pp. 96 - 113 .
Hagberg , J. , Sundstrom , M. and Egels-Zandén , N. ( 2016 ), “ The digitalization of retailing: an exploratory framework ”, International Journal of Retail Distribution Management , Vol. 44 No. 7 , pp. 694 - 712 .
Hagberg , J. , Jonsson , A. and Egels-Zandén , N. ( 2017 ), “ Retail digitalization: implications for physical stores ”, Journal of Retailing and Consumer Services , Vol. 39 , pp. 264 - 269 .
Hänninen , M. , Smedlund , A. and Mitronen , L. ( 2018 ), “ Digitalization in retailing: multi-sided platforms as drivers of industry transformation ”, Baltic Journal of Management , Vol. 13 No. 2 , pp. 152 - 168 .
Hänninen , M. , Mitronen , L. and Kwan , S.K. ( 2019 ), “ Multi-sided marketplaces and the transformation of retail: a service systems perspective ”, Journal of Retailing and Consumer Services , Vol. 49 , pp. 380 - 388 .
Hänninen , M. , Kwan , S.K. and Mitronen , L. ( 2021 ), “ From the store to omnichannel retail: looking back over three decades of research ”, The International Review of Retail, Distribution and Consumer Research , Vol. 31 No. 1 , pp. 1 - 35 .
He , Z.-L. and Wong , P.-K. ( 2004 ), “ Exploration vs. exploitation: an empirical test of the ambidexterity hypothesis ”, Organization Science , Vol. 15 No. 4 , pp. 481 - 494 .
Hedman , J. and Kalling , T. ( 2003 ), “ The business model concept: theoretical underpinnings and empirical illustrations ”, European Journal of Information Systems , Vol. 12 No. 1 , pp. 49 - 59 .
Hellström , D. and Nilsson , F. ( 2011 ), “ Logistics-driven packaging innovation: a case study at IKEA ”, International Journal of Retail and Distribution Management , Vol. 39 No. 9 , pp. 638 - 657 .
Hultman , J. , Johansson , U. , Wispeler , A. and Wolf , L. ( 2017 ), “ Exploring store format development and its influence on store image and store clientele – the case of IKEA's development of an inner-city store format ”, The International Review of Retail, Distribution and Consumer Research , Vol. 27 No. 3 , pp. 227 - 240 .
Huré , E. , Picot-Coupey , K. and Ackermann , C.L. ( 2017 ), “ Understanding omni-channel shopping value: a mixed-method study ”, Journal of Retailing and Consumer Services , Vol. 39 , pp. 314 - 330 .
IKEA ( 2015 ), “ Future IKEA store pre-study directive ”, Internal document .
Inigo , E.A. , Albareda , L. and Ritala , P. ( 2017 ), “ Business model innovation for sustainability: exploring evolutionary and radical approaches through dynamic capabilities ”, Industry and Innovation , Vol. 24 No. 5 , pp. 515 - 542 .
Inter IKEA Systems ( 2019 ), available at: http://franchisor.ikea.com/index.html ( accessed 09 July 2019 ).
Jäger , A.K. and Weber , A. ( 2020 ), “ Increasing sustainable consumption: message framing and in-store technology ”, International Journal of Retail and Distribution Management , Vol. 48 No. 8 , pp. 803 - 824 .
Jocevski , M. , Arvidsson , N. , Miragliotta , G. , Ghezzi , A. and Mangiaracina , R. ( 2019 ), “ Transitions towards omni-channel retailing strategies: a business model perspective ”, International Journal of Retail and Distribution Management , Vol. 47 No. 2 , pp. 79 - 93 .
Jonsson , A. ( 2007 ), Knowledge Sharing Across Borders - A Study in the IKEA World , Lund Business Press , Lund , Vol. 97 .
Jonsson , A. and Elg , U. ( 2006 ), “ Knowledge and knowledge sharing in retail internationalization: IKEA's entry into Russia ”, International Review of Retail, Distribution and Consumer Research , Vol. 16 No. 2 , pp. 239 - 256 .
Jonsson , A. and Foss , N.J. ( 2011 ), “ International expansion through flexible replication: learning from the internationalization experience of IKEA ”, Journal of International Business Studies , Vol. 42 , pp. 1079 - 1102 .
Langley , A. ( 1999 ), “ Strategies for theorizing from process data ”, Academy of Management Review , Vol. 24 No. 4 , pp. 691 - 710 .
Leeflang , P.S.H. , Verhoef , P.C. , Dahlström , P. and Freundt , T. ( 2014 ), “ Challenges and solutions for marketing in a digital era ”, European Management Journal , Vol. 32 , pp. 1 - 12 .
March , J.G. ( 1991 ), “ Exploration and exploitation in organizational learning ”, Organization Science , Vol. 2 No. 1 , pp. 71 - 87 .
McCracken , G. ( 1988 ), The Long Interview , Sage , Newbury Park, CA .
Pantano , E. and Gandini , A. ( 2018 ), “ Shopping as a ‘networked experience’: an emerging framework in the retail industry ”, International Journal of Retail and Distribution Management , Vol. 46 No. 7 , pp. 690 - 704 .
Patton , M.Q. ( 1980 ), Qualitative Evaluation Methods , Sage , Beverly Hills, California .
Picot-Coupey , C. , Huré , E. and Piveteau , L. ( 2016 ), “ Channel design to enrich customers' shopping experiences: synchronizing clicks with bricks in an omni-channel perspective - the direct optic case ”, International Journal of Retail and Distribution Management , Vol. 44 No. 3 , pp. 336 - 368 .
Ritter , M. and Lettl , C. ( 2018 ), “ The wider implications of business-model research ”, Long Range Planning , Vol. 51 No. 1 , pp. 1 - 8 .
Roggeveen , A.L. and Sethuraman , R. ( 2020 ), “ Customer-interfacing retail technologies in 2020 & beyond: an integrative framework and research directions ”, Journal of Retailing , Vol. 96 No. 3 , pp. 299 - 309 .
Rosengren , S. , Lange , F. , Hernant , M. and Blom , A. ( 2018 ), “ Catering to the digital consumer: from Multichannel to omnichannel retailing ”, in Andersson , P. , Movin , S. , Mähring , M. , Teigland , R. and Wennberg , K. (Eds), Managing Digital Transformation , SSE Institute for Research , Stockholm , pp. 97 - 113 .
Saebi , T. , Lien , L. and Foss , N.J. ( 2017 ), “ What drives business model adaptation? The impact of opportunities, threats and strategic orientation ”, Long Range Planning , Vol. 50 , pp. 567 - 581 .
Salzer , M. ( 1994 ), Identity across Border: A Study in the ‘IKEAworld’, Linköping Studies in Management and Economics 27 , Linköping University , Linköping .
Scholz , J. and Duffy , K. ( 2018 ), “ We ARe at home: how augmented reality reshapes mobile marketing and consumer-brand relationships ”, Journal of Retailing and Consumer Services , Vol. 44 , pp. 11 - 23 .
Silverman , D. ( 2006 ), Interpreting Qualitative Data , Sage , London .
Snihur , Y. and Wiklund , J. ( 2019 ), “ Searching for innovation: product, process, and business model innovations and search behavior in established firms ”, Long Range Planning , Vol. 52 No. 3 , pp. 305 - 325 .
Sorescu , A. , Frambach , R.T. , Singh , J. , Rangaswamy , A. and Bridges , C. ( 2011 ), “ Innovations in retail business models ”, Journal of Retailing , Vol. 87 , Supplement , pp. S3 - S16 .
Tarnovskaya , V. , Elg , U. and Burt , S. ( 2008 ), “ The role of corporate branding in a market driving strategy ”, International Journal of Retail & Distribution Management , Vol. 36 No. 11 , pp. 941 - 965 .
Teece , D.J. ( 2018 ), “ Business models and dynamic capabilities ”, Long Range Planning , Vol. 51 , pp. 40 - 49 .
Vahlne , J.-E. and Jonsson , A. ( 2017 ), “ Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): case studies of AB Volvo and IKEA ”, International Business Review , Vol. 26 No. 1 , pp. 57 - 70 .
Verhoef , P.C. , Kannan , P.K. and Inman , J.J. ( 2015 ), “ From multi-channel retailing to omni-channel retailing: introduction to the special issue on multi-channel retailing ”, Journal of Retailing , Vol. 91 No. 2 , pp. 174 - 181 .
Winter , S.G. and Szulanski , G. ( 2001 ), “ Replication as strategy ”, Organization Science , Vol. 12 No. 6 , pp. 730 - 743 .
Wolpert , S. and Roth , A. ( 2020 ), “ Development of a classification framework for technology based retail services: a retailers' perspective ”, International Review of Retail, Distribution and Consumer Research , Vol. 30 No. 5 , pp. 498 - 538 .
Yin , R.K. ( 2003 ), Case Study Research: Design and Methods , 3 ed. , Sage Publications , Thousand Oaks .
The authors contributed equally to this work. The paper is part of a research project with financial support from The Swedish Retail and Wholesale Development Council. The authors would like to thank Niklas Egels-Zandén for comments on an earlier draft of this paper, and also colleagues Catrin Lammgård and Malin Sundström who were also part of the research project. In addition, the authors would like to thank the people at IKEA who have contributed with their time and reflections, and in particular, the authors would like to appreciate Martin Hansson and Carole Bates for showing interest in this research and for inviting the authors to participate in the internal work of trying to interpret what retail digitalization means to IKEA.
About the authors.
Johan Hagberg is professor of business administration specialising in marketing at the School of Business, Economics and Law, University of Gothenburg. His research revolves around the digitalization of retailing, consumption and markets.
Anna Jonsson is associate professor at Lund University, School of Economics and Management. Her research interests include learning and knowledge sharing in organizations and society. She has conducted research about various industries and organizations, including the retail industry.
All feedback is valuable.
Please share your general feedback
Contact Customer Support
Related work.
At IKEA, we always try to think out of the box. That’s why, although they are called bookcases, we believe they are not for books only. You can use our shelving units to protect and show off your precious porcelain sets, the finest glassware, or store your unique collection, for example. But if you still need to buy one for your personal selection of novels and best sellers, we’re totally fine with it
Results list.
Best seller
Price valid from Apr 3, 2024
Functional and practical bookshelves.
Bookshelves are essential in almost every home. If it's not for a home library, it can be a home for your children's toys. And if it's not toys, you can use it for important papers and folders in a home office. The options are endless.
Our selection of bookcases come in many different shapes and sizes. Choose between wide, high standing, narrow and low bookcases, in a variety of colors and different shades of oak.
Depending on what you want to store, consider whether you need a bookcase with doors and drawers or open shelves. An open solution is perfect to keep your books and photos on display or to decorate with house plants . But what about the clutter you want to keep out of sight? A messy kid's room can quickly be organized using a bookcase with doors. Or, if you have an open bookcase, you can tidy up by adding storage boxes and baskets or other inserts.
With a storage-and-display solutions you get the best of both worlds. Hide the clutter inside the cabinet and display your favorite belongings in the open section. By choosing a bookcase with glass doors in the open section, you can place things you want to both display and protect. It could be your fancy dinnerware or glasses that only are used on special occasions.
For every room, there’s a bookcase, and for every bookcase there's a room. We offer a wide selection of models that can be placed anywhere in your home. Here are a few tips on how to pick the right one for you:
Several of our bookcases and bookshelves are wall mounted. Remember that different wall materials require different types of fixing devices. See our furniture wall anchoring guidelines to learn more about how to safely secure bookcases to walls in your home.
Part Level 10, 601 Bourke St + (61) 405 762 772 [email protected]
Introduction:.
In the fast-evolving landscape of digital transformation, legacy brands face a unique challenge — how to embrace the future without losing the essence of what makes them iconic. In this case study, we delve into the digital transformation journey of IKEA, a globally recognized retail brand, with insights from Barbara Martin Coppola, Chief Digital Officer at IKEA Retail.
Source: Harvard Business Review
IKEA, known for its distinct brand of home goods, embarked on a digital transformation journey under the leadership of Barbara Martin Coppola, a tech industry veteran. The company aimed to remain true to its DNA while adapting to the changing needs of customers in the digital era.
Over the past three years, IKEA tripled its e-commerce levels and transformed its stores into fulfillment centers , requiring adjustments in supply chains and store layouts. The COVID-19 pandemic accelerated these changes, pushing the company to innovate and adapt at an unprecedented pace.
Digital transformation at IKEA is not just a technological shift; it’s a holistic reimagining of the business. From exploring new customer offers to reengineering the entire value chain, the transformation extends across various layers of the company. This includes revamping customer interactions both online and in-store, exemplified by features like the “Shop & Go” functionality in the IKEA app.
A critical aspect of the transformation is ensuring that IKEA’s core vision and values remain consistent. The company’s culture, values, and vision of creating a better everyday life for many people form the unchanging DNA of IKEA. The challenge lies in expressing these values in the digital realm, leading to the concept of human-centric technology.
IKEA’s significant increase in the e-commerce levels over a period of three years was a result of data-driven insights and analytics to understand customer behaviours , preferences, and trends in the digital space. Data played a pivotal role in reshaping the flow of goods, supply mechanisms, and even the floorplans of the stores, which s ubsequently transformed IKEA’s physical stores into fulfilment centres . Therefore, IKEA’s digital transformation journey s howcases a strategic and pervasive use of data and analytics across various f acets of the business, from customer interactions to operational changes, u ltimately driving the company’s evolution in the digital era.
To maintain consumer trust, IKEA introduced a Customer Data Promise, emphasizing people’s control over their data. By putting ethical behaviour , diversity, and privacy at the core, IKEA aims to build the same level of trust in the digital world that it has earned over 78 years in consumers’ homes.
Barbara Martin Coppola’s experience in the tech industry, particularly at Google, played a crucial role in shaping IKEA’s digital transformation. Key learnings include the importance of speed, agility, customer focus, prioritizing people, and having a clear sense of purpose.
The success of digital transformations hinges on cultural shifts within organizations. At IKEA, integrating digital into the company’s fabric involves fostering a culture of acceptance, shared values, and a common vision. Leadership, openness, and acknowledging vulnerability are emphasized as crucial elements in navigating the transformative journey.
IKEA recognizes the potential of AR and VR in enhancing customer experiences. Testing VR in-store and acquiring Geomagical Labs for AI technology reflect IKEA’s commitment to democratizing home design while ensuring accessibility for all.
Contrary to concerns about automation replacing human roles, IKEA sees technology as a means to empower its workforce. Automation is aimed at relieving employees of repetitive tasks, allowing them to explore new and diverse roles through ongoing reskilling initiatives.
The pandemic presented challenges and accelerated digital initiatives. Despite the hurdles, IKEA’s resilience and commitment to growth have positioned the company as a digital frontrunner.
As we delve into the dynamic world of digital transformation through the lens of IKEA, the possibilities that await in the realm of business transformation become clearer. The case study highlights the intricacy between tradition and innovation, offering a glimpse into the future of businesses navigating the digital seas.
The Bachelor of Business Transformation course at the Analytics Institute of Australia (AIA) emerges as a beacon of opportunity. In a landscape where change is the only constant, AIA’s program stands as a gateway to mastering the skills and insights required for driving impactful transformations.
By joining the Bachelor of Business Transformation at AIA, you’re enrolling in a course that values real-world application, critical thinking, and a deep understanding of the evolving business landscape. The lessons obtained from real cases, such as IKEA’s digital odyssey, become tools in preparing you to lead transformations with confidence and foresight.
Join us at AIA, where education transcends textbooks. Your transformative journey awaits – embrace it with AIA’s Bachelor of Business Transformation , and become a navigator of change in the business landscape of tomorrow.
#analyticsiaustralia #internationaleducation #dataanalytics #march2024intake #analytics #businesstransformation #businessanalytics #christmasinmelbourne #newyearinmelbourne #studywithus
Save my name, email, and website in this browser for the next time I comment.
AIA is an innovative higher education institution, offering contemporary courses that aim to educate tomorrow’s entrepreneurs and managers leading to meaningful careers in analytics and business transformation.
Part Level 10, 601 Bourke St, Melbourne VIC 3000
(+61) 405 762 772
Opening Hours: 9:00 am - 5:00 pm (M-F)
Copyright © All Rights Reserved 2022 Analytics Institute of Australia | ABN: 18 640 236 380 | CRICOS CODE : 04059D TEQSA Provider Number PRV: 14346
The World's Best Book Summaries
This article is an excerpt from the Shortform summary of "Understanding Michael Porter" by Joan Magretta. Shortform has the world's best summaries of books you should be reading.
Like this article? Sign up for a free trial here .
Are you looking for an IKEA case study according to Michael Porter’s Five Forces?
Porter’s IKEA case study shows one company’s success in fitting together business activities, business strategy, and operations. His analysis shows how the activities connect to create a uniquely competitive business.
Good strategies depend on the connection among many things. Fit means the value or cost of one activity is affected by the way other activities are performed – in other words, “synergy.” If the activities fit together, they each meaningfully contribute to the company’s increased value or lower cost, and they work strongly together. The IKEA case analysis below is one example of fit between different activities.
This is a clear departure from the (mistaken) idea of the one core competence. If strategy truly is based on one core competence, then it becomes relatively easy to replicate. More often, industries compete fiercely to control the one key “resource” – distribution channels, product portfolios – thus driving up cost. In reality, strong strategies are built on many unique activities that fit together to deliver the unique value proposition . Later, you’ll see how fit works well in the IKEA case study, despite certain trade-offs.
Fit arises in 3 ways . Keep this in mind when you read the IKEA case analysis:
Fit discourages rivals in a few ways:
Let’s examine a masterpiece of strategy in IKEA using the IKEA case study analysis. Their mission is to deliver stylish furniture at low prices. Their activities show clear trade-offs and strong fit:
Many of these activities fit together and reinforce each other to provide low-priced furniture. The furniture’s self-assembled design reduces manufacturing costs, storage costs, shipping costs from manufacturer, and shipping costs to customers. In turn, IKEA’s locations make the furniture’s self-assembled design even more effective.
Note how each activity is distinctly a trade-off : you either have furniture disassembled or not. You either have salespeople on the showroom floor or not. This is one of the aspects covered in the IKEA case study analysis.
Many traditional furniture retailers practice the inverse of IKEA’s value chain. If they tried to adopt one of IKEA’s activities, they’d find it less compatible with their own value chain, and so they’d gain very little of IKEA’s competitive advantage.
Note too that, in making these tradeoffs, IKEA is deliberately alienating customer groups – those who want furniture ordered seamlessly to their homes, who want nice salespeople to guide them through options, who want unique and fancifully designed furniture. The IKEA case study analysis shows how trade-offs can sometimes have big strategic payoffs.
To visualize the strength of fit between activities, place the activities on a map.
Here’s an example for IKEA:
A densely interconnected activity map is a good sign. A sparsely connected map shows weak strategy.
The activity map isn’t useful just for description of your current strategy. It can also be used for ideation for new strategies:
Porter’s IKEA case study is an example of a competitive business in a particular area of an industry. Porter’s IKEA case study shows business activities and strategy intersecting successfully.
Like what you just read read the rest of the world's best summary of joan magretta's "understanding michael porter" at shortform ..
Here's what you'll find in our full Understanding Michael Porter summary :
Carrie has been reading and writing for as long as she can remember, and has always been open to reading anything put in front of her. She wrote her first short story at the age of six, about a lost dog who meets animal friends on his journey home. Surprisingly, it was never picked up by any major publishers, but did spark her passion for books. Carrie worked in book publishing for several years before getting an MFA in Creative Writing. She especially loves literary fiction, historical fiction, and social, cultural, and historical nonfiction that gets into the weeds of daily life.
Leave a reply cancel reply.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
As you were browsing something about your browser made us think you were a bot. There are a few reasons this might happen:
To regain access, please make sure that cookies and JavaScript are enabled before reloading the page.
Defining and executing the vision for the next-generation customer experience
Growth in e-commerce in 3 years
Increase in online sales in 2020
Star rating, up from 2.5
IKEA’s footprint is vast—over two billion people shop a range of 12,000 products in 500+ sales locations in 59 countries and online. But as digital becomes increasingly important—especially in the age of Covid—the retail behemoth needed to modernize and transform their business.
As their digital agency of record, Work & Co defined the vision of a future where technology holistically enhances the customer experience at every interaction. Of course, we didn’t stop there. We also helped bring it to life.
Our first challenge—creating IKEA’s first e-commerce-enabled mobile app—took just 6 months from concept to MVP. From there, we took on the entire multi-channel ecosystem of digital touchpoints, including the website, internal tools, and the stores.
The new experience led to greater efficiency, richer engagements, and incremental revenue.
“It is a completely new experience. The app is combined with the store." Read more
"A bona-fide, full-featured shopping app." Read more
"The approach is sound and offers much to learn from." Read more
Shortlist, Design Week Awards, Best App Design. Read more
Winner, 6X Lovie Awards. Read more
Winner, 3X Platinum Awards. Read more
Finalist, FastCo Innovation by Design Awards, Data Design. Read more
Defining a vision for product and partnership, overhauling web and mobile commerce, a unifying design system, redefining in-store touch points, bringing ikea into the “now”.
Already a worldwide leader in brick-and-mortar retail, IKEA’s leadership partnered with Work & Co to accelerate their digital transformation. Our team’s first task was to develop a cohesive and tech-savvy vision and strategy around which the global organization could align. We began a months-long process of research and brainstorming and problem solving.
Once we’d identified effective solutions to the challenges, we drafted a new vision for the customer journey intricately detailed in animations and prototypes, which helped ensure all parties were aligned on the plan: aspirational and sophisticated, but also attainable. Together with IKEA, we established a strategy to work as partners with internal teams, sharing design and development labor, openly exchanging ideas and feedback, and even providing guidance on IKEA’s hiring strategies.
To bring IKEA’s famed catalog to life for the digitally native, the app leads with inspiration. Customers browse the app the same way they would IKEA’s showroom—imagining how products complement their home or aesthetic—but with technology enhancing the journey.
A new AI-powered API suggests images based on a customer’s interests and evolving taste. Our cross-platform CMS allows editors to create content once, then deploy them across both the app and IKEA.com. And to bring over 760 collections to life, our team of writers built new engaging copy that scales no matter the country.
From mattresses to lightbulbs to kitchens and beyond, the variety of products IKEA offers are presented and sold in a myriad of ways. The flexible digital designs enable a shopping experience optimized by category and use. Inspiration galleries, planners, guides, and other content can easily be added to help shoppers find their perfect option, plus accessories and add-ons to complete the look. With around 250,000 SKUs per market, this aspect of our work was essential.
Industry-leading contextual digital tools raise the bar on data transparency and give customers control over how data is collected, stored, and used. Customers can choose if and how the company uses information—such as their IKEA browsing history, previous purchases, and product preferences—to inform product recommendations in its app, and eventually on its website. To aid explanation of these abstract concepts to users, we explored evolving the iconic IKEA assembly character as an approachable guide.
To address the challenge of keeping consistent design across all of the different touchpoints, we worked with IKEA to build a new design system. Skapa is a single source of truth for global button styles, iconography, interaction patterns, and motion libraries brought to life in one React Storybook component library. Components are strategically added and removed over time, meaning the design system is treated as a product that will never stop evolving, while simultaneously keeping the brand universally aligned.
From a custom icon set to branded price presentation and rigorous color guidelines, each component infuses the IKEA branding into our digital platforms. To complete our design system, we also established a new, digital-first tone of voice with dynamic writing guidelines. Now, writers, designers, motion designers, and developers have everything they need to produce new work across the digital ecosystem.
By including best practices for accessibility into design components, we ensure our digital products are natively inclusive. Solutions are defined once, and repeated throughout development.
A design system is only successful if it’s used globally by an organization. That’s why we helped IKEA establish strategies for training tailored to user types and knowledge levels, advocating for adoption, maintenance and upkeep of components and documentation, and hiring a team dedicated to its management. These critical pieces helped to ensure long term success.
Part of IKEA’s transformation includes the introduction of new store formats—spaces dedicated to browsing, planning, and ordering—in addition to the traditional locations. The new ecosystem Work & Co delivered integrates digital and physical across all stores in new ways, enhancing the experience for both shoppers and co-workers. New digital tools and features provide more relevant product browsing and interactions, personalized recommendations and shopping lists, and seamless checkout processes—all tailored to the shoppers’ preferences and needs.
Digital touchpoints are integrated to bridge the omni-channel experience. In-store features give users the ability to scan products, explore options and accessories, then skip the checkout line while in the physical store, reducing customer stress and simplifying the path to purchase.
We helped create Upptäcka, a replacement for the aging digital in-store installations. These new kiosks integrate with each other and the overall IKEA digital ecosystem, reducing one-off solutions. Upptäcka adapts to each store and location, making it the most contextually relevant digital touchpoint at IKEA.
Fixa is a task management app designed to digitize time-consuming paper-based processes, making co-workers more efficient and effective, freeing up time to focus on customers. Co-workers have called it “the best product IKEA has ever given them.”
Partner with us.
Work & Co, part of Accenture Song, is trusted by the world’s leading companies to drive growth and bring innovative solutions to market. Together we can build and scale your core digital products.
Please enter your name
Please enter your company
Please enter your title/role
Please enter your email
Please enter your answer
Please enter your location
Get occasional updates about our digital products, news, and events.
Privacy policy
231 Front St., 5th Fl.
Brooklyn, NY 11201
+1 855 967 5700
2709 SE Ankeny St
Portland, OR 97214
Rua Purpurina, 400, Sala 02-108
Vila Madalena, São Paulo, SP
+55 11 91067 8995
Rua Aníbal de Mendonça, 27, 5º andar
Ipanema, Rio de Janeiro, RJ
+55 21 99960 7575
39 Knez Mihailova St.
11000 Belgrade
+381 65 205 59 15
Bernstorffsgade 21
1577 København
+45 33 33 03 10
1170 Howell Mill Road NW
Work & Co - Suite 300
Atlanta, GA 30318
1026 S. Santa Fe Ave.
Los Angeles, CA 90021
IMAGES
VIDEO
COMMENTS
Its beloved founder had died, and the exponential rise of online shopping posed a new challenge. In this episode, Harvard Business School professors Juan Alcacer and Cynthia Montgomery break down ...
Ikea Marketing Strategy 2024: A Case Study. Founded in 1943, Ikea operates 422 stores in 50+ markets. The favored furniture brand has an impressively wide customer base, with nearly 70% of its stores in Europe. Ikea added 19 stores last year, including its first in India. The Ikea marketing strategy includes some of the most iconic logos ...
Over 6,000 people organically uploaded photos of themselves on Instagram alone interacting with their own 'BookBook'. 8% increase in total sales across stores in Singapore, 13% increase in total sales in Malaysia. Over 1 million social media interactions across YouTube, Facebook and Twitter. The video retained 70% of their Malaysian and ...
Business Model OF IKEA:Operational Model. IKEA's business plan includes an operational model which integrates a global supply chain, economies of scale, and efficient logistics. The company sources products from over 1,800 suppliers in more than 50 countries, ensuring quality and cost-effectiveness.
In 2018, Swedish furniture maker IKEA was undergoing a significant transformation. Challenged by the rise of online shopping and changing consumer behavior, and mourning the death of its founder, the Company's top executives knew they had to step out of their comfort zones and embrace new strategic initiatives to stay relevant. But which initiatives, executed where, when and how, would enable ...
Three years ago, IKEA Retail (Ingka Group) hired Barbara Martin Coppola — a veteran of Google, Samsung, and Texas Instruments — to guide the company through a digital transformation and help ...
This is "IKEA bookbook case study" by Marthinus Strydom on Vimeo, the home for high quality videos and the people who love them. Solutions . Video marketing. Power your marketing strategy with perfectly branded videos to drive better ROI. Event marketing ...
HBR On Strategy curates the best case studies and conversations with the world's top business and management experts, to help you unlock new ways of doing business. New episodes every week. · Listen to the original HBR Cold Call episode: IKEA Navigates the Future While Staying True to Its Culture (2021) · Find more episodes of Cold Call
Abstract. In 2018, Swedish furniture maker IKEA was undergoing a significant transformation. Challenged by the rise of online shopping and changing consumer behavior, and mourning the death of its founder, the Company's top executives knew they had to step out of their comfort zones and embrace new strategic initiatives to stay relevant.
Without a doubt, IKEA is a household name, and that level of recognition is rare. To put things into more quantifiable terms, in 2020, the IKEA brand was worth almost $18 billion. This level of brand recognition means that IKEA is ingrained in the global culture as the first stop for affordable furniture.
Describes the innovative strategic and organizational changes Kamprad made to achieve success. In particular, focuses on his unique vision and values and the way they have become institutionalized as IKEA's binding corporate culture. The trigger issue revolves around whether this vital "corporate glue" can survive massive expansion into the ...
The present study adds to this literature through an in-depth case study of IKEA's digitalisation process in an early explorative phase. In the ten months from September 2014 to June 2015, we observed IKEA's work on exploring digitalisation and the trend's potential impacts on various parts of the organisation's business model and participated ...
Harvard Business School Case 716-458, March 2016. (Revised January 2017.) Educators. Purchase. Harvard Business School. Soldiers Field. Boston, MA 02163. → Map & Directions. → More Contact Information.
The options are endless. Our selection of bookcases come in many different shapes and sizes. Choose between wide, high standing, narrow and low bookcases, in a variety of colors and different shades of oak. Depending on what you want to store, consider whether you need a bookcase with doors and drawers or open shelves.
The case study highlights the intricacy between tradition and innovation, offering a glimpse into the future of businesses navigating the digital seas. The Bachelor of Business Transformation course at the Analytics Institute of Australia (AIA) emerges as a beacon of opportunity. In a landscape where change is the only constant, AIA's program ...
Abstract and Figures. IKEA is the world-leading design-sell and ready-to-assemble furniture, applicants and accessories retailer, it was established in Sweden in 1948 and grown since then to have ...
This case describes how IKEA's distinctive strategy was formed over a period of about 30 years (late 1940s to late 1970s). It describes how the various elements of its strategy were created gradually, with the help of many people other than the founder Kamprad, and how these elements were ultimately integrated with each other thanks to the creation of IKEA's organizational culture that came ...
Let's examine a masterpiece of strategy in IKEA using the IKEA case study analysis. Their mission is to deliver stylish furniture at low prices. Their activities show clear trade-offs and strong fit: Furniture is disassembled and requires self-assembly, reducing assembly cost and allowing storage in compact boxes.
IKEA has been focusing on developing a sustainable competitive. advantage by offering its products at the most affordable prices to discourage inequalities within the consumer. market (Li, 2010 ...
Philosophy. IKEA Case Study Analysis It was once famously said by the founder of IKEA that his business philosophy stood on the basis "To create a better everyday life for the many people". In 1995 Marianne Barner, IKEA manager, was confronted with the pervasive issue of child labor within the company's rug supplier, this posed an intricate ...
IKEA's footprint is vast—over two billion people shop a range of 12,000 products in 500+ sales locations in 59 countries and online. But as digital becomes increasingly important—especially in the age of Covid—the retail behemoth needed to modernize and transform their business. As their digital agency of record, Work & Co defined the ...