MSc Management Leading through Digital Disruption Assignment Sample
Digital transformation is the development of processes and operations undertaken by the company to sustain the digital change and era. The company chosen for the current assignment is IKEA Company. Several tasks are performed within the report to address various factors impacting the change.
The main digital transformation held in the company was to implement a better opportunity for the customer to have appropriate delivery services. A feature named task rabbit was introduced in the process of IKEA Company which enables the support of a third party delivery system. The tasks will ensure the role of leaders’ talent and other factors impacting the change.
Content and analysis
Task 1) Case for change
IKEA is one of the well-known furniture companies established in Sweden. The main vision of the company is to give a better lifestyle to every individual for everyday purposes.
The company has a variety of house furniture of high quality (Gilch and Sieweke, 2020). http://MSc Management Leading through Digital Disruption Assignment SampleThe companies have an effective chain of processes which have to give lower prices of finder’s products. The revenue earned by the company is higher as compared to other similar product providers.
As per the digital development of other companies, the competition became higher which resulted in lessening the revenue earned by the company. For example, the company started developing their website to offer the products. IKEA Company is also having their establishment site but is not effective in delivering the furniture to the customer.
Companies like Amazon have their delivery teams which are engaged to deliver the product at the doorstep of customers (Andriole, 2020).http://MSc Management Leading through Digital Disruption Assignment Sample The digital disruption for the IKEA Company is to introduce the delivery process in their procedure.
Figure: 1 Ways Digital Transformation
(Source: New Content, 2021)
Digital transformation is described as a digital development done by the company to facilitate their customers effectively by giving appropriate services.
The major threat of description for the company is introducing an effective mode of delivery. The company couldn’t have their delivery team due to the low fund.
The digital transformation for IKEA is to introduce a feature over their website name TaskRabbit. The main functioning of this feature would be to hire the third party delivery team to have the proper assistance for delivering the purchased item.
It will help the company to sustain the reputation by involving effective delivery processes which were one of the drawbacks during the digital disruption. The feature required a huge cloud database to store the information of customers with their confidential addresses for delivering the desired item.
Task 2) Capture insight
The IKEA needs to capture the insights of customer’s expectation regarding the delivery procedure. It is also essential to analyse the behaviour of the customer to gain the appropriate reason for switching over to another platform.
For example, Amazon is considered as one of the greatest companies in digital technology having its delivery team. There is a high chance of switching the customer over the Amazon platform rather than buying from the IKEA website.
The competitive strategies which are associated with Amazon to attract the customers of IKEA must be analysed.
The macro-environmental trends of the specific region can be analysed by using the pestle analysis and porter’s five force theory. It give a proper brief regarding the social, cultural, environmental, economic and technological factors.
Every environmental factor has its impact on the technology used in digital transformation. For example, the people living in high economic areas would be more preferable to pay the third party organisation for delivering their desired product.
People living in a low economy will engage to choose another platform that has their delivery team. Knowing the exact expectations of the customers regarding the delivery procedure can be analysed by giving the appropriate survey and feedback filled by them.
Some digital technologies which can be used by IKEA may include Google Analytics and Google docs for preparing the survey or feedback form. Google gives various effective features and facilities to other companies to enhance their digital transformation.
Google analytics helps to capture the inside of customer behaviour and the competitors to have appropriate advantages (Maiwald, 2020).http://MSc Management Leading through Digital Disruption Assignment Sample The surveys and feedback can easily be generated by using the Google doc’s application which gives a cloud database for storing the proper information filled by the customer.
The database can be analysed to examine the exact expectation of customers regarding the delivery procedure gained by the IKEA.
The Google analytics software also helps to target the appropriate market and customer. It is very beneficial for the companies to analyse the proper behaviour of customers.
The reason for switching over to the other platform for buying the furniture will also be an easy exam. Some other major software may include Alexa provided by Amazon and other inside checking applications which helps to gain a competitive advantage to the company.
Task 3) Decision Making
After having a proper analysis of change required to sustain the digital transformation, the main issue held within the functioning of the company to have the higher engagement of customers was to develop an effective delivery system. The company needs to have effective decisions which can give a high impact by reducing the expenditure done over it.
The decision matrix technique is effective in finalising appropriate decisions made within the company (Frennert, 2021). http://MSc Management Leading through Digital Disruption Assignment SampleFour key aspects are included in the decision matrix technique.
It may include capability, reputation, reliability and price. For example, to finalise the delivery system, various decisions can be processed by the group members of senior authority in IKEA.
Every decision can be made just by seeing the appropriate value over the capability, repetition, reliability and price. For example, if three vendors are taken to deliver the product to the customer can be judged by proceeding with the decisions which require minimum price but high reliability and capability to increase the reputation.
The decision matrix will have to proceed with the informed decisions which have a high impact to reduce the threat. The company needs to have proper changes as per the district transformation.
It will directly impact to increase the engagement of customers and their venue and by the IKEA. Having an effective delivery system will give a better competitive advantage to the company. It is very essential to minimise the delivery charges.
Digital technologies like ERP systems which indulge in the procedure within the companies can help to proceed with the decisions made. For example, having an effective ERP system gives whole access to the activities held within the organisation by proceeding with the limited time (Nissen, 2017).http://MSc Management Leading through Digital Disruption Assignment Sample
It will enhance the functioning and effectiveness of the lower staff in sustaining the change as per the decision taken. The decision is successful when it is implemented effectively as per the desired purpose on which it was made.
Data is also collected within the office system to have a better analysis of the goals and other information needed to access the strategy. After finalising the plan it is very essential to have an appropriate strategy to implement it. Examination of every impact over different departments is also beneficial to have appropriate risk management.
Task 4) Engage and acquire talent
A company needs to have appropriate talent management within the organisation. It helps to train the new hiring of an individual to be an effective asset for various operations held during the change.
In the digital transformation of the company, various features were newly introduced by the involvement of advanced technology. To sustain the change IKEA needs to have talented employees.
The final decision of implementing the third-party delivery system to have proper digital transformation. The TaskRabbit feature was introduced over the website to take help from third parties instantly after purchasing furniture from IKEA.
Some of the major strategies to have the appropriate talent for utilising the resources effectively can be done by introducing or talent management. Talent management is the department that focuses on developing some traits and skills into the new individual for increasing the contribution.
For IKEA companies looking for individuals with technical knowledge would be a great opportunity for talent management. Different sessions of introducing the concept of advanced technology will be an effective way to develop useful skills.
Involving the third-party delivery system will require the proper understanding of software which can engage to look over the proper processing of delivery (Calp, 2020). http://MSc Management Leading through Digital Disruption Assignment SampleTaking support of a third party can lead to some disadvantages which can be done by the delivery party to gain personal benefits.
The talent which is acquired by the company by giving the appropriate knowledge to employees and other management regarding the software and the advanced technology will have to take control over the process done by the delivery company.
The digital technology which can help the IKEA in acquiring the proper talent can be social media and recruitment. Social media is one of the best and most effective platforms.
Given the specification of the skills and knowledge, the company would be able to target the proper talent within the segment of customers. Some software is implemented by the company which helps to involve artificial intelligence within the procedure of recruitment and hiring of employees.
Task 5) Digital culture
Leaders play an essential role in sustaining the change within the organisation. Leaders within the IKEA include CEO, director and boards of the director.
Some of the major functions which are done by leaders include directing the lower management towards the success of organisation and sustaining the change (Iida, 2020).http://MSc Management Leading through Digital Disruption Assignment Sample Leaders also help to develop short and long term goals. The goals help to achieve the vision and mission of the company.
Decisions are taken by the senior management of the organisation. Decision-making processes have a great involvement to sustain the digital transformation. For example, there is software within the market for different purposes.
To analyse the proper software by featuring the operation and functioning of the organisation is done by the leader (Clemons, 2018). http://MSc Management Leading through Digital Disruption Assignment Sample
The financial fund acquired by the company is properly divided as per the expenses needed in the organisation and several investments are decided by the senior management. Ideas for getting opportunities from the market are also done under the supervision of effective leaders.
The formal leaders which are hired by the company help to direct the employees towards their task appropriately.
Any obstacle or risks associated with the process of employees while achieving their goals is avoided with the help of the leader. The leader has the extra knowledge to execute the work properly. It is very important to understand different concepts of leadership and their role.
To access the proper feature of task rabbit within the procedure of Ikea company it is very essential to have the proper collaboration of the leaders. The leader must negotiate with the appropriate value with the third party to decide the appropriate margin and profit.
Several decisions regarding the profit and growth of the company are taken by the senior leader of the organisation (Bedell-Pearce, 2018).http://MSc Management Leading through Digital Disruption Assignment Sample
They are considered the authorised identity of the organisation. Any legal proceeding or action is taken over the individual owning the company. The leaders are responsible for their decision giving profit or loss to the company.
Figure 2. Digital Transformation
(Source: Whatfix, 2019.)
The important traits and skills which are needed for an ineffective leader may include his communication skill and strong decision-making power. The enhanced communication skills have the leader to have proper negotiation with other parties operating for the success of the organization.
Task 6) Steer collaboration
Various factors impact team collaboration within the organisation. The IKEA can focus on enhancing diversity in their working environment. Giving importance to the employees from every culture and different region will help to increase the cooperation and collaboration of the employees (Hyvönen, 2018).http://MSc Management Leading through Digital Disruption Assignment Sample
Understanding the proper aspect of different cultures and values will help to engage them by introducing themselves by giving self-importance. It will help you know the skills and traits of every individual for assigning an appropriate task according to the strength.
The company can also focus on having different activities either fun or technical to increase the communication between the employees (Yucel, 2018).http://MSc Management Leading through Digital Disruption Assignment Sample It is very essential to have proper communication between the employees to increase their collaboration.
Communication helps to understand the different overview of people working in the same environment. For example, if a random team is organised by grouping employees from the working environment. The individual needs to have appropriate communication to understand the strength weakness and skills obtained by the employer.
The two digital tools which help to enhance the collaboration are listed below briefly in context with IKEA.
Flow-dock – Flow dock is digital software that helps to enhance the communication between two individuals or a group of people. It is effective to reduce the face to face conversation of the team member (Yadav, 2020). http://MSc Management Leading through Digital Disruption Assignment Sample
The real-time conversation is converted into a virtual face-to-face conversation which is more effective in reducing the time and efforts of each member. It is very essential to have a proper flow of information. A regular check of the leader within the team is also done properly by using the flow dock software.
Dapulse – This software helps to assign the tasks to the members appropriately by giving the proper deadlines. To have a proper collaboration between the team members it is very essential to analyse the task given to each individual.
This software can also be used to communicate with different team members for having the support to accomplish the task given by the leader (Solanki, 2021).http://MSc Management Leading through Digital Disruption Assignment Sample
The management of tasks and development of goals is done easily by using the software. The daily tasks are also assigned which are needed to be accomplished by each member to have the proper contribution and collaboration.
Task 7) Leaders in Company
The leader of IKEA Company must be influenced trait. The influence of petrol helps to lead the lower management and middle management to work the accomplishment of the change properly.
The motivation and engagement of employees are also dependent on the action done by the leader (Křenková, 2020).http://MSc Management Leading through Digital Disruption Assignment Sample For example, if the leader of a company is more engaged and punctual towards the work.
It will influence the lower management employees to do the work on time. If the leader of any company will be lazy it will directly impact over the employees to do work late as per the comfort level.
Communication is also considered a major trait needed by the lead to have effective leadership. The communication with the lower management has to analyse
the various issues which are not properly examined as per the view of senior authorities. It is very essential to minimise these impacts to have a sustainable change (Huovinen, 2017).http://MSc Management Leading through Digital Disruption Assignment Sample
The transformation change as per the digital era needs effective leaders who are angels to give proper contribution for minimising the impact over the functioning and revenue earned by the company.
It is the motive of every company to enhance profit and growth. The transformation done within the organisation is to access the better competitive advantage for being a reputable company.
As for the overview of IKEA, to sustain the digital transformation regarding the delivery system. It is very essential to have effective leadership which can motivate the employees to attend the sessions of technology.
This session will help them to increase their knowledge regarding the advanced technology industry in their process and operations.
IKEA Company needs to address digital technology like Google analytics to analyse the proper behaviour of customers. It will have the company analyse the expectation of customers about the delivery system.
Evolving the feature of the task rabbit will help to take support of third-party delivery systems. Decision-making processes have a major impact on the digital transformation done within the IKEA Company.
The company can have an effective approach by involving the decision matrix to make appropriate decisions. The leader needs various attributes and traits like better communication and decision-making power to sustain the change appropriately.
Andriole, S.J., (2020). The hard truth about soft digital transformation. IT Professional, 22(5), pp.13-16.
Bedell-Pearce, J., (2018). Safe digital transformation for SMEs. Network Security, 2018(11), pp.6-7.
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Frennert, S., (2021). Hitting a moving target: digital transformation and welfare technology in Swedish municipal eldercare. Disability and rehabilitation: Assistive technology, 16(1), pp.103-111.
Gilch, P.M. and Sieweke, J., (2020). Recruiting digital talent: The strategic role of recruitment in organisations’ digital transformation. German Journal of Human Resource Management, p.2397002220952734.
Huovinen, I.M., (2017). The impact of social media marketing on recruiting at IKEA Tampere.
Hyvönen, J., (2018). Strategic leading of digital transformation in large established companies–a multiple case-study.
Iida, J., (2020). Digital transformation vs COVID-19: The case of Japan. Digital Law Journal, 1(2), pp.8-16.
Křenková, M., (2020). IKEA founder Ingvar Kamprad as one of the leading entrepreneurs of the 20th century.
Maiwald, M., (2020). Integrated and Networked Systems and Processes—A Perspective for Digital Transformation in Thermal Process Engineering. ChemEngineering, 4(1), p.15.
Nissen, V. ed., (2017). Digital transformation of the consulting industry: extending the traditional delivery model. Springer.
Solanki, K., (2021). ANALYSIS OF THE HR AND CUSTOMER RELATED CHALLENGES FACED BY IKEA IN THE UAE MARKET DUE TO CROSS CULTURE DIFFERENCES. International Journal of Entrepreneurship, 25(1), pp.1-12.
Yadav, N., (2020). IKEA Inc.: the India way. Emerald Emerging Markets Case Studies.
Yucel, S., (2018), December. Modeling Digital Transformation Strategy. In 2018 International Conference on Computational Science and Computational Intelligence (CSCI) (pp. 221-226). IEEE.
New Content, (2021). 7 Ways Digital Transformation. [Online] [Assessed through]:<https://newcontext.com/7-ways-digital-transformation-consulting-revolutionizes-business-nc/>
Whatfix, (2019). Digital Transformation. [Online]. [Assessed through]:<https://whatfix.com/digital-transformation/>
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