MSc Management Leading through Digital Disruption Assignment Sample 2023


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IKEA is one of the largest furniture manufacturing companies in the world. The company in order to boost its business performance are aimed to shift its business functions to digital platforms. In this report therefore the change case of IKEA, the requirement of the business agility model and effective technology is discussed. Further, the digital ready culture collaboration and leadership role in business ideas is also discussed.

Task 1: The Case for Change

Marketing strategy of IKEA

The study has chosen IKEA to operate for digital transforming markets. The company transferred to the e-commerce industry during the Covid-19 pandemic condition. IKEA has used the “sophisticated market research and customer research” strategy to send the designs to listen to the customer’s concerns.

The main part of the strategy has been adopted to focus on the online commerce strategy. “Digitalization of the home furnishing retailers’ has created a new possibility to develop the retail sector. The main possibility has ordered a formal relationship to develop with the customer to continue offering the best experience.

It has explained to the manager of IKEA about the starred announcing criteria. IKEA follows a “cost leadership strategy” to manufacture well-designed furniture at the lowest cost (Obwegeser, 2020 p. 7). These are also assembled to produce the products for the base of customer needs.

Reason for the digital transformation of the company

IKEA has brought to frame a symbolism catalog at the end of 2021 to shift the digitalization criteria. After 70 years, the company will copy 200 million copies that will be printed every year in almost 50 countries.

The Covid-19 pandemic condition has steeped to take docs that are initially planned for the year 2022-2023. During lockdown times, it has boosted the online presence for reaching consumers through digitalized services. Revenue dropped 7% in 2020 and other online sales jumped almost 44% (The agility effect, 2022). It also reduced 15.4% of the revenue structure of the developing criteria.

MSc Management Leading through Digital Disruption Assignment Sample 2023

Figure 1: digital disruption of IKEA

(Source: Self-created)

The objectives of the digital transformation of IKEA

The main objective for digital transformation is the biggest motivation to change the company and operate the company’s strategy to survive the necessary criteria. It has been described as the following way to describe the main objectives of the company for digital transformation.

  • Cost reduction
  • Improving productivity
  • To provide the customer with a better experience
  • Ensuring governance
  • compliance

Task 2: Gaining Digital Business Agility

“Global Centres for Digital Transformation “aids the business to gain effective knowledge and advice to transform the business function in a digital way. Digital transformation means transforming all the business offerings, value chains and models to function in a digitalized way.

“Digital Business Transformation” or DBT indicates that in order to hasten the digital transformation business needs to follow three elements: Hyperawareness, Fast execution and Decision making in an informed way. The strict following of these elements can lead a company to effectively respond to business threats and explore new opportunities in the market.

In the “Digital Business Agility” element the ‘hyperawareness’ indicates potential of company to effectively monitor and analyze the changes in the existing business environment.

It is witnessed that the company that followed hyperawareness are very much informed about the threats and opportunities in the market due to business transformation (Muthuveloo and Teoh, 2020 p.170). In order to understand the business environment, a company need to follow both the external as well as internal factors.

MSc Management Leading through Digital Disruption Assignment Sample 2023

Figure 2: “Digital Business Agility”

(Source: Imd, 2022)

The lack of hyperawareness of IKEA leads the company to face multiple issues in digital transformation. One can see that in order make the product attractive the company is aimed to display their product with 3D representation (Theagilityeffect, 2022).

However, the company witnessed a case the company follows the idea it needs to replace the existing product. The hyperawareness further led   IKEA to think about the environmental effects caused by digital transformation. It is because in order to transform goods the company follows multiple modes of transformation.

The only way to address the issues that are forecasted through hyperawareness is through artificial technology. This technology can aid the company to find out alternative ways to address the changes. The implementation of this technology can help the business to monitor the behaviour of the customer on various digital technology implemented by the company.

Therefore, in this way the company is able to display personalized products and services. Further, the company through the help of AI is able to create automatic tasks with more creativity. AI also has the ability to read legal documents and implement them in the natural process (Dubyna et al. 2021, p. 198). This can be helpful in determining the nature of each idea in sustainable business practices.

“Informed Decision Making” indicates the progress towards the large, strategic decision by fulfilling the small decision each day. It is seen that in the decision-making process company needs to be aware of the speed as well as the automation process. In order to address the avail of these benefits, a company need to be informed about various data in “real-time”.

The company at the existing time has a huge number of employees in various countries therefore it is possible to manually gather and monitor the data. Therefore, the lack of analysis of the data makes the company dependent on self-estimation and it is the reason the company lacks in the digitalization process.  It is seen that decision-making has the ability to influence the employee in challenging times and to exercise the right practice (Zaini et al. 2018 p.7).

Effective decision-making helps to get diverse perspectives on the decisions of various business experts. In order to do this, a company need to have a tool that analyzes the data in a speedy manner.  It is witnessed that data-driven decisions have led the company to increase its productivity by at least 25% of the earlier productivity rate.

In order to address the requirements of “Informed Decision Making” of IKEA Company, Artificial Intelligence technology will be an effective solution. The AI technology maintains the various data in an automatic way and transfers it to the receiver on a ‘real-time basis (Vadana et al. 2019 p.7).

Further, it can be seen that AI not only maintains the data but analyse the data and forecasts the future scenario of the business based on the existing performance. Therefore, it is with this technology the company can save huge time in formulating each decision. An effective decision through the proper data analysis benefits the business experts to provide effective solutions.

Fast execution as the name suggests indicates the speedy and effective execution of some business ideas.  The nature of fast execution depends on the two main elements: process and resource.

The effective implementation of the resources makes the business more manageable and precise.  A company has different kinds of resources financial, technological and human resources. However, in the case of the digitalization process, two of the resources matter most for the company. These two resources are agile technology and agile talent.

It is seen that in order to appoint talented employee the HR department need to find out both the external and internal factors and the risk scenarios. It is seen that two main factors which affect the execution process to be questionable are continuous intervention and witnessing new opportunities each time.

In order to meet the target of fast execution, Artificial Intelligence is also effective in this scenario. IKEA is able to address the employee question on the relevant topic related to the organization. It is the same way it gives benefits to the HR personnel to monitor the quality of each job aspirant and analyse them.

Automation in this case also helps HR to prioritise suitable talents based on the requirement of the organization (Lichtenthaler, 2019 p. 67). The utilization of proper “data-driven decisions” through AI can decrease the change in contrast as well as a new business opportunity.

It is only because the data analysis and its impact on the industry are possible to do in a single attempt (Tuunanen et al. 2019 p.3). In case IKEA follows all these requirements mentioned by the “Global Centre for Digital Transformation” the company will be able to address the issues that slow the growth of the company in the digital platforms.

Task 3: Create a Digital Ready Culture

  1. Putting customers first

Customers are designed to enter the online kitchen to design the station in every store. It can receive the annual IKEA catalogue to interact and mail with the online platforms. It can order to pick the satellite platform that can order to have delivered at home on time. It was created to give a better life that is vision beyond the raw materials. The community has helped to be more sustainable at home. The community has helped with vision needs than home furnishing criteria.

  1. Creating a collaborative culture

The increasing factor is valued for the endowment effect that is possession for their identification. The main bias is also present in the development study that is affected self-created and present societies. As per the views of Magnotta (2019), these are also proposed to effect and present the market-integrated criteria to maintain possession. It is also provided for taking evidence that is created for placed particles medicated to be a self-reported and psychological effect.

  1. Instilling a culture of innovation

The furniture retailer IKEA is wrestling with the “omnichannel business model” to combine experimental and conviction of online shopping (Shah and Shay, 2019 p. 378). IKEA is buying culture entrepreneurship to know about innovative challenger frothing in different criteria. It would be to renew and improve their value and their innovative approach will start to mitigate points. The main vision of IKEA will create a better life for many people.

The main challenges, after developing the digital transitions, are cost consciousness and making the product a base of customer priority. The cluster will generate revenue and improve challenges to find the criteria in a better way. Another issue will increase pollution during making furniture in the environment.

  1. Becoming a digital-champion

AI technology will bring the main visualisation to different the main levels that led to the home furring criteria. The main mission is to use 3D   mode that helps to try the IKEA product range in any location (Putri, 2022 p. 190).

The first plan is needed for keeping the customer prioritise and as well as developing retail stores. The company will adopt the frugal spending time that has operated in other activities. Another plan is to entail increased production volume that will ensure production cost reduction and raw material reduction in the environment.

Task 4: Steer Collaboration

Roles of CCO to develop steer collaboration

The main role and responsibility of the CCO are to manage overseas compliance issues within the organisation. CCO has ensured the organisation’s compliance with regulatory requirements and adherence to the company’s policy and procedures. “The Shakeup of IKEA’s model” has illustrated how to take action and get more experience with their customers.

IKEA has illustrated how to take action in their emerging lifestyle (Arestav and Åström, 2018 p. 178). The IKEA group has invested almost €6 billion to mitigate the objectives in the year of 2018-2021 time periods. The company has adhered to a reported regulatory system to maintain their guidelines and fulfil the deadline criteria. CCO has conducted efforts to mitigate compliance of training purposes to correct and prevent violations in future.

Advice from CCO to increase collaboration

IKEA is going to create new roles and responsibilities for order and break departments and teams for collaboration. The CCO (“Chief Collaboration Officer”) has supported the real case of IKEA for building the job criteria and new responsibilities of their employees.  The CCO has described the main roles and responsibilities for providing advice to team members.

It has collaborated with new team members of the company within the organisational process. “Jon Abrahamson Ring ” is the present CEO of IKEA and the CCO of “Linus Karlsson ” is joining from 1st April2022 for will creatively and inspires co-workers through the network criteria of IKEA. The furnishing industry has symbolised from 2019 and moved its location to get benefits in a logistics way (Zámborský, 2020 p. 170).

They also started online sales and delivered products to their cluster on time. CCO will provide capital in the shops for improving shops and transported for combination via digital transformation with environmental transition criteria.

Task 5: Develop your Leaders

The Goleman leadership style of IKEA

IKEA has used “the Goleman leadership style” food providing the fundamental truth and it brings to make the leaders in the workplace. Leaders would manage and train “poor interpersonal skills’ ‘ to consult with colleagues and give more advice to develop the digital transformation of the company. Commonly it is referred to as commanding and directive the leadership style that is used for “coercive leadership style” to fix the problem quickly.

As per the opinion of Haraldsson et al. (2020), it is the best way to develop the difficulty for improving the working criteria in the organisation. “Authoritative leaders” have to generate the main direction for mitigating goals and achieve the appropriate criteria.

It is a positive environment for developing team members and giving praise for the downside of giving praise. As per the views of Alawwad and Molony (2018), the team is rarely received for taking action and raised in the correct order. Democratic leadership is also valued for managing and hearing about the workplace to be more collaborative and flexible in the workplace. It would come at an affordable price, and discuss the client’s opinion for giving ideas

MSc Management Leading through Digital Disruption Assignment Sample 2023


Figure 3: leadership style of IKEA

(Source: Alawwad and Molony,2018 p. 101)

Grow model to develop the organisation

“Grow Model” would be an initiative to develop the IKEA structure that is a successful implementation of digital transformation criteria. In this model, Goal, Reality, Options, and Will are communicated to take actions and outcomes based on the necessary criteria.

The main goal of IKEA is to enable and inspire more than 1 billion people to deliver in life to reduce the boundary of the country. On the other hand, it would be more climate and circular positive and regenerate resources to grow the IKEA business strategy.

MSc Management Leading through Digital Disruption Assignment Sample 2023

Figure 4: GOAL model

(Source: self-created)

The company would be more positive in the value chain and impacted all over the country to develop the infrastructure. IKEA would be launched to maintain Augmented reality (AR) to apply to users and develop IKEA products through “Apple iOS 11’s ARKit technology”.

As per the views of Shah and Shay (2019), IKEA is selling furniture and accessories to spread all over the world. They will provide affordable household items for millions of customers. Ikea is secure for affordable EMI options that extend to their customer in the year 03 to48 months to allow and to be more flexible (Maurya et al. 2022, p. 110).  The store application is needed for instant verification and usage to co-brand or develop the structure of the company.


From the above study, it is conclusively said that IKEA will want to develop their strategy for digital disruption.  Collaboration factors also help to develop the infrastructure that is needed to develop the necessary criteria for the study. More production and its developing criteria are also evaluated through the projection criteria and that are needed to develop functioning the qualitative idea. Along with that, Grow model is used to develop the digital criteria throughout the entire project of IKEA.

Reference List

Alawwad, R. and Molony, J., 2018. Digitalization is no more a future.

Arestav, A. and Åström, S., 2018. Bridging the digital and physical worlds: The deployment of augmented reality in a retail setting–a case study on IKEA (pp. 178-191).. [ Accessed 26 July, 2022]

Dubyna, M., Zhavoronok, A., Kudlaieva, N. and Lopashchuk, I., 2021. Transformation of household credit behavior in the conditions of digitalization of the financial services market. Journal of Optimization in Industrial Engineering, 14(Special Issue), pp.195-201. [ Accessed 26 July, 2022]

Haraldsson, T., Johansson, D. and Lilja, M., 2020. Digital is the new normal:-The effects of Digitalization on the IKEA organization in Digitally Advanced Markets. [ Accessed 26 July, 2022] [ Accessed 26 July, 2022], 2022 Digital-business-agility-and-workforce-transformation Available at:

Lichtenthaler, U., 2021. Digitainability: the combined effects of the megatrends digitalization and sustainability. Journal of Innovation Management, 9(2), pp.64-80. [ Accessed 26 July, 2022]

Magnotta, E., 2019. Digital Disruption in Marketing and Communications: A Strategic and Organizational Approach. Routledge. [ Accessed 26 July, 2022]

Maurya, M., Dixit, S., Zaidi, N. and Dharwal, M., 2022. The Phygital Dimension: Redefining Rules of Retail Success Through Technological Convergence. In Evolution of Digitized Societies Through Advanced Technologies (pp. 101-112). Springer, Singapore. [ Accessed 26 July, 2022]

Muthuveloo, R. and Teoh, A.P., 2020. Optimisation of Organisational Performance via I-Top Strategic Agility Model. Journal of Entrepreneurship, Business and Economics, 8(2), pp.154-174. [ Accessed 26 July, 2022]

Obwegeser, N., Yokoi, T., Wade, M. and Voskes, T., 2020. 7 key principles to govern digital initiatives. MIT Sloan Management Review, 61(3), pp.1-9. [ Accessed 26 July, 2022]

Oosthuizen, K., Botha, E., Robertson, J. and Montecchi, M., 2021. Artificial intelligence in retail: The AI-enabled value chain. Australasian marketing journal, 29(3), pp.264-273. [ Accessed 26 July, 2022]

Putri, S.E., 2022. An Assessment of Blockchain and Artificial Intelligence as Transformational Technologies in Marketing. In Developing Relationships, Personalization, and Data Herald in Marketing 5.0 (pp. 178-191). IGI Global. [ Accessed 26 July, 2022]

Shah, D. and Shay, E., 2019. How and why artificial intelligence, mixed reality and blockchain technologies will change marketing we know today. Handbook of advances in marketing in an era of disruptions: Essays in honour of Jagdish N. Sheth, pp.377-390. [ Accessed 26 July, 2022]

Shah, D. and Shay, E., 2019. How and Why Artificial Intelligence, Mixed Reality and Blockchain. [ Accessed 26 July, 2022]

The agility effect, 2022, viewed on: 25/08/2022, from:, 2022  How-ikea-is-stepping-up-its-digital-transformation Available at: [ Accessed 26 July, 2022]

Tuunanen, T., Kazan, E., Salo, M., Leskelä, R.L. and Gupta, S., 2019. From digitalization to cybernization: Delivering value with cybernized services. Scandinavian Journal of Information Systems, 31(2), p.3. [ Accessed 26 July, 2022]

Vadana, I.I., Torkkeli, L., Kuivalainen, O. and Saarenketo, S., 2019. Digitalization of companies in international entrepreneurship and marketing. International Marketing Review. 7 (3) [ Accessed 26 July, 2022]

Yun, J.J., Zhao, X., Kim, S.A. and Sadoi, Y., 2022. Open Innovation Dynamics of Furniture Design and Function: The Difference between IKEA and Nitori. Science, Technology and Society, 27(2), pp.172-190. [ Accessed 26 July, 2022]

Zaini, M.K., Masrek, M.N., Johari, M.K., Sani, A. and Anwar, N., 2018. Theoretical modeling of information security: organizational agility model based on integrated system theory and resource based view. International Journal of Academic Research in Progressive Education and Development, 7(3). [ Accessed 26 July, 2022]

Zámborský, P., 2020. A blueprint for succeeding despite uncertain global markets. Journal of Business Strategy, 42(3), pp.168-176. [ Accessed 26 July, 2022]


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