IKEA Digital Trasformation

 A long time follower of IKEA, both as a customer, and briefly interacting during our building innovation centers.  Most notably in their use of VR approaches to deign consumer uses of IKEA furnishing design.  Like to see more about what they are doing digitally, had been impressed by past work.  Note mention of pandemic closure of stores in pandemic, which I was not aware of..

Inside IKEA’s Digital Transformation  by Thomas Stackpole

Summary.   How does going digital change a legacy retail brand? According to Barbara Martin Coppola, CDO at IKEA Retail, it’s a challenge of remaining fundamentally the same company while doing almost everything differently. In this Q&A, Martin Coppola talks about how...more

What does it mean for one of the world’s most recognizable retail brands to go digital? For almost 80 years, IKEA has been in the very analogue business of selling its distinct brand of home goods to people. 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 it enter the next era of its history. HBR spoke with Martin Coppola about the particular challenge of transformation at a legacy company, how to sustain your culture when you’re changing almost everything, and how her 20 years in the tech industry prepared her for this task.

How is the digital transformation at IKEA changing how the company actually operates in the day-to-day?

In practical terms, we’ve approximately tripled ecommerce levels in three years. We have transformed our stores to also act as fulfilment centers. To make that work, the flow of goods needed to change, the supply mechanisms needed to change, and also the floorplans of the store needed to change. Ecommerce is open 24 hours a day, while traditional stores are not, which means we’ve needed to learn how to operate at two speeds, while operating from one space. Goods can be delivered from the stores, or from different distribution centers — and algorithms are helping figure out where the goods are being sourced from. We’re rapidly expanding data and analytics and changing how they’re embedded in decision making.

With the pandemic and with the closure of approximately 75% of our stores, we ramped-up and accelerated even more as people turned online and towards digital solutions. Things that would normally take years or months were carried out within days and weeks.

The digital transformation is not a goal in and of itself, and it is so much more than technology. We are transforming our business: We are exploring potential new offers to customers, new ways to bring our offers to customers, and new ways to operate our business. And in order to be successful, digital needs to be embedded in every aspect of IKEA. Digital is a way of working, making decisions, and managing the company .... '