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Leading through Digital Disruption Assignment


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Businesses utilize digital transformation to ensure that they are employing the correct digital technology to generate new products and services that are tailored to their target audience. It is critical for businesses to ensure that they have the appropriate technology in order for the firm to function properly and in accordance with the current competition. IKEA is a Swedish corporation that was founded in 1943 and is the world's largest furnishing retailer. The organization has lately implemented a number of technology modifications to ensure that the appropriate measures and improvements are being implemented. The report will examine the recent modifications and the methods employed to effectively apply them so that the company can acquire a competitive advantage in the market.


Case for change

IKEA is the world's largest retailer of furniture that must be well-maintained, and due to the current circumstances, the company is unable to meet the demands and needs of its consumers. The organization must ensure that they are working in accordance with the competition and that they can simply reach out to clients. All firms have begun to adapt to internet means of attracting customers' attention. To ensure that there is a higher processing rate, organizational activities must be supported (Kim, 2020). Digital transformation entails implementing the appropriate technology to ensure that the company's operations and processes run smoothly, which is a beneficial feature to have.

The threat to the company is that change does not come easily, thus the company must ensure that they are giving it their all. IKEA will have to ensure that their firm has a secure working environment and that their portfolio grows stronger over time. Threats include competitors taking over the market and causing the company to lose clients. However, digital transformation only ensures that there will be a good understanding and working relationship.


  • By the end of 2024, IKEA needs to boost customer satisfaction by 50%.
  • By the end of 2023, the corporation intends to ensure that the 45 percent investment in technology it is making will provide a positive result.
  • By the end of 2025, be able to increase profit margins through 35 percent by implementing digital transformation.


Capture insights

There are a variety of approaches available on the market that IKEA can utilise to ensure that client wants and demands are met. The strategies through which the company can discover the modifications that are required will be discussed in the next report.

  • Performance

IKEA may keep track on their performance and ensure that there is a proper working implementation in place. Competitors are many in this area, and there are a large number of locals that can steal the company's foundation. The firm will need to ensure that bigger profit margins are available. The organization can understand performance in order to ensure that they are working and performing at their best, which is beneficial to the bottom line (Anderson and Rainie, 2020).

  • Market survey

To be able to have the correct spot in the market, IKEA will need to ensure that they understand the market for their products and services. A survey is a very useful and effective tool that businesses can use to ensure that they are able to make the necessary changes in the market that are beneficial to the operation. IKEA has a strong ability in the market to ensure that better working standards are maintained and that economic stability is maintained.

  • Feedbacks

Customers provide a lot of feedback on the products and services, which IKEA may use to improve and make the necessary changes. Changes based on client feedback are critical to gaining their loyalty and trust, as well as ensuring that the company's working method remains steady in the future. IKEA has a lot of experience in making the necessary modifications and ensuring that the company has the right profit potential in the long run.

  • Sales

IKEA may learn about the adjustments that are required in the market by analysing their sales, resulting in higher working standards. The organization must develop sound assumptions in order to achieve improved performance and a better understanding of their market value. Changes can be made based on this assumption in order to enhance sales in the future.


Make fast decisions

IKEA places a premium on quick decisions to ensure that employees have a better understanding of how to operate. Changes must be implemented quickly, otherwise the company risks losing its market allegiance and base. Lewin change model is a very simple and fast model without time consuming for a long time and make sure that the company has the improvement. The organization must ensure that they have the correct management in place in order to be able to handle change effectively and achieve market profitability.

  • Unfreeze

The IKEA team has to have a good grasp and knowledge of the changes that will occur in the organization so that the employees are well prepared when the changes occur. Problems develop when changes are simply introduced in the organization without the necessary adjustments to affect how things work (Hogarth, 2017). Challenges and their perspectives on changes can be properly understood, and management can ensure that the necessary changes are made to ensure that the right working conditions are maintained in the long run. Habit of the employees is present and that has to be changed effectively with time.

  • Change

Changes are then gradually implemented in the firm to ensure that everyone is on the same page and that everyone is communicating effectively. IKEA must ensure that the proper procedures are taken in order to have the proper functional channels, which is a critical aspect (Mihardjo, Furinto and Rukmana, 2018). Changes must be done gradually to ensure good employee acceptability. Employees must be under less stress at work in order for them to be able to do their jobs well and for the organization to meet its goals.

  • Refreeze

When modifications are implemented properly and completely, management must ensure that these changes are effectively frozen. Employees should not be resistant to these adjustments in the future. Management must keep track of changes and exercise control over them in order for the organization to maintain the appropriate standards. Employees must be given with a favourable working environment in order for a smooth operation to take place. It is critical for the organization to refreeze the changes so that the existing working processes can be improved.


Acquire and engage talents

Businesses must ensure that they are employing the proper personnel management in order to prepare for the next changes. IKEA must ensure that they have the finest possible working conditions in order to achieve the best results in the future. When internal operations are well-balanced and successful, the company's digital transformation will benefit as well (Krämer and Kalka, 2017). The following report will explore talent engagement in order to increase productivity.

  • Training and development

To ensure effective digital transformation, the company's training and development budget must be increased to ensure good communication and the development of high-quality skills in personnel (Foley, 2020). Assuring that there is good work being done by the staff ensures that there will be proper work and productivity. Employee development is crucial since there is a lot of change that occurs with the technical element, which must be well understood in order to have better working conditions.

  • Motivation

Employees in the organization must be well-motivated in order to ensure that there will be a greater level of working experience. Rewards might take the shape of physical and mental benefits, which will be a valuable asset for the organization in the long run. IKEA is a very successful company, thus they have excellent working conditions. The company must ensure that they have the proper method and understanding of their employees in order to supply them with the appropriate incentive element.

  • Maintained employee relationship

Employees must be well-understood in the workplace in order to ensure that better work is accomplished. Employees must ensure that they are able to carry out the proper activities, which will have an impact on the standards. Employees are the backbone of the organization, and changes must be implemented in accordance with their wishes. Techniques, models, and equipment must be used in accordance with them in order for IKEA to have a better working environment (Perkin and Abraham, 2021). The organization's performance must be maintained to ensure that they have the proper working conditions, which are critical for the company's success. Businesses must consider their profit, and IKEA can achieve higher goals by ensuring that its employees understand and work in accordance with the company's management and needs.


Create a digital-ready culture

Formal working must be present in the workplace, but effective informal working is also required to get to know the personnel. Within an organization, there are cultural differences that must be addressed in order for improved collaboration to occur (Raustiala and Sprigman, 2019). Employees must be thoroughly understood in order to ensure that a better working environment exists. Because there must be a common ground, democratic leadership style includes both formal and informal understanding. Formal functioning will ensure that there is a clear understanding and that employees will adhere to the implementations or expectations that they have. Employees are expected to ensure that the organization runs smoothly and efficiently. Employees have a significant impact on the corporate environment, ensuring that higher levels of productivity are achieved. Staffs must be properly understood in order for better working and value to be present in order to ensure that IKEA maintains a high level. Leaders will be able to organise and build the organization properly in order to have a better working environment and effect on the work that will be done (Gkeredakis, Lifshitz-Assaf and Barrett, 2021). To create a better culture and working environment for employees, the company must ensure that plans are made in consultation with them.

Leaders must ensure that good work is being done in order for better productivity to be achieved. There must also be an informal interaction between the employees and the leaders in order for there to be transparency and for their trust to be gained. In order to ensure that there is successful working and implementation, relationships with employees must be maintained. To ensure that there is a higher culture aspect present, there must be a solid working and effective understanding. IKEA has established a working culture for itself and their workers in order to provide the finest possible services to their customers (Collings and et.al., 2021). A good leader must be present in the organization to ensure that an effective working environment is established in order for the company to prosper. Employees must be included in the digital transformation process so that a proper grasp of how to work may be achieved.


Steer collaboration

There are numerous collaborative solutions available on the market to ensure that the company's productivity is optimal. Businesses must ensure that they have the proper working and operational procedures in place in order to perform properly. Slack is a tool that IKEA can use to ensure that they have the correct functioning and productivity in order to ensure that there are better operations and working in place. To maintain proper working and operations, there must be strong communication within the firm (Gillpatrick, Blunck and Bo?a, 2019). When employees feel welcomed, they have access to all necessary information. Employees need to get the right idea of working so that they would be able to take the right decisions and make sure that the company is gaining the competitive edge. Effective working practises must be present in the workplace in order for the organization to improve. To ensure that everything is working properly, information must be passed on. Slack contains messages and video calls to ensure that proper procedures are carried out.

IKEA ensures that they have the necessary collaborative tool in place to ensure that their operations are as efficient as possible. The organization must ensure that they are employing the proper method in order to attract the appropriate clients in the future. There will also be a demand for a good staff to be there in order to ensure that there are solid operations in place. To ensure that there is a good direct working environment, specific teamwork must be present. This will ensure that IKEA can maintain a higher level (Gigliotti, 2020). Businesses have to make sure that they have the right standards of working by getting in techniques and tools for themselves and having a good investment is not harmful for the organization to have.


Select leaders

The leader has a significant role to play in bringing about meaningful improvements in the firm. Their behaviour and attributions will also shift as they gain a better knowledge of the situation. Leaders must work in accordance with the employees that work in a given organization. Businesses ensure that they have a good leader in place so that they can ensure that there is effective communication and that digital transformation occurs (Verhoef and et.al., 2021). Digital transformation necessitates a great deal of patience and careful implementation in order to achieve the desired results and performance. Employees are resistant to change since they excel in a specific industry and want to keep it that way, which is not a healthy trait to have. Businesses must ensure that they have the appropriate processes in place, and leaders must be able to design them for their people. Leaders must have the right to hear from employees and to get input from them on a regular basis. This way the leaders would be able to maintain the right performance for them which makes the competitive advantage for them be higher (Kerr and Kelly, 2017).

Companies must ensure that they have a proper grasp of their leaders in order to ensure that there is a higher operation in place. When there are changes, there is a lot of strain on the employees, but the leader must be able to grasp the situation and ensure that a higher quality is maintained. In order to gain the correct working and positioning for them, the right amount of implementation must be present (Mergel, Edelmann and Haug, 2019). IKEA is ensuring that the company's management make the proper decisions based on the internal business environment's audience to ensure that the digital transformation can be achieved successfully.


It can be concluded from the preceding research that good digital transformation must be implemented by the organisation. There are also competitors who are growing in the market, and having the correct plan for them is critical to gaining the best results. The company must be able to ensure that both internal and external aspects are maintained in order for the company to achieve the appropriate profit margins in the market. Leadership is critical for implementing changes in the firm and ensuring that the necessary tools and processes are in place so that better work can be done.


Books and Journals

Anderson, J. and Rainie, L., 2020. Many tech experts say digital disruption will hurt democracy. Pew Research Center. 22.

Collings, D.G and et.al., 2021. Leading through paradox in a COVID?19 world: Human resources comes of age. Human Resource Management Journal.

Foley, M.E., 2020. Digital Disruption: Exploring Effects on the Manufacturing Environment (Doctoral dissertation, Capella University).

Gigliotti, R.A., 2020. Sudden shifts to fully online: perceptions of campus preparedness and implications for leading through disruption. Journal of Literacy and Technology. 21(2).

Gillpatrick, T., Blunck, E. and Bo?a, S., 2019, November. Understanding the role of consumer behavior in forecasting the impact of Industry 4.0 and the wave of digital disruption driving innovation in retailing. In DIEM: Dubrovnik International Economic Meeting (Vol. 4, No. 1, pp. 165-176). Sveu?ilište u Dubrovniku.

Gkeredakis, M., Lifshitz-Assaf, H. and Barrett, M., 2021. Crisis as opportunity, disruption and exposure: Exploring emergent responses to crisis through digital technology.

Hogarth, S., 2017. Valley of the unicorns: consumer genomics, venture capital and digital disruption. New Genetics and Society. 36(3). pp.250-272.

Kerr, G. and Kelly, L., 2017. IMC education and digital disruption. European Journal of marketing.

Kim, B., 2020. Digital Disruption and the Fourth Industrial Revolution. Library Technology Reports. 56(2). pp.5-7.

Krämer, A. and Kalka, R., 2017. How digital disruption changes pricing strategies and price models. In Phantom ex machina (pp. 87-103). Springer, Cham.

Mergel, I., Edelmann, N. and Haug, N., 2019. Defining digital transformation: Results from expert interviews. Government Information Quarterly. 36(4). p.101385.

Mihardjo, L.W.W., Furinto, A. and Rukmana, R.A., 2018. The effect of dynamic, innovation, and alliances capability on sustainable competitive advantage in the digital disruption era for incumbent Telecommunication firm. In Proceedings of the International Conference on Industrial Engineering and Operations Management Bandung, Indonesia.

Perkin, N. and Abraham, P., 2021. Building the agile business through digital transformation. Kogan Page Publishers.

Raustiala, K. and Sprigman, C.J., 2019. The second digital disruption: Streaming and the dawn of data-driven creativity. NYUL Rev.. 94. p.1555.

Verhoef, P.C and et.al., 2021. Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research. 122. pp.889-901.

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