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IKEA Business Information Systems

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Zubair Mahar

on 14 August 2015

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Transcript of IKEA Business Information Systems

Group Members:
Check Mee
Wanjiku
Zubair
Zaba
A little bit about IKEA...
-IKEA
-Year 1943 at Sweden
-Leader in furniture retailing (Baraldi 2002)

PIA (Product Information Assistance)
- IKEA’s central IT system
- Management of project “LACK”
Lack
- Good sales- 2.5 million pieces are sold annually
- Constant or even cheaper price

IT system & "Lack"
PIA Problems
Time consuming
- Interaction outside PIA
- Manual data input
Lack of accuracy and timely input
-Delay input
Output
- Not much useful for active users
- Useful for PASSIVE users

Routinisation and tight control
- Inhibit flexibility and creativity
Vision and Business Idea
Vision
- To Create a better everyday life for many people
Business Idea
- To offer a wide range of well-designed, functional home furnishing products at low price that as many people as possible will be able to afford them
Challenges
Reduced Core Function
No active resource representation
providing delivery times
sales indicators
transportation analysis
warehousing
ordering and retailing information.
No resource combination
- Veneer Project
Interaction
Minimal interactions between the project developers and the retailers
TEDs and news

Accuracy
Reduction of data feeding
Loss of Significant data
Less accuracy
IS solutions from the author
DOCUMENT ADMINISTRATOR
MINIMUM DATA FEEDING
Reduce data input
- no need inscribe any details
Evolving
- better features and patterns
EVOLVING INFORMATION SYSTEM
Employee Resistance
loss of control and incompetence
Time Consuming
Training
Project Developer
Project Support
Customer and Vendor
OUR SOLUTIONS
Training & Skill
Development
Super-Users
Off-Season
Advantages
Skill development
flexibility and Convenience
Disadvantage
Time Consuming
Restructuring of Contract
terms
Re-negotiate the contract terms
Compatibility
Upgrading cost
Advantage
Cost saving
Disadvantage
Feasibility with the system supplier
Collaboration with
the technical suppliers
Through definition of the system
Use PIA to full capacity
Features like
Resource Combination
monitoring and calculation
Advantages:
Better output/reports
More productive system
Disadvantage
May require large initial investment
Automating the System
Automate the system
Introduce EDI
Advantages
Competitive Advantage
Time and cost savings (Stationary)
Disadvantage
Considerable initial investment
Outsourcing
Third party having expertise
Data administrator Supporting activity
Advantages
Access to newer technology
Focus on core business objective
Disadvantages
Compromise on quality or standards
Loss of control over the staff
Change central role
- document administrator
BEST PRACTICES
Align IS with
Organization Strategy
Collaboration
During requirement analysis stage of SDLC
IKEA’s technician should collaborate with CIO
Focus on interaction with users, management and financial staff
IKEA’s main competitive strategy is cost leadership
Steering Committee
Focus on developing relationship between PIA users with IS department
Provide a discussion forum for PIA users to provide constructive feedback
IS department benefits from worthwhile feedback
Feedback are only worthwhile if users understand the IS and have used it for an adequate amount of time and understand its capabilities
Persuasive and Influential CIO

Improve Efficiency with Data Quality
IKEA should focus on all the data characteristic instead of just ‘ just sufficient ’
Through automation of data entry
Efficiency should not be limited to data processing
Forge interaction between the project developers, TEDs and news information to improve IS and business process
Reduce resistance towards changes of the PIA
Practice ‘pressure’ as the type of influence behavior
Pressure – CIO use demands, threats , frequent checking, or persistent reminders to influence peers to support the use of the new IS
References
Baraldi, E & Waluszewski, A 2005, 'Information technology at IKEA: an “open sesame” solution or just another type of facility?', Journal of Business Research, vol. 58, no. 9, pp. 1251-1260.
Baraldi, E 2002, 'Making sense of IT in business networks: a conceptual framework on resources and information with empirical illustrations from IKEA and Edsbyn,' Presented at the IMP Asia Conference, 13.

IT at IKEA: An "Open Sesame" Solution or just another type of facility?
Overview
Background of IKEA
PIA problems
IS solutions from the author
Challenges of IS solutions
Our solutions
Best practices
Conclusion
References

Conclusion
References
IKEA needs to address the current IS issues
PIA is not optimize and should be improved
There is no single IS that is perfect
Baraldi, E 2002, ‘Making sense of IT in business networks: a conceptual framework on resources and information with empirical illustrations from IKEA and Edsbyn’, Presented at the IMP Asia Conference, 13.
Baraldi, E & Waluszewski, A 2005, ‘Information technology at IKEA: an “open sesame” solution or just another type of facility?’, Journal of Business Research, Vol. 58, no. 9, pp. 1251-1260.
Blackmer, G 2003, ‘Best Practices for Information Systems Software Acquisition and Implementation’, Office of the City Auditor.
Damodaran, L 1996, ‘User involvement in the systems design process - a practical guide for users’, Behaviour & Information Technology, vol. 15, no. 6, pp. 363-377.
Durkovic, O & Rakovic, L 2009, ‘Risks in Information Systems Development Projects’, Management Information Systems, Vol. 4, No 1, pp. 13-19.
Enns, HG, McFarlin, DB & Huff, SL 2007, ‘How CIOs Can Effectively Use Influence Behaviors’, MIS Quarterly Executive, vol. 6, no. 1.
Kim Hee-Woong 2009, ‘Investigating User Resistance to Information Systems Implementation: A Status Quo Bias Perspective’, MIS Quarterly Vol. 33, No. 3 pp. 567-582.
Kroenke, DM 2014, Experiencing MIS, 4th edn, Pearson Education Inc.
Marks, G 2008, The Super User for Your Software Project, Bloomberg Businessweek, viewed 2 September 2014, <http://www.businessweek.com/stories/2008-06-11/the-super-user-for-your-software-projectbusinessweek-business-news-stock-market-and-financial-advice>.
Overby, S 2007, Outsourcing Definition and Solutions, CXO Media Inc. a subsidiary of IDG Enterprise, viewed 2 September 2014, <http://www.cio.com/article/2439495/outsourcingutsourcing-definition-and-solutions/outsourcing/outsourcing-definition-and-solutions.html>.
Union Pacific 2014, What is Electronic Data Interchange (EDI)?, Union Pacific, viewed 9 September 2014, <http://www.up.com/suppliers/order_inv/edi/what_is_edi/index.htm>.
Yeoh, GPS, Chan, KW & Ng, WY 1997, ‘Improved Papanicolaou smear reporting through the use of automated data entry’, The Hong Kong Medical Journal, vol. 3, no. 3.
Costly
features and functions-collaborations between activities, actors and resources
hardware and software
BENEFITS OF THE PROPOSED SYSTEM
Fast order processing
Fast delivery
Frequent & short production runs
Lower production cost
Full transcript