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IKEA Business Information Systems
Transcript of IKEA Business Information Systems
A little bit about IKEA...
-Year 1943 at Sweden
-Leader in furniture retailing (Baraldi 2002)
PIA (Product Information Assistance)
- IKEA’s central IT system
- Management of project “LACK”
- Good sales- 2.5 million pieces are sold annually
- Constant or even cheaper price
IT system & "Lack"
- Interaction outside PIA
- Manual data input
Lack of accuracy and timely input
- Not much useful for active users
- Useful for PASSIVE users
Routinisation and tight control
- Inhibit flexibility and creativity
Vision and Business Idea
- To Create a better everyday life for many people
- 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
Reduced Core Function
No active resource representation
providing delivery times
ordering and retailing information.
No resource combination
- Veneer Project
Minimal interactions between the project developers and the retailers
TEDs and news
Reduction of data feeding
Loss of Significant data
IS solutions from the author
MINIMUM DATA FEEDING
Reduce data input
- no need inscribe any details
- better features and patterns
EVOLVING INFORMATION SYSTEM
loss of control and incompetence
Customer and Vendor
Training & Skill
flexibility and Convenience
Restructuring of Contract
Re-negotiate the contract terms
Feasibility with the system supplier
the technical suppliers
Through definition of the system
Use PIA to full capacity
monitoring and calculation
More productive system
May require large initial investment
Automating the System
Automate the system
Time and cost savings (Stationary)
Considerable initial investment
Third party having expertise
Data administrator Supporting activity
Access to newer technology
Focus on core business objective
Compromise on quality or standards
Loss of control over the staff
Change central role
- document administrator
Align IS with
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
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
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?
Background of IKEA
IS solutions from the author
Challenges of IS solutions
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.
features and functions-collaborations between activities, actors and resources
hardware and software
BENEFITS OF THE PROPOSED SYSTEM
Fast order processing
Frequent & short production runs
Lower production cost