Hagberg, J., & Jonsson, A. (2022). Flashcards

Exploring digitalisation at IKEA. International Journal of Retail & Distribution Management, 50 (13): 59-76.

1
Q

Digitalisation

A

The integregation of digital technologies into business operations and customer expereinces. At IKEA, digitalisation was explored beyond e-commerce, influencing supply chains, customer engagement, and business models.

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2
Q

Exploration vs. Exploitation (March, 1991)

A

A framework describing two organizational learning processes:

  • Exploration (searching, innovating, experimenting)
  • Exploitation (refining, improving, implementing existing knowledge)
    IKEA was in the exploration phase of digitalisation, testing new solutions before integrating them.
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3
Q

3 Key activities in IKEA’s Digitalisation Process

A
  1. Interpreting – Understanding digitalisation and differentiating it from e-commerce.
  2. Interrelating – Connecting digitalisation with IKEA’s business model.
  3. Integrating – Implementing digital solutions while maintaining IKEA’s core business vision.
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4
Q

Ominichannel Strategy

A

A seamless integration of online and offline retail experiences. IKEA aimed to create a “seamless customer journey”, ensuring that digital tools complemented physical stores.

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5
Q

How does the article differentiate digitalisation from e-commerce?

a) Digitalisation is solely about online sales, whereas e-commerce involves digital transformation
b) E-commerce is just one aspect of digitalisation, which encompasses a broader integration of technology
c) Digitalisation refers only to marketing strategies, while e-commerce focuses on product sales
d) There is no distinction; both terms mean the same thing

A

b.

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6
Q

Which external factors, alongside digitalisation, are mentioned as influencing IKEA’s business model?

A

Urbanisation and sustainability concerns

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7
Q

According to the article, what is IKEA’s approach to integrating digitalisation into its business?

a) Relying solely on AI and automation
b) Testing and learning from various digital initiatives across different locations
c) Completely eliminating physical stores to focus on online retail
d) Outsourcing its digitalisation process to third-party tech firms

A

b.

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8
Q

Which theoretical framework is used in the article to explain the balance between exploration and exploitation in IKEA’s digitalisation process?

A

March’s (1991) exploration-exploitation framework

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9
Q

Which challenge did IKEA face in its digitalisation journey, according to the article?
a) Resistance from senior leadership
b) Confusion and ambiguity in understanding digitalisation across different teams
c) Lack of financial resources to invest in digital solutions
d) Declining customer interest in online shopping

A

b.

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10
Q

Which method was used in this research?
Select one alternative:

  • Experimental research on consumer behavior
  • In-depth case study with interviews and observations
  • Survey-based research
A

2nd one.

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11
Q

Why according to the authors, it is an advantage to research the digitalisation process from an early stage?

a. It reveals ambiguities, scepticism, reservations amongst employees and managers.
b. Early-stage research ensures that employees quickly adapt to digital solutions.
c. it gurantees that digitalisation will be seamlessly implemented within the company

A

a.

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12
Q

Which alternative best describe the “integregating” phase in the digitalisation process?

A. Developing and testing digital solutions while making necessary adjustments with business practices.
B. Identifying competitors and how they incorporate digitalisations within their respective businesses.
C. Assessing how digitalisation might impact the existing business model

A

a.

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