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Possible solutions and recommendations to assist IKEA in resolving the issue with its system.
IKEA must own its flaws in order to control and overcome them. This could be quite helpful in assisting IKEA in setting goals and expanding new ideas. IKEA’s issues could include:
When it comes to providing services, the company fails to comprehend and consider the needs of the customer. IKEA uses digital transformation to explore potential new consumer offers, new means to get their offerings to customers, and new ways to run the business to tackle this challenge.
The “Shop & Go” option in the IKEA app, for example, allows you to scan, pay for, and avoid the checkout line in the shop using your own mobile device. The end effect is supposed to provide a consistent and smooth consumer experience.
(Inside IKEA’s Digital Transformation, 2021).
Another issue is a failure to educate users about the information system; to address this, IKEA must provide effective information services in modern information technological environments to meet the needs of the research and education processes, as well as user training for the use of these services.
If you don’t comprehend, integrate, and apply the information system, you won’t be able to stay in business for long. Managers must first determine exactly what the company’s information system must accomplish in order to be regarded successful, and then create the system that is required.
(How to Build an Effective Management System, 2020).
Because bad quality in the IKEA organisation leads to poor outcomes, so IKEA follows the IWAY Standard, which guides IKEA’s hundreds of suppliers on everything from recommending CO2 emission limits to enforcing liveable pay and suitable working hours for all employees. IKEA acquires the highest quality materials from the most ethically responsible organisations according to IWAY’s strict requirements.
Information technology (IT) has become a significant and fundamental component of every business plan. IT plays a role, from international companies that uphold complex IT systems such as mainframe and databases to SMEs with just a single computer. The various reasons for the universal usage of computer technology in industry can be determined by looking at the various ways it is used in different businesses in the world. For many businesses like IKEA, the use of Email has been one of the most important ways of communication between customers, employees, and suppliers. The company uses Email as one of the initial internet drivers, which provides an easy and cheap communication means. Over the years, different communication tools have evolved, allowing employees to use video conferencing, online meeting tools and live chat systems (Antonio & Paulo, 2019).
When it comes to running the company’s inventory, the organization ensures they maintain a sufficient amount of supply to ensure the demand is met without having to invest more than what they need. Through IT, the work of the inventory management system is to track the quantity of each item IKEA maintains, which triggers more stocks when the portions go below the pre-determined total. The system is utilized best when the point-of-sale (POS) system is linked to the inventory management system. The POS system makes sure that whenever an item is sold, it gets removed from the inventory calculation, thus developing a loop of information between the departments of IKEA.
Those days of bulky files stored in big rooms and rows of cabinet full of files is fading fast. Nowadays, IKEA stores documents in their digital formats on storage devices and servers. These enable these documents to become accessible to everybody in the company, despite their different geographical locations. Through IT, companies can efficiently pile up and preserve a tremendous amount of their historical data, and employees’ profit from instant access to the documents they need (Antonio & Paulo, 2019).