Case Assignment Smart Store

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Smart store: the convergence of IKEA department store, augmented reality and
RFID technology
Technical Report · February 2018

DOI: 10.13140/RG.2.2.16268.82562
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Smart store: the convergence of IKEA department store, augmented reality
and RFID technology
Rajib Hossain Khan (rk222id@student.lnu.se)

Shahrzad Darvishi (sd222im@student.lnu.se)
Mahtab Rezaeinia (mr222xi@student.lnu.se)
Zohaib Rizwan (zr222aq@student.lnu.se)
Department of Informatics; Linnaeus University
Executive summary
IKEA is a global business leader in terms of household products. This position is the result of a
combined effort of the different departments of IKEA. Among them, information and
communication technology (ICT) is playing a crucial role. The main focus of this particular case
assignment is the use of ICT by IKEA customers for shopping purposes. It was found that
customers can use IKEA website, IKEA Store, IKEA Catalog and IKEA Place in order to fulfill
that purpose. It is also possible to shop from IKEA by either visiting its department stores or
from any convenient location. After analyzing all the options it was found that IKEA should take
an initiative to add new value for those customers who are tech lovers but still wants to visit their
department stores, by introducing the ‘smart store’ concept. This concept will come into reality
by the utilization of augmented reality (AR) and radio frequency identification (RFID)
technology.
Introduction
Due to the rapid growth in electronic commerce (e-commerce), businesses are struggling to gain
competitive advantages over their rivals (Lee and Lin, 2005). Businesses with the most
experience and success in using e-commerce are beginning to realize that the key determinants of
success or failure are not merely limited to web presence and reasonable price but also include
diversified and quality electronic services (Yang, 2001; Zeithaml, 2002). Companies should
present their products and services to the customers in more effective and efficient ways and also
continuously improve them in order to strengthen their competitive advantage (Liu et al., 2008).
Use of ICT for purchasing has expanded immensely in recent years and has had a profound
impact on the shopping process. ICT functions as a novel retail patronage mode, wherein
products can be sought, justified, and in many cases sampled and bought online (Brown, Pope
and Voges, 2003).
Online shopping environment and behavior is fundamentally different from that of a
conventional retail environment (Degeratu, Rangaswamy and Wu, 2000; Lynch and Ariely,
2000; Shankar, Rangaswamy and Pusateri, 1999; Ranganathan and Ganapathy, 2002; Heiner et
al., 2004). With an annual online sales in the billions of dollars (Arcand et al., 2007), web sites
are valuable retail outlets because of their wide domestic and international reach, low cost,
constant innovation, order taking and customer feedback facilities (Eroglu, Machleit and Davis,
2001). However, unlike offline retail stores, the inability to interact with a salesperson and the
merchandise, as well as the reliance on electronic payment methods increase perceived risk with
regard to online shopping (Casaló, Flavián and Guinalíu, 2007). Szymanski and Hise (2000)
found that the design of web-based application has a significant impact on customer satisfaction
whereas the study conducted by Kim and Lim (2001) shows that information quality has
relationship with online shoppers’ satisfaction. Porter and Miller (1985) has argued that the value
delivered to the customer is the key feature of contemporary business and that is why it is not
surprising to find companies attempting to reorient their processes and systems around their
customer base (Beynon-Davies, 2013). The purpose of this study is to figure out some
problematic areas regarding the use of ICT for shopping by the IKEA customers in order to
propose a comprehensive plan to solve one of them.
Electronic business (E-business) and competitive advantage
E-business is superior to e-commerce in the way that it refers to the critical use of ICT in
supporting both internal value chain and external value network. On the other hand, e-commerce
means the use of ICT in value-chains within the wider value network, such as supply and
customer chains. E-business focuses on both internal and external operations of an organization
with the same degree of importance. Unfortunately, the high level of interest in e-commerce over
the last decade degraded the magnitude of considering ICT for internal operations (Beynon-
Davies, 2013). According to Zhu, Kraemer and Xu (2003), “e-business facilitates major business
processes along the value chain, which lead to the common constituents of e-business – web
marketing, online selling, online procurement and service, and support”.
In order to be successfully creating and maintaining competitive advantage, an e-business has to
be market oriented (Baker and Sinkula, 2005). Market orientation has a close relation to
customers’ behavior (Kohli and Jaworski, 1990). Constant changes in the social and financial
sectors influence customer behavior significantly (Maditinos, Chatzoudes and Sarigiannidis,
2014). The system that understands and predicts these changes is a crucial component of e-
business (Dennis et al., 2009; Dittmar and Drury, 2000; Kacen and Lee, 2002; Rook, 1987).
Therefore, an organization which uses ICT to strengthen its competitive advantage must develop
effective and efficient information system (IS) capability (Ross, Beath and Goodhue, 1996). E-
business is critical to technological innovation strategy, because it integrates internet based
systems with core business that potentially affects the whole business (Kim and Ramkaran, 2004;
Xie and Johnston, 2004). Berman and Hagan (2006) argued that, “innovation is now critical to
sustained growth, and increasingly happens at the intersection of market insight and
technological know-how”.
Multichannel e-commerce
In general, e-commerce is the use of ICT to enable the external activities and relationships of the
business with individuals, groups and other businesses (Beynon-Davies, 2013). The application
of e-commerce for understanding customer needs, marketing products, services, and product-
market solutions, and taking orders from customers, has emerged as a revolutionary trend in
contemporary firms (Chatterjee, Grewal and Sambamurthy, 2002). Firms become motivated to
establish their digital presence to achieve many purposes, including image building, generating
sales leads, and transactions (Wu, Cook and Strong, 2005). The effect of both customer and
supplier-side digitization really boosts the financial performance of a business organization
(Barua et al., 2004). For instance, some traditional businesses like Barnes & Noble, Dell, and
Wal-Mart, have been successful in integrating e-commerce into their traditional bricks-and-
mortar business models (Mahmood, Kohli and Devaraj, 2004).
Moreover, there are also many businesses that compete on a global scale through their website
alone and they are highly successful as their virtual marketplace eliminates the costs of
maintaining physical shops. Examples of these include amazon, asos and ebay (Nisar and
Prabhakar, 2017). Whether online or offline, people generally consider five factors while
shopping; those are location, convenience, knowledge, personality and price (Pauwels et al.,
2011; Brynjolfsson, Hu and Rahman, 2009; Cao and Li, 2015). The shift towards multichannel
offline-online retailing is one of the most important and successful practices nowadays and
several large retail chains like Walmart, Tesco and Ahold now operate an online store along with
their offline supermarket outlets (Campo and Breugelmans, 2015). By increasing their service
levels, multichannel retailers aim to retain existing customers and gain new customers in the
increasingly competitive retail market (Chintagunta, Chu, and Cebollada, 2012; Kabadayi,
Eyuboglu and Thomas, 2007; Zhang et al., 2010).
Business description
IKEA is a Swedish company that designs and commercializes a wide range of household
products for the global market since its inception (Blomé, 2015). It has more than 780 million
customers in its 355 stores in 29 countries with over 149,000 employees (IKEA, 2017d). One of
the aims of this study is to analyze how the customers of IKEA use ICT while shopping at IKEA
in order to identify problems and/or future business needs. Therefore, the activity models for
shopping at IKEA department store, shopping at IKEA by using its store app, online shopping
and IKEA place app is being developed.
Shopping at IKEA department store
Figure-1 shows that people who want to buy IKEA products by visiting their department store
can either use the IKEA Store app to plan their shopping or directly go there. If they go to the
shop without using the app then they should find their desired products by themselves and then
pick that up. After that they could pay the price and take it to the desired location (IKEA, 2018).
Shopping at IKEA by using Store app
IKEA store app is a very good aid for the customers who want to use technology while they do
shopping (Google Play, 2018). Figure-2 represents that users can use this app to search and
browse the desired products for adding them to shopping list. If they have already added some
products to the shopping list by using website then they can access them by signing into the
website. Otherwise, they can use the app to add products to the shopping list. After the products
have been added, they would be able to find the nearest store, see opening hours and know how
to get there, check the availability of products and thus plan the visit. During their visit, they
should find out the desired products and then scan bar codes, QR-codes and article numbers to
add them to the product list. Once the products are added then they can swipe right on the
product to mark it as collected. Now they could collect the product and swipe left on the screen
to remove it from list and finally pay for it to complete the purchase (IKEABelgium, 2017).
IKEA Place app
IKEA has entered in the world of augmented reality (AR) by the IKEA place app. Figure-3
illustrates that in order to utilize this app customer should at first scan a suitable place and then
browse the products to select the desired one. After the right product has been selected, then they
will be able to move it to fix it in the right place. They can also capture the image and videos to
share them with their friends and families (IKEA USA, 2017).
Visiting
customer
Yes Download No
IKEA
Store app
Plan your Yes Visit IKEA

trip and
purchases
No
Take it to Pay the Pick up your Find your

the desired price desired desired
location product product
Figure-1: Activity model of shopping at IKEA department store
Customer
Download
IKEA
Store app
Log in to Already have Search and

Yes a shopping list No
access in browse
the app on website products
Add
Scan barcodes, QR-codes
Find Visit Plan your products to
and article numbers to
products IKEA visit the shopping
add products to list
list
Swipe right on product to Collect Swipe left on product to Pay the

mark it as collected product remove from list price
Figure-2: Activity model of shopping by using IKEA store app

Customer
Browse Scan a Download

products suitable IKEA
place Place app
Select Move Place Share image

product product product or video
with others
Figure-3: Activity model of IKEA place app

Online shopping at IKEA
IKEA has a nice and useful website along with IKEA Place, IKEA Store and IKEA Catalog app
which enables the customers to have an amusing experience of shopping online. It is not required
to register for online shopping. However, IKEA offers special services to those customers who
are interested about ‘IKEA FAMILY’ but of course they can shop online without signing in. In
that case they just need to input their IKEA FAMILY number in the form.
Figure-4 depicts that online customers can choose the product(s) by searching and browsing the
IKEA website and/or mobile app. Some products are not sold online. After the product(s) has
been selected, they can add them to their shopping cart by just clicking “buy online” button.
Then they can opt several options, such as save or move the product to shopping list; select a
departmental store to check the availability of the product; add more product(s) via
browsing/searching, article number or recommended product list; add a promotional code and/or
order and download the product to a particular departmental store. If the buyer wants to continue
the online shopping then he/she has to proceed for online checkout. During the online checkout
process, the clients have to fill in the form for invoice and delivery address. They can also enter
another address if he/she wants to receive the product(s) somewhere else. Now they need to save
the inserted information and continue to the delivery information.
At this stage the IKEA information system make some decision regarding the mode of delivery.
This decision is made automatically based on the item(s) selected for shopping by the
consumers. The mode of delivery may be parcel or shipping. If the mode of delivery is parcel
then the customer need to click “save and continue to pay” button. But if the mode of delivery is
shipping then they can choose between “Inburen delivery” or “Download at the venue”. After
choosing one of them, the clients can move to the final stage that is the payment. In the final
step, the buyers can check and modify invoice and delivery addresses and mode of delivery also.
IKEA supports a range of payment methods, such as pay with gift or credit card (Visa card,
Master card, Diners card or American Express), IKEA Invoice, IKEA LOANS / DELBETALA
and Master Pass. Once the customers have chosen one of these methods then they have to fill in
the required information and complete the online shopping by clicking “confirm orders and pay”
button.
Problem areas and/or business needs
Based on the above analysis it was found that the IKEA Store app does not offer AR features, the
product recommendation list refereed during the online shopping is not up to the standard and
finally there is no provision for collecting customer reviews about the IKEA products. These
business ideas are discussed as follows.
Smart department store
Online shopping is more engaging and provides more customer satisfaction in comparison to
brick and mortar shopping which usually lacks online features (Chiang and Dholakia, 2003). So,
companies are now following a different approach that is the distribution of services and
products via multiple channels (Rashid, Peig and Pous, 2015). Bringing online shopping features
to offline retail and the convergence of these two is an ultimate demand (Pous et al., 2013) and
this will make shopping more connected, social, engaging and fun (Rashid, Peig and Pous,
2015). Physical places like stores and supermarkets will obviously exist in the future but with
online shopping features (Krüger, Schöning and Olivier, 2011). Retail industry is experiencing
an increased use of smart devices, such as smart phone, tablet etc. and these devices along with
AR and RFID technology can bridge the gap between online and offline retail by introducing
smarter shops (Rashid, Peig and Pous, 2015).
IKEA has several numbers of department stores throughout the world. Customers of IKEA can
buy their products via online, phone, email or by physically visiting the stores (IKEA, 2017c).
For online shoppers IKEA offers IKEA Place, IKEA Store app and IKEA Catalog app (IKEA,
2017a). IKEA Place is an AR app which is built on Apple’s ARKit technology and allows people
to easily make buying decisions by experiencing, experimenting and/or sharing how good design
(of virtual IKEA products) transforms any space such as a home, office, school or studio without
actually having the product over there. The products can then directly purchased by the
customers through the local IKEA website (IKEA, 2017b). IKEA Place includes three
dimensional (3D) and true-to-scale models of everything and as such gives an accurate
impression of the products size, design and functionality (Apple Inc., 2017). IKEA can introduce
the concept of ‘smart store’ at their departmental stores to give the taste of AR to those
customers who visits their department stores physically. This concept has its root in the
contemporary literature.
Interactive product recommendation
While customers often experience difficulty in searching their desired products, e-commerce
service providers also finds it very challenging to promote products efficiently to their target
groups because of being overwhelmed by the huge amount of data they have collected from
users. The recommendation engine used by different e-commerce applications comes up with
suggestions in various ways, including demographic filtering, collaborative and content-based
recommendation (Hsiao and Li, 2014). In demographic recommendation system, customers are
classified based on their personal data like age, gender, etc. Then each product is assigned to one
or more classes with certain weights and the buyers are refereed to items from the class closest to
their profile (Krulwich, 1997). Collaborative recommendation suggests products based on set of
clients, whose ratings have the strongest correlation with the current clientele (Ha, 2002).
Content-based recommendation analyzes the content similarity, such as textual titles or
descriptions, between products to suggest appropriate products (Kazienko and Kiewra, 2004).
People who purchase IKEA products online receives information regarding the other seemingly
relevant products that they might be interested about but there is still enough room to increase
the efficiency of the product recommendation system of IKEA website. Hsiao and Li (2014)
proposed and tested an interactive product recommendation method that considers not only the
product diversity but also the visual similarity, to interactively capture consumers’ real intention
and filter the resulting products based on their real interests. This algorithm is evaluated by an
experiment under a real-world user log and showed much better level of accuracy over the
traditional methods. So, this approach can be considered for implementation to improve the
product recommendation system of IKEA website.
Online product reviews
To reduce uncertainty and perceived risks, consumers often search for word-of-mouth (WOM)
when making purchase decisions (Xie, Zhang and Zhang, 2014). It has been evident from the
prior research that WOM is important in purchase decision and choice behavior (Godes and
Mayzlin, 2004; Lee and Youn, 2009; Litvin, Goldsmith and Pan, 2008). The most prevalent
example of WOM is online consumer reviews (Chatterjee, 2001), which is more effective in
influencing consumer behavior than advertising (Yang and Mai, 2010), information provided by
product providers and promotional messages of third-party websites (Gretzel and Yoo, 2008;
Zhang et al., 2010b). Online product reviews not only stimulates customer choices and product
sales but also helps businesses in big data analysis for strategic decision making and gathering
customer requirements (Qi et al., 2016).
Prior research demonstrated that product reviews and sales may be positively related even if
underlying product quality is controlled (Chevalier and Mayzlin, 2006; Forman, Ghose and
Wiesenfeld, 2008). Existing literature shows that negative reviews about a product’s
performance lead to a negative attitude towards it (Tang, Fang and Wang, 2014). According to
Rudolph (2015), 86% people hesitate to purchase from businesses having negative online
reviews. Customers’ online interaction with one another plays a big role in affecting purchase
decisions and thereby affecting growth and profitability of firms (Dixit, Badgaiyan and Khare,
2017). There is no provision in the IKEA website for the customers to express their perception
about the products and services they consumed from IKEA. Inclusion of such a feature can
create a win-win situation for both IKEA and its customers.
Improvement plan for introducing IKEA smart store
Beynon-Davies (2013) described that IS can be used in two different ways in an organization.
Firstly, the existing IS can be used to support current activity systems and secondly,
contemporary IS can be developed to support new activity systems. This new IS helps a firm to
directly achieve its strategy and are designed as such to have a straightforward impact on its
competitive advantage. When the issue of a new IS arises, businesses need to determine their e-
business strategy and it may be the same as the business model for the entire business or it may
be incorporated within the general business model. So, e-business strategy can be seen as
business unit strategy or from a holistic view as a business process strategy.
IKEA conducts their retail businesses both physically via department stores (SammyKroc, 2016)
and online via their web-based applications, phones, email etc. (IKEA, 2017a, 2017c). So, in
case of IKEA the e-business strategy can be seen as a business unit strategy because their e-
business activity is fully integrated with the parent organization but under the control of specific
business units: a clicks and mortar strategy. There is subtle difference between an organization’s
e-business strategy and informatics strategy but they are interdependent. Informatics strategy
entails the structure within which information, information systems and ICT are to be applied in
an organization to support its new activity system over a future timeframe (Beynon-Davies,
2013). The improvement plan for transforming IKEA department store to the smart store is
discussed here based on the concept of informatics strategy.
Aim of the transformation
The main purpose of this transformation is to offer the customers who visit IKEA stores, an
offline browsing experience of IKEA products that are placed in a department store but without
actually touching or physically interacting with them. They will also be able to obtain the same
comprehensive and thorough information that can otherwise be obtained by IKEA Place
application from not only any convenient location but also without being physically present in
the shop. The proposed offline service is equivalent to browsing products in an online store. So,
this value added service is specifically designed for the customers who physically visit IKEA
stores. By this transformation it is possible to provide a user experience similar to that of
touching a screen to browse products in a smart store that is set up on the bricks and mortar
physical space. This initiative is highly motivated by the work of Rashid, Peig and Pous, (2015)
who showed how AR interfaces developed for handheld devices and linked to a physical smart
space to bridge the gap between offline and online retail.
Channel strategy for the smart store
The proposed service will be provided to the customers via handheld access devices such as
smart phones, tablet computers etc. The customers will be able to interact with the front-end ICT
through their handheld devices. The front-end ICT should be integrated with the back-end ICT to
populate it with the required information.
Information strategy for the smart store
The information strategy for the IKEA smart store contains the information required to
implement it and the processes necessary to support effective communication of that
information.
The IKEA smart store information model is very simple and straightforward. There are only two
information classes: product and customer. There is a many-to-many relationship between these
two information classes which means that many customers can browse and search a single
product while many products can be searched and browsed by a single customer. Figure-5 also
portrays that it is not mandatory that a consumer should browse and search every products. In the
same manner a product should not be mandatorily browsed and searched by every customer.
The IKEA smart store process model (figure-6) displays that; four activities should be done in
order to implement the smart store. They are inventory management, monitoring user interaction,
decision making and managing interface. Each of these activities comprises a number of
processes. Inventory management includes creating, storing, modifying and passing inventory to
the server. In order to monitor user interactions it is required to capture them, convert digital
coordinates to physical ones, send that information to the servers and continuously doing reverse
mapping. Decision making is the most intelligent activity that consists of receiving physical
coordinates, contextual segmentation, fetching product information, dynamic inference and
sending product information to the AR interface. Finally, managing interface contains the
following processes: receiving, calling and visualizing product information and enabling further
searching and browsing. Product information class is related with inventory management while
customer information class is associated with monitoring user interaction. Decision making is
interlinked with both monitoring user interaction and managing user interface.
Online
Customer
Select product/s by
browsing or searching
website or mobile app
Add
No Yes Yes No
more
Is it sold
online? product/s
Save/move to shopping
Add to shopping cart Add more
list/ select department
store to check the stock products from
recommended
list
Remove
Continue to CAAS
product/s
Yes No
Fill in the invoice and

delivery address
Fill in the Deliver to

delivery address another
Yes No
address
Save and continue to

delivery information
Parcel Mode of Shipping Place of Venue

delivery delivery
Inburen
Save and continue to

pay
Confirm orders and

pay
Figure-4: Activity model of online shopping at IKEA

The IKEA smart store process/information matrix (figure-7) demonstrates that which
information class is used by which process. The inventory management process uses product
information class and monitoring user interaction process uses customer information class. The
rest of the processes use both information classes. The shaded boxes indicate the usage of
information class by the processes.
Customer Browse and Product

Search
Figure-5: IKEA smart store information model

Information systems strategy for the smart store
In order to implement the concept of IKEA smart store, an information system will be developed
which should satisfy the following specifications:
 it should bring a new dimension to the IKEA department store;
 it should exhibit the IKEA products with an appealing look;
 it should enhance the overall shopping experiences of the visiting customers at IKEA
department stores;
 it should add extra value to the organization as a whole;
 it should be compatible to be integrated with the existing information systems of IKEA;
 it should be scalable to cope up with the external environment and future business needs.
ICT strategy for the smart store

The planned information systems will be developed by maintaining the following technical
standards:
 an AR system should be built on a platform independent AR framework that supports
different operating systems;
 the AR system should be supported by an RFID system;
 the AR system and RFID system should be interconnected with each other through cloud
server;
 the whole system should be constantly synchronized;
 the system should be backed up by a cloud database to harmonize synchronization;
 it should support all handheld devices that satisfies a minimum standard;
 it should be able to function both offline and online;
 all the use cases should be available to the user in a single usable interface;
 different models of RFID tags should be used depending on the type of products.
Implementation plan for the smart store
In this study, the implementation object is the IKEA department store where the products are
displayed for selling to the consumers. That means the context to the implementation is the
IKEA products which they displays in their department store for the visiting customers. So, the
target group for this transformation is the customers who physically visit IKEA shop to purchase
their desired products.
Customer Product
Inventory
management Create Store inventory Modify Pass inventory
inventory list in the host inventory to the server
Monitoring user
interaction Capture user Convert coordinates Send physical Reverse
interaction from digital to physical coordinates to server mapping
Decision
making Receive physical Contextual Fetch related Dynamic Send specific product
coordinates segmentation products from server inference information to AR interface
Managing
interface Receive and call specific View product Enable further
product information information searching and browsing
Figure-6: IKEA smart store process model

Overview of IKEA smart store system
The whole system (figure-8) is divided into two main parts. They are the physical/offline space
and AR interfaces or online world. The physical world will be equipped with RFID system
containing antennas connected through a multiplexer to the reader, which will then connected to
the host that controls the system. It inventories all the items displayed in the store with their
precise location and then pass them to the server through RFID host.
The online world will capture the user interactions and convert the digital coordinates obtained
from it to physical coordinates with the help of AR application in order to pass it to the server.
The online and offline world will be interconnected with each other through cloud server and
constantly being synchronized. The physical store along with the displayed products will be
transformed to a virtual environment that will be backed up by a database, while RFID system
will supply information about the physical world to virtual one. The user will interact with the
physical environment via AR system and will be able to see results through the virtual
environment. The result will be a synthesis of real and live images of the products, with digital
content from the database.
Inventory Monitoring user Decision Managing
management interaction making interface
Product
Customer
Figure-7: IKEA smart store process/information matrix

Architecture of IKEA smart store system
The system (figure-9) is divided into three layers. The first layer is for user interaction on
handheld devices, where the user will be able to aim the handheld camera at the smart store with
live video running on it and tap the specific area of interest. This information will pass to the
second layer where the AR software development kit (SDK) will contextually segment the
particular area of interest and dynamically infer the specific type of IKEA product to pass the
output to the third layer. In this final layer, users will be able to view the particular information
in real time and browse items through an interactive AR interface. Users will be able to search,
browse or tap at particular point from a single interface.
Workflow of IKEA smart store system
Once the user taps at any particular position on the screen of their handheld device, the pixels of
the tapped area will be retrieved and passed to AR SDK in order to get X, Y and Z axis in 3D
space and are translated with respect to the physical space. After extracting the exact location,
the information for the specific IKEA product is retrieved. Then an AR interface will be
generated for the item. In the background, RFID system will be constantly inventorying and
modifying the location of the product in the store. Similarly, browsing in horizontal and vertical
position, along with the search option will be passed directly to the coordinate calculation
module as shown in the figure-10.
The RFID system
To transform IKEA department store into ‘smart store’ it is required to set up RFID system with
antennas, multiplexer, reader and host. A set of antennas should be placed in the ceilings, walls,
floors and shelves of the IKEA department store. As there is no prior information on where the
products will be displayed, the placement of antennas is crucial because the whole IKEA
department store must be covered by them. So, the placement should be determined based on the
‘operating detection distance’ of the antenna and the size of the ceiling, wall, floor and shelf of
the store where those antennas will be placed. Since the readers have limited number of ports and
a lot of antennas are needed, hence multiplexers will come into action. Different models of RFID
tags based on the type of the products will help in case of object identification by the reader.
Cloud server
Web service RFID host
Inferencing
RFID reader
Middleware
AR Processing
Multiplexer
Smart phone Smart store RFID antenna
AR Interface/Dynamic contextualization AR marker Physical reality of smart store
Figure-8: Overview of IKEA smart store system (adapted from Rashid, Peig and Pous (2015))
RFID system will produce a list of electronic product codes (EPC) of every product in the IKEA
department store with their approximate location and save it in a local computer called RFID
host. This information along with the inventory list is then uploaded to the database. The
database stores information about every possible product class (Stock Keeping Unit - SKU)
including their images.
Output layer Augmented reality interfaces
Dynamic inferencing
XML
Middleware
Web Context segmentation
XML
Service
Cloud
AR SDK
server
Input layer RFID system User interaction
Figure-9: Architecture of IKEA smart store system (adapted from Rashid, Peig and Pous (2015))
The AR system
The AR system should be an application that may run on platform independent handheld
devices. When visitors will point their handheld devices to a particular place of the store, an AR
marker will be used to determine the origin, scale and rotation of that place’s coordinates with
respect to the screen coordinates. Now, if the customer touches the screen, the coordinates of the
corresponding store place will be calculated by AR system. A web service will obtain a list of all
the available EPC codes that will be reported by the RFID system which will be located within a
certain distance from that particular place. Another web service will call the information and
images for the reported objects and then visualize them by the AR system on the screen of the
visitors’ handheld devices. This information will be updated in real time with the help of RFID
tags. Visitors will be notified about the context of resulting information by a green square that is
imposed on the image of the particular location of the shop they selected in their screen. If they
move the device the square will also move to always keep tracking the exact location. A
continuous reverse mapping of the smart store coordinates to screen coordinates will be done for
this.
Since the AR marker is critical for mapping the visitors’ interests, it should be placed in the
central positions of the ceilings, walls, floors and shelves of the IKEA store so that the mean
distance from any point remains approximately the same. It will ensure maximum accuracy of
mapping. As the AR system will be platform independent, a framework that supports different
operating systems for handheld devices will be used to develop it and the cloud database should
be built based on a compatible database management system (DBMS) to the other technologies.
User input User input User input
Browsing Get touch pixels Search inventory

Get current location Pixel X, Pixel Y & Pixel Z Inventory
Calculate location AR SDK Calculate location
Distance on 3D Plane
Calculate X, Y, Z coordinates
Distance on 3D Plane X, Y, Z on particular place Distance on 3D Plane
Fetch database Physical

Store
RFID system
Inventory
Generate image & information

Augmented information
Display AR interface
Figure-10: Workflow of IKEA smart store system (adapted from Rashid, Peig and Pous (2015))
Rough implementation plan
Parallel implementation approach should be followed for implementing the proposed solution as
it would include all the features of IKEA Store app plus some new features. In order to conduct
the technical implementation, software such as operating system for the cloud server, AR SDK,
DBMS for the cloud database should be acquired. Hardware acquisition should include acquiring
cloud server, AR markers, RFID tags, antennas, host, multiplexer and reader. After completing
the acquisition process the AR system should be developed by using AR SDK and the RFID
system should be installed. Then both systems should be interconnected via the cloud server and
RFID system should be populated by some demo data in order to test the system. A user group
should be formed with some potential customers to conduct acceptance test for ensuring formal
recognition by them.
Evaluation plan for the new system
It seems that the best method for assessing the proposed solution is strategic evaluation which is
done by most organizations at the pre-implementation level. This evaluation can be done at the
systems conception phase in the process of IS development. The evaluation object in this case is
the ‘digitally transformed IKEA department store’. The tangible costs and benefits of the
solution should be determined by the return on investment (ROI) technique as it helps to
compare the efficiency of different investments. Beynon-Davies (2013) mentioned ‘Information
Economics’ framework for assessing the intangible costs and benefits but Martinsons, Davison
and Tse (1999) think that it fails in terms of contemporary applications and therefore they
suggested ‘balanced scorecard’ to evaluate IS. There should be four perspectives in a balanced IS
scorecard. They are as follows:
1. User orientation perspective (end-users’ view)
Key question: Are the services provided by the IS fulfill the needs of user community?
2. Business value perspective (management’s view)
Key question: Does the IS accomplising its goals and contributing value to the
organization as a whole?
3. Internal processes perspectives (operations-based view)
Key question: Does the IS generate, deliver and maintain its services in an efficient
manner?
4. Future readiness perspective (innovation and learning view)
Key question: Is it possible to renovate the IS for adapting with potential changes and
challenges?
The proposed solution can be questioned based on the taxonomy of strategic benefits for IS
reported by Zahir and Love (2000).
 Does the solution will contribute to improved growth and success?
 Can IKEA strengthen its role as the leader in new technology?
 Will it improve their market share?
 Does it help them to remain the market leader?
 Will it enhance their competitive advantage?
The evaluation result will be used to make a go/no-go decision and it may also be used to
prioritize potential investments.
Theories and concepts used in this study
The activity models in the business description section were developed by utilizing the modeling
constructs (Beynon-Davies, 2013, p.64). The problems/business needs were determined based on
the business description section and contemporary literatures, while the improvement plan and
models were framed by exploiting the concept of informatics strategy (Beynon-Davies, 2013,
p.317-325). Implementation plan was motivated by the work of (Rashid, Peig and Pous, 2015)
and (Beynon-Davies, 2013, p.390-391). Strategic evaluation (Beynon-Davies, 2013, p.297) is
planned to be performed for the proposed system.
Reflection
The main focus of this study is the usage of ICT by IKEA customers for the purpose of
shopping. So, the different types of ICT offered by IKEA to their customers were thoroughly
examined to identify the problem areas and/or business needs. After the thorough analysis of the
ICT systems of IKEA and contemporary literatures, three problem areas were mentioned.
Though all the problem areas demands equal attention, but due to some limitations it was
decided to work on the concept of IKEA smart store. IKEA Store app helps the customers in case
of shopping in their department stores, while the IKEA Place app offers augmented reality
features to test whether the IKEA products fits in a specific location or not. Customers can also
do online shopping via the IKEA website. On the other hand, some customers prefer physical
visit at IKEA stores while shopping. So, the proposed solution of IKEA smart store is an
amalgamation of all these things. It will provide an enhanced shopping experience to the IKEA
customers who visit their shops by enabling them to search and browse the IKEA products by
using their mobile devices without actually touching them. By using the AR technology,
customers’ attention on particular IKEA products will be tracked and inferred, and then they will
be able to get detailed information with real life 3D images which will be delivered by the RFID
technology.
Conclusion
The main aim of this paper was to propose a solution for the IKEA customers who prefer to use
advanced ICT for shopping. To attain this purpose, different ICT artifacts that are currently used
by customers as well as the offline shopping process were analyzed to understand the activity
model. Three problem areas/business needs were sought out and among them the concept of
IKEA smart store was matched perfectly with the main objective of this work. So, a detailed
improvement, implementation and evaluation plan was described in this paper for the smart
store. The most interesting question is why the department store will become smart after this
transformation. The appropriate answer to this question is that, after this transformation the
customers will be able to use their smart phones and/or tabs to search and browse the products in
the shop. Their search will be hassle free and time saving. In fact, their every interaction will be
tracked by a well synchronized system in real-time and they will receive personalized
information about the IKEA products based on their willingness.
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Appendices
Sample Qualitative Peer/Self Evaluation (Rajib Hossain Khan)
In the table below, identify a major strength of each of your group members in relation to the group’s
goals and processes. Provide one concrete example to substantiate your answer. Include yourself!
Group member’s name and Strength Example

role in group
Rajib Hossain Khan; Project Organization power Conceptualization of the
coordination & business logical progression of the
development whole work
Shahrzad Darvishi; Dependable Contributed according to the
Development of expectation
implementation plan
Mahtab Rezaeinia; Punctual Completed the task in time
Identification of
problems/business needs
Zohaib Rizwan; Positive approach Followed the instruction
Development of evaluation obediently
plan
In the table below, identify a weakness of each of your group member’s in relation to the group’s process.
Provide concrete examples to substantiate your answers. Include yourself.
Group member’s name and Weakness Example
role in group
Rajib Hossain Khan; Project Extra effort Repeatedly asked group
coordination & business members to modify their work
development
Shahrzad Darvishi; Questioning Need extra clarification
Development of
implementation plan
Mahtab Rezaeinia; Anxious Always thinks about
Identification of appropriateness
problems/business needs
Zohaib Rizwan; Timeliness Little bit late at completing
Development of evaluation tasks
plan
In the space below, identify approaches your group tried that worked well, and explain why they were
effective.
Ans. Our choice of IKEA worked well for us as it is not only in leading position of the household
products business but it also has a rich ICT strategy which helped us to learn a lot.
In the space below, identify approaches your group tried that did not work well, and explain why they
were ineffective.
Ans. We sent an email to IKEA in order to get their permission to visit their office and collect some data
for our work but they did not permit us. The email was sent in December when they were very busy
because of the Christmas and that may be the reason for their refusal.
What can you do to improve your own contributions to the group’s goals and processes in the second half
of the semester?
Ans. I can dedicate more time and effort to improve my contributions to the group’s goals and processes
in the second semester.
Suggestion on aspects to reflect on:
Individual:
 Attends group meetings regularly and arrives on time.

 Contributes meaningfully to group discussions.
 Completes group assignments on time.
 Prepares work in a quality manner.
 Demonstrates a cooperative and supportive attitude.
 Contributes significantly to the success of the project.
Group:
 All members contributed equally to the project.

 Our group worked well together.
 Disagreements were settled quickly and politely.
 Our group met deadlines and did not procrastinate.
 I felt encouraged by my group members to work on the project.
 I would like to work with this group again.
Team dynamics:
 How effectively did your group work?

Ans. Our group work was very effective because of mutual cooperation.
 Were the behaviors of any of your team members particularly valuable or detrimental to the
team? Explain.
Ans. All of us have respect for each other.
 What did you learn about working in a group from this project that you will carry into your next
group experience?
Ans. I have learnt mutual cooperation, respect and appreciation by working in a group at this project.
Sample Qualitative Peer/Self Evaluation (Mahtab Rezaeinia)

role in group
Rajib Hossain khan Executive summary In this work, business
Role: the most role in group, Business description description helped me to
corporate and edit Reflection understand more.
Plan for evaluation four perspectives in IS
Zohaib Rizwan
Plan for implementation System workflow

Shahrzad Darvishi
Problem areas/business needs RFID is a good example for

Mahtab Rezaeinia Improvement plan that.
role in group
Without any weakness
Rajib Hossain khan

Zohaib Rizwan

Shahrzad Darvishi
Mahtab Rezaeinia Without any weakness
effective.
Ans. All the group members were active and did the work in the best way.
Rajib was responsible for the time and it was very important to do the work on time.
were ineffective.
-
of the semester?
Ans. The group members can increase the visits for more discussion to learn more.
Individual:

Group:

Team dynamics:

Ans. Members did their work on time
team? Explain.
Ans. In my idea yes, they accepted their duties and all the behaviors were valuable because if one
of the members disagree with something, the other members helped to solve that.
group experience?
Ans. I really understood, working in a group needs cooperation and if one of the members has
problem, the other members can help him/her, and I think our group was in this form.
Sample Qualitative Peer/Self Evaluation (Zohaib Rizwan)

role in group
Rajib Hossain Khan Very focused Managed the group
discussions and coordination
to complete the task.
Shahrzad Darvishi Hard Working Completed her task on time.
Mahtab Rezaeinia Responsibility Left Sweden in vacation but
completed her work before
that.
Zohaib Rizwan Communication skill Maintained a good
communication with group
members.
role in group
Rajib Hossain Khan A bit strict for the quality. Repeatedly asked the group
members to modify their work
based on the instructions.
Shahrzad Darvishi Need some time to get deeper Asks a lot of questions.
understanding.
Mahtab Rezaeinia Little bit weak in structuring Her task was first needed to be
the work. organized and then focused on
the content.
Zohaib Rizwan Struggle to keep pace Took more time than needed
to complete his task.
effective.
Ans. The approach to select IKEA as case assignment worked well because it is a very big organization
with many departments to analyze and think.
were ineffective.
Ans. Before IKEA, we selected MyMoodle as our case but it did not work well in our discussions due to
lack of scope to analyze.
of the semester?
Ans. Gather group meetings regularly to discuss and to work more efficiently.
Individual:
 Attend group meetings regularly and arrive on time.

 Contribute meaningfully to group discussions.
 Complete group assignments on time.
 Prepare work in a quality manner.
 Demonstrate a cooperative and supportive attitude.
 Contribute significantly to the success of the project.
Group:

Team dynamics:

team? Explain.
group experience?
Sample Qualitative Peer/Self Evaluation (Shahrzad Darvishi)

role in group
Shahrzad Darvishi, working Identifying how problems can Implementing plan for smart
on implementation plan be implemented was easy and store. AR and RFID system
after reading articles, I could
find out how the problems can
be implemented
role in group
Shahrzad Darvishi, working But, it was hard to develop
on implementation plan and find the best solution by
myself, so I did this part with
my teammates
effective.
were ineffective.
of the semester?
Individual:

Answer: Regarding the above aspects, I can say, we did this project in the best way and we all did our
best to do the project on-time and during working, we didn’t have any problem, we suggested our
ideas, and then we cooperate and worked on that.
Group:

Team dynamics:

team? Explain.
group experience?
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Technical Report · February 2018

Rajib HOSSAIN Khan

History, Philosophy and Science of Information Systems View project

Qualitative research View project

The user has requested enhancement of the downloaded file.

Rajib Hossain Khan (rk222id@student.lnu.se)

Plan your Yes Visit IKEA

Take it to Pay the Pick up your Find your

Figure-1: Activity model of shopping at IKEA department store

Log in to Already have Search and

Swipe right on product to Collect Swipe left on product to Pay the

Figure-2: Activity model of shopping by using IKEA store app

Browse Scan a Download

Select Move Place Share image

Figure-3: Activity model of IKEA place app

Fill in the invoice and

Fill in the Deliver to

Save and continue to

Parcel Mode of Shipping Place of Venue

Save and continue to

Confirm orders and

Figure-4: Activity model of online shopping at IKEA

Customer Browse and Product

Figure-5: IKEA smart store information model

ICT strategy for the smart store

Figure-6: IKEA smart store process model

Figure-7: IKEA smart store process/information matrix

Web service RFID host

Smart phone Smart store RFID antenna

AR Interface/Dynamic contextualization AR marker Physical reality of smart store

Output layer Augmented reality interfaces

Input layer RFID system User interaction

Browsing Get touch pixels Search inventory

Calculate location AR SDK Calculate location

Distance on 3D Plane X, Y, Z on particular place Distance on 3D Plane

Fetch database Physical

Generate image & information

Ranganathan, C. and Ganapathy, S., 2002. Key dimensions of business-to-consumer web

Group member’s name and Strength Example

Suggestion on aspects to reflect on:

 Attends group meetings regularly and arrives on time.

 All members contributed equally to the project.

 How effectively did your group work?

Group member’s name and Strength Example

Plan for implementation System workflow

Problem areas/business needs RFID is a good example for

Without any weakness

Without any weakness

Mahtab Rezaeinia Without any weakness

Suggestion on aspects to reflect on:

 Attends group meetings regularly and arrives on time.

 All members contributed equally to the project.

 How effectively did your group work?

Group member’s name and Strength Example

 Attend group meetings regularly and arrive on time.

 All members contributed equally to the project.