BUS4013 Technology and

Innovation
Research Report

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Table of Contents

Introduction......................................................................................................................................3
1. Technological and skills gap analysis & its impact.....................................................................3
2. Techniques for Conducting Technological and Skills Gap Analysis on IKEA...........................4
3. How IKEA can follow surveys/questionnaire method................................................................5
4. How IKEA can follow GAP analysis..........................................................................................6
5. How IKEA can follow interviewing with key stakeholders method...........................................7
6. Innovative solution relevant to the technological and skills gap found at IKEA........................8
6.1 Possible benefits....................................................................................................................8
6.2 How IKEA can apply this proposed solution........................................................................9
7. Barriers to implementation........................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction

IKEA's success as a global furniture retailer renowned for affordable and stylish products is
greatly influenced by technology and innovation. With the ongoing changes in the retail industry,
it's essential for IKEA to stay ahead by exploring new technologies. The retail industry is
constantly evolving and adapting to new technologies, making it crucial for companies like
IKEA to stay ahead of the curve and remain competitive (Mishra, 2017). One way to do this is
by conducting a technological and skills gap analysis to assess its current capabilities and
identify areas for development. An innovative solution that can address the identified gap could
bring numerous benefits to IKEA such as improving the customer experience and optimizing
supply chain operations. However, the implementation of new solutions can also come with
barriers such as cost, resistance to change, and lack of sufficient support. This report is going to
discuss a proposed innovative solution to IKEA's technological and skills gap, the potential
benefits of implementation, the implementation process, and the potential barriers to
implementation. The report will also delve into these crucial topics pertaining to IKEA's use of
technology and innovation.

1. Technological and skills gap analysis & its impact

Conducting a technological and skills assessment is a way to evaluate an organization's current

technology and skill set, and identify any gaps that need to be filled (Ringstrom, 2016). The
purpose of the assessment is to determine areas for improvement to maintain competitiveness in
the market. There are several key reasons why organizations should perform a technological and
skills assessment:

1. Maintaining competitiveness: In today's rapidly changing business world, having strong

technology and skills is crucial to staying competitive. By identifying weaknesses, the
assessment can guide organizations to take action to enhance their competitiveness.

2. Growth opportunities: The assessment can also highlight new growth opportunities for
the organization, such as investing in a specific technology to create new products or
services.

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 3. Increased efficiency: The assessment helps to pinpoint areas for improvement in
technology and skills, leading to increased efficiency and productivity.

4. Future planning: By determining areas of need, the assessment can inform the
organization's future planning for investments in technology and skills development.
Overall, a technological and skills assessment is a valuable tool for organizations to
identify areas for development, stay competitive, improve efficiency, and plan for future
growth (Ringstrom, 2016).

2. Techniques for Conducting Technological and Skills Gap Analysis on IKEA

Undertaking a technological and skills gap analysis on IKEA can involve the following methods:

1. Surveys and questionnaires: This method involves distributing surveys and

questionnaires to employees to assess their current technology and skills knowledge, and
gather feedback on areas for improvement.

2. Interviews with key stakeholders: This method involves conducting interviews with
key stakeholders such as managers, supervisors, and employees to gather insights on the
current state of technology and skills, and identify areas for improvement (Bowling,
2014).

3. Analysis of internal data: This method involves reviewing internal data such as sales
figures, customer feedback, and employee performance data to identify areas where
technology and skills gaps may exist.

4. External benchmarking: This method involves comparing IKEA's technology and skills
with those of its competitors to identify areas where it may be lacking and need to
improve.

5. Pilot testing of new technologies: This method involves testing new technologies in a
controlled environment to evaluate their impact on the organization and identify any
areas for improvement (Bowling, 2014).

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By using a combination of these methods, IKEA can gain a comprehensive understanding of its
current technological and skills capabilities, and identify areas for improvement to stay
competitive and meet the changing needs of its customers.

3. How IKEA can follow surveys/questionnaire method

Undertaking a technological and skills gap analysis through the use of surveys and
questionnaires is a common method for organizations to determine key development areas. This
method involves the following steps for IKEA:

 Design the survey/questionnaire: The survey/questionnaire should be designed to

gather specific information related to IKEA's technology and skills. It should include
questions about the employees' current technology and skills knowledge, the technology
and skills they would like to learn, and their perception of the current technology and
skills available in the company (Walliman, 2014). For example, questions could include:

1. How confident do you feel using the current technology systems in your role at
IKEA?
2. What new technology or software would you like to be trained on in the future?
3. In your opinion, does IKEA have the necessary technology and skills to remain
competitive in the market?

 Distribute the survey/questionnaire: The survey/questionnaire should be distributed to

a representative sample of employees across all levels of the organization, including
managers, supervisors, and front-line employees.

 Collect and analyze the data: The data collected from the surveys and questionnaires
should be analyzed to identify patterns and trends in the responses. This information can
be used to identify areas where IKEA's technology and skills may be lacking, and where
improvements can be made. For example, if the analysis shows that employees would
like to be trained on a specific technology or software, this could indicate a need for
investment in that area.

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  Identify areas for improvement: Based on the analysis of the data, IKEA can identify
areas where it may be lacking in technology and skills, and where improvements can be
made. For example, if employees express a need for training on new technologies, IKEA
can invest in training and development programs to address this gap. Additionally, if
employees indicate a lack of confidence in the current technology systems, IKEA could
invest in improvements or updates to those systems.

Overall, the use of surveys and questionnaires is an effective method for IKEA to identify areas
for development and improvement in its technology and skills (Walliman, 2014). This
information can be used to make informed decisions about future investments in technology and
skills development to ensure the company remains competitive in the market.

4. How IKEA can follow GAP analysis

Undertaking a technological and skills gap analysis through the use of the GAP analysis method
is a useful tool for organizations to determine key development areas. This method involves the
following steps for IKEA:

 Assess current technology and skills: IKEA should assess its current technology and
skills to determine its current capabilities. This can be done by reviewing the technology
systems and processes currently in place, as well as the skills and knowledge of its
employees (Scholes. 2017). For example, IKEA can review the technology systems used
in its supply chain operations, such as its inventory management system, to determine its
current capabilities in this area.

 Determine desired technology and skills: IKEA should also determine its desired
technology and skills in order to identify areas where improvements can be made. This
can be done by researching the latest technologies and processes available in the market,
as well as the skills and knowledge required for the future. For example, IKEA can
research the latest artificial intelligence technologies and processes to determine if these
could be used to improve its customer experience or supply chain operations.

 Identify gaps: Once the current technology and skills have been assessed and the desired
technology and skills have been determined, IKEA can identify the gaps between the

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 two. For example, if IKEA finds that its current inventory management system is
outdated compared to the latest systems available in the market, this could be a gap that
needs to be filled.

 Develop a plan of action: Based on the gaps identified, IKEA should develop a plan of
action to address these gaps and move closer to its desired technology and skills. This
plan should include specific actions, timelines, and resources required to fill the gaps
(Scholes. 2017). For example, if IKEA identified a gap in its inventory management
system, it could plan to invest in a new system and provide training for employees on its
use.

Overall, the GAP analysis method is an effective tool for IKEA to identify areas for development
and improvement in its technology and skills. By assessing its current technology and skills,
determining its desired technology and skills, and identifying the gaps between the two, IKEA
can make informed decisions about future investments in technology and skills development to
ensure the company remains competitive in the market.

5. How IKEA can follow interviewing with key stakeholders method

The interviewing key stakeholders method is another approach for IKEA to undertake a
technological and skills gap analysis to determine key development areas. This method involves
conducting face-to-face or phone interviews with key stakeholders in the field (Nilsson, 2011).
The aim of the interviews is to gather information and insights on the current capabilities,
strengths, weaknesses, and opportunities for improvement in technology and skills.

For example, IKEA could conduct interviews with its employees to gather information on their
current technology usage, skills and training, and areas where they feel they could benefit from
additional training or technology upgrades. The company could also interview customers to gain
a better understanding of their needs and preferences in terms of technology usage in the
purchasing and delivery process. Furthermore, IKEA could interview experts in the field of
supply chain management to gather insights on the latest advancements in technology and skills
that could improve the company's operations.

The information gathered through these interviews can then be analyzed and used to identify
areas for improvement and potential solutions to address the gaps (Cannon, 2014). This method

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can provide valuable and comprehensive insights for IKEA to make informed decisions about
technology and skills development. However, it is important to ensure that the stakeholders
selected for interviews are representative of the company as a whole and that the interview
questions are well-structured and objective.

6. Innovative solution relevant to the technological and skills gap found at

IKEA
One innovative solution relevant to the identified technological and skills gap for IKEA could be
the implementation of augmented reality (AR) technology in its retail stores. By integrating AR
technology, IKEA can provide customers with a virtual shopping experience where they can
preview how furniture and home decor items would look in their homes (Nilsson, 2011). This
can improve the customer experience and increase customer satisfaction. Additionally, AR
technology can also help IKEA save costs by reducing the need for physical product displays,
freeing up valuable floor space in its stores. Moreover, IKEA can also use AR technology to
provide customers with product information, such as assembly instructions and product features,
directly through their smartphones or in-store displays. This can improve the shopping
experience and reduce the need for physical product manuals.

6.1 Possible benefits

The potential benefits of implementing augmented reality (AR) technology at IKEA could be:

 Improved Customer Experience: AR technology can enhance the shopping experience

for IKEA customers by allowing them to preview how furniture and home decor items
would look in their homes before making a purchase. This can save customers time and
reduce the number of returns due to dissatisfaction with the product's appearance.

 Space Optimization: By reducing the need for physical product displays, AR technology
can free up valuable floor space in IKEA stores. This can allow IKEA to display more
products and improve the shopping experience for customers.

 Increased Customer Engagement: AR technology can also provide customers with

product information, such as assembly instructions and product features, directly through
their smartphones or in-store displays (Cannon, 2014). This can improve the shopping

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 experience and encourage customers to spend more time in IKEA stores, exploring
different products and learning about their features.

 Cost Savings: Implementing AR technology can also help IKEA save costs by reducing
the need for physical product displays and manual product information. This can free up
resources that can be invested in other areas of the business.

 Competitive Advantage: By incorporating AR technology into its retail stores, IKEA

can differentiate itself from its competitors and gain a competitive advantage. Customers
may choose to shop at IKEA over its competitors due to the enhanced shopping
experience and availability of cutting-edge technology.

Overall, the implementation of AR technology can bring significant benefits to IKEA, including
improved customer experience, increased customer engagement, cost savings, space
optimization, and a competitive advantage (Roper, 2012). By embracing innovative solutions
such as AR technology, IKEA can stay ahead of the curve in the rapidly evolving retail industry.

6.2 How IKEA can apply this proposed solution

here are some potential steps IKEA could take to implement augmented reality (AR) technology
in its stores:

1. Conduct a Feasibility Study: IKEA can conduct a feasibility study to assess the
potential benefits, costs, and technical requirements of implementing AR technology in
its stores. This will help IKEA determine whether the implementation is a viable option
and what resources will be required.

2. Partner with AR Technology Providers: IKEA can partner with AR technology

providers to develop custom AR solutions that meet its specific needs. These providers
can help IKEA integrate AR technology into its existing systems and provide training and
support to store employees.

3. Develop Mobile Apps and In-Store Displays: IKEA can develop mobile apps and in-
store displays that use AR technology to preview products in customers' homes. These
apps can be made available to customers through the App Store and Google Play, as well
as in-store displays.

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 4. Train Store Employees: IKEA will need to train store employees on how to use AR
technology to assist customers in previewing products and accessing product information.
This will help ensure that employees are comfortable using the technology and able to
provide a high-quality customer experience (Kling, 2013).

5. Launch Marketing Campaigns: IKEA can launch marketing campaigns to promote the
availability of AR technology in its stores. This can help drive customer awareness and
engagement, and encourage customers to try out the technology.

6. Continuously Monitor and Evaluate: IKEA should continuously monitor and evaluate
the success of its AR technology implementation. This will help IKEA identify any issues
that need to be addressed and make improvements to the technology over time.

By following these steps, IKEA can effectively implement AR technology in its stores,
enhancing the customer experience and staying ahead of the curve in the rapidly evolving retail
industry.

7. Barriers to implementation

The implementation of innovation in any organization, including IKEA, can be hindered by

several barriers, both technological and behavioral. Some of these barriers include:

1. Cost: One of the biggest barriers to the implementation of innovation is cost (Roper,
2012). New technology and solutions can be expensive, and organizations may not have
the resources to invest in these solutions.

2. Resistance to change: Another common barrier is resistance to change. Employees may

be uncomfortable with new technology or solutions, and may be resistant to adapting to
new ways of working.

3. Lack of sufficient support: The implementation of new technology or solutions requires

support from senior management and other stakeholders. If this support is not
forthcoming, the implementation process can be hindered.

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 4. Technical difficulties: Technical difficulties can also be a barrier to the implementation
of innovation. For example, the technology may not work as expected or may require
significant time and effort to implement (Kling, 2013).

5. Lack of understanding: Another barrier to the implementation of innovation is a lack of

understanding. Employees may not have the knowledge to use the technology or solution,
which can hinder its success.

6. Data security concerns: Data security concerns can also be a barrier to the
implementation of innovation, particularly when sensitive customer or company
information is involved.

It is crucial to identify and address these barriers to the implementation of innovation in order to
ensure its successful implementation. This may involve providing additional training and support
to employees, communicating the benefits of the solution to stakeholders, and addressing
technical or data security issues.

Conclusion

In conclusion, technological and skills gap analysis is a crucial process for organizations to stay
competitive and improve efficiency. IKEA can benefit from identifying areas for development
through gap analysis and implementing innovative solutions to address the gaps. The proposed
solution in this report can bring numerous benefits to IKEA, but it is important to understand and
address potential barriers to successful implementation. By addressing these barriers, IKEA can
continue to stay ahead of the curve in the constantly evolving retail industry and remain
competitive in the market. This report has provided an overview of the process of conducting a
gap analysis, the benefits of implementing innovative solutions, the implementation process, and
the potential barriers to implementation.

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