The Overview of IKAE Innovation Display - Case Study Example

IKAE Innovation Display By Name Course Instructor’s name Institution Location Date IKAE Innovation Display Introduction IKAE is a multinational company group that deals with the design and markets the ready to assemble the furniture, home accessories, and appliances (Rosner and Bean, 2009 pp.420). It is known as the world’s largest furniture with its foundation being from Sweden, and the company’s name being acronyms of the founder and his farm of growth. The organization is associated with simplicity in its way of design realized in both architectural and interior design enabling it to enjoy the economies of scale (Lim, Pirsiavash, and Torralba, 2013 pp. 2993). The company operates its 332 stores and 50 Countries and has remained to be one of the large revenue generating companies in the world with the owner being named among the top richest people in the world (Lim, Pirsiavash and Torralba, 2013). The firm is greatly known for the attention that it provides to the cost control, its operation details as well as the continuous product development realized through a different innovative process (Antifakos, Michahelles, and Schiele, 2002). This paper gives the overview of IKAE organization towards its success by looking its innovative process and their effects on entrepreneurial skills and other businesses. Entrepreneurial/innovative process implemented by IKAE First, the company employs the pop-up advertisement as a means of attracting more customers to increase their sales volumes (Füller and Matzler, 2007). The system is designed for the usage of the JavaScript which makes the company’s new ideas as well as prices to be made available on the World Wide Web site for any customer to make the inquiries (Hastings and Saperstein, 2013). The innovation process ensures that the company reaches every individual in a showing of their new products and then creates a platform for showing the outputs. Secondly, the firm ensures the best communication method to every stakeholder within its modes of operation to ensure a good flow of information (Mahr, Lievens and Blazevic, 2014). It communicates its innovation strategies which ensure that it maintains the core strength of the organization ensuring price control and provision of appealing products. The good communication system and design of its products facilitate the transportation and assembling of the products for maximum market exploitation. Thirdly, the organization is free and open to the new ideas as well as approaches brought to it by the stakeholders (Goetsch and Davis, 2014). The idea is received and developed by the top management to the internal innovation experts who gives the recommendations on the best way to formulate the new idea. The ideas are obtained from the different activities the firm does, which includes the pop-up lounge, storage balconies, and a moving showroom. The company does not despise any idea that is brought forward since it believes in making what the consumers need. Lastly, the firm has a well-defined organizational and governance structure which is purely concerned with the management of the innovation processes (Harper, 2015). The culture of innovation has been inflicted in the entire pore of the organization by the founder, and the management role is to oversee all the innovations (Abdu and Johansson, 2009). The changes that are related to the innovations are directed at the top management which evaluates their performance through the use of key performance indicators which measures the innovating achievement and milestones. Entrepreneurial/innovative skills learned from IKAE Some of the lessons learned from the organization include; first, an entrepreneur should be open and ready to receive new ideas from others (Ingelstedt, Jönsson and Sundman, 2009). The practice of being free and open to making the innovation ensures that all the ideas brought forward can be easily discussed as well as challenged to ensure that only the best ideas are implemented regardless of the idea origin. The practice ensures that the idea is given the priority, not its origin creating a good foundation for innovation. Secondly, to be successful in innovation, the individual needs to take a risk and allow him/herself to fail on every occasion as he/she learns from the failures and success (Kgagara, 2011). New ideas when implemented within an organization are only subject to two conditions that are failure or success. Therefore individuals should not fear to bring in innovations for fear of failure. Not taking a risk means not bringing new things to the organization which signals no breaking of the virgin grounds for the business which will lead to the business remaining stagnant in its development. Thirdly, an entrepreneur should be able to break down the barriers within the organization to ensure a stirred means of innovation within the firm (Baptista and Leitão, 2015). Removing all the restrictions and fear among the employees enables communication to flow within the organization, and the junior staffs can easily raise their ideas to the top management without fear and barriers. The IKAE organization ensures that everybody is given an equal chance in bringing up the innovative idea which is evaluated to make the best decision (Peeva, 2015). Lastly, an entrepreneur should be ready and be able to make a rapid decision in carrying out the innovation process (Molina and Callahan, 2009). The process involves quickly finding the alternative for any failed ideas to ensure continuous development of the organization. The company has brought out several ways through which the alternative can be found, and it is good for the entrepreneurs in innovations. Why the lessons have made the business successful The lessons have made the business successful since the business has incorporated the interest of the consumers in their innovations. The process has also ensured none of the stakeholders is neglected in running the business making them feel part of the entire business success (Ward, 2016). The business has also not feared to take the risk of implementing new ideas as the company founder has inflicted the culture of innovation which can only be achieved through risk taking. Several alternatives are made available for the business in implementing a specific idea which shows that the firm’s ability to make quick decisions in case of the idea failure. The innovative basics of communication have kept the business relevant in delivering the service, as there is constant innovation strategy communication which provides the guidelines for IKEA innovations (Bridge and O'Neill, 2012). The business openness to receive the ideas from others has impacted the success as collective strength is provided to the business before any final decision is made in the firm creating good management and other staffs relation (Chesbrough, 2010). Reasons for other organizations not adopting IKAE success factors Others firms have been willing to implement the same actions of IKAE but have not been successful in bringing their ideas to realities. This has taken place due to the following reasons; first, most of the firms operate in a closed minded mode of communication (Boons, and Lüdeke-Freund, 2013). In this situation, the employees and other stuff do not feel like their ideas can be shared as well as have to impact in the life of the business. An employee, in this case, keeps the idea to him/herself and only operates on the ideas and the innovation guidelines provided by the management. Secondly, other organizations operate in a manner which tries to avoid encountering risk in their daily operations (Hotho and Champion, 2011). The business in this case always wants to work with whatever has already worked with other organizations or the organization itself and will try to avoid implemented new ideas in operations. Once a business develops such cultures, the innovations will not take effect as innovations involve taking risks to realize what works best for the organization. Lastly, the organizations want to protect and create their identities within the market structure. When an organization creates the boundaries to protect them, the innovations will not take place since a change in the mode of operation will mean a change in the identity which might be against the wish of the management (Madrid‐Guijarro, Garcia and Van, 2009). Recommendations for overcoming the challenges All the challenges that occur within the organizations are subject to a solution which greatly relies on the business. To overcome the challenges which have been shown by firms which are not growing in innovations as IKAE, the following recommendations are to be considered. First, the business should budget for the innovations in their monthly plans for the organizations. The budget would help in organizing the innovation meetings and workshops with the organization to ensure that everybody’s innovative idea is put into reality. Secondly, the organizations should prioritize in making long-term brand buildings which are flexible in the implementation of its policies to ensure that new ideas are brought into the building system. Thirdly, the business should be ready to take any risk that comes with the innovation of the new issues as new ideas only come with risk taking. Lastly, the business should take and have a keen eye on the thoughts of the people and business around it to obtain the new ideas which will ensure the prosperity of the business (Vaccaro et.all, 2012). Conclusion IKAE has been on the market for over 70 years and has remained relevant in the market for its good innovation strategies. Innovation from the discussion is important in the development of the organization, and all companies should copy the trend being implemented by IKAE to fully satisfy the market. 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