Question

Business information System of IKEA

describe the following in relation to the business infromation system of IKEA:

1) Overview of the business information system of IKEA

2) business process related to the system

3) how the system generates the value for the company in relation to its operations

Answer 1

IKEA is a leading brand in the retailing of the Home furnishing, fabric, Kitchen segment.IKEA started the journey in 1943 in Sweden. This is the leading brand in furniture. This brand started in Baraladi from 2002.IKEA's focus was on good quality products at low prices.IKEA is an international brand available in Europe, America, Asian countries, and Australia. They modernized themselves in each step that helped the organization and customer eventually.

1. Business information system:

INGKA Holding is the key of all IKEA five group companies.There are five executive members, owner Kampard, his wife and 3 attorneys. All comapnies are working together.

Inter IKEA System connects all franchisee store located nationally or internationally.The key information flows from stores to Top level. This system monitors sale, inventory, cash,demand and supply. This information is carried through internet. IKEA follows Bottom to Top approach.

2. Business process:

IKEA is known for the HR department. So integration of the business process is also key in IKEA.

24 Hours outlet opening: IKEA store opens for 24 hours.Replensihment work is carried out in nigt only.

Supply chain Management: Structure of IKEA is to optimize the product and supply process.All suppliers are connected with ECIS which help in forecasting,stocks and status of the supply.And all are linked with integrated complex communication system. And Business Support center monitors all divisions also responsible for the introduction of the new system.

IKEA also workes on JIT System, certain orders are catered from warehouse to the client directly. So the sufficient stocks are maintained through high frequency of supplies.

Marketing system is known as ISRA which is responsible for any promotion or consumer scheme operation. ISRA team members decide the complete marketing coverage and brand building exrcise .IKEA also does website marketing.

3. How the system generates the value for the company:

Computer and human involvement helps in improved more message,cost reduction,new form of integration of the organisation, Business deployment, and help in business enhancement.All integration of the process help in increase of value for the company.