IKEA Furniture Production Company

IKEA Furniture Production Company

IS Department

IKEA identifies itself as a global company that is constantly developing. IKEA IS supports the development of IKEA by providing solutions that enable the efficient flow of information. IKEA IS department is made up of different IT centers with IT specialists who collaborate in a solution-oriented manner. The IKEA IT team is made up of creative players with a dedicated and honest interest in the success of IKEA in the home furnishing industry. The IKEA IT team provides the business with fast, lean, and user-friendly services and technology (Rese & Schreiber, 2016). IKEA has its IT teams which ensure there are opportunities to improve, simplify, and streamline all aspects of IKEA operations. IKEA IT support functions are in all parts of the company but most of the specialized IT projects and jobs are based in different IKEA IT centers. IKEA has no specific or outlined IS department.


IKEA is currently outsourcing some of its IT operation from IBM, HCL, and Cap Gemini in deals worth approximately $237 billion (Zhu, 2016). IKEA outsourced some of IT operation to inject flexibility it its IT workforce made up of 1,300 IT employees in Sweden, France, China, Germany, and the United States. More than 700 IT staff was affected by the move, for example, 400 IT staff was offered roles at the suppliers. IS outsourcing enabled IKEA to control IT costs by converting some of its IT costs into variable costs. IKEA incurred high costs in hiring and training IT staff that are at most times temporary employees. Outsourcing helped IKEA reduce labor costs because the company now mainly focuses on its human resources where they are needed most. Outsourcing meant that IKEA faces some challenges with quality of its information systems, for example, its website has at times varying prices with the business’s stores. Most IKEA business functions are dependent on the business’s IS and IKEA seized some control on its operations and deliverables by outsourcing some activities.

IS Disaster Preparedness

The IS disaster preparedness plan for IKEA is anchored on the business impact level of all key IS services in the business. IKEA also has a formula to visually show the IT services recovery and redundancy levels in comparison with their impact level on the business. IKEA has measures to match the two levels for any IT service that did not match. IKEA has also an established redundancy level to prevent a “sales stop” situation in cases where there are points of failure. IKEA has also backup and disaster recovery procedures that are based on the organization’s recovery time objective and recovery point objective requirements. There are processes in place to ensure all disaster recovery procedures are reviewed at least once a year (Rese & Schreiber, 2016). IKEA needs to have a consolidated IS disaster preparedness plan because of it large scale operations which are distributed geographically.

Business Organization

Figure 1IKEA-Organizational-structure

Figure 2 IKEA Group Organization

Suggested Organizational Changes

IKEA’s organization design is based in a divisional structure because the business groups its products markets internally. IKEA bases its divisions based on geographical location which each store having a manager for a specific or several functions. IKEA is a large business and its organization gives it challenges because it lacks flexibility which also leads to challenges of sustaining the business’s competitive advantage (Daft, 2015). IKEA should get the best of tall and flat structures to reduce or eliminate the experience of ambiguity by most employees who may not know what is expected of them. The business can also use tall structures to ensure that managers provide close supervision which ensures employees reach their targets.


List and justify the top three threats your BOI faces.

# Security Threat Description & Justification
1. Interception IKEA has distributed IS systems and this poses a risk of unauthorized party gaining access to the business’s assets. The unauthorized party can be a computing system, person, or program.
2. Interruption Interruption happens by some data or services becoming unavailable. IKEA’s IS processes are heavily depended on data and services for optimum performance. Denial of service attacks or intentional file corruption can be a security threat to the business because the business uses a lot of IT services and data.
3. Modification IKEA has many internal and outsourced staff from different backgrounds and cultures. Lack of integrity can lead to an unauthorized party gaining access and tampering with one or several assets, for example, changing values is a data file.

Mitigating Security Risks

Describe existing safeguards. Recommend safeguards if the existing safeguards are inadequate.

# Security Threat Existing Safeguards Recommendations
1. Interception IKEA has outsourced IS security services from IBM which is one of the best providers of strong encryptions. IKEA has strong encryption despite facing threats in some of its outlets.
2. Interruption IKEA has a recovery plan which has backups and control measures to ensure continuous availability or usability of IS assets. IKEA should constantly test different infrastructure components and take subsequent steps to reduce or eliminate identified security threats.
3. Modification IKEA has data confidentiality, integrity, and origin authentication measures. IKEA can improve on its verification and validation measures to ensure IS assets are not tampered by authorized users, knowingly or unknowingly.

IS componentS (Finalized)

Hardware Software Data Procedures People
· Transaction processing system

New Item Component Type Description & Notes
Transaction processing system Software The company used the transaction processing system to balance and control purchases of goods within the business.

IKEA has a large portfolio and the company uses a computer database system to manage its transactions. IKEA’s e-commerce system requires coordination with the storage and distribution processes. The transaction process system manages the warehousing and distribution of products purchased by consumers.

References Daft, R. L. (2015). Organization theory and design. Cengage learning. Rese, A., & Schreiber, S. (2016). Mobile Computing and Wireless Networks: the case of IKEA. Concepts, Methodologies, Tools, and Applications, 1714-1736. Zhu, X. (2016). From Building All-Round Capabilities to Outsourcing and Crowdsourcing. In X. Zhu, Outsourcing and Crowdsourcing (pp. 105-121). Springer, Singapore.

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