IKEA IT AB

Integrated solution helps improve maintenance to help rein in costs and keep customer satisfaction high

Published on 13-Dec-2013

"The facility management solution helps improve the overall property lifecycle process, aligns the services and retail business of IKEA, and promotes best practices, helping uphold the IKEA brand, reputation and pricing that our customers know and expect." - Mattias Stälhammar, Group facility manager

Customer:
IKEA IT AB

Industry:
Retail

Deployment country:
Sweden

Solution:
Asset Management, SaaS, Smarter Planet, Transformational Account

Overview

IKEA was founded in 1943 in the village of Agunnaryd, Sweden, by 17-year old Ingvar Kamprad. Since then, the IKEA Group has grown into a global retail brand with more than 130,000 employees in 41 countries generating annual sales of more than EUR24.7 billion. Its property portfolio is one of the largest in the world, with IKEA owning its own stores and often the entire shopping mall where the store is located.

Business need:
IKEA expects to grow up to 15 percent over the next few years by increasing market share in existing markets and opening stores in underdeveloped and new markets.

Solution:
This global home furnishings retailer implemented an asset and FM solution that monitors all of its assets, provides automated preventive management, and tracks equipment usage and repair trends.

Benefits:
The IBM solution helped generate an average savings of 5 percent of global FM spending over six years and an anticipated payback period for the project of just under three years.

Case Study

IKEA was founded in 1943 in the village of Agunnaryd, Sweden, by 17-year old Ingvar Kamprad. Since then, the IKEA Group has grown into a global retail brand with more than 130,000 employees in 41 countries generating annual sales of more than EUR24.7 billion. Its property portfolio is one of the largest in the world, with IKEA owning its own stores and often the entire shopping mall where the store is located.

The Opportunity
IKEA expects to grow up to 15 percent over the next few years by increasing market share in existing markets and opening stores in underdeveloped and new markets. Growth comes with challenges, however, including the need to operate and maintain hundreds of retail stores and warehouses worldwide. The retailer knew that automated, IT-supported global facility management (FM) processes and services would help reduce overall operating costs and it could pass those savings on to consumers in the form of lower prices, helping it gain further market share.

What Makes It Smarter
FM costs can really add up for a retailer with more than 300 stores and warehouses worldwide and these costs must often be passed on to consumers in the form of higher prices. This global home furnishings retailer implemented an asset and FM solution that monitors all of its assets, provides automated preventive management, and tracks equipment usage and repair trends. Energy monitoring helps ensure a smaller carbon footprint and lower energy costs.

The solution provides the retailer with insights to help it prevent equipment breakdowns and enables it to replace worn or poorly functioning assets with better-performing equipment before those assets raise operating costs or negatively impact a customer’s experience with the retailer’s products and stores.

Real Business Results
• Generates an average savings of 5 percent of global FM spending over six years and an anticipated payback period for the project of just under three years
• Helps improve energy efficiency by monitoring and analyzing energy use to improve energy management procedures and promote renewable energy use in the retailer’s facilities
• Improves the customer experience by helping ensure that all elements of the company’s stores are inviting and in the best working order possible

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/tivoli.

To learn more about IKEA IT AB, visit www.ikea.com.

Products and services used

IBM products and services that were used in this case study.

Software:
Maximo Asset Management, WebSphere Application Server

Service:
GTS Strategic Outsourcing, IBM Global Business Services

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America December 2013 IBM, the IBM logo, ibm.com, Tivoli, Maximo, WebSphere, Global Business Services and Global Technology Services are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copy trade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

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