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You are listening to the Business
Leadership Podcast with Edwin.
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Paul: I'm Paul Newton, creative producer
of the Future Narrator miniseries,
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and I'm joined by Edwin Fzo, the host
of the Business Leadership Podcast.
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I.
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We're recording live at Web Summit
Vancouver 2025, and we're exploring how
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today's leaders shape the future, not
just through strategy, but through story.
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We believe that a strong point of
view is what inspires communities,
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builds movement, and cuts to
the noise in uncertain times.
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So let's dive into this conversation.
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I.
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Today's guest is leading one of the
world's most iconic brands through
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a digital transformation that's as
ambitious as it is human centered.
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EK EK is the Chief Digital Officer
at IKEA retail where he's responsible
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for building digital capabilities and
accelerating ikea's transformation into a
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more connected customer-centric business.
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With over 20 years of global experience
spanning leadership roles at I.
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Adidas at General Electric and now Ikea.
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PEG brings a powerful blend of
technical depth, strategic vision,
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and cultural insight to his work.
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An engineer by training with an MBA and
executive education from Harvard Business
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School, PEG has helped shape omnichannel
strategies, e-commerce ecosystems, and
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digital products across continents.
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Time for me now based in Sweden,
he's driving innovation at scale
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to make IKEA more accessible,
sustainable, and digitally empowered,
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while never losing sight of the
people at the heart of the business.
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Edwin: Welcome to the Business
Leadership Podcast, Prague.
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Parag: Pleasure, uh, Paul Edwin.
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Thanks for having me.
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Super excited.
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Edwin: Yeah, we're really
super excited to hear.
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I just, uh, first off, I just want
to acknowledge your time coming all
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over here to website at Vancouver.
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So, how's the day treating you today?
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Parag: It's been, uh, exciting.
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Some, uh, very interesting
discussions, uh, in the, uh,
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listening into a few panels, but also
a few meetups at the speak aloud.
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So, so far it's been fantastic and.
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Couldn't have asked for,
uh, a better weather today.
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Today.
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Edwin: Oh, it's been amazing.
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Fantastic.
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So Prag, can you share and tell us
about ikea's digital transformation
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and the problem you are solving
in global retail innovation and
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customer, customer experience now?
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Parag: No, absolutely.
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I mean, uh, uh, IKEA has had been leaked
to the journey of digital transformation.
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Uh, but, uh, since 2017 is when we have,
uh, tried to superpower, uh, uh, we have
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actually, uh, we are changing almost
everything all at the same point in time.
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And I always say, uh, IKEA is going
through three, uh, transformations,
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uh, at least in the last few years,
but a few more now, uh, on our agenda.
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One, it's about transforming from
being a physical brick and mortar
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retailer to an omni retailer.
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Uh, and just to put things in
perspective, 2017, maybe 1%
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of our business was digital.
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Mm.
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To today, on an average, 30% of our
business tends to be digital or omni.
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Uh, and that has, uh, phenomenally
changed just in a few years.
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The second transformation is, uh, also
something very physical in nature.
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We have, we have, we are
transforming from, uh, the big
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store formats, which will still
continue to be our mainstay mm-hmm.
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For tier 50,000 square meter
spaces to being closer to where
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the customer is in city centers.
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Most recently we opened Oxford,
uh, in the Oxford Street.
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We are opening up in, uh,
fifth Avenue in, uh, New York.
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So getting closer to where the
customer is in smaller formats,
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5,000 or 10,000 square meters.
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And that itself is a challenge.
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How do you bring the experience from
a 50,000 square meter commercial
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space into a five or 10003rd?
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Uh, I think the transformation we have
been undergoing is, uh, essentially
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while the customers are visiting for our
amazing products at our touch points,
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they're also asking us, can you help
us with, uh, secondhand furniture?
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Mm, can you help us
with financial services?
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Can you help us with energy and other
needs in our life at home experience?
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And, uh, those are some of the business,
uh, opportunities we are exploring
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to figure out how do we transition?
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So we had these like three transformations
ongoing and, uh, add to it.
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Uh, the world has had been, uh,
touched with what AI has to bring.
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So while doing these transformations, we
are also saying, what does this mean so
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that we are not ready for today, but with.
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What AI might bring, we are
also ready for tomorrow,
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Edwin: right.
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Parag: So it's really, uh, undertaking
these transformations, but making
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sure it's not just about catching up.
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Uh, it's about leapfrogging
into where we need to be.
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Edwin: Well, PAG,
that's, uh, it's amazing.
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And, you know, I'm just really inspired
and motivated in terms of not only
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these digital transformations is three
tiered, the ones that you've been
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working with within the organization and.
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Before, I forget that, that
small footprint one, and I live
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in downtown Toronto, there's one
right in the core of downtown.
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It's great.
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We just go there, we walk and we can hang
out and, and it's an amazing, amazing
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experience, especially my daughter.
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She's almost nine.
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Mm-hmm.
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And she loves to see the setups and play,
and so she can imagine herself in there.
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So it, it, it works out
definitely for that.
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Um,
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Parag: no, and, and one of
the things we always say is.
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Stores, physical stores will
still be our peak experience.
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Edwin: Mm-hmm.
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Parag: When you are visiting ikea, that's
where you will probably get to see some
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of the best room sets, some of the best,
what life at home experience can mean.
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Yeah.
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But then we are also saying
how do we augment that, right.
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When customers can't
make it to our stores.
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Mm-hmm.
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And when it's more convenient for
them to meet in different touch
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points, how do we facilitate and
how do we make that happen as well?
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So while uh, stores will continue
to be our mainstay and where our
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peak experiences are from an IKEA
perspective, we also then are figuring
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out how best to create that ecosystem.
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To reach, uh, out to every customer
in Toronto, how and where they want to
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engage, but still, always wanting to bring
them back into a store and experience.
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Edwin: The peak.
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Yeah.
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It, there's, there's no, no replacing
the, the look and feel and being within
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an environment and imagining yourself.
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I mean, don't get me wrong, I think
those immersed digital and when
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it really gets there, the VR type
world, like, I mean, you're gonna
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feel that you're in there as well.
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Um, para what's interesting in, in over
my experience when it comes to business
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leadership and talking to folks like
yourself is not only the, you know.
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Your experience before coming to ikea.
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I'm curious, you know, with these given
challenges and opportunities, what
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is your current unique point of view?
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You know, what do you bring, um, that
will help, um, solve these challenges?
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Parag: I think one of the
biggest trends I feel, at least
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from my perspective, is, uh.
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Of course I bring in, uh, expertise,
which is linked into digital and tech.
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Mm-hmm.
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But it always starts with that
curiosity of what is the business
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problem that I'm trying to solve?
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And it could be the business problem
that's relevant for our customers,
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uh, business problem that's relevant
for our coworkers business problem
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that might be relevant for the
company itself and or for the planet.
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So what's, what's the problem to address?
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And then I think, uh, my strength
probably lies in being able to understand
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that problem and then figuring out how
digital tech AI can be applied to the
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service of addressing that problem.
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And when we do that, that's
where, uh, the magic happens.
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Yeah.
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That's where really the magic happens.
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Paul: And so you talked about your,
your strength para in, in just seeing,
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seeing those, uh, those sort of the
business problem that's being solved.
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Where do you think that came from?
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Uh uh, where, where do you think that,
that, that skill or that strength?
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Like what, what is it
about you personally?
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Yeah,
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Parag: I think, uh, it's been, uh, the
journey and sometimes, uh, is the journey
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which builds you to where you are.
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Uh, so I originally come from,
uh, India, come from, uh.
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A middle class, uh, family growing up,
uh, resources was always a challenge.
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So you always had to compete,
uh, to, to make the best
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other: mm,
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Parag: uh, and to grow.
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Uh, and I think, uh, kudos to the
bringing, but also my parents that, uh,
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education helped us and was essentially
a ticket to the world outside.
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So always very thankful for what,
uh, the family has had to provide
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in really giving the possibility.
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But then I think.
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Ever since I've stepped into the
professional world, uh, I've had the, uh,
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possibility of working in very different
setups in very different cultures.
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Uh, right from Asia to Europe to Americas,
but also very different organizations.
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Uh, the first organization, a
very American culture, the second
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one, a very German culture,
and now a very Swedish culture.
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And it's just understanding those, uh.
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Putting myself in those situations,
which has allowed me to understand the
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aspects of, uh, working with people.
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And, uh, also in many cases, the fact
that I was moved across businesses
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allowed me to quickly immerse, roll
up my sleeves, understand the business
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context in a very short period
of time to be able to then apply.
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So I, uh, I feel through the
opportunities I have been given,
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it has exposed me to possibilities
of picking up skills, both people.
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But also content-wise, that, uh, sort of
helps me in my journey to learn and grow.
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Paul: Yeah.
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And do you think because of that
you have a unique way of seeing
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things and seeing problems?
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Parag: I think, uh, yes, absolutely.
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It comes, uh, when I say, uh, uh,
I look at, uh, the upbringing and
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coming from, uh, where I am, resources
have always been challenging.
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other: Yeah.
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Parag: So when you are now
placed into situations where,
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uh, there might be abundance.
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But there is still an opportunity.
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You start looking at those opportunities
and seeing, uh, so that has helped shape
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a little bit of how you look at things
more, uh, with an optimism of what can be
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other: Yeah.
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Parag: Even in spite of the challenges.
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And that sort of helped, uh, has helped.
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And then the aspect of, uh, I still
remember my early days with, uh,
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uh, general Electric in, in what
they call their leadership program.
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Edwin: Mm-hmm.
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That's a powerful program,
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Parag: an excellent, excellent
program where you sort of move
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through different parts of the GE
business every eight months and eight
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months is when your stint where a,
you are introduced to the business.
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So imagine you are going from GE
Industrial to GE money to GE aircraft
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engines, completely different business
cycles, but you're also expected
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to deliver in those eight months.
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other: Yeah.
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Parag: So understanding the
business, understanding the problem,
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and delivering in eight months.
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And that sort of helped to say,
uh, build the muscle on, uh,
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understanding the context and then
to get things, make things happen.
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So I think, uh, sometimes you don't
realize that when you go through
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some of those aspects, it's like
the furnace, which helps you to
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prepare for, uh, who you are today.
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And I think some of these experiences
I have been fortunate enough to have
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gone through it, which has helped
me prepare, uh, for where I'm today.
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Paul: Well, that's quite a wealth of
insights you're bringing to this company.
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And uh, I think, you know, when you
were talking about with the abundance
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and what's possible, but coming from
a place where maybe you don't have
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the abundance and you still have to
look at the world of possibilities,
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it really sets you up, especially in
a time where that there's so many, uh,
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like there are so many possibilities,
but there's so much uncertainty, right?
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And, uh, and so carving out what,
what's next, and you know, as you.
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As you said, there's the three different,
uh, three different transformations that
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ikea's undergoing and I mean, I, I know
like Ikea when it started, um, you know,
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there, there was the transformation
after the war and just like how the
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whole like furniture that you could
take home in your car started, right?
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Yes.
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And so now the, like, where do you
see these opportunities and these
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transformations taking Ikea in the world?
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Yes.
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Parag: No, uh, it's, uh, before,
before I answer that question,
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because I think that's also a very.
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Sometimes I think situations
also allow you to learn, right?
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Uh, of course COVID presented a huge
challenge for humanity, but a lot of us in
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the corporate world also look at COVID at
how things can be different if you work.
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A lot of companies, if you take IKEA
itself, all of a sudden from the
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400 stores that we had, uh, almost
everything was closed, excepting,
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maybe in a couple of countries.
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So all of us and overnight, the whole
company had to shift to, uh, one
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goal of surviving and moving into
a digital setup because that was
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the only channel that was possible.
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And all of a sudden we had to
change into, uh, topics like you
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can collect, where we didn't even
have some of the basic capabilities.
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But when you are faced with that,
COVID taught us to say if the
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company comes together on a goal.
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You can make it happen.
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And a lot of the corporates look
back to those to say, how can we make
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that as a stable way of how things
can get done in the corporate world?
00:13:49.641 --> 00:13:52.761
So it was very interesting when
you mentioned this to say that's an
00:13:52.761 --> 00:13:59.661
opportunity I think for organizations
who will be resilient, who will learn how
00:13:59.661 --> 00:14:04.941
fast to adapt to what's coming because
that's the, uh, changes, the only constant
00:14:04.941 --> 00:14:06.291
we have seen in the last few years.
00:14:06.681 --> 00:14:08.391
I think they're the ones
will probably emerge.
00:14:08.391 --> 00:14:08.841
Uh.
00:14:09.516 --> 00:14:10.506
Uh, successful.
00:14:11.706 --> 00:14:11.886
Yeah.
00:14:11.916 --> 00:14:15.276
So, but, uh, coming back to your
original question, uh, how do
00:14:15.276 --> 00:14:17.166
I see, uh, what's happening?
00:14:18.306 --> 00:14:24.336
Uh, I think I, I see I, I'll start
with IKEA at least, and probably
00:14:24.336 --> 00:14:25.656
more from a context of that.
00:14:25.656 --> 00:14:27.486
What does that mean from
a digital perspective?
00:14:28.086 --> 00:14:33.336
One, I see, uh, there will be a, there
is a shift that's happening here and
00:14:33.336 --> 00:14:36.126
now in terms of customer experience.
00:14:36.606 --> 00:14:41.796
Yeah, if I say so myself, uh,
in Ikea, historically you used
00:14:41.796 --> 00:14:43.236
to buy furniture a certain way.
00:14:44.046 --> 00:14:47.976
That's already changing and
that will change going forward.
00:14:48.396 --> 00:14:54.936
So a lot of us in retail, when we
talk of the funnel of how we have
00:14:54.936 --> 00:14:59.826
people coming onto the homepage,
then the landing page, then the, uh.
00:15:00.186 --> 00:15:02.166
Product information page
and then the checkout.
00:15:02.256 --> 00:15:02.466
Paul: Yeah,
00:15:02.796 --> 00:15:04.746
Parag: maybe that's not going
to be any more relevant.
00:15:04.776 --> 00:15:07.236
Maybe it's going to be a complete
different way of having engage.
00:15:07.446 --> 00:15:14.166
And I think it's for, uh, for, uh, us
as, uh, digital leaders to stay close
00:15:14.166 --> 00:15:20.676
to understand what that change means be
through GPTB, through agents, be through
00:15:21.156 --> 00:15:23.106
conversational commerce, et cetera.
00:15:23.406 --> 00:15:26.376
And how do we start placing
the organization to be ready.
00:15:26.916 --> 00:15:31.296
For that change in the way customer
engages in the customer experience, that's
00:15:31.296 --> 00:15:32.736
clearly one of the changes that's coming.
00:15:34.026 --> 00:15:37.536
The second change, which we already
have seen, and I think it's only
00:15:37.536 --> 00:15:42.366
here to probably stay, is everything
in terms of the supply chain there
00:15:42.426 --> 00:15:50.016
have right from COVID through the
challenges on, uh, supply capabilities,
00:15:50.106 --> 00:15:55.026
through the challenges now on
cross border, uh, goods movements.
00:15:55.056 --> 00:15:55.116
Yeah.
00:15:55.836 --> 00:15:56.736
It's all here to stay.
00:15:57.546 --> 00:16:02.406
And that will mean, uh, from a digital
and from an AI perspective, we will
00:16:02.406 --> 00:16:10.026
need to have capabilities that can be
resilient, can adapt to the changing
00:16:10.026 --> 00:16:13.266
macroeconomics, but also at a low cost.
00:16:13.506 --> 00:16:14.046
Yeah.
00:16:14.106 --> 00:16:14.316
Yeah.
00:16:15.066 --> 00:16:18.306
And then I think the, the third thing,
uh, which is also very relevant for
00:16:18.306 --> 00:16:24.216
ikea, uh, is, uh, how do we with, uh.
00:16:25.701 --> 00:16:29.901
One of the biggest challenge
we face as, uh, as humanity is
00:16:29.901 --> 00:16:31.401
the challenge for our planet.
00:16:32.541 --> 00:16:36.621
And there I think I look at AI as
one of the biggest opportunities
00:16:36.621 --> 00:16:40.461
to crack the code of some of the
problems we haven't been able to solve.
00:16:40.551 --> 00:16:40.641
Right?
00:16:41.541 --> 00:16:45.621
To answering the sustainability
and the circularity challenges.
00:16:45.981 --> 00:16:50.301
IKEA is big time onto it, uh, but it's
something that we'll just see accelerate
00:16:50.301 --> 00:16:52.761
where AI will be able to help solve.
00:16:53.346 --> 00:16:55.746
What's the alternate
to a certain material?
00:16:55.806 --> 00:16:58.296
What's the alternate to recycling?
00:16:58.296 --> 00:16:59.946
What's the alternate to circularity?
00:17:00.246 --> 00:17:03.486
And I think that will be, and
then I think I would add a
00:17:03.486 --> 00:17:06.276
fourth one, uh, in all of this.
00:17:06.276 --> 00:17:11.766
I think the biggest topic is
about, uh, how do you do this
00:17:11.766 --> 00:17:13.656
responsibly as a corporate?
00:17:14.376 --> 00:17:19.626
And, uh, that's something that, uh, I
believe corporates, digital leaders.
00:17:20.811 --> 00:17:26.841
Need to take on, not from a, let me do
what's necessary by the letter of law.
00:17:26.871 --> 00:17:27.471
other: Mm-hmm.
00:17:27.741 --> 00:17:34.221
Parag: But let rather I do go over and
beyond to do what I think is morally,
00:17:34.461 --> 00:17:38.721
ethically, and responsibly the right
thing to do to keep, uh, a relationship
00:17:38.721 --> 00:17:40.131
and engagement with the customers.
00:17:41.301 --> 00:17:43.971
So I think those probably are
the four things I feel are
00:17:43.971 --> 00:17:45.441
fundamental shifts happening.
00:17:45.621 --> 00:17:45.891
Paul: Yeah.
00:17:46.071 --> 00:17:46.731
Parag: For ikea.
00:17:46.731 --> 00:17:49.971
But I also see that relevant
for other industries.
00:17:50.961 --> 00:17:52.341
Paul: Yeah, I'm really glad to hear that.
00:17:52.341 --> 00:17:55.551
And I was gonna say, oh, you have
triads of transformation, but
00:17:55.551 --> 00:17:57.021
then you had the fourth one there.
00:17:57.321 --> 00:18:00.411
But that responsibility piece is so
key and, and you know, when you were
00:18:00.411 --> 00:18:04.221
talking about the, you know, people
wanting to recycle or to, you know,
00:18:04.221 --> 00:18:08.541
reuse, uh, furniture and, and that it's
not just, you know, almost throw away
00:18:08.541 --> 00:18:12.771
furniture or what have you, like, that's
so important for the sustainability
00:18:12.771 --> 00:18:14.031
and moving to responsibility.
00:18:14.031 --> 00:18:17.031
So I love that that's the discussion
now and that you're bringing that to the
00:18:17.031 --> 00:18:18.381
Parag: No, and it's, uh.
00:18:19.956 --> 00:18:23.856
It's like if you, if you bring
up the brand Ikea, right?
00:18:24.846 --> 00:18:26.286
There is a certain trust aspect.
00:18:26.286 --> 00:18:30.786
There is a certain emotion that Ikea
talk when, when IKEA gets mentioned,
00:18:30.906 --> 00:18:33.096
that, uh, resonates with our customers.
00:18:33.576 --> 00:18:38.346
And I think it's my responsibility that as
we transition from the physical retailing
00:18:38.346 --> 00:18:42.726
to the digital, how do we continue
with bringing the same trust Yeah.
00:18:42.786 --> 00:18:43.986
In all our meeting points.
00:18:43.986 --> 00:18:47.016
So I think that's where it's
fundamentally critical that, uh,
00:18:47.406 --> 00:18:48.846
we double down on that aspect.
00:18:49.461 --> 00:18:55.071
Uh, and, uh, it, uh, it is
tremendous, uh, opportunity for us.
00:18:55.071 --> 00:18:58.131
Uh, when I look at what we have now
done with the peer to peer launch,
00:18:58.461 --> 00:19:03.861
we are now live in three cities, uh,
in Madrid, in Oslo, and in Portugal.
00:19:04.431 --> 00:19:08.451
And, uh, it's really
getting good traction.
00:19:08.991 --> 00:19:09.771
We are not there yet.
00:19:09.801 --> 00:19:10.701
We haven't solved it.
00:19:11.121 --> 00:19:13.581
Uh, it's still the early pilot phases.
00:19:14.196 --> 00:19:19.926
Uh, but the fact that customers are
reaching out, are engaging, are wanting
00:19:19.926 --> 00:19:25.236
to, you clearly see a need and you clearly
see, uh, customers asking for this.
00:19:25.296 --> 00:19:27.786
And, uh, that's something,
uh, fantastic to embrace.
00:19:28.711 --> 00:19:29.001
Very
00:19:29.001 --> 00:19:31.896
Edwin: cool Prag, it's
been, it's been amazing.
00:19:31.896 --> 00:19:35.106
It's been really like enlightening
in terms of having this conversation
00:19:35.106 --> 00:19:37.116
with you here at Web Summit.
00:19:37.536 --> 00:19:40.866
I'd love it before we end,
if you could, I guess just.
00:19:41.061 --> 00:19:45.801
Uh, maybe the first thing that comes
to mind, if you could share any final
00:19:45.801 --> 00:19:50.271
thoughts, advice, recommendations to the
other business leaders, founder CEOs who
00:19:50.271 --> 00:19:56.271
are maybe like at the forefront of this,
like digital, uh, Renaissance per se.
00:19:57.411 --> 00:20:01.191
Parag: I think it, uh, of course
absolutely starts with, uh, curiosity.
00:20:01.191 --> 00:20:04.461
So a lot of the listeners
who are, uh, be curious.
00:20:04.466 --> 00:20:04.706
Edwin: Mm-hmm.
00:20:06.081 --> 00:20:06.111
Parag: Uh.
00:20:06.366 --> 00:20:07.596
And, and that's where it starts.
00:20:07.596 --> 00:20:12.906
And then, uh, and then for a lot of
my, uh, uh, colleagues, uh, and digital
00:20:12.906 --> 00:20:20.016
leaders, uh, it's really about how do
we take the responsibility of helping to
00:20:20.016 --> 00:20:27.306
shape where we are heading to, uh, how
do we really take this to heart, uh, and
00:20:27.306 --> 00:20:33.006
uh, start working with, uh, the broader
community, but also with the regulators.
00:20:33.066 --> 00:20:33.216
Edwin: Yeah.
00:20:33.561 --> 00:20:37.911
Parag: To help shape, uh, how
we want the future to look like.
00:20:38.421 --> 00:20:42.201
So really get in the driving seat
and, uh, take the responsibility.
00:20:42.351 --> 00:20:43.011
Edwin: That's amazing.
00:20:43.011 --> 00:20:47.001
And, and it's almost a good segue before
we let you go, is, uh, we want to present
00:20:47.001 --> 00:20:49.221
you this book that Paul and I both wrote.
00:20:49.581 --> 00:20:53.601
Uh, it was inspired from our conversations
we had at Collision in Toronto with a lot
00:20:53.601 --> 00:20:58.191
of founders, executives like yourselves
who are telling the story and really.
00:20:58.416 --> 00:21:01.536
And putting it out there
and making sure to be like
00:21:01.596 --> 00:21:03.816
inspirational for all stakeholders.
00:21:03.846 --> 00:21:03.936
Mm-hmm.
00:21:04.206 --> 00:21:08.106
Customers, team members,
employees, investors, everyone.
00:21:08.106 --> 00:21:09.606
So we want to share that with you.
00:21:09.606 --> 00:21:11.256
We think you're an
amazing future narrator.
00:21:11.256 --> 00:21:15.216
And, uh, and, um, thank you for joining
us on the Business Leadership Podcast.
00:21:15.456 --> 00:21:16.596
Parag: Thank you so much for having me.
00:21:16.596 --> 00:21:17.256
It was a pleasure.
00:21:22.211 --> 00:21:25.571
You are listening to the Business
Leadership Podcast with Edwin.
NOTE
This file was generated by Descript
00:00:00.000 --> 00:00:03.360
You are listening to the Business
Leadership Podcast with Edwin.
00:00:11.301 --> 00:00:15.021
Paul: I'm Paul Newton, creative producer
of the Future Narrator miniseries,
00:00:15.111 --> 00:00:18.951
and I'm joined by Edwin Fzo, the host
of the Business Leadership Podcast.
00:00:18.951 --> 00:00:19.011
I.
00:00:19.441 --> 00:00:23.551
We're recording live at Web Summit
Vancouver 2025, and we're exploring how
00:00:23.551 --> 00:00:27.301
today's leaders shape the future, not
just through strategy, but through story.
00:00:27.751 --> 00:00:31.081
We believe that a strong point of
view is what inspires communities,
00:00:31.231 --> 00:00:34.171
builds movement, and cuts to
the noise in uncertain times.
00:00:34.351 --> 00:00:36.151
So let's dive into this conversation.
00:00:36.151 --> 00:00:36.211
I.
00:00:37.836 --> 00:00:41.706
Today's guest is leading one of the
world's most iconic brands through
00:00:41.706 --> 00:00:45.516
a digital transformation that's as
ambitious as it is human centered.
00:00:46.361 --> 00:00:52.116
EK EK is the Chief Digital Officer
at IKEA retail where he's responsible
00:00:52.146 --> 00:00:56.646
for building digital capabilities and
accelerating ikea's transformation into a
00:00:56.646 --> 00:00:59.136
more connected customer-centric business.
00:00:59.586 --> 00:01:03.246
With over 20 years of global experience
spanning leadership roles at I.
00:01:03.301 --> 00:01:06.271
Adidas at General Electric and now Ikea.
00:01:06.631 --> 00:01:10.741
PEG brings a powerful blend of
technical depth, strategic vision,
00:01:10.981 --> 00:01:12.661
and cultural insight to his work.
00:01:13.681 --> 00:01:18.421
An engineer by training with an MBA and
executive education from Harvard Business
00:01:18.421 --> 00:01:23.701
School, PEG has helped shape omnichannel
strategies, e-commerce ecosystems, and
00:01:23.701 --> 00:01:25.681
digital products across continents.
00:01:25.896 --> 00:01:30.066
Time for me now based in Sweden,
he's driving innovation at scale
00:01:30.066 --> 00:01:34.296
to make IKEA more accessible,
sustainable, and digitally empowered,
00:01:34.476 --> 00:01:37.836
while never losing sight of the
people at the heart of the business.
00:01:38.886 --> 00:01:41.286
Edwin: Welcome to the Business
Leadership Podcast, Prague.
00:01:41.976 --> 00:01:43.476
Parag: Pleasure, uh, Paul Edwin.
00:01:43.476 --> 00:01:44.286
Thanks for having me.
00:01:44.286 --> 00:01:45.186
Super excited.
00:01:45.446 --> 00:01:46.976
Edwin: Yeah, we're really
super excited to hear.
00:01:46.976 --> 00:01:50.996
I just, uh, first off, I just want
to acknowledge your time coming all
00:01:50.996 --> 00:01:52.946
over here to website at Vancouver.
00:01:52.946 --> 00:01:54.386
So, how's the day treating you today?
00:01:54.986 --> 00:01:56.366
Parag: It's been, uh, exciting.
00:01:56.366 --> 00:02:00.716
Some, uh, very interesting
discussions, uh, in the, uh,
00:02:00.746 --> 00:02:04.586
listening into a few panels, but also
a few meetups at the speak aloud.
00:02:04.586 --> 00:02:06.416
So, so far it's been fantastic and.
00:02:06.906 --> 00:02:09.726
Couldn't have asked for,
uh, a better weather today.
00:02:09.786 --> 00:02:10.056
Today.
00:02:10.206 --> 00:02:11.226
Edwin: Oh, it's been amazing.
00:02:11.226 --> 00:02:12.216
Fantastic.
00:02:12.276 --> 00:02:18.606
So Prag, can you share and tell us
about ikea's digital transformation
00:02:19.446 --> 00:02:22.596
and the problem you are solving
in global retail innovation and
00:02:22.596 --> 00:02:24.636
customer, customer experience now?
00:02:25.446 --> 00:02:25.926
Parag: No, absolutely.
00:02:25.926 --> 00:02:31.626
I mean, uh, uh, IKEA has had been leaked
to the journey of digital transformation.
00:02:32.301 --> 00:02:39.051
Uh, but, uh, since 2017 is when we have,
uh, tried to superpower, uh, uh, we have
00:02:39.051 --> 00:02:43.401
actually, uh, we are changing almost
everything all at the same point in time.
00:02:43.971 --> 00:02:48.501
And I always say, uh, IKEA is going
through three, uh, transformations,
00:02:48.861 --> 00:02:52.911
uh, at least in the last few years,
but a few more now, uh, on our agenda.
00:02:53.541 --> 00:02:57.591
One, it's about transforming from
being a physical brick and mortar
00:02:57.591 --> 00:02:59.871
retailer to an omni retailer.
00:03:00.636 --> 00:03:04.566
Uh, and just to put things in
perspective, 2017, maybe 1%
00:03:04.566 --> 00:03:06.396
of our business was digital.
00:03:06.486 --> 00:03:06.876
Mm.
00:03:07.236 --> 00:03:13.086
To today, on an average, 30% of our
business tends to be digital or omni.
00:03:13.536 --> 00:03:17.316
Uh, and that has, uh, phenomenally
changed just in a few years.
00:03:18.201 --> 00:03:22.251
The second transformation is, uh, also
something very physical in nature.
00:03:22.791 --> 00:03:26.301
We have, we have, we are
transforming from, uh, the big
00:03:26.301 --> 00:03:29.301
store formats, which will still
continue to be our mainstay mm-hmm.
00:03:29.631 --> 00:03:34.221
For tier 50,000 square meter
spaces to being closer to where
00:03:34.221 --> 00:03:36.111
the customer is in city centers.
00:03:36.201 --> 00:03:40.251
Most recently we opened Oxford,
uh, in the Oxford Street.
00:03:40.641 --> 00:03:44.181
We are opening up in, uh,
fifth Avenue in, uh, New York.
00:03:44.466 --> 00:03:47.556
So getting closer to where the
customer is in smaller formats,
00:03:47.796 --> 00:03:49.506
5,000 or 10,000 square meters.
00:03:49.506 --> 00:03:50.856
And that itself is a challenge.
00:03:51.096 --> 00:03:55.086
How do you bring the experience from
a 50,000 square meter commercial
00:03:55.086 --> 00:03:58.386
space into a five or 10003rd?
00:03:58.386 --> 00:04:01.806
Uh, I think the transformation we have
been undergoing is, uh, essentially
00:04:02.136 --> 00:04:06.576
while the customers are visiting for our
amazing products at our touch points,
00:04:07.206 --> 00:04:11.316
they're also asking us, can you help
us with, uh, secondhand furniture?
00:04:11.856 --> 00:04:14.016
Mm, can you help us
with financial services?
00:04:14.406 --> 00:04:18.876
Can you help us with energy and other
needs in our life at home experience?
00:04:19.386 --> 00:04:22.956
And, uh, those are some of the business,
uh, opportunities we are exploring
00:04:22.986 --> 00:04:24.426
to figure out how do we transition?
00:04:24.966 --> 00:04:29.766
So we had these like three transformations
ongoing and, uh, add to it.
00:04:29.766 --> 00:04:33.906
Uh, the world has had been, uh,
touched with what AI has to bring.
00:04:34.476 --> 00:04:38.256
So while doing these transformations, we
are also saying, what does this mean so
00:04:38.256 --> 00:04:41.166
that we are not ready for today, but with.
00:04:41.556 --> 00:04:43.716
What AI might bring, we are
also ready for tomorrow,
00:04:43.776 --> 00:04:44.076
Edwin: right.
00:04:44.166 --> 00:04:47.676
Parag: So it's really, uh, undertaking
these transformations, but making
00:04:47.676 --> 00:04:49.386
sure it's not just about catching up.
00:04:49.386 --> 00:04:51.996
Uh, it's about leapfrogging
into where we need to be.
00:04:52.596 --> 00:04:54.816
Edwin: Well, PAG,
that's, uh, it's amazing.
00:04:54.816 --> 00:04:59.346
And, you know, I'm just really inspired
and motivated in terms of not only
00:04:59.346 --> 00:05:02.286
these digital transformations is three
tiered, the ones that you've been
00:05:02.766 --> 00:05:04.901
working with within the organization and.
00:05:05.646 --> 00:05:09.576
Before, I forget that, that
small footprint one, and I live
00:05:09.576 --> 00:05:12.156
in downtown Toronto, there's one
right in the core of downtown.
00:05:12.186 --> 00:05:12.756
It's great.
00:05:12.756 --> 00:05:16.746
We just go there, we walk and we can hang
out and, and it's an amazing, amazing
00:05:16.746 --> 00:05:17.916
experience, especially my daughter.
00:05:17.916 --> 00:05:18.756
She's almost nine.
00:05:18.936 --> 00:05:19.026
Mm-hmm.
00:05:19.266 --> 00:05:24.126
And she loves to see the setups and play,
and so she can imagine herself in there.
00:05:24.336 --> 00:05:26.136
So it, it, it works out
definitely for that.
00:05:26.496 --> 00:05:27.066
Um,
00:05:27.126 --> 00:05:29.376
Parag: no, and, and one of
the things we always say is.
00:05:30.636 --> 00:05:33.876
Stores, physical stores will
still be our peak experience.
00:05:33.996 --> 00:05:34.176
Edwin: Mm-hmm.
00:05:34.836 --> 00:05:38.586
Parag: When you are visiting ikea, that's
where you will probably get to see some
00:05:38.586 --> 00:05:43.506
of the best room sets, some of the best,
what life at home experience can mean.
00:05:43.881 --> 00:05:44.091
Yeah.
00:05:44.121 --> 00:05:47.841
But then we are also saying
how do we augment that, right.
00:05:47.931 --> 00:05:51.291
When customers can't
make it to our stores.
00:05:51.321 --> 00:05:51.411
Mm-hmm.
00:05:51.801 --> 00:05:55.671
And when it's more convenient for
them to meet in different touch
00:05:55.671 --> 00:05:58.731
points, how do we facilitate and
how do we make that happen as well?
00:05:58.731 --> 00:06:03.351
So while uh, stores will continue
to be our mainstay and where our
00:06:03.351 --> 00:06:07.281
peak experiences are from an IKEA
perspective, we also then are figuring
00:06:07.281 --> 00:06:10.161
out how best to create that ecosystem.
00:06:10.701 --> 00:06:15.081
To reach, uh, out to every customer
in Toronto, how and where they want to
00:06:15.081 --> 00:06:18.801
engage, but still, always wanting to bring
them back into a store and experience.
00:06:19.611 --> 00:06:20.031
Edwin: The peak.
00:06:20.121 --> 00:06:20.331
Yeah.
00:06:20.331 --> 00:06:26.001
It, there's, there's no, no replacing
the, the look and feel and being within
00:06:26.091 --> 00:06:28.221
an environment and imagining yourself.
00:06:28.251 --> 00:06:31.941
I mean, don't get me wrong, I think
those immersed digital and when
00:06:31.941 --> 00:06:35.481
it really gets there, the VR type
world, like, I mean, you're gonna
00:06:35.481 --> 00:06:37.101
feel that you're in there as well.
00:06:37.401 --> 00:06:41.061
Um, para what's interesting in, in over
my experience when it comes to business
00:06:41.061 --> 00:06:45.111
leadership and talking to folks like
yourself is not only the, you know.
00:06:45.501 --> 00:06:47.931
Your experience before coming to ikea.
00:06:48.321 --> 00:06:54.411
I'm curious, you know, with these given
challenges and opportunities, what
00:06:54.411 --> 00:06:56.631
is your current unique point of view?
00:06:57.051 --> 00:07:02.961
You know, what do you bring, um, that
will help, um, solve these challenges?
00:07:04.881 --> 00:07:08.091
Parag: I think one of the
biggest trends I feel, at least
00:07:08.091 --> 00:07:09.981
from my perspective, is, uh.
00:07:11.301 --> 00:07:15.681
Of course I bring in, uh, expertise,
which is linked into digital and tech.
00:07:15.786 --> 00:07:16.206
Mm-hmm.
00:07:16.466 --> 00:07:20.631
But it always starts with that
curiosity of what is the business
00:07:20.661 --> 00:07:22.551
problem that I'm trying to solve?
00:07:22.941 --> 00:07:26.391
And it could be the business problem
that's relevant for our customers,
00:07:27.261 --> 00:07:31.491
uh, business problem that's relevant
for our coworkers business problem
00:07:31.491 --> 00:07:35.571
that might be relevant for the
company itself and or for the planet.
00:07:36.171 --> 00:07:38.961
So what's, what's the problem to address?
00:07:39.801 --> 00:07:45.921
And then I think, uh, my strength
probably lies in being able to understand
00:07:45.921 --> 00:07:53.511
that problem and then figuring out how
digital tech AI can be applied to the
00:07:53.511 --> 00:07:55.041
service of addressing that problem.
00:07:55.461 --> 00:07:58.221
And when we do that, that's
where, uh, the magic happens.
00:07:58.221 --> 00:07:58.431
Yeah.
00:07:58.611 --> 00:08:00.021
That's where really the magic happens.
00:08:00.981 --> 00:08:04.581
Paul: And so you talked about your,
your strength para in, in just seeing,
00:08:04.611 --> 00:08:08.331
seeing those, uh, those sort of the
business problem that's being solved.
00:08:08.751 --> 00:08:09.771
Where do you think that came from?
00:08:10.596 --> 00:08:13.851
Uh uh, where, where do you think that,
that, that skill or that strength?
00:08:13.851 --> 00:08:15.711
Like what, what is it
about you personally?
00:08:15.711 --> 00:08:15.771
Yeah,
00:08:16.821 --> 00:08:21.171
Parag: I think, uh, it's been, uh, the
journey and sometimes, uh, is the journey
00:08:21.171 --> 00:08:22.881
which builds you to where you are.
00:08:23.511 --> 00:08:27.891
Uh, so I originally come from,
uh, India, come from, uh.
00:08:28.641 --> 00:08:33.711
A middle class, uh, family growing up,
uh, resources was always a challenge.
00:08:33.711 --> 00:08:37.641
So you always had to compete,
uh, to, to make the best
00:08:37.971 --> 00:08:38.001
other: mm,
00:08:38.271 --> 00:08:39.351
Parag: uh, and to grow.
00:08:39.471 --> 00:08:44.961
Uh, and I think, uh, kudos to the
bringing, but also my parents that, uh,
00:08:45.141 --> 00:08:48.561
education helped us and was essentially
a ticket to the world outside.
00:08:49.071 --> 00:08:52.701
So always very thankful for what,
uh, the family has had to provide
00:08:52.701 --> 00:08:55.071
in really giving the possibility.
00:08:55.071 --> 00:08:55.971
But then I think.
00:08:57.216 --> 00:09:02.616
Ever since I've stepped into the
professional world, uh, I've had the, uh,
00:09:02.676 --> 00:09:08.166
possibility of working in very different
setups in very different cultures.
00:09:08.646 --> 00:09:15.546
Uh, right from Asia to Europe to Americas,
but also very different organizations.
00:09:15.576 --> 00:09:19.446
Uh, the first organization, a
very American culture, the second
00:09:19.446 --> 00:09:22.566
one, a very German culture,
and now a very Swedish culture.
00:09:22.866 --> 00:09:25.296
And it's just understanding those, uh.
00:09:26.031 --> 00:09:29.961
Putting myself in those situations,
which has allowed me to understand the
00:09:29.961 --> 00:09:32.301
aspects of, uh, working with people.
00:09:33.411 --> 00:09:38.391
And, uh, also in many cases, the fact
that I was moved across businesses
00:09:38.751 --> 00:09:42.981
allowed me to quickly immerse, roll
up my sleeves, understand the business
00:09:42.981 --> 00:09:46.401
context in a very short period
of time to be able to then apply.
00:09:46.401 --> 00:09:50.121
So I, uh, I feel through the
opportunities I have been given,
00:09:50.781 --> 00:09:55.551
it has exposed me to possibilities
of picking up skills, both people.
00:09:56.151 --> 00:10:00.471
But also content-wise, that, uh, sort of
helps me in my journey to learn and grow.
00:10:00.861 --> 00:10:01.101
Paul: Yeah.
00:10:01.101 --> 00:10:04.041
And do you think because of that
you have a unique way of seeing
00:10:04.041 --> 00:10:05.541
things and seeing problems?
00:10:06.561 --> 00:10:09.171
Parag: I think, uh, yes, absolutely.
00:10:09.171 --> 00:10:13.521
It comes, uh, when I say, uh, uh,
I look at, uh, the upbringing and
00:10:13.521 --> 00:10:17.931
coming from, uh, where I am, resources
have always been challenging.
00:10:18.321 --> 00:10:18.561
other: Yeah.
00:10:18.741 --> 00:10:22.281
Parag: So when you are now
placed into situations where,
00:10:23.301 --> 00:10:25.491
uh, there might be abundance.
00:10:25.956 --> 00:10:27.246
But there is still an opportunity.
00:10:27.246 --> 00:10:32.466
You start looking at those opportunities
and seeing, uh, so that has helped shape
00:10:32.676 --> 00:10:38.826
a little bit of how you look at things
more, uh, with an optimism of what can be
00:10:39.006 --> 00:10:39.186
other: Yeah.
00:10:39.606 --> 00:10:41.556
Parag: Even in spite of the challenges.
00:10:41.586 --> 00:10:44.046
And that sort of helped, uh, has helped.
00:10:44.646 --> 00:10:49.206
And then the aspect of, uh, I still
remember my early days with, uh,
00:10:50.136 --> 00:10:54.066
uh, general Electric in, in what
they call their leadership program.
00:10:54.071 --> 00:10:54.341
Edwin: Mm-hmm.
00:10:54.876 --> 00:10:55.716
That's a powerful program,
00:10:56.376 --> 00:10:59.406
Parag: an excellent, excellent
program where you sort of move
00:10:59.586 --> 00:11:04.956
through different parts of the GE
business every eight months and eight
00:11:04.956 --> 00:11:08.556
months is when your stint where a,
you are introduced to the business.
00:11:08.976 --> 00:11:14.256
So imagine you are going from GE
Industrial to GE money to GE aircraft
00:11:14.256 --> 00:11:18.336
engines, completely different business
cycles, but you're also expected
00:11:18.336 --> 00:11:19.596
to deliver in those eight months.
00:11:19.626 --> 00:11:19.836
other: Yeah.
00:11:20.046 --> 00:11:22.746
Parag: So understanding the
business, understanding the problem,
00:11:22.746 --> 00:11:23.946
and delivering in eight months.
00:11:24.726 --> 00:11:30.216
And that sort of helped to say,
uh, build the muscle on, uh,
00:11:30.966 --> 00:11:34.656
understanding the context and then
to get things, make things happen.
00:11:35.106 --> 00:11:40.746
So I think, uh, sometimes you don't
realize that when you go through
00:11:40.746 --> 00:11:43.476
some of those aspects, it's like
the furnace, which helps you to
00:11:43.476 --> 00:11:45.966
prepare for, uh, who you are today.
00:11:46.326 --> 00:11:49.626
And I think some of these experiences
I have been fortunate enough to have
00:11:49.716 --> 00:11:53.466
gone through it, which has helped
me prepare, uh, for where I'm today.
00:11:53.886 --> 00:11:57.006
Paul: Well, that's quite a wealth of
insights you're bringing to this company.
00:11:57.306 --> 00:12:01.776
And uh, I think, you know, when you
were talking about with the abundance
00:12:01.776 --> 00:12:05.076
and what's possible, but coming from
a place where maybe you don't have
00:12:05.076 --> 00:12:07.956
the abundance and you still have to
look at the world of possibilities,
00:12:07.956 --> 00:12:12.306
it really sets you up, especially in
a time where that there's so many, uh,
00:12:12.336 --> 00:12:15.516
like there are so many possibilities,
but there's so much uncertainty, right?
00:12:15.516 --> 00:12:19.596
And, uh, and so carving out what,
what's next, and you know, as you.
00:12:20.021 --> 00:12:23.891
As you said, there's the three different,
uh, three different transformations that
00:12:23.891 --> 00:12:28.691
ikea's undergoing and I mean, I, I know
like Ikea when it started, um, you know,
00:12:28.691 --> 00:12:32.411
there, there was the transformation
after the war and just like how the
00:12:32.411 --> 00:12:35.621
whole like furniture that you could
take home in your car started, right?
00:12:35.621 --> 00:12:35.711
Yes.
00:12:35.951 --> 00:12:39.881
And so now the, like, where do you
see these opportunities and these
00:12:39.881 --> 00:12:42.161
transformations taking Ikea in the world?
00:12:42.161 --> 00:12:42.251
Yes.
00:12:42.581 --> 00:12:45.101
Parag: No, uh, it's, uh, before,
before I answer that question,
00:12:45.101 --> 00:12:46.376
because I think that's also a very.
00:12:47.001 --> 00:12:50.211
Sometimes I think situations
also allow you to learn, right?
00:12:50.271 --> 00:12:57.231
Uh, of course COVID presented a huge
challenge for humanity, but a lot of us in
00:12:57.231 --> 00:13:03.531
the corporate world also look at COVID at
how things can be different if you work.
00:13:04.011 --> 00:13:07.191
A lot of companies, if you take IKEA
itself, all of a sudden from the
00:13:07.191 --> 00:13:13.011
400 stores that we had, uh, almost
everything was closed, excepting,
00:13:13.011 --> 00:13:14.601
maybe in a couple of countries.
00:13:15.171 --> 00:13:20.151
So all of us and overnight, the whole
company had to shift to, uh, one
00:13:20.151 --> 00:13:24.561
goal of surviving and moving into
a digital setup because that was
00:13:24.561 --> 00:13:26.331
the only channel that was possible.
00:13:26.661 --> 00:13:29.961
And all of a sudden we had to
change into, uh, topics like you
00:13:29.961 --> 00:13:32.991
can collect, where we didn't even
have some of the basic capabilities.
00:13:33.681 --> 00:13:37.281
But when you are faced with that,
COVID taught us to say if the
00:13:37.281 --> 00:13:39.021
company comes together on a goal.
00:13:40.071 --> 00:13:41.121
You can make it happen.
00:13:41.481 --> 00:13:44.871
And a lot of the corporates look
back to those to say, how can we make
00:13:44.871 --> 00:13:49.641
that as a stable way of how things
can get done in the corporate world?
00:13:49.641 --> 00:13:52.761
So it was very interesting when
you mentioned this to say that's an
00:13:52.761 --> 00:13:59.661
opportunity I think for organizations
who will be resilient, who will learn how
00:13:59.661 --> 00:14:04.941
fast to adapt to what's coming because
that's the, uh, changes, the only constant
00:14:04.941 --> 00:14:06.291
we have seen in the last few years.
00:14:06.681 --> 00:14:08.391
I think they're the ones
will probably emerge.
00:14:08.391 --> 00:14:08.841
Uh.
00:14:09.516 --> 00:14:10.506
Uh, successful.
00:14:11.706 --> 00:14:11.886
Yeah.
00:14:11.916 --> 00:14:15.276
So, but, uh, coming back to your
original question, uh, how do
00:14:15.276 --> 00:14:17.166
I see, uh, what's happening?
00:14:18.306 --> 00:14:24.336
Uh, I think I, I see I, I'll start
with IKEA at least, and probably
00:14:24.336 --> 00:14:25.656
more from a context of that.
00:14:25.656 --> 00:14:27.486
What does that mean from
a digital perspective?
00:14:28.086 --> 00:14:33.336
One, I see, uh, there will be a, there
is a shift that's happening here and
00:14:33.336 --> 00:14:36.126
now in terms of customer experience.
00:14:36.606 --> 00:14:41.796
Yeah, if I say so myself, uh,
in Ikea, historically you used
00:14:41.796 --> 00:14:43.236
to buy furniture a certain way.
00:14:44.046 --> 00:14:47.976
That's already changing and
that will change going forward.
00:14:48.396 --> 00:14:54.936
So a lot of us in retail, when we
talk of the funnel of how we have
00:14:54.936 --> 00:14:59.826
people coming onto the homepage,
then the landing page, then the, uh.
00:15:00.186 --> 00:15:02.166
Product information page
and then the checkout.
00:15:02.256 --> 00:15:02.466
Paul: Yeah,
00:15:02.796 --> 00:15:04.746
Parag: maybe that's not going
to be any more relevant.
00:15:04.776 --> 00:15:07.236
Maybe it's going to be a complete
different way of having engage.
00:15:07.446 --> 00:15:14.166
And I think it's for, uh, for, uh, us
as, uh, digital leaders to stay close
00:15:14.166 --> 00:15:20.676
to understand what that change means be
through GPTB, through agents, be through
00:15:21.156 --> 00:15:23.106
conversational commerce, et cetera.
00:15:23.406 --> 00:15:26.376
And how do we start placing
the organization to be ready.
00:15:26.916 --> 00:15:31.296
For that change in the way customer
engages in the customer experience, that's
00:15:31.296 --> 00:15:32.736
clearly one of the changes that's coming.
00:15:34.026 --> 00:15:37.536
The second change, which we already
have seen, and I think it's only
00:15:37.536 --> 00:15:42.366
here to probably stay, is everything
in terms of the supply chain there
00:15:42.426 --> 00:15:50.016
have right from COVID through the
challenges on, uh, supply capabilities,
00:15:50.106 --> 00:15:55.026
through the challenges now on
cross border, uh, goods movements.
00:15:55.056 --> 00:15:55.116
Yeah.
00:15:55.836 --> 00:15:56.736
It's all here to stay.
00:15:57.546 --> 00:16:02.406
And that will mean, uh, from a digital
and from an AI perspective, we will
00:16:02.406 --> 00:16:10.026
need to have capabilities that can be
resilient, can adapt to the changing
00:16:10.026 --> 00:16:13.266
macroeconomics, but also at a low cost.
00:16:13.506 --> 00:16:14.046
Yeah.
00:16:14.106 --> 00:16:14.316
Yeah.
00:16:15.066 --> 00:16:18.306
And then I think the, the third thing,
uh, which is also very relevant for
00:16:18.306 --> 00:16:24.216
ikea, uh, is, uh, how do we with, uh.
00:16:25.701 --> 00:16:29.901
One of the biggest challenge
we face as, uh, as humanity is
00:16:29.901 --> 00:16:31.401
the challenge for our planet.
00:16:32.541 --> 00:16:36.621
And there I think I look at AI as
one of the biggest opportunities
00:16:36.621 --> 00:16:40.461
to crack the code of some of the
problems we haven't been able to solve.
00:16:40.551 --> 00:16:40.641
Right?
00:16:41.541 --> 00:16:45.621
To answering the sustainability
and the circularity challenges.
00:16:45.981 --> 00:16:50.301
IKEA is big time onto it, uh, but it's
something that we'll just see accelerate
00:16:50.301 --> 00:16:52.761
where AI will be able to help solve.
00:16:53.346 --> 00:16:55.746
What's the alternate
to a certain material?
00:16:55.806 --> 00:16:58.296
What's the alternate to recycling?
00:16:58.296 --> 00:16:59.946
What's the alternate to circularity?
00:17:00.246 --> 00:17:03.486
And I think that will be, and
then I think I would add a
00:17:03.486 --> 00:17:06.276
fourth one, uh, in all of this.
00:17:06.276 --> 00:17:11.766
I think the biggest topic is
about, uh, how do you do this
00:17:11.766 --> 00:17:13.656
responsibly as a corporate?
00:17:14.376 --> 00:17:19.626
And, uh, that's something that, uh, I
believe corporates, digital leaders.
00:17:20.811 --> 00:17:26.841
Need to take on, not from a, let me do
what's necessary by the letter of law.
00:17:26.871 --> 00:17:27.471
other: Mm-hmm.
00:17:27.741 --> 00:17:34.221
Parag: But let rather I do go over and
beyond to do what I think is morally,
00:17:34.461 --> 00:17:38.721
ethically, and responsibly the right
thing to do to keep, uh, a relationship
00:17:38.721 --> 00:17:40.131
and engagement with the customers.
00:17:41.301 --> 00:17:43.971
So I think those probably are
the four things I feel are
00:17:43.971 --> 00:17:45.441
fundamental shifts happening.
00:17:45.621 --> 00:17:45.891
Paul: Yeah.
00:17:46.071 --> 00:17:46.731
Parag: For ikea.
00:17:46.731 --> 00:17:49.971
But I also see that relevant
for other industries.
00:17:50.961 --> 00:17:52.341
Paul: Yeah, I'm really glad to hear that.
00:17:52.341 --> 00:17:55.551
And I was gonna say, oh, you have
triads of transformation, but
00:17:55.551 --> 00:17:57.021
then you had the fourth one there.
00:17:57.321 --> 00:18:00.411
But that responsibility piece is so
key and, and you know, when you were
00:18:00.411 --> 00:18:04.221
talking about the, you know, people
wanting to recycle or to, you know,
00:18:04.221 --> 00:18:08.541
reuse, uh, furniture and, and that it's
not just, you know, almost throw away
00:18:08.541 --> 00:18:12.771
furniture or what have you, like, that's
so important for the sustainability
00:18:12.771 --> 00:18:14.031
and moving to responsibility.
00:18:14.031 --> 00:18:17.031
So I love that that's the discussion
now and that you're bringing that to the
00:18:17.031 --> 00:18:18.381
Parag: No, and it's, uh.
00:18:19.956 --> 00:18:23.856
It's like if you, if you bring
up the brand Ikea, right?
00:18:24.846 --> 00:18:26.286
There is a certain trust aspect.
00:18:26.286 --> 00:18:30.786
There is a certain emotion that Ikea
talk when, when IKEA gets mentioned,
00:18:30.906 --> 00:18:33.096
that, uh, resonates with our customers.
00:18:33.576 --> 00:18:38.346
And I think it's my responsibility that as
we transition from the physical retailing
00:18:38.346 --> 00:18:42.726
to the digital, how do we continue
with bringing the same trust Yeah.
00:18:42.786 --> 00:18:43.986
In all our meeting points.
00:18:43.986 --> 00:18:47.016
So I think that's where it's
fundamentally critical that, uh,
00:18:47.406 --> 00:18:48.846
we double down on that aspect.
00:18:49.461 --> 00:18:55.071
Uh, and, uh, it, uh, it is
tremendous, uh, opportunity for us.
00:18:55.071 --> 00:18:58.131
Uh, when I look at what we have now
done with the peer to peer launch,
00:18:58.461 --> 00:19:03.861
we are now live in three cities, uh,
in Madrid, in Oslo, and in Portugal.
00:19:04.431 --> 00:19:08.451
And, uh, it's really
getting good traction.
00:19:08.991 --> 00:19:09.771
We are not there yet.
00:19:09.801 --> 00:19:10.701
We haven't solved it.
00:19:11.121 --> 00:19:13.581
Uh, it's still the early pilot phases.
00:19:14.196 --> 00:19:19.926
Uh, but the fact that customers are
reaching out, are engaging, are wanting
00:19:19.926 --> 00:19:25.236
to, you clearly see a need and you clearly
see, uh, customers asking for this.
00:19:25.296 --> 00:19:27.786
And, uh, that's something,
uh, fantastic to embrace.
00:19:28.711 --> 00:19:29.001
Very
00:19:29.001 --> 00:19:31.896
Edwin: cool Prag, it's
been, it's been amazing.
00:19:31.896 --> 00:19:35.106
It's been really like enlightening
in terms of having this conversation
00:19:35.106 --> 00:19:37.116
with you here at Web Summit.
00:19:37.536 --> 00:19:40.866
I'd love it before we end,
if you could, I guess just.
00:19:41.061 --> 00:19:45.801
Uh, maybe the first thing that comes
to mind, if you could share any final
00:19:45.801 --> 00:19:50.271
thoughts, advice, recommendations to the
other business leaders, founder CEOs who
00:19:50.271 --> 00:19:56.271
are maybe like at the forefront of this,
like digital, uh, Renaissance per se.
00:19:57.411 --> 00:20:01.191
Parag: I think it, uh, of course
absolutely starts with, uh, curiosity.
00:20:01.191 --> 00:20:04.461
So a lot of the listeners
who are, uh, be curious.
00:20:04.466 --> 00:20:04.706
Edwin: Mm-hmm.
00:20:06.081 --> 00:20:06.111
Parag: Uh.
00:20:06.366 --> 00:20:07.596
And, and that's where it starts.
00:20:07.596 --> 00:20:12.906
And then, uh, and then for a lot of
my, uh, uh, colleagues, uh, and digital
00:20:12.906 --> 00:20:20.016
leaders, uh, it's really about how do
we take the responsibility of helping to
00:20:20.016 --> 00:20:27.306
shape where we are heading to, uh, how
do we really take this to heart, uh, and
00:20:27.306 --> 00:20:33.006
uh, start working with, uh, the broader
community, but also with the regulators.
00:20:33.066 --> 00:20:33.216
Edwin: Yeah.
00:20:33.561 --> 00:20:37.911
Parag: To help shape, uh, how
we want the future to look like.
00:20:38.421 --> 00:20:42.201
So really get in the driving seat
and, uh, take the responsibility.
00:20:42.351 --> 00:20:43.011
Edwin: That's amazing.
00:20:43.011 --> 00:20:47.001
And, and it's almost a good segue before
we let you go, is, uh, we want to present
00:20:47.001 --> 00:20:49.221
you this book that Paul and I both wrote.
00:20:49.581 --> 00:20:53.601
Uh, it was inspired from our conversations
we had at Collision in Toronto with a lot
00:20:53.601 --> 00:20:58.191
of founders, executives like yourselves
who are telling the story and really.
00:20:58.416 --> 00:21:01.536
And putting it out there
and making sure to be like
00:21:01.596 --> 00:21:03.816
inspirational for all stakeholders.
00:21:03.846 --> 00:21:03.936
Mm-hmm.
00:21:04.206 --> 00:21:08.106
Customers, team members,
employees, investors, everyone.
00:21:08.106 --> 00:21:09.606
So we want to share that with you.
00:21:09.606 --> 00:21:11.256
We think you're an
amazing future narrator.
00:21:11.256 --> 00:21:15.216
And, uh, and, um, thank you for joining
us on the Business Leadership Podcast.
00:21:15.456 --> 00:21:16.596
Parag: Thank you so much for having me.
00:21:16.596 --> 00:21:17.256
It was a pleasure.
00:21:22.211 --> 00:21:25.571
You are listening to the Business
Leadership Podcast with Edwin.
