The Business Leadership Podcast

You are listening to the Business
Leadership Podcast with Edwin.

Paul: I'm Paul Newton, creative producer
of the Future Narrator miniseries,

and I'm joined by Edwin Fzo, the host
of the Business Leadership Podcast.

I.

We're recording live at Web Summit
Vancouver 2025, and we're exploring how

today's leaders shape the future, not
just through strategy, but through story.

We believe that a strong point of
view is what inspires communities,

builds movement, and cuts to
the noise in uncertain times.

So let's dive into this conversation.

I.

Today's guest is leading one of the
world's most iconic brands through

a digital transformation that's as
ambitious as it is human centered.

EK EK is the Chief Digital Officer
at IKEA retail where he's responsible

for building digital capabilities and
accelerating ikea's transformation into a

more connected customer-centric business.

With over 20 years of global experience
spanning leadership roles at I.

Adidas at General Electric and now Ikea.

PEG brings a powerful blend of
technical depth, strategic vision,

and cultural insight to his work.

An engineer by training with an MBA and
executive education from Harvard Business

School, PEG has helped shape omnichannel
strategies, e-commerce ecosystems, and

digital products across continents.

Time for me now based in Sweden,
he's driving innovation at scale

to make IKEA more accessible,
sustainable, and digitally empowered,

while never losing sight of the
people at the heart of the business.

Edwin: Welcome to the Business
Leadership Podcast, Prague.

Parag: Pleasure, uh, Paul Edwin.

Thanks for having me.

Super excited.

Edwin: Yeah, we're really
super excited to hear.

I just, uh, first off, I just want
to acknowledge your time coming all

over here to website at Vancouver.

So, how's the day treating you today?

Parag: It's been, uh, exciting.

Some, uh, very interesting
discussions, uh, in the, uh,

listening into a few panels, but also
a few meetups at the speak aloud.

So, so far it's been fantastic and.

Couldn't have asked for,
uh, a better weather today.

Today.

Edwin: Oh, it's been amazing.

Fantastic.

So Prag, can you share and tell us
about ikea's digital transformation

and the problem you are solving
in global retail innovation and

customer, customer experience now?

Parag: No, absolutely.

I mean, uh, uh, IKEA has had been leaked
to the journey of digital transformation.

Uh, but, uh, since 2017 is when we have,
uh, tried to superpower, uh, uh, we have

actually, uh, we are changing almost
everything all at the same point in time.

And I always say, uh, IKEA is going
through three, uh, transformations,

uh, at least in the last few years,
but a few more now, uh, on our agenda.

One, it's about transforming from
being a physical brick and mortar

retailer to an omni retailer.

Uh, and just to put things in
perspective, 2017, maybe 1%

of our business was digital.

Mm.

To today, on an average, 30% of our
business tends to be digital or omni.

Uh, and that has, uh, phenomenally
changed just in a few years.

The second transformation is, uh, also
something very physical in nature.

We have, we have, we are
transforming from, uh, the big

store formats, which will still
continue to be our mainstay mm-hmm.

For tier 50,000 square meter
spaces to being closer to where

the customer is in city centers.

Most recently we opened Oxford,
uh, in the Oxford Street.

We are opening up in, uh,
fifth Avenue in, uh, New York.

So getting closer to where the
customer is in smaller formats,

5,000 or 10,000 square meters.

And that itself is a challenge.

How do you bring the experience from
a 50,000 square meter commercial

space into a five or 10003rd?

Uh, I think the transformation we have
been undergoing is, uh, essentially

while the customers are visiting for our
amazing products at our touch points,

they're also asking us, can you help
us with, uh, secondhand furniture?

Mm, can you help us
with financial services?

Can you help us with energy and other
needs in our life at home experience?

And, uh, those are some of the business,
uh, opportunities we are exploring

to figure out how do we transition?

So we had these like three transformations
ongoing and, uh, add to it.

Uh, the world has had been, uh,
touched with what AI has to bring.

So while doing these transformations, we
are also saying, what does this mean so

that we are not ready for today, but with.

What AI might bring, we are
also ready for tomorrow,

Edwin: right.

Parag: So it's really, uh, undertaking
these transformations, but making

sure it's not just about catching up.

Uh, it's about leapfrogging
into where we need to be.

Edwin: Well, PAG,
that's, uh, it's amazing.

And, you know, I'm just really inspired
and motivated in terms of not only

these digital transformations is three
tiered, the ones that you've been

working with within the organization and.

Before, I forget that, that
small footprint one, and I live

in downtown Toronto, there's one
right in the core of downtown.

It's great.

We just go there, we walk and we can hang
out and, and it's an amazing, amazing

experience, especially my daughter.

She's almost nine.

Mm-hmm.

And she loves to see the setups and play,
and so she can imagine herself in there.

So it, it, it works out
definitely for that.

Um,

Parag: no, and, and one of
the things we always say is.

Stores, physical stores will
still be our peak experience.

Edwin: Mm-hmm.

Parag: When you are visiting ikea, that's
where you will probably get to see some

of the best room sets, some of the best,
what life at home experience can mean.

Yeah.

But then we are also saying
how do we augment that, right.

When customers can't
make it to our stores.

Mm-hmm.

And when it's more convenient for
them to meet in different touch

points, how do we facilitate and
how do we make that happen as well?

So while uh, stores will continue
to be our mainstay and where our

peak experiences are from an IKEA
perspective, we also then are figuring

out how best to create that ecosystem.

To reach, uh, out to every customer
in Toronto, how and where they want to

engage, but still, always wanting to bring
them back into a store and experience.

Edwin: The peak.

Yeah.

It, there's, there's no, no replacing
the, the look and feel and being within

an environment and imagining yourself.

I mean, don't get me wrong, I think
those immersed digital and when

it really gets there, the VR type
world, like, I mean, you're gonna

feel that you're in there as well.

Um, para what's interesting in, in over
my experience when it comes to business

leadership and talking to folks like
yourself is not only the, you know.

Your experience before coming to ikea.

I'm curious, you know, with these given
challenges and opportunities, what

is your current unique point of view?

You know, what do you bring, um, that
will help, um, solve these challenges?

Parag: I think one of the
biggest trends I feel, at least

from my perspective, is, uh.

Of course I bring in, uh, expertise,
which is linked into digital and tech.

Mm-hmm.

But it always starts with that
curiosity of what is the business

problem that I'm trying to solve?

And it could be the business problem
that's relevant for our customers,

uh, business problem that's relevant
for our coworkers business problem

that might be relevant for the
company itself and or for the planet.

So what's, what's the problem to address?

And then I think, uh, my strength
probably lies in being able to understand

that problem and then figuring out how
digital tech AI can be applied to the

service of addressing that problem.

And when we do that, that's
where, uh, the magic happens.

Yeah.

That's where really the magic happens.

Paul: And so you talked about your,
your strength para in, in just seeing,

seeing those, uh, those sort of the
business problem that's being solved.

Where do you think that came from?

Uh uh, where, where do you think that,
that, that skill or that strength?

Like what, what is it
about you personally?

Yeah,

Parag: I think, uh, it's been, uh, the
journey and sometimes, uh, is the journey

which builds you to where you are.

Uh, so I originally come from,
uh, India, come from, uh.

A middle class, uh, family growing up,
uh, resources was always a challenge.

So you always had to compete,
uh, to, to make the best

other: mm,

Parag: uh, and to grow.

Uh, and I think, uh, kudos to the
bringing, but also my parents that, uh,

education helped us and was essentially
a ticket to the world outside.

So always very thankful for what,
uh, the family has had to provide

in really giving the possibility.

But then I think.

Ever since I've stepped into the
professional world, uh, I've had the, uh,

possibility of working in very different
setups in very different cultures.

Uh, right from Asia to Europe to Americas,
but also very different organizations.

Uh, the first organization, a
very American culture, the second

one, a very German culture,
and now a very Swedish culture.

And it's just understanding those, uh.

Putting myself in those situations,
which has allowed me to understand the

aspects of, uh, working with people.

And, uh, also in many cases, the fact
that I was moved across businesses

allowed me to quickly immerse, roll
up my sleeves, understand the business

context in a very short period
of time to be able to then apply.

So I, uh, I feel through the
opportunities I have been given,

it has exposed me to possibilities
of picking up skills, both people.

But also content-wise, that, uh, sort of
helps me in my journey to learn and grow.

Paul: Yeah.

And do you think because of that
you have a unique way of seeing

things and seeing problems?

Parag: I think, uh, yes, absolutely.

It comes, uh, when I say, uh, uh,
I look at, uh, the upbringing and

coming from, uh, where I am, resources
have always been challenging.

other: Yeah.

Parag: So when you are now
placed into situations where,

uh, there might be abundance.

But there is still an opportunity.

You start looking at those opportunities
and seeing, uh, so that has helped shape

a little bit of how you look at things
more, uh, with an optimism of what can be

other: Yeah.

Parag: Even in spite of the challenges.

And that sort of helped, uh, has helped.

And then the aspect of, uh, I still
remember my early days with, uh,

uh, general Electric in, in what
they call their leadership program.

Edwin: Mm-hmm.

That's a powerful program,

Parag: an excellent, excellent
program where you sort of move

through different parts of the GE
business every eight months and eight

months is when your stint where a,
you are introduced to the business.

So imagine you are going from GE
Industrial to GE money to GE aircraft

engines, completely different business
cycles, but you're also expected

to deliver in those eight months.

other: Yeah.

Parag: So understanding the
business, understanding the problem,

and delivering in eight months.

And that sort of helped to say,
uh, build the muscle on, uh,

understanding the context and then
to get things, make things happen.

So I think, uh, sometimes you don't
realize that when you go through

some of those aspects, it's like
the furnace, which helps you to

prepare for, uh, who you are today.

And I think some of these experiences
I have been fortunate enough to have

gone through it, which has helped
me prepare, uh, for where I'm today.

Paul: Well, that's quite a wealth of
insights you're bringing to this company.

And uh, I think, you know, when you
were talking about with the abundance

and what's possible, but coming from
a place where maybe you don't have

the abundance and you still have to
look at the world of possibilities,

it really sets you up, especially in
a time where that there's so many, uh,

like there are so many possibilities,
but there's so much uncertainty, right?

And, uh, and so carving out what,
what's next, and you know, as you.

As you said, there's the three different,
uh, three different transformations that

ikea's undergoing and I mean, I, I know
like Ikea when it started, um, you know,

there, there was the transformation
after the war and just like how the

whole like furniture that you could
take home in your car started, right?

Yes.

And so now the, like, where do you
see these opportunities and these

transformations taking Ikea in the world?

Yes.

Parag: No, uh, it's, uh, before,
before I answer that question,

because I think that's also a very.

Sometimes I think situations
also allow you to learn, right?

Uh, of course COVID presented a huge
challenge for humanity, but a lot of us in

the corporate world also look at COVID at
how things can be different if you work.

A lot of companies, if you take IKEA
itself, all of a sudden from the

400 stores that we had, uh, almost
everything was closed, excepting,

maybe in a couple of countries.

So all of us and overnight, the whole
company had to shift to, uh, one

goal of surviving and moving into
a digital setup because that was

the only channel that was possible.

And all of a sudden we had to
change into, uh, topics like you

can collect, where we didn't even
have some of the basic capabilities.

But when you are faced with that,
COVID taught us to say if the

company comes together on a goal.

You can make it happen.

And a lot of the corporates look
back to those to say, how can we make

that as a stable way of how things
can get done in the corporate world?

So it was very interesting when
you mentioned this to say that's an

opportunity I think for organizations
who will be resilient, who will learn how

fast to adapt to what's coming because
that's the, uh, changes, the only constant

we have seen in the last few years.

I think they're the ones
will probably emerge.

Uh.

Uh, successful.

Yeah.

So, but, uh, coming back to your
original question, uh, how do

I see, uh, what's happening?

Uh, I think I, I see I, I'll start
with IKEA at least, and probably

more from a context of that.

What does that mean from
a digital perspective?

One, I see, uh, there will be a, there
is a shift that's happening here and

now in terms of customer experience.

Yeah, if I say so myself, uh,
in Ikea, historically you used

to buy furniture a certain way.

That's already changing and
that will change going forward.

So a lot of us in retail, when we
talk of the funnel of how we have

people coming onto the homepage,
then the landing page, then the, uh.

Product information page
and then the checkout.

Paul: Yeah,

Parag: maybe that's not going
to be any more relevant.

Maybe it's going to be a complete
different way of having engage.

And I think it's for, uh, for, uh, us
as, uh, digital leaders to stay close

to understand what that change means be
through GPTB, through agents, be through

conversational commerce, et cetera.

And how do we start placing
the organization to be ready.

For that change in the way customer
engages in the customer experience, that's

clearly one of the changes that's coming.

The second change, which we already
have seen, and I think it's only

here to probably stay, is everything
in terms of the supply chain there

have right from COVID through the
challenges on, uh, supply capabilities,

through the challenges now on
cross border, uh, goods movements.

Yeah.

It's all here to stay.

And that will mean, uh, from a digital
and from an AI perspective, we will

need to have capabilities that can be
resilient, can adapt to the changing

macroeconomics, but also at a low cost.

Yeah.

Yeah.

And then I think the, the third thing,
uh, which is also very relevant for

ikea, uh, is, uh, how do we with, uh.

One of the biggest challenge
we face as, uh, as humanity is

the challenge for our planet.

And there I think I look at AI as
one of the biggest opportunities

to crack the code of some of the
problems we haven't been able to solve.

Right?

To answering the sustainability
and the circularity challenges.

IKEA is big time onto it, uh, but it's
something that we'll just see accelerate

where AI will be able to help solve.

What's the alternate
to a certain material?

What's the alternate to recycling?

What's the alternate to circularity?

And I think that will be, and
then I think I would add a

fourth one, uh, in all of this.

I think the biggest topic is
about, uh, how do you do this

responsibly as a corporate?

And, uh, that's something that, uh, I
believe corporates, digital leaders.

Need to take on, not from a, let me do
what's necessary by the letter of law.

other: Mm-hmm.

Parag: But let rather I do go over and
beyond to do what I think is morally,

ethically, and responsibly the right
thing to do to keep, uh, a relationship

and engagement with the customers.

So I think those probably are
the four things I feel are

fundamental shifts happening.

Paul: Yeah.

Parag: For ikea.

But I also see that relevant
for other industries.

Paul: Yeah, I'm really glad to hear that.

And I was gonna say, oh, you have
triads of transformation, but

then you had the fourth one there.

But that responsibility piece is so
key and, and you know, when you were

talking about the, you know, people
wanting to recycle or to, you know,

reuse, uh, furniture and, and that it's
not just, you know, almost throw away

furniture or what have you, like, that's
so important for the sustainability

and moving to responsibility.

So I love that that's the discussion
now and that you're bringing that to the

Parag: No, and it's, uh.

It's like if you, if you bring
up the brand Ikea, right?

There is a certain trust aspect.

There is a certain emotion that Ikea
talk when, when IKEA gets mentioned,

that, uh, resonates with our customers.

And I think it's my responsibility that as
we transition from the physical retailing

to the digital, how do we continue
with bringing the same trust Yeah.

In all our meeting points.

So I think that's where it's
fundamentally critical that, uh,

we double down on that aspect.

Uh, and, uh, it, uh, it is
tremendous, uh, opportunity for us.

Uh, when I look at what we have now
done with the peer to peer launch,

we are now live in three cities, uh,
in Madrid, in Oslo, and in Portugal.

And, uh, it's really
getting good traction.

We are not there yet.

We haven't solved it.

Uh, it's still the early pilot phases.

Uh, but the fact that customers are
reaching out, are engaging, are wanting

to, you clearly see a need and you clearly
see, uh, customers asking for this.

And, uh, that's something,
uh, fantastic to embrace.

Very

Edwin: cool Prag, it's
been, it's been amazing.

It's been really like enlightening
in terms of having this conversation

with you here at Web Summit.

I'd love it before we end,
if you could, I guess just.

Uh, maybe the first thing that comes
to mind, if you could share any final

thoughts, advice, recommendations to the
other business leaders, founder CEOs who

are maybe like at the forefront of this,
like digital, uh, Renaissance per se.

Parag: I think it, uh, of course
absolutely starts with, uh, curiosity.

So a lot of the listeners
who are, uh, be curious.

Edwin: Mm-hmm.

Parag: Uh.

And, and that's where it starts.

And then, uh, and then for a lot of
my, uh, uh, colleagues, uh, and digital

leaders, uh, it's really about how do
we take the responsibility of helping to

shape where we are heading to, uh, how
do we really take this to heart, uh, and

uh, start working with, uh, the broader
community, but also with the regulators.

Edwin: Yeah.

Parag: To help shape, uh, how
we want the future to look like.

So really get in the driving seat
and, uh, take the responsibility.

Edwin: That's amazing.

And, and it's almost a good segue before
we let you go, is, uh, we want to present

you this book that Paul and I both wrote.

Uh, it was inspired from our conversations
we had at Collision in Toronto with a lot

of founders, executives like yourselves
who are telling the story and really.

And putting it out there
and making sure to be like

inspirational for all stakeholders.

Mm-hmm.

Customers, team members,
employees, investors, everyone.

So we want to share that with you.

We think you're an
amazing future narrator.

And, uh, and, um, thank you for joining
us on the Business Leadership Podcast.

Parag: Thank you so much for having me.

It was a pleasure.

You are listening to the Business
Leadership Podcast with Edwin.