SmartPik: Pikolin's Smart Mattress

In June 2017, Pikolin launched the SmartPik, its first smart mattress. The SmartPik was capable of measuring and analyzing sleep phases to improve sleep quality. The first tests had gone well, but Pikolin didn't know how consumers who for decades had bought conventional mattresses through a very traditional channel would react to a new product which, for the first time in the company's history, incorporated digital elements (hardware and software) that weren't controlled exclusively by Pikolin. This case describes the history and inner workings of Pikolin, a leading company in the European bedding market that had been characterized by its comprehensive control of production and distribution processes, a strategy that had culminated in the opening in 2017 of a modern integrated production center in Zaragoza. The bedding market was being disrupted, with a large number of small companies selling their products exclusively online based on a mattress-in-a-box business model that was proving very popular with the public. Online selling through platforms such as Amazon was also making inroads after years of lagging behind other industries. Long-standing consumer resistance to buying a mattress without being able to try it out in a store was giving way to an environment in which recommendations were becoming a major purchase driver. Pikolin's executives knew how important it was to incorporate digital transformation in both products and processes with the dual objective of creating value and exploiting business opportunities. However, they were also well aware of the risk involved in the SmartPik project, which entailed an investment of -3 million and depended on the capabilities of their external partners-a novel situation for a company that had built its success on strict control of processes across practically the entire value chain. Would this new move enable Pikolin to maintain its leadership position in a constantly changing environment by pursuing innovation and digital transformation in its products?
Collection: IESE (España)
Ref: SI-214-E
Number of pages: 20
Publication Date: Feb 15, 2022
Language: English, Spanish

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Description

In June 2017, Pikolin launched the SmartPik, its first smart mattress. The SmartPik was capable of measuring and analyzing sleep phases to improve sleep quality. The first tests had gone well, but Pikolin didn't know how consumers who for decades had bought conventional mattresses through a very traditional channel would react to a new product which, for the first time in the company's history, incorporated digital elements (hardware and software) that weren't controlled exclusively by Pikolin. This case describes the history and inner workings of Pikolin, a leading company in the European bedding market that had been characterized by its comprehensive control of production and distribution processes, a strategy that had culminated in the opening in 2017 of a modern integrated production center in Zaragoza. The bedding market was being disrupted, with a large number of small companies selling their products exclusively online based on a mattress-in-a-box business model that was proving very popular with the public. Online selling through platforms such as Amazon was also making inroads after years of lagging behind other industries. Long-standing consumer resistance to buying a mattress without being able to try it out in a store was giving way to an environment in which recommendations were becoming a major purchase driver. Pikolin's executives knew how important it was to incorporate digital transformation in both products and processes with the dual objective of creating value and exploiting business opportunities. However, they were also well aware of the risk involved in the SmartPik project, which entailed an investment of -3 million and depended on the capabilities of their external partners-a novel situation for a company that had built its success on strict control of processes across practically the entire value chain. Would this new move enable Pikolin to maintain its leadership position in a constantly changing environment by pursuing innovation and digital transformation in its products?
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Industry Setting: Industry and mining

SmartPik: Pikolin's Smart Mattress

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"SmartPik: Pikolin's Smart Mattress"