1E Current Adoption & Use of Technology
Current Adoption & Use of Technology
Through the Digital Evaluation Tool, it is evident that Lego is adept at using technology to innovate, with their highest performing area being their technology-focused strategic direction. However, there is most room for improvement with regard to Lego's use of technology to increase customer engagement.
Digital Evaluation Tool
Click each eye logo, and read below the framework, to see information about each section.
Customer Engagement
Lego has taken advantage of digital technologies to further their customer engagement. However, Lego’s data collection is limited, which could be because the majority of Lego's consumers are children, so it is difficult to gather data without parental consent. If this can be overcome, Lego could improve its data collection to increase customer engagement.
​
Products and Services
As seen from the Innovation Ambition Matrix, Lego effectively uses digital technologies to offer differentiated products to customers and add value to their existing products. For example, they've formed strategic collaborations with MIT to integrate robotics with Lego bricks and with digital companies like WarnerBros and Minecraft for themed Lego sets. Though Lego has innovated in the gaming sector, competitors such as Bandai Namco has much more digitally focused products, which shows that Lego is not a leader in this area.
​
Strategic Direction
Lego has undergone strategic digital transformation within its organisation and has multiple digital oriented leadership roles and teams, like Head of Innovation Enabling. Since 2004, Lego has integrated efficient data exchange in its Enterprise IT throughout the organisation and developed a system for rotating staff across the organisation to gain wider industry and IT exposure (Sawy et al., 2015). Most importantly, after almost becoming bankrupt in 2003 due to over-innovating, Lego has since firmly ensured that the strategic direction of their innovation maintains the Lego's core values of inspiring and developing children (Wharton, 2012).
Innovation
Lego is constantly innovating and using digital technologies to enhance their portfolio as demonstrated in the Innovation Ambition Matrix. Though their competitors include high-tech competitors that specialise in digital games, Lego outperforms other toy companies by featuring a diverse range of digital products and services to cater to the demand for digital entertainment.
References:
Andersen, P. & Ross, J., 2016. Transforming the LEGO Group for the Digital Economy. Center for Information Systems Research. Available at: https://ctl.mit.edu/sites/ctl.mit.edu/files/attachments/MIT_CISRwp407_TheLEGOGroup_AndersenRoss_0.pdf [Accessed March 8, 2022].
Bejerano, P.G., 2014. Lego's Digital Economy: A magnificent example of adaptation. ThinkBig. Available at: https://blogthinkbig.com/lego-a-magnificent-example-of-adaptation-to-the-digital-economy [Accessed March 4, 2022].
​
Markowitz, J., 2018. Open Innovation at Lego – The Back Beat in "Everything is Awesome". Technology and Operations Management. Available at: https://digital.hbs.edu/platform-rctom/submission/open-innovation-at-lego-the-back-beat-in-everything-is-awesome/ [Accessed March 6, 2022].
​
Sawy, O.A.E. et al., 2015. Building the Foundations and Enterprise Capabilities for Digital Leadership: The Lego Experience. Available at: https://silo.tips/download/building-the-foundations-and-enterprise-capabilities-for-digital-leadership-the [Accessed March 8, 2022].
​
Wharton, 2012. Innovation almost bankrupted Lego - until it rebuilt with a better blueprint. Knowledge@Wharton. Available at: https://knowledge.wharton.upenn.edu/article/innovation-almost-bankrupted-lego-until-it-rebuilt-with-a-better-blueprint/ [Accessed March 6, 2022].
Zhang, M., 2021. Brickit’s AI Camera Scans Your LEGO to Suggest Things You Can Build. PetaPixel. Available at: https://petapixel.com/2021/07/01/brickits-ai-camera-scans-your-lego-to-suggest-things-you-can-build/ [Accessed March 8, 2022].