.....MGT 300: INFORMATION TECHNOLOGY IN BUSINESS...
mrsaideebizzbox: The Use of IT in McDonald’s Company

Friday 2 March 2012

The Use of IT in McDonald’s Company

MGT 300

The Use of IT in McDonald’s Company
Name
Matric No
Muhammad AmirulSaidee b. Nasaruddin
2010441166
Nadillah Fitri binti Redzuan Tan
2010273806
Rafhana Hidayu binti Mohd Yusoff
2010860694
Zuriati binti Ahmad Badawi
2010460652
Sherilyn Racheal anak Akin
2010636452


Class : J3BM1114A
Lecturer’s Name : Tuan Syed Mazlan Syed Mat Dom



 
Content

0.0 Acknowledgement                                                                                       2
1.0 Introduction                                                                                                  3
2.0 The Use of IT in McDonald’s Company                                                     4-7
2.1 The Department That Used Fullest Capacity of IT                                      8
2.2 Impact of IT                                                                                              9-10
2.3 Importance of IT                                                                                         11
2.4 The IT That Can Do for McDonald’s Company                                          12
3.0 Recommendation                                                                                       13
4.0 Conclusion                                                                                                 14
5.0 Appendices                                                                                            15-16
6.0 References                                                                                                  17







Acknowledgement

Assalamualaikumwarahmatullahiwabarakatuh,

First of all, the special thanks we would like to express to our helpful lecturer, Tuan Syed Mazlan Syed Mat Dom. The support and guidance that he gave truly help us to do this assignment. We have taken efforts in this assignment but it would not have been possible without the kind support and help from Tuan Syed.

Our grateful thanks also go to our parents for their kind co-operation and encouragement which help us in completing this assignment. The co-operation is much indeed appreciated.

Last but not least, our thanks and appreciations also go to our friends for their wise ideas which really helpful for us to do this assignment. This assignment really brought us together as a team to appreciate the true value of friendship and respect of each other. Besides, this assignment makes us realized the value of working together as a team.

Thank you.


Introduction

The purpose of this assignment is to expose the usage of IT in the business that can make the business successful and runs smoothly.
For this assignment, we have been instructed by our lecturer, Tuan Syed Mazlan Syed Mat Dom to do research on development of IT on one company.
We have decided to choose McDonald’s company as our subject to do the research. There is plenty of information that we have gathered that can be inserted in this assignment.
Therefore we have included all the information that are related with the development of IT such as the use of IT in McDonald’s company, the department that used fullest capacity of IT, the impact of IT, the importance of IT and the IT that can do for McDonald’s company.
May all the information that we have gathered in this assignment fulfill the our lecturer’s criteria.







The Use of IT in McDonald’s Company


Currently, there are many types of  information systems used in McDonalds Corporation such as :

Transaction Processing System (TPS)
  • First transaction happens when two people make an exchange, and collecting data about it called transaction processing, so transaction processing is collecting, storing, modifying, and retrieving the transactions of an organization. Transaction system is important to answer routine questions, and it helps to conduct business such as payroll, employee record keeping or paying an employee. It's important to store the data of the transaction save and protected because transaction generally involves an exchange of money which is critical to any organization. 
How Transaction Processing System (TPS) is implemented in McDonalds?
  • McDonalds everyday sells a huge amount of its products,so McDonalds should order raw material from its supplier , each time McDonalds place an order with its supplier, a transaction happens, and the transaction processing system records the relevant information such as supplier’s name, address, the quality of the items purchased and finally the invoice amount involved in the transactions.








Decision support system (DSS) 
  • Decision support system is used to model data and make quality decision based on the data, making the right decision is usually based on the quality of the  data and one's ability to analyze the data, decision support systems are usually computer applications with a human component. They can sift through large amounts of data and pick between the many choices and supports the non – routine decision. 
How decision support system (DSS) is implemented in McDonalds? 
  • At first McDonalds began as a small restaurant, selling foods to customers , the business expanded slowly, then McDonalds analyze the market well to come with opportunity, as we know we live in the time of technology, so McDonalds thought of providing wireless services, so the company gather information about the customer usage of wireless services, length of stay and sales level, then the decision support system analyze the data to come up with the decision of providing wireless service in their restaurant.

Management Information Systems (MIS)
  • Management information system is a system that provides information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people, and the most important resource is people, the information that we get supports the routine decision making in the functional areas





How Management Information System is implemented in McDonalds?
  • In McDonalds they implement management information system which is used to produce periodic reports such as a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget. McDonalds used management information system because the purpose of it is to provide profitability and information to help managers and staff understand the business performance and plan its future direction.


Made for you” system
  • In this system McDonalds use modern technology to assist McDonalds operation , In this system when a customer places an order, the sandwich item will immediately appears in the computer monitor in the kitchen and a tone sound to alert the kitchen staff .

POS system " Scale of Point system "
  • McDonalds is a very busy restaurant because many customers goes there, the first priority for McDonalds is to deliver best restaurant experience for the customers , for that McDonalds used POS system " Point of scale system " to ensure fast and accurate order, because this system is used to speed the business process, it can track massive amounts of data in seconds. With these systems, each order is instantly transmitted to several workstations throughout the facility. The cashier instantly knows what payment is due. The kitchen knows what orders are coming up, and how long a customer has been waiting.



Hyperactive Bob system
  • McDonalds implemented this system to let their employees when they are about to be busy, this system used computers and rooftop cameras to monitor traffic entering a restaurant's parking lot and drive-thru.















The Department That Used Fullest Capacity of IT

The sales and marketing department in McDonalds is the department that used the fullest capacity of information technology. McDonalds Corporation has helped revolutionize the way restaurants use its information technology, dating back to founder Ray Kroc's fascination with serving burgers and fries in a matter of minutes to entertain all of his customers’ needs and wants.

Throughout the years, the company has continued its efforts to advance its information technology. In the 1970s, for example, the burger chain try to make a drastic changes by replacing the industry's transition from old-fashioned cash registers to computerized point-of-sale systems that could track massive amounts of data in seconds. In the early 1990s, McDonalds was the first quick-service chain to install touch-screen computers at the front counter and in the drive-thru, making it easier for servers to input orders.

Since that time, the company has kept the wheels of innovation turning with tests involving touch-screen self-ordering kiosks for customers, customer order centers and mobile POS devices.






Impact of IT
McDonald’s as the world’s leading food service retailer, serve some of the world’s favorite foods which is French fries, Big Mac, Quarter Pounder, etc. it has more than 30, 000 restaurants in 118 countries which is serving 46 million customers each day. McDonald’s also is one of the world’s most well-known and valuable brands. It holds a leading share in the globally branded quick service restaurants segment of the informal eating-out market in virtually every country in which it does business. Managing its day-to-day operations is a major challenge and that the information and communications technology requirements and infrastructure should be well placed. In this age where technology is a key element in ensuring a company’s success, McDonald’s take this advantage to be use in their business operation.

Technology is playing a vital role in McDonald’s plans to attract more customers into its fast food restaurants as well as saving on cost, operation efficiency and extensive advertisement. Technology increases a company’s ability to forecast sales and determine which products have high consumer demand. Personal computer, wireless devices and the internet have McDonald’s plugged into mainstream technology. McDonald’s innovative planning introduced Wi-Fi hotspots, internet terminal and web-based games for children into its stores. Wi-Fi hotspots will allow consumers to check email, access the internet and download presentation while having something to eat and drink. Effective planning from information technology can create an advantage over competing organizations in this global market and offer the information needed to maintain its leadership in the fast food industry. McDonald’s has taken full advantage of what technology has to offer.

            With over 180 company-owned branches nationwide, McDonald’s was having difficulty in managing and maintaining the day-to-day operations of its various hardware and software store systems. With the implementation of the Help Desk service, store level support was simplified. Instead of their internal information technology group having to deal with multiple vendors, all calls were directed to the Help Desk, and when applicable, solved the store concerns in real time. The Help Desk service improved McDonald’ customer service by ensuring that the store systems in all registered branches are up and running in optimum condition. Previously, it took McDonald’s about a whole day to provide technical support service to a store. Now with the advances of technology they using, it only takes even less than half the time because any problem can be addressed from the Help Desk’s end.

            Using the help Desk service is going to be cost effective for the company. It’s also allow the company to retrieve some information from and to the stores from the Help Desk for updates of the pricing, downloading of memos as well as email exchange of information from the head office and suppliers. It’s also to cover the local announcement from the head office to the stores. Another information technology expansion is the consolidation of application, focusing more on the transmission service. This works when a branch finished a store day and consolidation of all time in generating the reports will also be faster. Information technology is being practice in the advertising using by McDonald such extensive advertising campaign with usual media like television, radio, newspapers well as billboards.








Importance of IT
McDonald's Corp. has own way that the restaurants use of technology, as look back to the founder fascination with serving burgers and fries in a matter of minutes as a fast food company that have plenty of franchise around the world.
Throughout the years, the company has continued its efforts to advance technology. In the 1970s, for example, the burger chain spearheaded the industry's transition from old-fashioned cash registers to computerized point-of-sale systems that could track massive amounts of data in seconds. In the early 1990s, McDonald's was the first quick-service chain to install touch-screen computers at the front counter and in the drive-thru, making it easier for servers to input orders.
Since that time, the company has kept innovation turning with tests involving touch-screen self-ordering kiosks for customers, customer order centre and mobile devices order. There does not have any question that the use of technology is one of the great important to McDonalds. Technology has great potential that to improve their business for them to more efficient, simplify operations for the crew and offer the freshest possible food within a relevant customer experience. The company also takes a cautious, methodical and restaurant-focused approach to technology deployment. The company are upgrading their technology for each of the franchise as there are plenty of fast food franchise that growing that they have to compete with the service provided by other fast food to achieve higher profit and regular customers.

In conclusion, I believe each one of these expansion projects would not have been successful without the use of information systems and technology. In an industry as competitive as fast-food, every little bit of market share is important. McDonald's is always looking for more efficient ways of doing things not only to keep its regular customers but to also attract new faces to their place also. As the times fly, the technology has develop very rapidly so that they have to always improve their technology, systems and services for their crews and customers.
The IT That Can Do for McDonald’s Company

In today’s highly competitive economic environment having the right IT in business is a critical element of success. All businesses deal with some of the new technology whether it is just a basic computer system or highly sophisticated software to track sales from the time the initial contact is made until they close. Finding the right IT personnel or company to provide the right systems is not as hard as it may first appear. 

There are many opportunities right on the Internet to find the right IT in business help. If sales companies are doing business on the Internet there is the opportunity to find good Contact Management Systems (CMS) and Search Engine Optimization (SEO) software. The CMS software provides sales force managers with all of the tools necessary to monitor the status of the potential sales that are being worked by the members of the sales team. 

SEO software is the IT in business solution to propel a business website to high rankings on major Internet search engines like Google, Yahoo, and MSN. This brings targeted visitors to the website and leads to more contacts and more sales. Businesses that fail to get visitors to their website on a regular and continuing basis are usually not going to succeed. 

The IT in business solutions are available and affordable for businesses both large and small. It is important to do some research to find the right company with a good reputation and that provides the services needed. Once that is done, any business can make the necessary moves to get a step ahead of the competition. Joe Thorpe is a Professional Entrepreneur.


Recommendation

After a thorough analysis of data, the following recommendations are hereby made.

First, every worker in McDonalds company should increase their work productivity and master in using technology while serving the customer so that customer will not complaining about their ineffectiveness productivity.

Next, McDonalds should maximize the uses of Hyperactive Bob System that can monitor the traffic that entering to restaurants parking lot and drive-thru so that the workers are ready to take customer’s order and to avoid customer wait too long.

Other than that, McDonald also can maximize the use of technology to introduce their new product. They only have to work closely with brand designer so that their product can be advertise creatively and can attract people to try their product.

We also can recommend to McDonalds that they could provide an online feedback form for a customer who wants to give complaints, critics or compliments. This can help McDonald’s company know what customer feel about their product and the can improve their services.




Conclusion
McDonalds nowadays are popular among Malaysian people. In order to increase their company’s profit and customer satisfaction, the company uses an effective IT such as Transaction Processing System, Hyperactive Bob System, Management Information System and many more.

Without this technology, McDonalds cannot fulfill their customer’s want and needs. They also will not achieve high profit. Therefor, the use of IT is very important to make sure their business runs smoothly. McDonalds till now have an efficient and productive worker who are know to use information which help the development of the company.

As a conclusion, McDonald’s company already proven to be a successful fast food company not only in Malaysia but in worldwide. With this helpful technology, McDonald’s company can open their new franchise in other places where they are most needed.









Appendices


Mcdonald’s delivery online that make customer easy to order their meal and just by clicking the menu, then Mcdonald’s will send to their home.  Online service that use IT in business make the Mcdonald’s be the most favorite fast food in Malaysia. It very easy right!




   

 If you doesn’t have an internet just use your phone!! Call the number above and order your meal, Mcdonald’s make the customer easy to order!











Your favorite McDonald's meal now comes with complimentary Wi-Fi. Get some work done, check email, connect with friends...for free!





References

Business Driven Technology., Paige Baltzan, Amy Phillips & Stephen Haag



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