management information system and value chain
TRANSCRIPT
Information system is a combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization.
Management information systems (MIS) is the study of people, technology, organizations and the relationships among them.
• Management information systems are distinct from other information systems in that they are used to analyze and facilitate strategic and operational activities.
• Pizza Hut is one of the best widespread international fast food chains. It is an American restaurant chain with over 6,000 Pizza Hut restaurants in the United State and more than 5,600 store locations in over 94 countries around the world.
• Use of Information system for Pizza Hut Delivery Inputs: • Customer Details (From the Call center), Customers name, Customers
Address, Payment mode, Pizza menu items.• Outlet details (From the Outlets), Available Pizza delivery personals.• General Details• Pizza Names, prices, sizes, etc… Process:• Customer Information validation, Checking the availability of the outlets for
delivery personals, Generating a bill to the nearest outlet kitchen, Generating a bill to the customer, Contacting the relevant external terminals.
Storage:• Customer Details, Customers’ previous orders, Customer feedbacks, Outlet
information.
Figure: Data and Information of Pizza Hut
Sales Region: Bangladesh
Branch: Branch #95
Data Information
101 Ultimate Cheese Lover's Pizza Item No. Description Pieces sold
102 Pepperoni Lover's Pizza 103 Meat Lover's Pizza 500
103 Meat Lover's Pizza 104 Supreme Pizza 636
104 Supreme Pizzas YTD Sales
Tk 2, 34,000
Information System
• Managers and Business invest in information technology and systems because they provide real economic value to the business.
• The value chain is a systematic approach to examine the development of competitive advantage.
• It is a tool to identify various ways to create Customer value.
• The value chain was developed in 1985 by Michael Porter in competitive advantage. It is used as a tool to identify various ways to create customer value.
According to the model activities can be divided into two broad categories:• Primary Activities – Activities which relate
directly to the actual creation, manufacture, distribution, and sale of a product or service to the firm’s customers.
• Support Activities – Economic activities which assist the firm’s primary activities.
Primary Activities
Inbound Logistics Purchasing raw materials like:
Dough, cheese, sauce
Fruits and Vegetables
Salt and pepper
Operations Preparations of Pizza Base
Make pasta and salads
On-Time delivery
Outbound Logistics Transporting Pizza base
Serving Pizza Hot
Marketing and Sales
Segmentation, Target Marketing, Distribution
Pricing, Promotional offers
Service and Support Home Delivery
Customer comfort
Support ActivitiesInfrastructure Administrative tasks
Funds collectionHuman Resource Management
Managing Employees
Training Employees
Knowledge Transfer
Conducting Meetings
Freedom of ThoughtsTechnology development
Research workFeedback from customersLaunch new productUse of IT databases
Procurement Acquiring the resourcesIngredients from local suppliers
• Currently the software which Pizza Hut Delivery system use is 3C (Complete Computer Consultation), and this software is created and maintained by a Canadian called Mr. Tony with helps of his subordinates.According to him their software cannot full fill following needs.
• Updating the software – Since all the rights are received by the Canadian company the local authorities can’t do any changes.
• System is not online – Although the transactions are done immediately and the deliveries are taken away. The sales and the stocks are not updated immediately.
Performing the Analysis
• There are two different Approaches to perform the analysis:
Cost AdvantageThis approach is used when the organizations try to understand the source of their cost advantage and disadvantage and what factors drive their cost.Differentiation Advantage The firms that strive to create superior products or services use differentiation advantage approach.
Quantitative analysis• Customers respond regarding ERP system. After using the information
system a survey is done to realize the value of the system.• Do you use Pizza Hut service in the area? Yes. No.In respond to this question 97 % customers answer was YES and they order food from pizza hut. 3 % said no.
• What is your preferred way for ordering food?1. Calling at Pizza hut 2. Walk in 3. Online
This question was asked to identify what is the convenient way to place an order. In reply to this question 43% said they prefer order online 40 % peoples likes to order via phone and 17% customers likes to place order in person at pizza hut.
• The content of the website is up-to-date?1.Strongly Disagree 2. Disagree 3. Undecided 4. Agree 5. Strongly Agree
82% customer strongly agreed that pizza hut website is up to date, 10 % people said they are agree that pizza hut is up to date, 6 % people said they are undecided 2 % people said they are disagree with this statement.• Was your order complete when you received it? Yes No
In reply to this question 61 % customer said excellent, 21 % said it is good ,14 % said it is average and 4 % replied it is below average. At the end of questionnaire researcher found in general 73 % people replied online service is very good and it shows that online service is playing vital role in pizza hut sale and service.
Recommendations• Currently their main need is to have separate
software from the 3C software solution they have provided with limited rights allocated.
• As a solution they can give the software development to a local software company and get a flexible and an efficient system to fill their needs.
• They can implement a SMS ordering system in addition to the SMS inquiry system they currently have.
• When there is a new Pizza they can promote their Pizza by sending e-mail notifications with attractive descriptions and pictures.
• Analysis regarding Pizza Hut Value ChainTherefore we can see that the new ERP system implemented in the Pizza Hut business operation has created an immense changes in their overall system. But still there are some scope of development in their existing system and if their technological investment can be support with investment in complementary assets such as efficient customer service, distribution system, employee management, technological system will receive more superior returns or profits.
