Introduction: The management information system (MIS) has a primary task of helping an organization become and stay efficient and effective. Managers use this computer-based system to organize, analyze, and execute plans to help the organization flow and accomplish its goals. The system can be used to study information in the form of employees, cost, profit, tecknology, procedures and documents. Often MIS are much different from standard information systems because they study other information systems that are related to the operational tasks in an establishment.
It is highly important for an organization to understand what MIS they need in order to remain competitive in the industry. Secondly, it is important for an organization to have a MIS which will promote both short term and long term organization goals. The improvement of technology over the years has allowed managers to make faster decisions based on the information that is collected by the system. However, this is also a negative aspect to the information systems. Situations can happen where imprecise reporting can take place thus leading to terrible decision making.
MIS can vary from one type of business to another however; the main goal of all systems is to support organizational goals and objectives and to develop greater level of communication among all the employees. Creators of MIS must keep in mind to create systems that are relievable, accurate, complete, relevant and consistent. In this research paper, I will discuses the MIS used in two different restaurants “food chains” “Dominos Pizza & Applebee’s”. I intend to showcase the MIS used to help the two restaurants accomplish day-to day business activities.
In each restaurant the ambiance, purpose and atmosphere is different. We can see why the two MIS are different and why it’s more appropriate for one MIS to belong in one restaurant and not the other. E-ecommerce has completely changed how day the day business takes place. We can see from the charts on the next page, online business has increased a great deal since 2003, with the exception of the 07-08 financial crises. The main reason for its growth is the fact that technology is ever changing and managers are often under pressure to increase sales in new and innovating ways (internet).
The increase in global and local competition has further created the need to do business online due to its low cost and how user friendly the internet has become. [pic] [pic] Methodology: The methodology used to research this paper has primarily been my own experience working as a server in Applebee’s and my experience ordering Dominos Pizza. I have extensive knowledge on how Applebee’s does day to day business (MIS). Other information has been researched and collected from reliable sources online such as the SEC, Hoover’s database company websites and other websites. Problem:
What MIS will Applebee’s and Dominos adapt in order to remain competitive in today’s economy? Dominos: Dominos Pizza was founded in 1960 and is recognized as the world’s largest pizza delivery chain. The organization aims to become the world’s absolute best pizza delivery company. According to the Dominos Pizza website, they have over 10,000 employees, 500 company owned stores in the US and well over 8,000 franchise owned stores in over 60 nations. According to Hoover’s database the retail sales have grown significantly over the year which is largely due a growing number of investors opening up their very own Dominos Pizza Store.
In the year 2007 the combined total revenue both domestic and international was $5. 4 billion. Dominos Pizza isn’t a family oriented place where family or friends would go to eat, watch T. V. , and hang out. It is very much automated and at times can be impersonal. The Dominos computerized management system was created for many reasons. One reason was to increase the operating efficiency and effectiveness in day to day activities. The higher management “corporate” is now able to use up to date marketing and financial information and also lower both the overall and corporate time and costs.
The Dominos’ PULSE system also known as a point-of sale system can be found in all domestic Dominos stores and also in majority of all the Dominos stores located around the world. With the Pulse system, day to day operation runs more efficiently and smoothly. The touch screen helps the worker correctly take the order (kind of pizza, toppings, size). The system also takes into consideration any promotions Dominos may be offering. This allows the employee to focus his/her attention on other customer needs thus improving the chances the customer will return in the future.
The Pulse system further provides a “delivery routing system” to the driver. The driver will learn of his/her destination and the best way to get there. Do to the level of efficiency, Dominos has been able to give offerings such as the “30 minutes or less deal”. If a customer orders a pizza and 30 minutes has passed then the pizza will be on the house “free”. Dominos has used this strategy to gain the attention of hopeful customers. However, due to efficiency in delivering pizza resulting from the PULSE system Dominos usually delivers its pizza in less than 30 minutes.
Further more system managers can spend more time focusing on store operations due to the improved administrative and reporting capabilities of the system. Dominos Pizza has required all stores both domestic and international to install the system. The advantages are obvious and it can be a disadvantage to run a Dominos store with out the system. It is crucial to remain unified and move as one and not as a single entity. Applebee’s The mission of Applebee’s is to be part of the growth, joy, and enrichment of all the lives they touch.
Applebee’s seeks to be part of the neighborhood they are located in ,provide casual dining and a great experience by giving employees power to do what they must to satisfy the need of a customer. This ideally has a lot to do with the idea of an employee using their best judgment in every situation. The Applebee’s headquarter is located in Overland Park, Kan. , and from that location the organization creates and help’s put together franchises. It also runs all restaurants under the Applebee’s Grill and Bar brand. Currently there are about 1,400 Applebee’s stores in 49 states and 8 over seas countries.
Applebee’s has hired the company NCR to design and create its computer systems in day to day activities. Applebee’s is extending the relationship to take advantage of the latest technology, with which it will integrate, Applebee’s point-of-sale application. The NCR RealPOS 7454 is designed to deal with the demanding hospitality environment. Servers are able to make orders faster because the system is categorized by different foods and drinks. When the system is not being used it can run any kind of customer promotions and training programs for new employees.
Managers in Applebee’s are able to study sales of products and create new menus using the system. They can see what products are selling and which ones are not. The new system will allow a server “myself” to take the orders of a customer, place it in the system and return to the table to provide further service to the customer. At the same time, the order placed will be reported to a screen in the kitchen to the chef. The employees in Applebee’s are trained to have an estimate on how long each meal takes to be prepared by the kitchen staff.
In the end the customer’s bill can be paid on the POS. The efficiency, of this system allows the customer and server to interact and build a relationship. Once a relationship is built Applebee’s, hopes the customer will return in the future thus, creating future business. Dominos / Applebee’s and E-commerce It is said that in one year three billion pizzas are sold each year in the United States and that the American people consume roughly 100 acres of pizza every day according to the National Association of Pizza Operators.
With those figures in mind and the accessibility of the internet, in 2007 Dominos Pizza let its customers order and track their pizza online “Pizza Tracker”. The innovation was suburb. Now, anywhere in the city can a person order a pizza off of their computer or phone and have it delivered to their home. They first enter their location and then customers are able to pick what pizza or Dominos product they like, the toppings, drinks, etc. In an economy which isn’t at its best Dominos has reached out to society and created affordable pizza while cutting cost.
Since 2007 the revenue of the company has decreased however, the gross profit has increased according to Hoovers. The gross profit is up due to the efficiency of the business and the revenue is down due to the fact that the world financial crisis is still a big issue and people are spending less. [pic] [pic] According to Annarbor business review the internet world has become a major source for revenue for restaurant companies. This is essential due to the fact that the restaurant industry is having a harder time getting those customers that are on foot due to the slow economy.
Christopher Mcglothlin, the CIO at Dominos states “Dominos is the fourth largest online sales company in the country with some 20 million transactions a year”. He believes the online ordering systems are important for Dominos growth and its guest relations has increased as a result of the high volume of orders placed online. At this point the marketing team can create promotions and advertisements directly aimed at those customers who have placed orders online since they have their address and information. It is clear, that Dominos Pizza has implemented a great system that goes hand in hand with the world of e-commerce.
Other companies can’t do an e-commerce expansion due to the fact that their main competitive advantage is in location service such as “Applebee’s”. Dominos on the other hand doesn’t have tables and chairs in their stores, along with TV’s, bars, servers, waiters, bartenders, captains, mangers, etc. It was a very easy decision for Dominos to go online; however, the same wouldn’t apply to Applebee’s just yet. Part of the experience of Applebee’s is to come in with friends or family, have a waiter take the orders, watch sports, drink beer and listen to music.
Anytime during your visit and you may see Applebee’s waiters sing a special song for a guest on their birthday. Applebee’s can’t transfer that service online. For Applebee’s to go online and try to sell their products would be much harder due to the fact that the menu is much more expensive and isn’t ideal for a person on a small budget. Dominos on the other hand is much less expensive. An example of this can be Dominos Pizza 555 deal, where someone can order three medium sized pizzas for $15. Applebee’s on the other hand has an average meal of $10. 50-$14. 0 per person. Conclusion and Recommendations: We can see that both Applebee’s and Dominos Pizza have remained competitive through-out the tough economy. Applebee’s has upgraded its POS systems in order to make the system easier to use for ordering, training, advertising, and the analyzing sales. Dominos Pizza on the other hand also has a POS system set up “PULSE”. The system takes orders, tells the chef what pizza to make and also prints out the directions to the destination. Dominos however, has taken the next step and entered the e-commerce business.
Now a customer can customize and order Dominos online. This has given them a competitive advantage over the traditional in store restaurant and help cut cost. Applebee’s hasn’t yet taken its business online due to the fact that its service is the main thing they are known for. To go online would make the Applebee’s experience a lot different. Dominos should not only continue to do business online but set up a list of customers who have ordered from them before. After ordering more than $100 of food, a customer would be able to get a free large pizza.
Dominos should also, add chairs to their stores in case customers like to sit and eat their food. Attracting, customers on foot is hard and I believe Dominos should try to keep them comfortably and welcomed if they decide to do business with dominos. Applebee’s should consider taking its business online. Perhaps, they can make all of their meals frozen and deliver them frozen to the customer’s home. The customer may then heat up the meal anytime and it would taste just as if it was in a real Applebee’s store. The Applebee’s new POS system however, is very effective and doesn’t need to change.
In conclusion, both Applebee’s and Dominos have remained competitive in this tough economy and have picked great MIS systems to help run the day to day business. References “Applebee’s Picks NCR for Point of Sale; Largest Casual Dining Restaurant in America Chooses NCR RealPOS | Business Wire | Find Articles at BNET. ” Find Articles at BNET | News Articles, Magazine Back Issues & Reference Articles on All Topics. Web. 12 July 2010. . Barker, Robert. “Applebee’s Looks Appetizing. ” BusinessWeek – Business News, Stock Market & Financial Advice. Web. 12 July 2010. . Bomey, Nathan. Domino’s Pizza Reshaping Online Ordering System, Hiring Ann Arbor Software Employees – AnnArbor. com. ” Ann Arbor News, Blogs, Events & Discussion – AnnArbor. com. Web. 12 July 2010. . “Gallup. Com Business News a Daily Economic Data, Consumer Data, Labor Statistics. ” Gallup. Com – Daily News, Polls, Public Opinion on Government, Politics, Economics, Management. Web. 12 July 2010. . “Global Financial Crisis Overview. ” Global Financial Crisis – World Economic Crisis Website. Web. 12 July 2010. . “Management Information Systems. ” OCC – Office of the Comptroller of the Currency, Administrator of National Banks. Web. 13 July 2010. .