There are some areas that entail applying information systems including technologies, processes, and individuals in order to resolve financial issues. Such areas are termed management information systems. Therefore, information systems play a significant role in business operations. The following research examines the role of information systems in McDonald’s Corporation. There are several information systems which are vital for the corporation under discussion. As a rule, information systems are associated with the needs that are user or company centered. Such needs are also covered in the research. In summary, the following research examines the nature of information systems at McDonald’s, including the benefits, risks and their resolution, needs, and recommendations regarding the individual choices for the company. All this is substantiated with research from various sources relevant to the topic of study.
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The McDonald’s Corporation represents the domain’s largest network of fast food restaurants that serve millions of clients every day. The corporation has evolved into an iconic company that signifies the popularity of the American culture with a significant contribution of 21 percent in the overall American food market (McDonald’s, 2010). The corporation owes its accomplishments to its efforts to meet the clients’ needs and wishes. The corporation principally majors in French fries, chicken foods, hamburgers, tea items, soft beverages, desserts, milkshakes, and cheeseburgers. Typically, the restaurants are operated by the franchises, affiliates, or the corporation itself. Rent and fees paid by franchisees, royalties, and sales in the corporation-run restaurants form the basis of McDonald’s revenue. The corporation’s restaurants can be found across various nations and territories globally serving millions of clients daily. Additionally, the business hires a large workforce and runs similar restaurant brands like Piles Caf?. The organization owes its success mainly to its information systems which aid in the organization’s operations.
McDonald’s: Production and Distribution
Production at McDonald’s relies heavily on farms and ranches that raise products necessary for its operations. The corporation buys the products and institutes their final processing. This is witnessed by the company’s commitment to purchase raw materials from local and regional suppliers compared to buying cheaper materials elsewhere. The firm sells its brands, and its innovation network enhances new ideas and products. Distribution at McDonald’s is facilitated by the distribution centers that coordinate the buying of products and their dissemination to the restaurants. In order to improve distribution, the corporation offers entrepreneurs and investors new expert advice to assess the economic prospects of the products that are yet to be finalized. The process helps in identifying threats against introducing the products to the market.
McDonald’s: Information Systems
The success of McDonald’s Corporations is partly explained by the effective implementation of information systems. There exist several information systems in operation within the company.
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Transaction Processing System (TPS)
Transaction processing entails the process of amassing information regarding the transaction that occurred. Amassing, gathering, accessing, and amending the dealings made by the corporation are defined as transaction processing and as such, confidentiality of the transaction data is vital for the firm as it is related to cash exchange (Reynolds, 2011). A huge amount of products is transacted by McDonald’s daily and as such requires vast volume of raw materials from the suppliers. The transaction takes place every time the firm requests for raw materials and the TPS helps in recording essential data like bill amount, name and related details about the supplier, as well as the quality of raw materials.
Another information system applied by the firm includes the Decision Support System (DSS) that is employed to model information and institute value choices in relation to the given data. As a rule, making an appropriate decision is founded on the quality of the information and the individual’s capability to evaluate data. Decision support systems represent computer programs with human component and may sift through vast volumes of information, selecting from the various alternatives and backing the non-routine decision (Rayward, 2014). Similarly, the corporation implements the management information system which represents a system that offers data required to run organizations efficiently. The systems entail three major resources namely information, technology, and individuals with the most valuable resource being people. The data obtained by the corporation backs the routine choice making in the operational areas. McDonald’s further employs the ‘Made for You’ system in its operations. Through this system, the corporation uses the latest expertise that aids in its operations. The system suggests that when a client requests or places an order, the order item instantly appears on the computer screen in the kitchen and the staff is alerted of the same.
The corporation is a very committed and busy enterprise due to the volumes of clients who visit it and therefore the corporation has a priority of offering excellent restaurant experience to the customers. It is due to this that the organization implements the Point of Sale system. Also known as a scale of point system, the expertise is employed to guarantee fast and precise ordering and delivery. Since the system is used to enhance business operations, it possesses the capability of tracking huge volumes of data in less time. The system ensures immediate and efficient transfer of orders to various workstations throughout the enterprise. The system has an advantage in that the cashier is cognizant of due payments and the kitchen staff is informed of the incoming orders and how long the client has been waiting.
Similarly, McDonald’s employs the hyperactive Bob system in its operation. The Corporation implemented the system to inform the workers when they are going to be committed (‘You Want Fries with That, We Predict,’ 2010). The system employs rooftop cameras and computers to track traffic entering a restaurant’s drive-thru and parking. Finally, the corporation uses a Touch Interface Ordering System (TIOS) which aims to revolutionize the fast food sector. The technology entails a self-ordering system that allows clients to express their preferences without interacting with the cashier. It involves a touch interface computer that utilizes electronic payment. The system has an advantage for the corporation as long as it needs to cut labor costs.
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McDonald’s: Importance of Information Systems in Management
The domain that entails employing data systems including of technologies, processes and individuals for resolving business challenges is referred to as the management information systems. According to Laudon & Laudon (2011), such systems are essential in assessing information systems used for numerous tasks within the organization. Transaction processing system plays a significant role in management. The McDonald’s Company sells a vast volume of hamburgers daily and as such has to order raw materials from the suppliers. A transaction takes place every time the corporation places an order with its supplier, while the system records the relevant information about the entire process and individuals concerned. Therefore, in management, the system allows routine answering to queries and aids to run operations like payrolls, employee remuneration, and personnel record keeping. In management, it is always essential to guarantee safety of the transaction information.
Decision Support Systems also play a significant role in management. The corporation started as a small restaurant vending food products to clients and expanded using various opportunities and technology to become what it is at present. The growth has mostly been associated with the decision support systems that help determine the needs of the clients, analyze customer data and come up with a decision to offer best services. Management Information System also plays an important role in the administration of the corporation. The system has been implemented in the business operations to provide regular reports like employees daily list, and hours worked, or a monthly report of the expenditures compared to the budget. The system has been particularly vital for the management due to its purpose of ensuring profitability and helping staffs and managers to comprehend business performance and plan for prospective direction.
McDonald’s: Suitable Information Technology Systems
McDonald’s being the domain’s largest fast food corporation will need what might be described as an excellent information system in order to handle its daily operations. There are various recommendations regarding the information system that incorporates information needs, various forms of database data elements, networking, and interactive processing, as well as end-user computing requirements among others. The corporation must increase and improve the implementation of POS systems. This is because there are different individuals involved in the company, so that the organization will require more systems to reduce the time consumed when preparing orders and also mitigate flaws associated with human error. Additionally, the system should have the capacity to eliminate the use of paperwork, which gives room for mistakes. Therefore, when the firm implements the recommendation, these errors will be avoided.
In future, the corporation will have to implement systems that could help clients order online and similarly show the place from which the clients make an order so that it can reduce the delivery time. This recommendation can be reinforced by a mobile system, through which people can order quickly and access information regarding the nearest McDonald’s restaurant or outlet.
McDonald’s is not guaranteed to have a lifetime competitive advantage over other firms in the industry. Therefore, the corporation should regard this truth and upgrade its information systems and commercial patterns according to the changing customer preferences.
Implementing tactical systems usually entails making modifications in business aims, processes within the corporation, relations with clients and suppliers and data model. The alterations can be described as tactical transitions as they impact the social aspect of the business (Stair & Reynolds, 2011). The mentioned forms of change typically result to confusion regarding the external and internal precincts of the corporation. Therefore, regarding the truths, it is recommended that the organization should establish strong bond with clients and suppliers and distribute duties among themselves. As such, the corporation will be capable of managing new systems for them to bring fresh changes in the business.
Regarding information requirements, clients and users need to make advanced choices in regard to the systems. The individuals are required to institute decisions that are in their own best interests and those of the corporation. In the firm, there are varied levels of information groups. The levels entail management, staff, and clients where each team’s decision is dependent on the other one’s decision for success. Therefore, in aligning the groups’ capabilities to accomplish their objectives, they require automation. Automation will help relay appropriate information fast and to the right individuals. Proper data flow with the groups will translate to desired outcomes and business growth. Therefore, McDonald’s requires automating every system in its various categories to achieve success.
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Proposed system: Benefits
The following research proposes a fully automated information system that will improve savings and speed, and enhance client satisfaction. The strategic information system will characteristically be used to help the corporation attain a competitive advantage (Grant, Hackney, & Edgar, 2010). McDonald’s makes attempts to improve IT application for the profitability of its operational objectives. Therefore, the suggested system will be able to align business processes with the goals which will translate to improved results for the corporation. Similarly, the proposed system will improve money management, transactions processing, and recording. By employing real-time remuneration service in their point of sale, inventory, and financial data, the corporation will be assured of improved sales and marketing approaches as well as client relationship management.
Similarly, the proposed system should maintain a broad advertising campaign that incorporates the various types of data elements. In addition to the corporation’s general media like radio, television, and newspaper ads, the business will record success in the smooth implementation of the elements in order to increase and appeal to the client base. Also, any system being implemented at McDonald’s should facilitate appropriate and broad networking and interactive processing. The proposed system will be advantageous in that it will facilitate two elements. Networking will be facilitated through enhanced communication and joining the existing public virtual networks. It is in this field that the corporation will be capable of reaching new markets. Additionally, the proposed system should enforce the aspect of decentralization that has enabled McDonald’s to manage its various restaurants efficiently while maintaining a competitive advantage in the increasingly competitive food industry.
Decentralization in McDonald’s is featured in many areas, which include management, and therefore the proposed system requires offering an appropriate paradigm to uphold management ideals and resolutions. In the contemporary society, the information technology setting guarantees increased personnel productivity and reduced downtime in workplaces that are designed to deliver value in many ways (Popovic, Sarnovsk?, & Hladk?, 2011). The end user needs that the information system has to satisfy include quality service through a standardized process, access to best products and networks, and easy access to services among others. Similarly, the system requires facilitating the security of information shared and accessed through the system.
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System Software Acquisition: Recommendations
In promoting client and organizational needs, the McDonalds Corporation calls for an appropriate system that would manage varying costs and economic conditions. In acquiring the necessary software, the earnings and costs should be thoroughly evaluated as flaws will negatively impact the company’s performance (Hunter, 2009). Before acquiring the software, innovations in the technological area should be recorded and contradicting ones should be placed for an upgrade. The proposed software should provide McDonald’s with several benefits like distinguishing and ranking security threats, optimizing resource allocation to manage costs appropriately, standardizing incident reporting and response, and lessening legal liability. Additionally, the software being acquired should facilitate the corporation to institute adjustments and also enable monitoring and analysis.
Information Systems: Potential Threats and Solutions
There exist various risks that accompany information systems. Some risks can be avoided while others are inevitable. The information system at McDonald’s faces several threats such as functional lockout which makes the systems unavailable. The threat may be caused by the malicious attack and is characterized by the inability of the personnel to access the computing framework or applications. McDonald’s can mitigate the risk by securing the infrastructure with firewalls and carrying out regular maintenance. Another threat includes system compromise which may be instigated by the malicious use, unauthorized access, or computer crime (Baicu & Baicu, 2012). This risk may affect the outcome of data pilferage, and lead to data corruption, disruption or alteration of the application system. The security controls required to mitigate the risk include the use of strong passwords and firewalls.
The proposed information system raises various political, social, and diversity concerns. The system should be designed to meet the needs of all categories of individuals involved. However, there is a fear that the system will be unable to meet certain features like an alternative for working with individuals with disabilities like blindness. Politically, the technology raises issues concerning government involvement in fraud combating initiatives. The system may lock out external influences due to the strong firewalls and the desire to maintain organizational secrecy. Finally, the proposed system raises diversity issues where its design may not be accessible to certain individuals. As such, diversity impacts the proposed system to a great extent, since the corporation will have to implement a system that is widely acceptable to the clients. The organization is required to tailor the system to meet the utmost individual requirements, and this might prove challenging.
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Information systems have been widely employed in the organizations to attain excellence. The research paper has focused on McDonald’s and its implementation of the information systems. Based on the research, it is clear that the corporation has been observed to employ various information systems among them being POS, Decision Support System, Made for You, and management information systems among others. The systems help the corporation in alleviating many errors that might be associated with human error and provide timely reports for appropriate action. The systems also play a significant role in the management and support operations. Any system is designed to meet user needs with the result being satisfaction. There are various risks associated with the information systems which may be a result of the malicious or criminal activity. As such, the corporation requires having strong countermeasures to combat the threats. Such measures may include the use of strong passwords and firewalls. Therefore, the impact of information systems on the organization’s success is apparent.