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Mcdonald Erp Implementation

Jan 31,22

Mcdonald Erp Implementation

Question:

Discuss about the Mcdonald Erp Implementation.

Answer:

Introduction

McDonald led the movement of changing the industry standard by establishing a model for the modern scenario fast food chain. McDonald has established its position worldwide and hence need to undertake proper decision for operating at the geographical front.  By utilizing modern information system like the ERP system for the management of the operations, it has set a glaring example in the modern world.  McDonald has created a niche in the market that is featured by the dynamic nature and the extreme high competition. The company operating in the industry has to face certain difficulties of the changing taste and preferences of the consumers. Hence, McDonald faces and even manages the stiff rivalry. Furthermore, the company avails advantages in terms of the business opportunities in the developing countries. The noteworthy competitors of McDonald include Dominos and Pizza Hut. At McDonald Information Technology has succeeded as the key business function (Mujtaba & Patel 2011). Therefore, the knowledge attained from the ERP system is being used by the management of McDonald to undertake critical decision of the future expansion and growth strategies. In the past decade, the ERP implementation and success of the company was of the highest quality.

ERP system has the flexibility for providing solution of Information technology irrespective of the business line and the plans that is used to compete in the market. ERP helps in supporting the strategy of the functional area of business depending on the strategy of the business and it requires to be sensitive to both the external and internal environment. For instance, ERP system provided by SAP utilizes the latest high tech information technology and gives a solution for meeting the needs of the industry.  The system is structured that fits any industry and comprises of the solution that is based on the practice of the industry.

McDonald appeared as the leading company that appeared for the adoption of Information Technology and ERP is being used by the company for a very long time. In the year 2002, the company started the implementation project of the ERP (Mujtaba & Patel 2011). At the initial point of time, the company faced challenges in terms of implementation however was successful in the longer time frame. The benefit of the ERP system is massive for McDonald. The chief module of the system is bein used throughout McDonald that comprises of Customer Service Management., Cash flow and accounting and the operations.  The ERP system at McDonald is linked closely to the software of Business Intelligence. As per the management of the company, the major reliance is on the ERP strategic implementation. The result or the reports produced by the system of ERP is used in undertaking decision pertaining to strategic decision with the utilization of the operational decision making. Business intelligence can be termed as the integrated information that plays a major role in the company.

ERP is being used by Mcdonald within the company and this is done by different ways of implementation such as CRM, accounting and cash flows. McDonald’s preference is to utilize the modules for the strategic implementation in the system of ERP. For doing this, McDonald uses the system of simultaneous ERP and BI through the deployment utilizing  E-Business Suite of Oracle and Oracle BI Applications. The utilization of the softwares enables the company to incorporate the strategic initiatives that helps in assisting the success with the conversion of data that is being attained by a BI platform (Jarke et al, 2011).  Challenges are attached to the usage of the ERP system but with the help of proper training and guide the same can be done with effectiveness.  The system of ERP is important, as well as effective as it has helped the company in collecting as well as streamlining the process of business. With the use of the system of ERP, the company is able to utilize the same for their smooth operations. In short, they are strategically reducing the cost associated with the input information. As per the ERP and the BI software, integration of the process has led to reduction of the overhead cost of production of McDonald. Some of the instance of the utilization of the ERP system by McDonald is as follows:

  • Utilization of the BI platform to validate the data conversion
  • Exposing the data quality issues in the E-Business Suite of Oracle
  • Uplifting the quality of the implementation of the Oracle E-Business Suite
  • Filling the major performance, quality of data, and scalability of the deficit through the help of the Big5 consulting company
  • Implementation of the 24×7 business intelligence strategy
  • Resolving the issues of the company that influences the adoption
  • Accommodation of the 24×7 availability for the increment of the user adoption

ERP system or the modules are significant to some business or certain area within the business unit. The use of IT in a particular company can be ascertained by looking on the two areas that is the dependence and the dependence degree on the system that is into existence and the strategic benefit of the development initiatives undertaken by the IT company (Jarke et al, 2011).  Hence, companies can be segregated into four main categories as per the strategic influence of the two aspects that is high or low. The core competencies of the company enable the decision maker to enable the decision making versus buying an information technology solution that pertains to the functional area for the overall enterprise.  The in house development of the ERP solution can be the ideal fit however the individual companies need to be aware of the challenges. Companies where IT is the backbone must consider the solutions that are customizable instead making definite philosophy. Mc Donald is moving fast and adding to the best of performance. The company is customer obsessed and committed in performing the best possible way.  Some of the examples in the past few years have seen better digital enhancement that has uplifted the entire process and will add to the benefit of the company in the long run (Binns 2021). Hence, it can be commented that the implementation of ERP has helped McDonald to attain the best possible result that ultimately uplifts the position of the company.  The presence of ERP provides efficient data strategy and helps in providing optimized solution. Overall, it can be commented that McDonald has attained the best result from the implementation of ERP and with the use of technological advancement the company is bound to attain further results.

 

 

References

Binns, R. (2021). Big Brand CRM Case Studies 2022. Retrieved from: How Big Brands Do CRM: Case Studies | Expert Market 2022

Jarke, M., Lenzerini, M., Vassiliopu, Y., & Vassiliadis, P. (2010). Fundamentals of Data Warehouses. Berlin; New York: Springer

Mujtaba, B. G., & Patel, B. (2011). McDonald’s Success Strategy And Global Expansion Through Customer And Brand Loyalty. The Clute Institute, -07-05.