The pivotal role that information technology play in business management.

Information Technology

The inception of Information technology has completely changed all business aspects, from marketing to payment processes as well as data storage. Similar trends have also been replicated on customer management throughout the business landscape. Businesses in the food industry have exploited this unbelievable opportunity in efforts to stay competitive in the market. However, the ease at which KFC restaurant has incorporated information technology into its business operation is significant. Never before could any business attended to its clients’ needs, which so much ease has KFC have done in the last decade. As a result, the company has been on a tremendous growth trajectory and currently owns more than 22,000 food outlets across the globe. The robust growth that KFC is presently experiencing is primarily due to its management’s recognition of the pivotal role that information technology play in business management.

KFC Company has invested in different aspects of information technology and still keeps on investing in more IT trends. It requires a strategic approach to effectively compete and realize the benefits of the emerging trends of information technology. With a benefit-led approach, KFC has effectively used information technology that has enabled business innovation and a means to enhance its value for its stakeholders, employees, customers, and the community. As a result, the company has managed to maintain its competitive advantage as well as increase its global market shares. Some of the critical information technology systems that KFC has incorporated into its business include Point of Sale system (POS), Touch-Interface Ordering System (TIOS), Decision Support System (DSS), Management information system (MIS), and Marketing Information System.

Point of Sale system (POS)

With the recent advancement in information technology, the mode of business transaction has significantly evolved. The emergence of new and more reliable transaction systems has forced businesses around the globe to shift away from the traditional clunky cash registers. Today, KFC restaurants use the Point of Sale (POS) system to carry out all its business transactions. The adoption of this leaner system of business transactions has benefited the company in many unimaginable ways. For instance, whenever customers use the Point of Sale (POS) for paying for goods and services, the system captures their crucial information such as phone number, email address, name, date of birth, and the product purchased. The company has often used the data captured to craft personalized promotions or advertisements and send it to targeted customers with astonishing precision and effectiveness. In return, the company has improved its customer loyalty, brand awareness and influenced customer purchase intensions ( ).

Additionally, the application of the Point of Sale system in KFC outlets has opened up new payment avenues for customers. The Point of Sale system has diverse payment options such as mobile wallets, EMV chip cards, debit cards, credit cards, cash, Samsung Pay, and mobile wallets. The receipts for the transaction are either printed or emailed to the customer. The expansion of the payment options in KFC has improved customer satisfaction as well as generates more revenue for the company. Furthermore, the adoption of the Point of Sale system at KFC outlets has improved inventory management in the company. Unlike the old cash register, the modern Point of Sale system has advanced inventory management capabilities that have permitted the management team to keep track of the company’s inventories. The company now effectively knows what quantity of inventories to order and at what specific time.

Touch-Interface Ordering System (TIOS)

For approximately three decades now, we have incorporated touch screens into our daily lives, whether on smartphones or ATMs. However, the hotel industry has been slow in adopting this technology into their operations. However, KFC has been quick in implementing the Touch-Interface Ordering System (TIOS) in some of its food outlets across Canada and the United States. ( ) note that Touch-Interface Ordering System (TIOS) has similar properties like the regular ATMs we use in banks and permit customers to make their orders by selecting products that are presented in a pictorial form on the touch screen. Customers can also pay for the products using their debit or credit cards on the card slot placed on the machine.

According to Maria et al. (2018), customers are often attracted to restaurants that provide excellent customer services and dining experiences (pg 5). The adoption of TIOS at KFC allows clients to glance through the digital menu and put an order at their leisure. Furthermore, as soon a customer puts his or her order, it automatically reflects in the Kitchen, and immediately the order is made available. As a result, KFC has managed to significantly reduce the time customers wait before receiving their orders and occurrence of human error that often occur due to misplaced customer orders, thus enhancing customer satisfaction and dining experience (Sagar et al., 2014, pg 14).

Decision Support Systems (DSS)

Today, making business decisions are become more complicated due to the changing complexity of the business landscape around the globe. As a result, business is now relying on a decision support system to aid in the decision making process. Alluding to the structural complexity of KFC, the company has developed Decision Support Systems (DSS) to help in the decision making in all its organization levels. According to Maria et al. (2018), Decision Support Systems (DSS) is an automated program that is used to support a course of action, determination or judgment of business managers (pg1). She notes that these systems were not developed to replace managers but to aid them in making correct business decisions (pg 2). That is, Decision Support Systems can analyze data quantitatively, thus supporting managerial judgments that would otherwise be based on personal intuition and experience.

The company has often relied on Decision Support Systems to obtain information on inventory data, projected revenue, sales figures, and customer need and preferences. Using the analyzed data obtained from the DSS, KFC has managed to make an effective decision concerning business management and customer satisfaction. Besides, through Decision Support Systems, KFC has managed to quickly and cost-effectively make business decisions that have positively impacted the company’s growth.

Management Information System

The theory of management information system can be traced back when businesses relied on ledgers to carry out their accounting processes. However, with the recent improvement in computer-based information technology, new arrays of management information systems have been developed to assist businesses manages their operations. According to ( ) Management information system (MIS) is situated off a mechanized information system that can assemble data from several online systems, scrutinize the data, and present the information found in an easily comprehensible and readable format to assist business managers in making effective business decisions. ( ) note that all the KFC franchises globally utilize the management information systems in inventory management, accounting, and planning and developing business strategies that can make the company stay competitive in the market. Moreover, through the management information system, the company has managed to acquire crucial information on the current business landscape in the food industry. This has enabled the KFC management team to understand the company’s market position and make the necessary adjustment that can positively impact the business today and in the future.

Marketing Information System

The food industry is very competitive, and any marketing mistake made by a company may lead to its failure and exit from the market. To stay competitive, KFC as adopted the Marketing information system to aid with its marketing strategies. Marketing information systems are situated of a mechanized information system that can continuously collect, store, interpret, and analyze market information from internal and external sources (Piercy, 2018, pg 5). By using a marketing information system, the company has managed to develop effective marketing strategies with the ability to capture the attention of the intended audience and demography. For example, by using a marketing information system, KFC has adopted better advertisement strategies like social media marketing.

Today, the social media platform is being used for virtually everything–communication, learning, shopping, and entertainment. As of 2014, the total number of Facebook users globally was more than one billion, recording more than 300, 000 likes per minute Ganis & Marimekala, 2014, pg 1). As such, all KFC outlets globally have integrated their marketing strategies across their social media platforms such as Twitter, Facebook, and Instagram to reach out to a broader and bigger audience. As a result, the company has significantly enhanced its brand awareness and market sales across the globe.

Conclusion

Information technology is a dynamic field that keeps on changing every day. The ability of KFC to keep up with the changing trends in IT indicates the company’s wiliness to stay competitive in the food industry. Through information technology, the company has managed to create marketing strategies that easily relate to the target audience, increases its payments option, effectively manage its inventories, and improve the customer dining experience. Furthermore, the company has used information systems to aid its decision-making and improve its competitive nature in the food industry. Despite all the business opportunities that have opened up through IT, the full potential of IT is yet to be achieved.

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