"Yummy Eats" Case Study

Contents

INTRODUCTION DECISION SUPPORT SYSTEM CUSTOMER RELATIONSHIP MANAGEMENT BUSINESS INTELLIGENCE POTENTIAL FAILINGS AND SOLUTIONS OF THE SYSTEM KEY PERFORMANCE INDICATOR INFORMATION DASHBOARD HUMAN RESCOURCE- MANAGING STAFF SCORECARD DEMOGRAPHIC INFORMATION CONCLUSION REFERENCES BIBLIOGRAPHY

Introduction

This report relates to Yummy Eats case study. Yummy Eats is a SME (Small and Medium-sized Enterprise) business who has small number of workers and works on a low budget. As of now there are no system in implemented to their business and they are looking to extend their business. Below I have explained about how Decision support system and Customer relationship management tools could help them to improve their business without the risk of failing.

Decision Support System

A decision support system (DSS) is an information system that supports business or organizational decision-making activities. DSS plays I vital role in making quick and accurate business decisions. It helps to analyse and process big amounts of data and present in a way that its easier for the user to visualize and get relevant information.  Implementing DSS on to your business has several advantages, time saving being one of them. Use of DSS system can be a help the business to make decisions in a timely manner and increase business efficiency. One thing to keep in considerations is that the system is very costly. But on a longer run it would be a very good investment for Yummy Eats because it would be cost effective with the service it provides and helps a business to gain a competitive advantage. We also have to look at some drawbacks of the system; the system on itself would be very complex to understand for the staffs at Yummy eats as they don’t have prior training and expertise on using the system. Also, Yummy eats needs to be patient with the system after implementing it as many people do have misconception that if it is bought it will have a rapid change in their business which is totally wrong. Once everything is setup everything will pay off in due time.

Customer Relationship Management

Customer relationship management is a system that helps to manage customer data. In other words, it’s a great technology to manage a company’s relationship with customers and future customers. The main importance of a CRM is to improve business relationships by being connected to the customers providing the best service and keeping them happy and loyal towards your company. CRM helps to manage productivity, sales management as it helps to see all the data at one place e.g. a dashboard. CRM is also integrated with social media and other business tools which makes easier to view all information into one central database. [2] The implementation of CRM by Yummy eats would be a very beneficial for their company as their goal is to improve their customer retention. Customer service is one of an important factor that plays a vital role is keeping the business sustainable. With the use of CRM yummy eats would be able to analyse customers data and make predictions for potential customers as well as can help to update their food menu and other aspect of the restaurant in accordance with the customers feedback. We also have cloud-based CRM systems; where the information is stored externally into a remote network which can be accessed anywhere anytime if connected to the network. For SME such as I see this as a better option than on-premises CRM because its cost effective as they would be using a third-party service. But at the same time; a drawback would be concerning data security as they won’t have any control over the full database. Yummy eats can use these kind of services as it’s a cloud-based service, which means as a company they would not need to install any hardware or software on the site. They can just pay a service fee monthly and use third party service. i.e. Sales Force which would be more cost friendly.

Business Intelligence

“The term Business Intelligence (BI) refers to technologies, applications and practices for the collection, integration, analysis, and presentation of business information. “ [3] Business intelligence plays a vital part in making smart business decisions. It processes large raw information of the organization, analyse them and provides past, present and predictive view of business operations. One of the requirement for Yummy eats was they wanted their system to be very customer focused, Business intelligence helps to deepen the customer knowledge for an organisation and work on how they can deliver an outstanding customer experience. As yummy eats have now gained a brand recognition and looking to extend their franchise into different places. The different data from the different places would help them to get idea what kind of area is it by comparing the annual earnings and helps them to update on what prices to sell the food and what sort of local food do people eat on an average. Also, with the data they can update their internal stock data. It will give them a brief idea of what the best-selling product is, so they can order the product more with the supplier whereas if there is something that needs to be reduced. It helps to keep their store managed and save money with the cut down on cost of products. Although Business intelligence has its advantages, there are some disadvantages. For a SME like yummy eats to implement this onto their system would be very much costly. Costs add up from hardware to software. Not having any expertise to use such system is also another disadvantage, meaning special trainings would be required to the staffs to get familiar with the system. Also, the cost of maintenance is significantly high. According to Negash, the advantages to implementing a BI system can be quite significant. Negash states the findings of 43 North American and European organizations were that the median five-year return on investment (ROI) for BI installations was 112% for a $2 million investment. ROIs ranged from 17% to 2000% with an average ROI of 457%. [4] Overall, both the organisation and customer are benefitted with Business intelligence. Minding the cost to implement it; on a longer run it is very much worth it. It can help an organisation to offer a better customer service and the customer receiving better customer service helps the organisation to operate more efficiently and gain a competitive advantage.

Potential Failings and Solutions of the System

Key Performance Indicator

A key performance indicator is a value that measures a company’s oper4ational goal and objectives. KPI also plays an important factor is deciding an organization progress; with performance indicators the organization can keep a track of their overall performance and help them to reach their targets. One of the best example of KPI would be tableau; these days data are easily accessible online. With the relevant data in tableau you can create diagrams and graphs which will make it so much easier to understand.

Information Dashboard

An information dashboard is a business intelligence data visualization tool which allows business to visualize the key performance indicators. The dashboard could hold values like profit/loss, customer and employee details. Etc. This would be a perfect tool in context of yummy eats which would allow them to view all the information of all the locations at one place. They also would be able to keep a track of their best seller, stock report. As mentioned in the case study, they are planning to expand their business in different locations. The dashboard would allow to view all the reports and data of different locations and able to monitor the progress.

Human Resource - Managing Staff

In a business Human resources plays a role in hiring and maintaining workplace staffs. Every staff in a business have different characteristic and it sometimes can be tricky to handle. There can be days where business can be sort of staff. This is where Bradford factor comes in place; use of the factor it can keep a track of every staff and what is the reason for absence. Having lack of staff can be a huge load for the business to give full satisfaction to the customers. With the use of DSS they can predict about the possible outcomes and comes up with solution so that it won’t hinder any sort of performance. Hence this is a simple way to cut down on employee risk and I believe this would  be very much suited to SME like Yummy eats.

Scorecard

As yummy eats are looking to extend their business, there are some factors that needs to be kept in consideration while opening a new restaurant in a new location. Those factors include things such as the cost, time, manpower, local population and income. Etc. With these indicators it will give a good idea whether it is feasible to open the restaurant or not. Risk based scorecard can be very helpful towards a business which makes business decision more easy and effective. These scorecards provides various scores showing if it is likely to succeed or fail. Also, it is very helpful in the hiring process; with the scorecard the HR can analyse if the employee is right for the business or not.

Demographic Information

With demographic information of a new location Yummy eats can have a clear idea of the place such as standard of lifestyle of people residing there, their local food. Etc. From the data and resources Yummy eats can plan their franchise project and work out their menu accordingly. Yummy eats have recently started to get recognition, however to setup a new franchise on a new location will be a challenge as they must start from scratch. As mentioned above from the data of the residents, they would have a clear vision of what sort of items to put on the menu and prices accordingly which will attract the customers.

Conclusion

Overall in context of Yummy Eats; I highly believe that implementing the DSS system to their business would be very beneficial to fulfil their needs and requirements. It would help them to run their business efficiently and make better business decisions and can take advantage of all the DSS advantages mentioned above. Customer Relationship Management helps to increase productivity for their business

References

[1] Negash, Solomon (2004). Business Intelligence. Communications of the Association for Information Systems (Volume 13), 177-195. [2] MARGARET ROUSE, 2014. What is customer relationship management (CRM) ? - Definition from WhatIs.com [viewed Nov 3, 2017]. Available from: http://searchcrm.techtarget.com/definition/CRM

Bibliography

[3] Sourced from: http://olap.com/learn-bi-olap/olap-bi-definitions/business-intelligence/ [4] Sourced from: https://www.linkedin.com/pulse/advantages-disadvantages-implementing-business-charles-d-madewell/