Pizza Hut Data analysis

Introduction

Earlier chapters have set the stage for carrying out of this research. This chapter builds on the previous ones by reporting the results of the data analysis. The primary data collected through interviews and questionnaire is presented in graphs along with analysis and findings. From these analysis researchers will be able to proceed towards conclusion and recommendation.

Qualitative Data analysis

This part of chapter will analyse the interviews conducted with pizza hut management.

Strategy Importance

To find out and analyse strategy planning and its importance researcher asked questions from Pizza hut management ‘What was the strategic planning behind ERP (MICROS)’ and ‘What were the main objectives behind ERP (MICROS), and Is Pizza hut as an organisation able to achieve those objectives?’. In reply to these questions Operational support manager replied.

Strategic plan behind ERP system was to be a market leader in fast food market and to provide excellent customer service through ERP implementation. According to Operational support manager and area managers of pizza hut the objectives behind ERP were to run the business more efficiently, better product quality and customer service, enhanced financial procedures through real time figures and effective marketing through customer information.

(Hammer & champy, 1993) presented theory of business process reengineering, in their theory they explained that very basic rethinking and essential reforming of business processes to obtain remarkable improvements in current performance is called business process reengineering. Hammer further described information technology is the important factor to help BPR.

Pizza hut management identified ERP systems are very expensive to install. The hard work not only finished after installation but organisation have to do more to manage them. So to do all this Pizza hut needed a firm strong strategy. According to (Porter, 1996) simply we have no idea what is strategy and how we can build a good strong strategy. But on the other hand Whittington and Mintzberg helped to give the tools for strategy making. Pizza hut operational support managers answer showed that pizza hut strategy is pre-planned where as an organisation pizza hut management consider not only to install ERP but they also had looked after installation phase and ERP management. Beside this some particular objectives demands for a strong and firm strategy. (Bendoly, 2005) Informed that every time organisations handling ERP projects they should have corporate level strategy for ERP.

Unlike Mintzberg emergent school of thought where he highlighted that in organisation normally people don’t know about strategy and certain procedure developed into strategy.

(Robert & Norton, 2008) made intereting point he said both strategy and opertional approachs helps to minimize risk and manage risk. Operational manager, area manager and store managers all are agree that the basic strategy is growth in sale like earliar Operational support manager said the strategy planning behind ERP was to get maximum share in fast food market and customer service through ERP. (Porter and Millar, 1985) explained corporate level strategy means to make entire organisatin ready for growth and information systems plays vital role in this process that is why ERP are very critical for competitive advantage.

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According to pizza hut management they are able to achieve their target and as an organisation they are growing. Area manager revleas that pizza hut in 2007 sold 35.4 million pizzas in the UK and pizza hut serve over 97,000 pizzas and 171,000 customers a day at pizza hut UK. Overall sale of Pizza hut is more than £600 million after installing MICROS. Cheshunt store manager informed that the customer complaints are dropped to 2 to 4 complaints per quarter where before MICROS figures were 10 to 12.

Reseacher also tried to find out the challenges faced by pizza hut management. So the main purpose of this question was to findout the difficulties and challenges faced by pizza hut management during implementation. ‘What problems did you encounter during implementation’. In reply to this question operations support manager said, although they had pre plans for ERP(MICROS) still they faced lots of challenges and problems. The first big challenge was cost, MICROS entire package was very expensive to buy and implement. After installing MICROS the second biggest challenage was to change employees mind set and organisation culture. (Bendoly, 2005) made interesting points in ERP implementation, he explained after installation most of the time emplyoee do not have believe on information which ERP system provide.

Employees do not have importance of information, that how important it is to put accurate information into the system. Bendloy argued employee play important role in successful implementation. Pizza hut area managers also explained that to over come employees behaviour and to tell them how important it is to put accurate information for better analysis and knowledge pizza hut ran a dominanting training program. Which helped to overcome this problem. Store managers agrees that the training imporved employees performance and staff start to take proper phone no, customer information and order information and support managers start performing daily check according to the procedures. (Kling & Iacono, 1984) argued that introduction of technology to organisation often produces opportunities for managers to change the way they control workers.

Cheshunt store manager told in start the MICROS help desk was not helpful enough. (Kalling, 2003) also pointed out ERP systems are more than installing software programs. He clarified ERP system implementation trigger change in entire organisation. So managers have to think differently to manage change. He further argued that ERP and business process re engineering is linked with each other. Southgate store manager responded it was not easy to manage change in store. It is difficult to change employees mind set and to convience them on new procedures. Training plays important role but it is time taking process. (Frenzel, 1992) also identified that change management is not a easy process. It is a big challenge in management area.

Reseacher found Strategy making plays important role in organisation growth. It helps to estimate risk and to look forward in future. ERP plays important role to achieve strategy objectives by improving organisation efficency and customer knowledge. ERP implementation is not only software implementations but it triggers change in organisation.Proper planning and strategy to manage change helps to overcome different change problems.

Impact on operations

Researcher asked this question from pizza hut management to find out ERP impact on organisation operations and this also was core question of interview. ‘What is the impact of ERP (MICROS) on operation management after implementation?’ In respond to this question Operation support manager explained after implementing MICROS pizza hut communication is improved via intranet and managers are able to have real time figures in quick time. This helps them to improve speed, decision making process, quality of product and customer service. After installing ERP (MICROS) pizza hut is able to store customer information.

Operation support manager explained about new term in pizza hut “Every second counts” thanks to MICROS. (Mintzberg, 1991) also speak in favour of this according to him the most important thing in these days an organisation can have is its knowledge. Organisations always keep moving from one direction to another for better efficiency and innovation.

North Area manager identified MICROS helps to forecast for future in the light of customer’s previous order behaviour. MICROS took last 6 weeks sales and customer pattern to provide forecast with such a detail where managers can find out peak and off peak times even on hourly basis. It help managers to improve scheduling, cost of sales. (Mata, Fuerst, & barney, 1995) illustrated that resource base theory demands organisation I.T resources should have broad scope in organisation departments. Area manager descried through MICROS pizza hut management is able to control on waste. Because intelligent forecasting allow managers to prepare according to demand this helps to cut cost of sales. Southgate store manager further explained that scheduling is more accurate this leads towards better cost of labour. According to pizza hut area manger MICROS assist to have “Right people at right place”. By cutting cost of sales and cost of labour through efficient procedures we are able to maximize profit.

(Porter, 1996) defines operational efficiency as performing organisational functions better than competitors. He further explained operational efficiency leads towards low cost. South gate store managers answer was continuation of porter theory. He also identified MICROS help to give under 3, under 14, under 30 figures which help managers to check the order processing at different levels so they can find out the problem area. Grays store manager revealed that after implementation they have better pre-prep plan. This saves time and increase speed. Customers get better product and service. (Deming, 1986) presented a system where he said to improve quality (Plan, do, check, act). He believes by following this sequence we can improve quality.

Operational support manager

Operational support manager identified the big step towards online ordering system MICROS]offer pizza hut customers online ordering facility. It is major achievements to enhance customer service, bring accuracy and speed in order processing. (Jashapara, 2004) pointed out that organisations prime objective is to give products and services which can fulfil customers changing demands. Questionnaire figures make Jashapara point more valid where most of the customers like to place order online. Cheshunt store manager told online ordering system save time and cost of labour. When customer order through online it save order taking time and help to cut hours which used to take order on phone.

One of Pizza hut Area manager explained since pizza hut introduced online order service pizza hut‘s North area is saving round 2 % labour per week. (Porter, 1985) argued that organisation willing to achieve competitive advantage needs to create value chain.

Value chain refers to increase in margin.

In order to achieve this margin all the resources of organisation have to perform. Primary data shows that most of the customers like ordering online due to many reasons such as online ordering system allow them to order more accuratly, provide more information about required product and delivery speed is fast. Primary data shows that most of the customers like ordering online due to many reasons such as online ordering system allow them to order more accuratly, provide more information about required product and delivery speed is fast.

Researcher found ERP systems have a huge impact on operational management. ERP systems help to make operations efficient and effective. ERP systems help to cut cost and to maximize profit. At the same time assists to improve customer service directly and indirectly.

Impact on Decision Making

This question was asked from pizza hut management to find out impact of ERP (MICROS) on decision making and what they do different now. ‘Do you think Pizza hut’s over all decision making ability is improved’. In respond to this question all the managers were agreed and their answer was positive. Operation support manager tells MICROS produce real time figures which mean we can see even 10 sec progress from different point of views. This precise information allows managers to act fast, analyse to make accurate and efficient decisions. Communications between different managers are easy and secure. (Liebowitz, 2000) pointed out that in knowledge management major problem is distribution and organising of knowledge. He further explained data mining tool helpful to overcome this problem.

Area manager explained managers can reschedule the staff according to business need. If the sale is low and nothing happening manager can check on MICROS how many team member required and can adjust according to that information. (Bacij, Chaffey, & Greasley, 2002) explained that organisations want to work effectively their all the activities must be arranged and monitored by managers according to well informed decisions. Operation manager explained MICROS helped to sort delivery area decision making process through drive time reports. These drive time reports provide time to grid delivery area. (senge, 2006) thinks differently and he argued that a person can have a more information because of technical advancement but it create no difference if the person have not appropriate skills to relate this specific information in a functional way.

Marketing decision making is improved because of customer order records. Profit and loss accounts are available online. Overall financial decision making is improved. (Howard Dresner, 1989) first time introduced the thought of business intelligence. He explained it as a set of thoughts and methodologies arranged to enhance decision-making in business through the use of information and information-based systems. Store managers were agree that decision making is improved through MICROS. They can have a look on different reports.

Decisions about ordering stock are improved. (Davenport & Prusak, 1998) thinks oppositely according to them two third of managers information and knowledge came from face to face meeting or through phone discussion. One third information can be gettable through documents. (Rainey, 2006) argued that the main responsibility of executives and corporate management systems is to produce a well designed business model that can provide enhanced strategic direction, control and governance to the organisation.

Researcher found ERP provide information distribution to different managers of different departments. Information availability assists to improve decision making process. Through available and real time figures managers are able to take in time and accurate decisions to react accordingly.

Customer service and impact on marketing

Researcher asked this question to enquire from Pizza hut management which department of pizza hut as an organisation tool most of the advantage from ERP. ‘What is the most improved area in whole organisation processes, e.g. HR, operations or finance.’ The answer was consists on operation, finance, marketing and customer service. Researcher has done detail analysis on operation and finance in this part researcher is analysing marketing department to look ERP impact on marketing. According to Operations support manager ERP facilitate to store customer information and from this customer information different analysis can be done to find out customer trend, their ordering behaviour and spending capacity. This helps to provide more knowledge about customer. (Sveiby, 1996) explained difference between information and knowledge he argued information is not equal to knowledge.

Southgate store manager also speaks in favour of this he said customer information helps to build customer knowledge after some analysis. In analysis of customer information we need some particular information to build knowledge. For example customers order frequency and last order. (Polanyi, 1967) presented a theory about knowledge where he identified knowledge is an activity defined as process of knowing. For (Devanport and Prusak, 1998) knowledge is mixture of experience and information. This gives base to develop new skill and information. Pizza hut area manager thinks according to these theories and explained MICROS database store customer contact information, their last order record. Marketing department is using this information to make new deals, special deals to encourage differentcustomers.

MICROS’s online ordering systems introduced new marketing procedures which are low in cost and have high effect in outcome. For example through online systems MICROS data base store email of customers and marketing department use this email information to advertise new deals or products. Grays store manager compared before MICROS customer information was only available in store. This means only store management can access that information and store manager do not have the capacity to organise entire marketing department. MICROS enabled share and centralised database which helps to access customer information of all stores from anywhere. (Fiol & Lyles, 1985) presented a theory that rapid change in technology and competition bring new way of thinking in organisations and learning improves organisations performance. (Hubber, 1991) also identified the importance of information he said organisation learns the way of information processing is changed.

‘How new customer related knowledge and information is utilised.’

This question was asked to find out how pizza hut as an organisation is using customer knowledge. Operation support manager identified in his answer new customer information helps to keep customer record. This gives great knowledge about customer behaviour.

MICROS help to store customer’s experiences with pizza hut. Their ordering pattern helps to analyse peak and off peak time. MICROS online ordering system helps to do effective marketing through website and emails. Marketing department is encouraging customers to order online because online order save time, improve accuracy and customer service and enhance speed. Area manager pointed out new customer knowledge helps to differentiate the regular customers. And pizza hut management is able to introduce special offers to regular customers and more attractive offers for new customers. Overall MICROS provide knowledge to make an effective marketing strategy to compete. Cheshunt store manager gave example of introducing new business deals only for Cheshunt store this helped to increase sales. Questionnaire answers figures shows that overall more than 70 % like online ordering and special offers.

Researcher found ERP systems helps to create knowledge about customer and organisation. And have positive impact on marketing and customer service. ERP systems provide new marketing procedures, ERP systems also help to cut marketing budget through new procedures and facilitate even to do person to person marketing. Researcher also found knowledge is more than information.

Financial Impact

‘How much pizza hut spent on ERP and what is the expected time to recover this investment’ and’ Do you think so far investing in ERP was worth to pizza hut as an organisation?’

These questions were asked to have idea about return on investment. Operation supportmanager replied it is difficult to disclose exact figure of MICROS implementations. However he briefly explained MICROS systems were very expensive to implement just to have an idea one MICROS’s enable touch screen system cost £2200. A small delivery unit at least have 6 touch screens. Pizza hut entire management were agreed that ERP systems implementation investment was worth. It helped to enhance operations, increase sale, managers have better ability to perform and to deliver. (Gattikar & Goodhue, 2000) identified benefits of ERP, he explained ERP systems improve administrator role such as finance and human resource.

Questionnaire results shows more than 60 % customers agree that they have better accuracyand speed with new online ordering system. They also agreed that online ordering system provide easier and faster way to order. (Hossain, Jon & Rashid, 2002) also described ERP benefits they gave explanation that Enterprise resource planning systems are implement to enhance and improve performance of organisation and these systems have impact on entire organisation. Pizza hut management is agreed although MICROS are expensive but their benefits are worth to spend on MICROS.

Researcher found even though ERP systems are expensive for an organisation but they are worth for investment.

Accuracy

This question was designed to ask from interviewers what is the difference after ERP implementation. ‘What do you do differently now’. In reply to this question Operation support manager identify now pizza hut management have secure and easy availability of information. Online ordering system is step towards differentiation. Most of pizza hut competitors do not have online ordering facility. (Porter, 1996) explained organisation want to have competitive advantage have to produce a strategy either to execute different actions or similar actions with different technique. Area manager identified that MICROS produced improved reporting regarding different departments such as inventory report, more powerful sales report. Prevent fraud and more secure communication between customer and organisation. (O’Brien & Marakas, 2008) described ERP software based and related to manufacturing, distribution, sales , accounting and human resource reporting software. This allows ERP systems to provide analysis and planning reports of different departments. Grays store manager reveals now because of better and precise forecasting they are able to pre-prep more accurately. This makes us able to reduce order making time and improve speed. In questionnaire figures shows 98% customers agree that online ordering system improved speed and order accuracy. Operation support manager identified MICROS provide more accurate accountability and fraud prevention because MICROS record every single transaction between customer and organisation and it also store discounts records. Store managers informed MICROS helped to improve CHAMPS. CHAMPS is Pizza hut standards for individual store performance where they look at Cleanliness, Hospitality, Accuracy, Maintenance, Product and Speed.

Researcher found ERP systems help to enhance accuracy in different departments of organisation for better performance and accountability.

Quantitative analysis

Customers respond regarding ERP system

This section of chapter based on data analysis of questionnaire survey to find out customers responds for online ordering service and pizza hut management reply on this questionnaire survey. Survey was completed in one week. Survey respond was 100 %.

Pizza Hut online Service system Survey Statistics

Started 100

Completed 100

Completion Rate 100%

Drop Outs (do not use Pizza hut service) 3

1. Do you use Pizza Hut service in the area?

Yes. No.

In respond to this question 97 % customers answer was YES and they order food from pizza hut. 3 % said no. The figure shows there is high percentage of people who likes to order food from pizza hut. It gives Pizza hut great advantage in fast food market and shows have great brand name impact in fast food market. Pizza hut management told in interview it is their prime objective to be a fast food market leader.

2. How often do you use Pizza Hut Service?

1. Once a week

2. Twice a week or more

3. Once a month

4. Once a year

Question two was designed to get the ordering frequency of customer that how often

customer order pizza.51 % customers answered once a week. 40 % said twice a week or

more. 7 % said once a month. And 2 % said once a year. Researcher found that pizza hut has good loyal customers. As there are more than 50 % customers who order at least once a week. According to Area manager customer order frequency information helps to improve

marketing strategy and forecasting. L.R analysis

Order frequency

3. What is your preferred way for ordering food?

1. Calling at Pizza hut

2. Walk in

3. Online

This question was asked to identify what is the convenient way to place an order. In reply to this question 43% said they prefer order online 40 % peoples likes to order via phone and 17% customers likes to place order in person at pizza hut. Figures clearly show the different trends in customers. Customers have mixed approach towards ordering service but there are 43% customers as compare to 40% and 17 % who use other services. Researcher can withdraw result in the light of above figures that peoples have more trends to order through online service. Operations support manager also told that MICROS helped them to take one step forward it allow pizza hut to introduce online ordering service. Online ordering system is accurate and faster way to place order. (Shanks, Peter B, & Leslie P, 2003) pointed out organisations plan to install ERP when they found it is their requirement to upgrade their active operational procedures

4. How you get more information about your required food?

1. Calling at Pizza hut

2. Printed Leaflet

3. Online product description

The main purpose of this question was to find out does online ordering service provide enough information regarding product of pizza hut as compare to printed leaflet and calling at pizza hut. So researcher can determine about customer reaction about product information through online system. 67 % people voted that they will get more information via online. 29 % customers said they find more information on printed leaflets. Only 4 % customers agreed that they get more information about product when they call at pizza hut. After collecting primary data it is easy to identify the findings that 67 % customers are agreed that online system provide more information as compare to other product descriptions. Area manager explained in interview that Online system provide product information in detail because it iseasy to update and give product detail information on website as compare to printed brochure.

5. The information on the website is clearly written and easy to understand

1. Strongly Disagree

2. Disagree

3. Undecided

4. Agree

5. Strongly Agree

This question was designed to understand customer’s respond about information that is available on website regarding product and order. In respond to this question 82% customers strongly agreed. 11 % customers said they are agreed and 7 % customer replied they are undecided. After analysing the primary data researcher found that high percentage of customer 82 % strongly agreed and 11 % are happy that information on the online ordering system website is clearly understandable. This clearly shows that online ordering system is playing good role in pizza hut product understanding.

6. The content of the website is up-to-date?

1. Strongly Disagree

2. Disagree

3. Undecided

4. Agree

5. Strongly Agree

The aim behind this question was to calculate the accuracy of website offering products as compare to advertising offers and new printed menu. 82% customer strongly agreed that pizza hut website is up to date, 10 % people said they are agree that pizza hut is up to date , 6 % people said they are undecided 2 % people said they are disagree with this statement.

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Above figures describing that most of the time customers find website up to date. Researcherfinds still 2 % of people are there who said they are not agreed. This is area of concern being a multinational company Pizza hut have to resolve this and the website content should be up to dated for better impact and this is necessary for online system success that all the part of ERP systems in working condition and capable to play their role in organisation services.

Southgate Store manager explained this problem as online website is for National level, whilesometimes pizza hut run special offers for local area, and customer find conflict in deals. Area managers described they are working to solve this problem by allowing special discounts for customers.

7. Please rate the ease of navigation of Pizza hut online service

1. Excellent

2. Good

3. Average

4. Poor

5. Very Poor

This question was designed to find out the ease of navigation when customers are ordering their food or in between their order and change mind to other product. 61 % customers said the navigation of website is excellent, 31 % said it is good and 6 % said it is average and 2 % said it is poor. There is mixed ratio of answers regarding ease of navigation. Area managers and store managers identified ERP installation helped to improve visuals and navigation through providing intelligent order taking program. Researcher found that online system can be more user friendly to encourage customer for online ordering service.

8. How easy was it to find a particular item you were looking for?

1. Very Easy

2. Somewhat Easy

3. Easy

4. Somewhat Difficult

5. Very Difficult

This question is supporting above question and focused particularly on specific item or product.68 % people voted very easy for this question, 21 % said somewhat easy, 9 % said easy and 2 % said somewhat difficult. Pizza hut management explained because of user friendly layout and product detail help to find and select product. Researcher found that 68 % respondent said it is easy to find their required items this shows that online ordering system is really helpful for finding their required product and good for search of items.

9. Please rate the overall content of Pizza hut website.

1. Excellent

2. Good

3. Average

4. Poor

5. Very Poor

This question covers generally about accuracy and easiness of the online ordering system. In respond to this question 61 % customer said excellent, 25 % said it is good ,11 % said it is average and 3 % replied it is poor. The statistics illustrate that there is high volume of customers who are satisfied with overall content online ordering website. Pizza hut management identified MICROS online ordering system is on step forward towards better customer service. (Gattiker & Goodhue, 2000) Pointed out ERP implementation provides benefits from many angles.

10. How easy was it to modify items in your shopping cart? e.g to change pizza base,

1. Very Easy

2. Somewhat Easy

3. Easy

4. Somewhat Difficult

5. Very Difficult

This question was designed to find out the ease of changing order, if a customer wants to change order after deciding final order is it easy to change the final order as compare to other service.37 % customers said very easy, 35 % said somewhat easy and 22 % said it is easy and 4 % said somewhat difficult and 2 % said very difficult. Researcher found that 37 % people found it very easy to change final product this figure is low as compare to above customer’s respond towards online ordering system. This is the area of improvement for online service. In respond to these figures operations support manager told MICROS support team is working to fix problems as they are logged. They always try to provide best possible and user friendly interface to customers and order takers.

11. Was your order complete when you received it?

Yes No

The main objective of this question was to find out accuracy when order received at pizza hut and processed how accurately it delivered when place through online ordering system. 96 % said yes to this question‘s answer and only 4 % said no. Findings show the accuracy level for online ordering service is good. Where 96% of people said they find complete order. Cheshunt store manager revealed that since they have MICROS online ordering service their store d