McDonald’s Corp this month will begin testing its long-awaited U.S. mobile ordering app with the goal of avoiding the kinds of service hiccups that have haunted digital debuts by companies such as Starbucks Corp.
I think this article is a good case study for operational excellence and traditional business adapting the new technologies to help them grow business however unable to have a complete end to end solution. Just mentioned in the article, the few global chains deploy successful new technologies model for Order Acceptance Domain but there is a bottleneck or constraint at Order Fulfilment Domain. Separately, the new deployment of technologies or change management for the Order Acceptance Domain is a success as it had achieved it’s goal, increase or growth in the orders translating to increase in revenue. However, looking at End-To-End Order-To-Cash business, it is a failure, as the Order Fulfilment Domain meet the demands of the order and become the constraint in the whole process. This I see where there is business opportunities, whoever can provide the solutions (new kitchen process or layout) or technologies for the order fulfilment (new kitchen systems) or business model (supporting 3 rd parties or places) to resolve the process constraint will be earning big bucks. This is not a surprise to me, as I see that happened in my 13 years in IT industries.
Those been in IT industries, think again you shall see this before, when the various IT firms opening their respective eStore online, in the early days they found that order fulfilment is not meeting the SLA as a whole. The whole industry actually later invests a lot on business transformation on their Supply Chain and Logistic functions with new technologies, with processes or solutions or even business model by outsourcing to or partnering with 3rd parties to help them in fulfill their orders. At that time, I always received complains from my online store business unit that supply chain took a long time to fulfill their orders making the online sales not attractive. In the end, after some projects and business transformation decided to engage 3rd party to ‘buy’ inventories and manage such order logistic.
So when I saw this article in the morning, I realise that this problem is not restricted to IT consumer industry but also applies to the F&B consumers industries which I think this will be also a problem for the retailer consumer industries too.