Knowledge Management Information System At MC Donald’s will be evaluated in this report with the challenges of implementing Knowledge Management Information System. Knowledge plays an outstanding role in the endurance of an organization. It helps organizations to gain a competitive advantage because the data and information provided through knowledge assist organizations in taking effective decisions. Effective decisions help them to stand strong in the market they operate a business. Knowledge management systems indicate the IT systems that recover knowledge, develop collaboration, utilize knowledge, etcetera and develop KM process.
The effectiveness of the different types of KMIT has been analyzed, and recommended appropriate KMIT for MC Donald’s. Management reporting system, inventory system, sales and marketing and human resource are the recommended systems for MC Donald’s. All these systems will increase the effectiveness of MC Donald’s operations, which will make the company more successful in the fast food chain globally.
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Management Information Systems of McDonald’s
Management information system manages the information system of companies. It helps organizations to generate methodical reports for every level organizing and programming data I computerized way. Management reporting system, inventory control system, sales and marketing system and human resource management system all are appropriate for MC Donald’s. These will help the company to track all the significant information and take necessary steps to develop their business.
Management reporting system:
Management reporting system captures the data which is significant for managers to execute in an organization (O’brien, and Marakas, 2011). This system helps managers to evaluate their own performances. Managers of MC Donald’s will be able to monitor and analyze their own performance. Therefore, they will be able to develop their capabilities by finding out their weakness. By developing own capabilities, managers will be able to make MC Donald’s more productive. Managers will be able to compare the performance of the company with past years which helps to analyze that they expected performance is conducting or not. As a result, MC Donald’s will be capable of finding the gap that is creating problem in achieving its expected performance and it will strengthen the competitive advantage of the company.
Inventory control management system:
Inventory control system tracks the sales, spoilage, inventory on hand and theft of a company and updates management about these inventory (Laudon, and Laudon, 2011). Companies get the update about the inventory that when the inventory will get low. By getting information about the inventory, companies get the idea when they needs to be restocked. It is one of the most important management information system for companies. MC Donald’s will be capable of knowing the details of storing and storage of raw materials. Therefore, the company will get clear idea that when they will restock the raw materials and they will remain ready to serve their customers. As a result, MC Donald’s will be able to compete strongly.
Sales and Marketing management system:
Sales and marketing is the management information system that assists companies to operate and evaluate the efficiency of their marketing functions and sales (Laudon, and Laudon, 2015). This management information system tracks the information of projected sales, quality of products, effectiveness of advertising and sales promotion, distribution networks, pricing, discounts etcetera. MC Donald’s will be able to know which the most demanding product is and which has lower sales rate. Therefore, they will be able to maintain the quality of top selling products and improve the quality of low selling products. As a result, MC Donald’s will be able to increase their profit than their competitors.
Human resource management system:
This management system helps management to control the flow of information of everything of an organization (Hevner, and Chatterjee, 2010). Mangers use electronic devices to communicate with all the department and employees furthermore employees also use electronic devices to communicate with each other. MC Donald’s will be able to track their employees and recruitment. The company will be capable to managing their employees regularly with human resource management information system
Benefits of Knowledge Management Information System At MC Donald’s
Benefits of Management reporting system:
Firstly, Management reporting system increases communication among senior management and employees (Hevner, and Chatterjee, 2010). MC Donald’s will be able to communicate effectively and identify the problem areas that will help them to get agreeable solutions.
Secondly, It reduces manual work because employees do not need to waste time in searching data and result (Thakur et al., 2014). Therefore, employees of MC Donald’s will be able to do other important tasks in that saved time. As a result, productivity of MC Donald’s will increase.
Thirdly, managers can take right decision based on the reliable data of management reporting system (Melville, 2010). Managers of MC Donald’s will be capable of increasing the effectiveness of the decisions they make. As a result, the company will be able to reduce costs and increase profits with effective decisions.
Finally, management reporting system provides reliable data on fingertips of managers and they can respond fast with the changing environment of business (CHANDESRIS, and REMY, 2016). It will help MC Donald’s to respond with the changing environment therefore they can decrease their costs and increase profits.
Benefits of Inventory management system
Firstly, companies get informed about the inventory level of them which informs the right time of restocking the inventories (Hamdani, and Susilawati, 2018). MC Donald’s will get right information about their inventory and they will be able to restock the inventories in right time. As a result, The Company will stay ready to deliver services for their huge number of customers.
Secondly, it ensures proper management of inventory and companies get the right information that which inventory will be restocked (Zornić et al., 2012). Therefore, company will not invest on the inventory which they do not need. By restocking right inventory, MC Donald’s will be able to maintain its cash-flow and liquidity.
Thirdly, MC Donald’s will be capable of reducing the rate of stealing inventory by employees by keeping exact record about the inventories. MC Donald’s can stop stealing inventorying by their employees that will reduce the hidden costs of the company.
Finally, it reduces labor costs because companies do not need to pay the employees for keeping information about inventory (Zhao, Deng, and Li, 2013). MC Donald’s will be able to reduce their labor costs with this system.
Benefits of Sales and Marketing management system:
Firstly, sales and marketing information system helps companies to know which product of the company has high market share and which has low market share (Gupta, 2017). By knowing the fact MC Donald’s can take significant steps to innovate the products with higher demand to increase sales more and they can stop investing on the products of low demand or take steps to enhance the quality of the products. It seems that the system will help MC Donald’s to improve the quality of their products.
Secondly, it tracks the effectiveness of advertising and sales promotion that assists companies to know about the result of the investment they are making on the advertisement (Zhang et al., 2011). MC Donald’s will be able to know about the outcome of their sales promotion and advertising. As a result, they can solve the problems which is making sales rate slower and ensure higher sales growth.
Finally, Sales and Marketing system informs about the projected sales of company (Gupta, 2017). Therefore, MC Donald’s will be capable to know that they are capable to attain projected sales or not. If not then the company can ensure projected sales by taking significant steps.
Benefits of Human Resource management system:
With the help of human resource system, management can communicate with the employees effectively that makes employee management easy (Noe et al., 2015). MC Donald’s can manage their employees daily by communicating with them through electronic devices and share significant information. As a result, employees’ management of MC Donald’s will be easier.
It is a time saver system because managers, supervisors can enter n the system to enter data and employees can enter to the system in order to change data (Werner, and DeSimone, 2011). As a result, MC Donald’s managers, supervisors and employees will be able to enter into the without bothering one another therefore it will save much time.
How Knowledge Management Information System helps MC Donald’s to achieve corporate objectives
MC Donald’s managers will be able to evaluate their own performance including employees through management reporting system. Therefore, the quality of MC Donald’s output will be developed and it will increase customers’ gratification. As a result, the company will be capable of being in the top delicious food provider on customers’ mind which is the corporate objective of the company. Inventory control will ensure enough inventory in stock and MC Donald’s will remain ready to provide services to huge number of customers. It will also help the company to be their first choice. Sales and marketing will help MC Donald’s to find out customers’ favorite food and they will be able to maintain the quality of the foods. It will keep customers’ happy and they will purchase more after seeing that quality of the food is being developed. Human resource system will assists MC Donald’s employees and managers to communicate effectively therefore they can deliver best products to customers. It will also help MC Donald’s to increase customers’ gratification and be their most favorite restaurant.
Challenges to implementing Knowledge Management Information System
The challenges MC Donald’s will face while implementing the recommended KMIS in their company are analyzed below:
Adoption of the recommended systems are costly: Adoption of KMIS for companies is a costly process because they have to purchase new software and hardware that is sued for the KMIS (Pearlson, Saunders, and Galletta, 2019). MC Donald’s have to invest huge amount to purchase the software and hardware that is needed in order to implement the KMIS for their company. It has business in 119 countries and have to invest the money for all countries which will increase its operational costs in huge amount (Craft, 2019).As a result, the profit level of MC Donald’s will decrease automatically which is big challenge the company have to face.
The company have to train up their employees to use the systems: Employees of different companies need training to implement new KMIS which a great challenge for companies (Shmueli,and Koppius, 2011). MC Donald’s have to train up their employees across the world in order to implement new KMIS because they do not know how to use these new systems. It is a big challenge for them to train up their employees across the world and the training time will hamper the regular work of employees. MC Donald’s should use online training in order to train up their employees across the world and choose a weekend for the training. As a result, regular work of employees will not get hampered.
Bringing new features to cope up with the changing retail is very difficult: Retail sector keep changing and companies have to bring new features on their systems in order to cope up with the change which is very difficult (Goetsch, and Davis, 2014). MC Donald’s have to update their systems to cope up with the changes of retail sector which is a big challenge for the company. They can develop their existing engineers who control the system in order to update the systems. MC Donald’s should make deal with the software providers to train up their engineers about the new updating features of the systems.
Conclusion:
MC Donald’s will be capable of increasing their efficiency with the application of suitable systems. Therefore, the company should apply management reporting systems, inventory control, sales and marketing and human resource systems to enhance the effectiveness of their operations. As a result, the company will be able to ensure better outcome of their operations and it will help them to deliver more convenient services to the customers. It will make MC Donald’s more profitable by maintain repeatable sales and attracting new customers.
Reference
Werner, J.M. and DeSimone, R.L., 2011. Human resource development. Cengage Learning.