Digital Leadership in the Fast Food Industry

DIGITAL LEADERSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
Analysis and Implication.............................................................................................................3
TASK 2............................................................................................................................................5
The strategic digital capabilities of McDonalds..........................................................................5
TASK 3............................................................................................................................................7
The role of digital leaders............................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Fourth industrial revolution is commonly termed as “Industry 4.0”. The term was first
introduced in 2011 in Germany to identify the future German economic policy proposal; it was
based on high-tech strategies. Implementation of Industry 4.0 to its highest can be seen in
Germany especially in multinational technological companies likes General Electric, Mitsubishi
and Siemens. “Manufacturing and automation technology developers such as DMG Mori,
Wittenstein, Bosch, Rockwell, Omron, Schneider, Stäubli, Yaskawa, Krones, PSI and Software
AG already market many technologies and solutions as Industry 4.0” (p. 195).
Since 2011, the term Industry 4.0 is widely used not only in Germany and the field of its
origin(engineering) but also in economic and management domains across the globe. Industry
4.0 has a board spectrum that includes value chain based on technological concept cyber physical
system, the internet of Things and the internet of services, big data management, relationship
with consumers and so on (van Outvorst, Visker and de Waal, 2018).
Hospitality industry has massively contributed in UK economy from over centuries. Fast
food restaurant and pubs are in a heart of this business contributing billions of pounds as a
revenue every year. Traditionally people used to order by walking in a fast food restaurant or a
pub for eat in or take away. With the technological development, this sector has been reshaped.
Increased habit of Online shopping in UK has forced industry to redesign and innovate its style
of business function.
There were many problems faced by customers and business with traditional style. From
Limitation of space, queuing for an order, food preparation time and many more. With the
advancement in digital technology fast food industry is transforming such that efficient and
coherent service is provided with higher standard of food quality. This report gives classification
on strategic capabilities and role of digital leaders.

TASK 1
Analysis and Implication
One of the key components in industry 4.0 is the internet of Things and the internet of
service where a customer is more oriented in the use of internet and its application to its
maximum in order to find fast food restaurant and its menu near them online. Fast food
restaurants in UK has incorporated the use of internet in its leadership strategy using their own
website, App or via third party App and websites like Just Eat, Uber Eats and Deliveroo. This
allows customer to place order in real time and get notify about the time to get it delivered or
pick up and also for them to go and (Shah and Patki, 2020) dine in their allocated time of their
choice. Fast food chain like McDonald's, KFC, Burger king, Pizza Hutt and Dominos are key
user of this principle.
Kagermann et al. confirm that “Industry 4.0 represents nothing less than the fourth
industrial revolution, comprising 3D printing, Big data, Internet of Things, and Internet of
Services, i.e., all the ingredients needed to facilitate smart manufacturing and logistics
processes”. Data is an asset for any business and organization. Industry 4.0 emphasizes on
collection and storage of big data in a business for future and a real time analysis. Data is used to
analyze the customer (Jäckli and Meier, 2020) need and taste through Web-analytic. Fast food
industry has been able to use this big data in promoting its service and products using different
internet and social platform.
These data are used in social media platforms like Facebook, Twitter, Instagram etc and
digital media like YouTube, Google, TV as an advertisement campaign by fast food restaurant to
create more audience for the products and services provided. These big data create an artificial
intelligence with the combination of a technological advancement. For example, if anyone has
googled McDonalds in their browser it remembers and shows recommendation in other different
platforms like Facebook and YouTube. Fast food restaurant in UK has successfully incorporated
this principle in their digital leadership. However, there has been concern about the use of this
data is a lawfully way (Piccarozzi, Aquilani and Gatti, 2018).
Industry 4.0 is incomplete without innovation and automation of product and service a
“Smart factory concept”. Preuveneers et al. “These technological revolutions will transform