Project Proposal: McDonald's Use of Digital Systems for Growth

This project proposal examines how organizations can leverage digital systems for development, using McDonald's as a case study. The proposal outlines McDonald's digital transformation initiatives, focusing on enhancing competition, data management, and customer service. It analyzes the external environment (political, economic, socio-cultural, and technological factors) and the internal strengths and weaknesses of McDonald's. The project highlights strategies like mobile applications, data collection, and cloud-based systems to improve performance, control stock, and create value through employee and customer engagement. The proposal suggests introducing digital ordering stations to attract tech-savvy customers and addresses gaps in digital system management. It includes a bibliography of relevant sources to support the analysis.

MANAGEMENT OF DIGITAL SYSTEM

Project Proposal: Use of Digital
system by Organizations
Aim and
objective of this
proposal:
The objective of this
project proposal is
to find out the way
business
organizations can
utilize digital
systems in order to
attain
organizational
Development .

McDonalds: Organizational Outcomes
In order to examine how the efficient management
of digital system can boost the performance as well
as growth of a company, this project uses real life
instance of McDonald’s. Thus, this project proposal
focuses on the use of technologies by McDonald’s,
in the form of digital transformation. This project
proposal throws lights on McDonald’s attempts to
foster digital transformation, for the purpose of
achieving
expected organizational Outcomes.
Organizational outcomes expected by McDonald’s:
1. Competition
2. Data Management
3. Providing Customers Best services

Competition
• Use of digital
system will help
McD to cope with
a competitive
business
environment.
• Digital system
can be considered
as an effective
instrument to
gain competitive
advantage
(Savage, Hovis &
Karia, 2014).

Management of Data and Value Creation
Digital transformation
will enable McDonalds
create value for
• The customers
• Employees
• Other stakeholders
It will also be able to
create a positive
perception, about the
services it offers to its
customers and enhance
the brand value.
• Digital system is expected to assist in the
collection of data with minute details (Abrell,
et al., 2016) .
• Digital transformation is expected to help McD
to turn its data into assets effectively (Laudon
& Laudon, 2015).

Best Services To Customers by
Fostering Innovation
• McD will be able to enhance the quality of its
services to the customers, by introducing digital
system in its business.
• Reinvention of the paths to connect with the
customer network is possible through the
incorporation of digital system in the business
(Järvinen, Karjaluoto, 2015).
• The incorporation of the digital system in the
business conducted by McDonalds, will enable the

External Environment Analysis
The decision to
incorporate digital
system depends on
the analysis of the
external business
environment
This will include the
PEST Analysis-
1. Politics: political
scenario of Australia
will not help the
company.
2. Economic: With
the advent of digital
marketing Economic

Cont.
3. Socio-cultural:
The intervention of
technology in every
sphere of life has
resulted into the
emergence of a fast
and tech savvy
society. In order to
satisfy millennial
customers McD need
to take the venture of
digital transformation.
4. Technological:
The incorporation of
technology by the rival
companies have paved

Internal Environment analysis
1. Strengths of
McDonald’s:
• Good quality services
• Fostering creativity and
variation in the menu
• Incentives to the
customers
2. Weaknesses of
McDonald’s:
• Lack of prudent strategies
for product development
and renovation
• Lack of innovative
strategies to retain
customers

Digital System to Survive
Competitive Business
Environment
McDonald’s uses digital system-like mobile applications, to
connect with customers.
McDonald’s uses the digital system to construct a platform
1. To communicate customers via social media, company website.
2. Inform customers about the company and available offers

Data Management strategies
McDonald’s utilizes digital
platform for the purpose of:
• Conduct a proper estimation
of the real-time data. For
example, data related to per
day sales, data related to
customer feedback
collected through official
website of the company.
McDonald's uses data
collection and estimation
software, mobile
application, in order to
1. Research and foster
innovation
2. Flawless collection and
estimation of data

Business Process Analysis
McDonalds uses
cloud-based
organizational
information
systems as well
as digital
libraries to
• Enhance the
level of
performance
• Control the
stock
• Increase the
possibilities as
well as
opportunities
for success.

Creation of Value strategies
The creation of value is very
essential. Values can be created.
1. Enhance employee
engagement employee
engagement with
introduction of
technology: For example
distributing e-coupons or
vouchers for online shopping
(Nambisan, et al.,2017).
2. Customer engagement by
introducing digital system:
For instance, providing
customers promo code for
ordering for a certain amount
of online purchase, or free
membership of amazon prime
or Netflix for one month (Matt,
Hess & Benlian, 2015).

Proposal of digital initiative
for innovation Management:
Rationale and benefits:
McDonald can carry on the management of digital system
effectively by introducing sleek, vertical touch screens
called “digital ordering station. The rationale behind
introducing this digital innovation is to attract the tech
savvy millennial customers.
Digital ordering station will benefit millennial customers in
many ways.
Firstly the tech savvy millennial customers delighted to
order over a digital ordering stations. The services they will
receive will be fast and convenient.
Secondly, the services they will receive will be convenient.
After placing order via Digital ordering station customers will
receives a digital location device. They will have their seat
accordingly. After their order will be prepared, a server will
be directed by to the technology in the digital ordering

Cont.
Mitigating the gap in the digital system:
• Previously there was a gap in the digital system
management by McDonalds, as the company was unable
to implement customer friendly digital system. The
introduction of a digital ordering station will meet the
gap in the implementation of customer friendly digital
system (Nytimes.com, 2019).

Bibliography
• Abrell, T., Pihlajamaa, M., Kanto, L., Vom Brocke, J., & Uebernickel, F. (2016). The role of
users and customers in digital innovation: Insights from B2B manufacturing
firms. Information & Management, 53(3), 324-335.
• Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. L. (2015). Service innovation in the
digital age: key contributions and future directions. MIS quarterly, 39(1), 135-154.
• Järvinen, J., & Karjaluoto, H. (2015). The use of Web analytics for digital marketing
performance measurement. Industrial Marketing Management, 50, 117-127.
• Laudon, K. C., & Laudon, J. P. (2015). Management Information Systems: Managing the
Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press
• Lerch, C., & Gotsch, M. (2015). Digitalized product-service systems in manufacturing
firms: A case study analysis. Research-Technology Management, 58(5), 45-52.
• Lyytinen, K., Yoo, Y., & Boland Jr, R. J. (2016). Digital product innovation within four
classes of innovation networks. Information Systems Journal, 26(1), 47-75.
• Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business &
Information Systems Engineering, 57(5), 339-343.
• Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation
Management: Reinventing innovation management research in a digital world. Mis
Quarterly, 41(1).
• Nytimes.com. (2019). McDonald’s Introduces Screen Ordering and Table Service.
Retrieved 3 September 2019, from
https://www.nytimes.com/2016/11/18/business/mcdonalds-introduces-screen-ordering-
and-table-service.htmlSavage, K., Hovis, M., & Karia, M. (2014). U.S. Patent Application
No. 13/744,249.