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BBCS 3713

MANAGEMENT

INFORMATION

SYSTEM

Group Members:

Lau Qi Yang

Lee Hui

Lee Evon

Kwek Yeek Ming

Lee Hor Meng

1.0 Introduction

  • KFC was operate in the quick service restaurant and mainly focus on selling chicken
  • KFC is part of the unit in YUM! Brands Incorporation and Yum had 3 popular brands which are Pizza Hut, KFC and Taco Bell
  • KFC had operated 15,000 restaurant outlets globally

  • KFC still able to grow in the emerging market, and expanding lot of franchises every year
  • Its shows KFC still able to grow from 1952 until today and there is a constant growth

2.0 Current application of IT/IS

  • Point of Sales (POS)
  • POS is a computer replacement for cash register
  • POS is sophisticated then Traditional cash register
  • POS include track customer order and manage inventory
  • Sales team will sent an complete sales report into the database
  • KFC head office can based on the data and make a quick decision
  • MIS systems that had been used by KFC is Document management system (DMS)
  • DMS used the data generated from TPS and included past and current report.
  • MIS use among middle management and helps managers to keep track all documents in the database
  • DMS also helps KFC to communicate efficiently among all level of managers
  • So, manager able to make decision according to the situation quickly
  • DSS that has been used by KFC is Acumatica
  • Acumatica is a cloud ERP system that design to help manager to making decision
  • The functions of Acumatica include general ledger or cash management
  • The information from MIS will aid to DSS and support middle level manager in decision making
  • ESS had been used by KFC is electronic data interchange (EDI)
  • EDI is one of the system under the Acumatica cloud ERP system.
  • The function of EDI is transfer information and documents between branches effectively
  • EDI able enhance their supply flow to every branch, so EDI can helps KFC to save cost and time

3.0 KFC Business' processes

Attendance Monitoring System

Electronic Data Interchange (EDI)

  • With the used of EDI, KFC able to make MAJOR decisions.

Executive Support System (ESS)

KFC's top management using EDI

Understand the trend of the market

  • Top managers able to keep track with their suppliers and partners to ensure they have continuous supply
  • expand more or close branches of restaurant
  • deciding which branches or area most suitable to expand
  • enable KFC to exchange documents internally and externally

Reducing

  • time needed for make those transaction decisions
  • lots of paperwork
  • Providing real-time access to all information gathered
  • Able to keep track all information and when those information have any changes
  • React according to that changes in short period of time

Transaction Process System

(TPS)

Decision Support System

(DSS)

ACUMATICA [Enterprise Resources Planning (ERP)]

  • Helping KFC make clear and wise decisions.
  • perform better financial decisions and inventory decisions

8.0 Conclusion

KFC

Middle level Managers

  • Clear direction to make clear and wise decisions
  • Response rapidly toward information gathered

Middle level managers of KFC in HQ can make decisions

  • recruitment
  • inventory repuchases
  • increasing products or promotion

Gathering reports from all branches

Documentation Management System (DMS)

Management Information System

(MIS)

KFC

For example:

Advantages:

  • error reduction
  • increase employees' productivity

Disadvantages:

  • spend money and time on devices
  • difficulty in maintenance and repair

Management Information

System

(MIS)

Making Decision

Passing to Managers

Sales and Attendance collected from TPS

Generating to

  • sales report
  • human resources report

who has the power to access those report

  • Monthly sales report - Sales Manager
  • Accounting report - Acoounting Manager
  • Saving time to make decision
  • Responds rapidly towards the dynamic environments

viewed by :

sales managers

operation managers

accounting managers

All report can be accessed by top management

collected from TPS:

sales data

inventory data

accounting data

decision made on:

products

sales

inventory

cash management

Decision Support System (DSS)

Transaction Process System

(TPS)

Executive Support System

(ESS)

5.0 Portfolio Analysis

6.0 Scoring Model

7.0 Approach to build a system

Reasons

to purchase

from

Implementation of endpoint protection software.

  • Purchase directly from vendors, .
  • Anti-malware to protect POS system.
  • Strong firewall prevent suspicious action.

KFC is suggested to purchase and implement system security protection software that are provided by McAfee as it has the highest total score among all other vendors which consider to bring the greatest benefits to KFC.

4.0 Advantage and disadvantage

of all IT/IS applications

Electronic Data Interchange (EDI)

Acumatica Enterprise Resources Planning (ERP)

Documentation Management System (DMS)

High Benefit

High Risk

High Benefit

High Risk

  • security risk
  • longer time
  • high cost
  • save space
  • save cost
  • save time
  • build good relationship
  • increase speed
  • increase quality
  • costly
  • security risk
  • only used by top management
  • valuable decision
  • well-planned strategies
  • security

Point-of-Sales (POS)

Attendance Monitoring System (AMS)

Price Consistency

Security Problem

Low Risk

High Benefit

Low Benefit

  • price consistency
  • save time & cost
  • problems occur due to security risk
  • save time
  • save money
  • reduce human errors
  • avoid error and trust factors
  • reduce security risk

High Risk

Low Risk

  • security risk
  • easy to implement

Document management system

Advantages:

  • improve self-efficiency
  • remain price consistency

Disadvantages:

  • high costs in updating software and hardware based POS
  • face security risks

Electronic Data Interchange (EDI)

Acumatica

Advantages:

  • reduce physical storage
  • lower cost and save time

Disadvantages:

  • security issues by hackers
  • virus issues

Advantages:

  • build long term relationship
  • accuracy and fast processing

Disadvantages:

  • costly
  • security risks

Advantages:

  • reduce physical storage
  • lower cost and save time

Disadvantages:

  • security issues by hackers
  • virus issues

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