ITStrategyforFatherandSonPizzeria
Running head: IT Strategy
1
IT Strategy
5
>IT Strategy for Father and Son Pizzeria
[Student Name]
[Course and Instructor]
IT Strategy for
[Company Name]
[To introduce your IT strategy, provide an executive summary that clearly describes what you are recommending and why it will benefit the business. Include a brief summary of the financial benefits. This introduction should be a paragraph or more, but less than a page.]
Description of the Business
Father and Son Pizzeria currently owned by Mr. Carlos Vega has expanded menu and improved products since it was bought from the original owner. The company has doubled the sales due to inclusion of the red sauce in their menu. The business was growing so fast the space for expansion was missing. Similarly Mr. Carlos Vega had now to work for longer hours to cover for the additional necessary employees and this has been limiting the ability of the business to improve its sales. To counter the challenges the owner decided to introduce the internet orders that would reduce the pressure on space and the need for more employees. Some of the services that the business are targeting wiwth online treading include offering take and bake pizzas, offering take and bake pizzas, allowing credit card sales and starting a curbside pickup. These services are planned to see the price of pizza increase by a margin of
$0
.50. Mr Vega and his wife considered two alternatives to increase their profit margins. The first option was to expand the restaurant by adding more tables, increasing menu prices and reducing their take-out business. The second option involved diversifying into the sauce industry by manufacturing and distributing their red-sauce to food stores in addition to the local customer base that they had built.
IT Strategy Proposal
It is true that Mr. Carlos need to think more towards the digitization of the company. The digitization if the company services will help in myriads of ways from the restaurant and for their online customers. One unique thing about IT is its impact on ionizing the management and improving the administrative functions. Without late the franchise needs to establish more technology to help them in serving the online customers and also effectively managing the clients in the restaurant. with the huge number of customers coming into the restaurant and the management have not increased the number of employees, the digital queuing subsystem will ensure that order is maintained. the implementation of the IT strategy .The IT strategy for the company entails three major initiatives to implemented including: use of Personal Digital Assistant (PDA) and Purchase order system (POS) technologies; Internet, social and mobile technologies and Long Range System (LRS) paging and On-cue systems.
i.
Personal Digital Assistant (PDA) and Purchase order system (POS) technologies:
Mr Vega can improve sales and profit margins in their curbside pickup by employing online reservation and internet-based ordering technology. Mobile technology has changed how people access and work with information. Integration of personal digital assistants (PDAs) technology into the business will help link customers’ data to the central business database allowing the management to develop point-of-service applications and systems for customer management (Khairunnisa et al. 2009). Wireless point-of-sale system (POS) technology allows staffs to take customer orders by ticking the PDA menu and send the orders to the kitchen for preparation. The system also reminds the staffs on meals on order for delivery which prevents customer disappointments through lack of timely delivery. This technology eliminates paper orders and improves usability and accuracy as well as increase service efficiency and productivity hence building higher sales that result in higher profit margins.
ii.
Internet, social and mobile technologies:
Internet, social and mobile technologies will play a central role in disrupting the market place. Customers rely on information that is easily accessible and available to them to make decisions on purchasing products and services available in the market (Allison et al. 2015). Internet-based technologies are advantageous to Mr Vega’s business in that they will allow him to optimize efficiency in service delivery, diminish waiting time and also enhance customer experience which are important factors in increasing customer satisfaction and improving revenues. They also give power to the customers enabling them to assume control of their meal experience hence enhancing their satisfaction (Pantelidis, 2009).
iii.
Long Range System (LRS) paging and On-cue systems:
Various restaurant is facing space problem and Mr Vegas has introduced a number of measures to improve customer service and experience which is likely to attract more customers. Due to lack of enough tables to accommodate the increased demand, a customer without space to the seat may feel inconvenienced hence and may result in loss of revenue. The LRS guest and staff paging system keep customers informed of their orders and staffs aware of customer waiting which helps streamline the restaurant’s service (Adivarekar, Dalvi & Yadav, 2016). On-cue system allows a single interface to organize and manage customers and table status providing customers with the opportunity of being notified through the LRS paging system or through a text message. Mr Vega can integrate these technologies with the waitlist management process which enables matching available tables as well as quoting estimated waiting times accurately. Employing these technologies will allow Mr Vega to effectively increase table turns as well as seat customers more quickly hence improving customer experience and satisfaction which in turn improves builds on sales and also increases customer loyalty.
Sourcing Strategy
The sourcing strategy will be to use one technology company for all the technological products. At start, the business will need one system Personal Digital Assistants (PDAs) which is connected a stable server. The business will also need two desktops to manage the online requests and deliveries coupled by software system that eases the serving process. The organisation will also need to install a stable LAN or wireless to help in the online coordination services. However for the internal management of the customer and the employee work the business should outsource the services from a related companies who can provide the services the advantage the company will extract from this is the fact that it is cost effective.
Financial Case
[Describe the cost / benefit analysis in one or more paragraphs. Be very clear about how much the IT initiatives will cost and what the expected benefits will be. Cite resources that you used to develop your cost / benefit analysis. For instance, you may have found an article on another company that was able to achieve a 20% increase in sales with an initiative similar to what you are recommending. The more concrete examples you can cite, the more believable the financial case will be. After summarizing the financial reasons for your proposal, refer the reader to Table 1. Update Table 1 on the next page with the data from your return on investment spreadsheet.]
.
Table 1
Return on Investment
[Company Name] |
Year |
1 | 2 |
3 |
Initial Investment |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hardware costs |
$0 |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased software costs / licenses |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Development costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Training costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[Other initial investments] |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Initial Investments |
$0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits from Technology Strategy |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increased sales and revenue |
$0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced personnel costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced product costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced distribution costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced advertising and marketing costs |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[Other benefits] |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Benefits |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs (Excluding Initial Capital Investments) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation on capital expenditures |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software licensing fees |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ongoing user support and training |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ongoing systems support |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hosting / Cloud computing |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[Other costs] |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Costs |
$333 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Benefits (Costs) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value after tax |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation added back |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow |
($0) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative cash flow |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Evaluation Metrics |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net present value (NPV) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internal rate of return (IRR) |
0.0 % |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payback period (in years) |
0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three-year total ROI |
0.00% |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Implementation Timeline
[Describe the timeline and sequencing of the IT initiatives in one or more paragraphs. Make sure the timeline is consistent with the financials. For instance, if initiative three does not go live until year two, you cannot show any benefits for that initiative in year one. Be very clear about when the initiatives will be implemented. Will all initiatives be implemented at the same time or will the initiatives be implemented one at a time? Explain why you are proposing a specific sequence. In addition to describing the timeline, you can include an APA figure for the timeline, if that is additive.]
Plan for Sustaining the IT Initiatives
[In one or more paragraphs describe your plan for ongoing operations and support of the IT investments you are proposing. If you plan to use a particular governance model and / or a portfolio management approach, describe it here. Include the KPIs (key performance indicators) that you will use to measure the value of the IT work.]
Summary
[Provide a one- or two-paragraph summary of your IT strategy and how it will add value to the business.]
References
Last Name, F. M. (Year). Article Title 1. Journal Title 1, Pages From – To.
Last Name, F. M. (Year). Article Title 2. Journal Title 2, Pages From – To.
Last Name, F. M. (Year). Article Title 3. Journal Title 3, Pages From – To.
Last Name, F. M. (Year). Article Title 4. Journal Title 4, Pages From – To.
Last Name, F. M. (Year). Article Title 5. Journal Title 5, Pages From – To.
Last Name, F. M. (Year). Book Title. City Name: Publisher Name.