Case Study – Xero and Mcdonald’s

Finally, based on McDonald’s, It will analyze the Importance of information system and information technology. 1 . Competitive Forces Model With rapid development and increasing acceptance of the internet, Dry established Xerox, an accounting software company that listed on the NZ stock exchange within a year. To analyze Xerox’s business strategy and the Impact that external factors have on Internet Industry attractiveness, Michael Porter’s five forces model can be used as follows: 1. Threat of new entrants Indeed, there are a few barriers that impede entry to the industry. Two significant barriers are switching costs (e. G. Offering multi functional services, such as training services for both customers and partners and facilities for banking contacts , than usual accounting services) and capital requirements (e.

G. Extensive knowledge of small businesses and advanced information technology).

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In reality, however, threat of new entrants is still high in view of the facts following: 1) establishment of relationships between firms and clients Is temporary and the high knowledge requirement of the defense Industry can be meet basically by learning and imitation, 2) licensing and permit requirements of internet industry are not as restricted as those of the power generation industry and the airline industry, which allows more firms to enter, 3) Locating market niches not being served allows he new entrant to avoid entry barriers.

It is an opportunity for small entrepreneurial firms to Identify and serve neglected market segments due to the Immaturity of the Internet market, which encourages small start-up firms to enter. 1. 2 Bargaining power of suppliers In contrast with traditional producing industry, there is no real supplier for a software company that designs systems internally and independently.

For instance, the data and professional knowledge that the firm requires for developing an online accounting system Is entirely trotter Day clients Ana Internal employees, Including ten information collectors, the system designers, the maintenance programmers and the accountants. Thus, the firm is able to control the cost and price effectively without the threat of supplier’s actions. 1. 3 Bargaining power of buyers Firms seek to maximize the return on invested capital while buyers seek highest quality products at the lowest possible price. As for Xerox, small businesses and their advisers are direct buyers.

Although many accounting software can be chosen to provide online accounting services, the bargaining power of small & midsized enterprises is not as strong as it seems like. Xerox is one of few accounting software which can run on Mac SO X and Linux as well as Windows. For buyers not using Windows or using multi operation systems, the cross-platform software is a smart choice for avoiding from changing platform. Moreover, Xerox contains a unique dashboard and facilities which can automatically import bank statements from thousands of banks globally, including the major banks in USA, I-J, New Zealand and Australia.

Product differentiation enables Xerox be powerful when dealing with clients.

1. 4 Threat of substitute products The key features of accounting software include invoicing, accounts payable, expense lams, fixed asset depreciation and management reporting. For small businesses, to achieve these goals without purchasing accounting software, three approaches can be illustrated: Manual accounting systems; Setting IT department to develop internal accounting software; Outsourcing accounting activities to accounting firms.

In fact, computerized accounting development is the inevitable direction as manual accounting systems are difficult to process massive transactions efficiently and effectively. Furthermore, outsourcing the accounting work to accountants or accounting firms may lead to privacy risks and developing an internal accounting system is infeasible to small enterprises in respect of costs and human resources.

Thus, there are few outside threats to accounting software in terms of substitute products at the present. Intensity AT really among competitors Intensive rivalries are common in industries with many equally balanced companies. According to the research of accounting software, there are at least 20 free and open source software and 60 proprietary accounting software in worldwide, which means more firms have to compete for the same customers. Top Ten Reviews website illustrates top rated accounting software of 2013. Xerox ranks ninth overall although its price per month is the lowest in top ten.

More specifically, visible dimensions on which rivalry is based are not only price, but also switching costs. Low switching costs (I. E. Low levels of product differentiation) is another significant factor associated with higher levels of rivalry. Buyers frequently purchase the product or service loyally when they find a unique product that satisfies their needs. Although Xerox intends to differentiate itself from others by providing elated services, focusing on small businesses and being web-based instead of stand-alone, the rivalry between Xerox and competitors remains intense.

Consequently, to face the intensity of firms’ rivalry, it is vital for Xerox to possess different products that cannot be imitated easily. 2. Discuss zero’s sources of competitive advantage. Explain how Zero provides value to its users. Accounting principles and practices are at the heart of any business. Regardless of its size, the strength and the survival of any business is greatly affected and perhaps determined by how their financial are being handled.

In this modern day and age here everyone goes online for solutions per SE, entrepreneurs have been greatly attracted by online accounting software.

Xerox is one of the many online support companies that offer accounting solutions to businesses and entrepreneurs in Australia, New Zealand, the I-J and the US. Its subscriber base has grown very rapidly and steadily since its birth in 2006. Xerox’s success can be credited to the fact that the people behind it don’t grow complacent with every accolade it gets. Rather, they continuously develop and innovate different systems to accommodate and support the needs and demands of the companies and individuals who depend of them for online accounting solutions.

Among the many strengths that Xerox has, the one that gives them the sustainable competitive advantage over its competitors is the ease that it offers to its users. Everything can be done with perfect ease. Control over the business’ financial aspect is achieved because the user can dictate which transactions should be carried out at a particular time. Xerox also offers its users the ease to reconcile and connect their bank accounts. Bank feeds automatically categorize the user’s latest banking and credit card transactions, ND eventually reconciliation of these accounts are done. Ere NAS a ’round t – en-clock technical email support Any entrepreneur Knows Tanat problems arise at any time.

Some of these problems may start a downhill turn for a company, no matter how small or simple that may be. Having a really strong support team gives any company and or business owner that sense of security that if and when something comes up, regardless of the time, someone who is more experienced will be able to assist them to have a better grasp at handling the said glitch. Xerox also came up with a feature that provides solutions for companies that have lit-currency transactions.

This feature automatically computes and calculates the company’s gains and losses based on Foreign Exchange fluctuation rates. Another source of Xerox’s competitive advantage is the fact that it is mobile.

Zero has developed an app that lets a user login anytime, at his own pleasure and convenience. If we review the competitive advantages that have been mentioned above, we can deduce that all of these advantages are anchored on the fact that Xerox has nothing but the user’s welfare in mind. It gives the user that feeling of being given personalized service. Xerox’s services and features changes the game for all of its users.

While we believe that accounting practices determine the success of a business, if such practices are done in a breeze, a lot more time and effort can be allocated to some other intrinsic field that also spells success like research and development, manufacturing, processing, marketing, etc. Although Xerox is geared to providing accounting solutions to companies regardless of its size, we believe that small to medium enterprises can benefit the most from it.

A few headcount can be taken off of a company’s payroll since general accounting, invoicing, tracking wage systems, etc. Can now be done online.

Thus bringing the company’s manpower expenses lower. The amount that a company shells out for the use of the wide array of services that Xerox offers is very minimal if we consider the benefits that the company gets. Such services create a need for the company to rely on Xerox for their accounting needs. Xerox makes any user feel that there is no way that they could run the business without Xerox.

Incessant developments, along with timely and relevant solutions are often being established and made better by the people in Xerox so that their clientele onto get left behind in the business world. . Define and discuss the roles and competencies required of CIO, COT and COP 3 1 Role Ana competencies required AT Chief Information Officer (CIO) is a Job title in an organization which responsible for overseeing the IT users and ensuring the IT strategic alignment with business goal and objectives (Page B, Kathy L, Peter B). In modern business, the role of CIO has three individual stages which including data processing manager, technocrats and business executives. CIO usually sits on the executive management board, make technical decisions with more details and report to CEO directly.

The competency requirements of CIO can be defined with four key areas, including thinking, influencing, achieving and self-management. Firstly, as a successful CIO, it is important to understand how customers think. Basically, CIO has to understand the needs and requirement of internal and external customers. Furthermore, CIO need to analysis the changing and nature of these customers preference. In addition, CIO requires the ability about strategic thinking that is able to build a long time vision. Secondly, the requirement of influencing is about strategic influencing, relationship alluding, interpersonal awareness and developing others.

It is important to build an efficient network of managing and utilizing strategic alliances. The ability to understanding of stakeholder network and developing organizational capability outside or inside of IT is allowed. Thirdly, the heart of achieving is the delivery of results and outcomes. The CIO needs to be efficient to establishing goals and objectives and ensuring that have delivery in time and within budget. For outstanding CIO, it is necessary to lead the pursuit of continuous improvement of entire organization. Another key characteristic of CIO to ring new and innovative solutions to organization for create strategic advantage.

Finally, the CIO should be independence and self-confidence. A successful CIO should have high flexibility to adapt the changing internal and external environment of the company. For make more self-confidence, CIO should familiar with company running and proper capacity and knowledge so he can make most of decision by 3. 2 Role and competencies required of COT A Chief Technology Officer (COT) is an executive level position in a company who has the responsible for ensuring the speed, accuracy, availability and reliability of the information technology for an organization.

According to Tom Berry and Raja Sympathy, the role of COT has four major models for success. Firstly, as infrastructure manager, COT runs the infrastructure and operations of IT, like data center operations, applications development and maintenance.

Secondly, as a big thinker, COT has the responsibility to create new business model and business line to Increase revenue. I mainly, as a technology pulmonary Ana operations manager, c have to determining the technology can be used to improve the strategic of organization business. Finally, as external-facing technologist, COT have to supply deter product and service to customer by technology.

Since standardized the COT, each company has unique requirements for its COT and provides a unique organizational structure into who fit. From the paper of Roger D. Smith made in 2003, there are five major competencies for COT selection.

Firstly, an important part of the base of business base, COT must have full technology knowledge and skills. Secondly, COT should have the ability that can transfer technical expert to business strategists. Thirdly, COT must possess ability to make decision about which technology are most likely to gain most returns.

Then more molly, COT need to have interpersonal communication skill and executive relationship. 3. 3 Role and competencies required of COP From the Business Driven Information Systems textbook, it can be know that Chief Privacy Officer (COP) is a senior level executive in a business who has the responsible for ensuring the ethical and legal use of information within company.

COP has the responsibility to build a uniform high level of data protection for all personal data. Another function of COP is support legal and business teams in client and supplier contracting also protect the internal project and new business offering business.

Then COP has rights to respond and deal with individual requests. Furthermore, COP has to monitor legal developments and interpretation of data privacy regulators. The competencies of COP are simpler.

COP has good knowledge and experience in information privacy laws, access, release of information and release control technologies. And he or she must know the policy and procedures. Moreover, it is necessary for COP to have the ability of monitoring and auditing. Like CIO and COT, COP needs high personal management and communication skills. How could McDonald’s improve their business by using a CIO, COT and COP

McDonald’s is the largest fast food restaurant chain in the world.

However, we all know consumer in different countries have different cultures and different tastes. It is important for information team to collect all information from all over the world to looking for the preference for consumer in each country. As a worldwide company, McDonald’s has the business strategic of international for business and management. McDonald’s has different menus, foods and fitments in different location. As the overseer, CIO needs to investigate all information and make the decision with executive management board.

For these years, consumers are looking for healthier food. In Australia, McDonald’s improve the cook method that improved technology support oven-baked rather than Taller More recently, ten griller products nave Eden Tort sale. Horticulture, McDonald’s has different methods for ordering, such as drive-through and order online. Then McDonald’s smart phone app helps customer to find closest store. In addition, the touch screen order system has improved the ordering speed. Also, the advanced technology increases the productivity of cooking machine.

These improvements increase the customer satisfaction and attract more customers.

All of these are developed and built by great effort of COT. The COP of McDonald’s has the responsibility to take all reasonable steps to keep secure any personal information recorded. From the McDonald website, it can be found. In McDonald’s, the information is stored on secure servers that are protected in controlled facilities. In addition, COP has the right to respond and deal with all individual complain and request.

It is important because a large number of information can been achieved to use it to improve the standard or find shortcomings of products or service.

To summaries, the development and success of he business is based on the different and important contributions made by CIO, COT and COP. 5. Analyze how and why information systems and information technology are important to an organization like McDonald’s. Fast food Junctions are called such because the dynamics of such businesses, as their name implies, is FAST.

It’s the name of the game where McDonald’s finds itself in. Over the last few years, I have personally observed and noted the constant change that McDonald’s has introduced to its vast customer-base.

Most noticeable changes come from the introduction of new entries in the menu and how orders are taken. A global company does not Just automatically come up with decisions to alter their menu or with their service. Rather, such decisions are primarily based on the information that they get from the behavior of their patrons.

Each business entity should be able to develop a way to gather information to move the business forward. This system should involve three primary resources, and these are: information, technology, and human factors. McDonald’s is a force to reckon with in the fast food industry.

But this would not have been the case had it been complacent with the other players in the industry. Reinvention often spells the difference amongst the said players. Since McDonald’s offers food, the need to change its menu is necessitated by the fact that people will always want to try out something new.

Acknowledging that fact, however, is not that easy. A single transaction at a McDonald’s takes up only a few minutes. A few minutes of chit-chat with a customer can never be enough to really know the purchasing behavior of the paying customer.

This is where information systems and information technology steps in. Pertinent Data is gathered when an order is taken in via the POS machines. These acnes don’t Just generate ten receipt Tort ten particular transaction.

More importantly, the information gathered and reflected on the POS machine can now be used by McDonald’s to (1) track and foresee the demands of the customers with regards to their inventory; (2) analyze which products on its menu gets the most nods from customers; (3) determine which products are non-moving; and (4) simplify the gathering and transmittal of financial data.

The extraction of these information from the POS machines help McDonald’s to analyze and come up with solutions for them to provide better food products for heir customers as well as to provide better revenue probabilities to the company. McDonald’s has come up with a very efficient and effective System that passes information on from the POS to the monitors that the kitchen crew looks at. Information is passed real-time from the time the order is punched via the POS Upton the time that the crew is “alarmed” regarding the latest order.

Transaction time and preparation time is cut to a very minimum because of this technology that the company has applied.

It can be safe to say that for a company as big as McDonald’s, the POS can be noninsured to be at the core of its drive to collect relevant information to forecast demands, to maintain safe inventory levels, and to determine the required number of manpower to man the restaurants at a given timeshare, and lastly, these can provide the important information that managers need to understand the choices made by customers, who are the bloodline of the business.