Hardrock Case Study

1. What problems did the Rank Group find with the Hard Rock’s three main internal information systems (restaurant operations, merchandising, and financial)? Why was this a problem? INTERNAL INFORMATION SYSTEMSPROBLEMSEFFECTS Restaurant Operations-Different management systems adopted by the franchisees -No unified standards for all outlets -Flow of business processes are in a mess -Lack of communication Used the Linux box network which is prone to hackers-Customers will not be able to taste the signature food designed for Hard Rock -Decrease in customer satisfaction as every outlet provides different standards of food offered -Difficulty for corporate office to analyze sales record -Lack of security Merchandising Inventory System -Rely on inexperienced restaurant managers to order inventory -No consistency in inventory system -No automated system to keep track of inventory purchased or ordered-Inventory are either over or under purchase -No stock available for customer purchase Inaccurate sales report Financial System-System was not updated daily or automatically -There are 3 set of books maintained by Operation, Finance, and Management department -Different applications are used (Lotus Notes, Microsoft Excel Spreadsheets, Lawson Software Financial Module) -Lawson system had 50 different ledgers for each restaurant-Unable to detect discrepancy -Unable to generate an accurate income statement -No consistency in the ledgers -May lead to pilferage . What’s the solution? INTERNAL INFORMATION SYSTEMSSOLUTIONS Restaurant Operations-Bought back the brand from all the franchisees and unify the brand name -Implemented a million-dollar data warehouse system from Vienna (MicroStrategy) -Able to store all restaurants Point-of Sales customer data -All records are updated and reported daily Merchandising Inventory System-Installed a chain wide merchandise system to manage inventory (Radius Inventory Management System)

Financial System-Lawson system now automatically reconciles the numbers for every Cafe and produce a common ledger for all the cafes -Maintains one set of books -Reports are done on a daily basis CRM System-Implementing Epiphany’s CRM product to track users on the Web and in the restaurants 3. What’s the role of CRM? Customer relationship management (CRM) is strategy used to manage a customer’s interaction with customers, clients and sales prospects. It usually involves the use of technologies to reach out to customers. Role of CRM: )Increase customer base – attract more local crowd more consistently for Hard Rock Cafe b)Track customers behavior and promote according to customers’ needs c)Enable marketing departments to identify and target their best customers d)Improve customer satisfaction with the highest level of service and personalization e)Offer real time promotional campaigns based on customer preferences f)Provide employees with information and processes that is needed to understand their customers’ needs and expectations to build effective relationships between the company and customers g)Increase profits of the company . How does the data in a CRM differ from that of a POS? DATA IN CRMDATA IN POS a)Customer ID b)Transaction ID (from POS) c)Customer Name d)Age e)Address f)Contact Number g)Email h)Favorite Musical Type i)Favorite Music Band j)Past Purchases k)Picture IDa)Transaction ID b)Total price c)Unit Price d)Food ID/Name e)Product ID/Name f)Date of Purchase/Dining g)Time of Purchase/Dining h)Discounts i)Cashier Name j)Payment Mode POS: Mainly captures data based on sales transaction based on sale of merchandise or food consumed •Used to generate income statement and calculate profits for Hard Rock •Updates the inventory system automatically. CRM: •Mainly focus on personal details of customers and individual customer’s preferences •Past purchases of customers are recorded •To create customer retention and provide personalized service such as sending email to customers on upcoming promotions and notify customer if their favorite music band is playing at Hard Rock •The Transaction ID is a foreign key to POS data

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