DOMINO’S SIZZLES WITH PIZZA TRACKER 1
Domino’s Sizzle with Pizza Tracker
The purpose of this case study is to exam how Domino’s pizza uses Information Systems to regain their share of the Home Delivery pizza market. I’ll discuss how Domino’s overcome a bad reputation and improved their product and services. I will also discuss the changes and process systems implemented along with where they currently stand in the market and with their customers. I will finish with the technology Domino’s plans to use in the future.
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(Jeff Beer, 2014). Trying to overcome the reputation of having the worst pizza, in 2009, Domino’s CEO acknowledged in a commercial that Domino’s pizza doesn’t taste good. He apologized for its poor ingredients and promised to improve the recipe. After that statement was made, store sales grew 14.3% the following quarter. (Forbes Magazine, 2013). Domino’s had $1.5 Billion in sales and earned $80 million in profit that year.
DOMINO’S PIZZA SIZZLES WITH PIZZA TRACKER 3
Domino’s made their customers a promise to provide better ingredients which they did, but the most important ingredient has been the technology and investment in digital and mobile where they’ve made it faster and easier for customers to place and track orders. In 2003, Domino’s implemented a Transaction Processing System (TPS) called “Pulse” as a point-of-sale system. Pulse helps Domino’s maintain consistent and efficient management functions in each of their stores. The Data from purchases and payments from orders are captured by this computerized system and recorded. Pulse captures the information from the customer’s order such as type of crust, toppings, side dishes and delivery locations. Once the data is collected, pulse will calculate the number of pizzas and side orders sold, cost of ingredients along with delivery and customer information. The stores in which Pulse was installed reported improved customer services, reduced mistakes and shorter training times. Domino’s most recently updated to “Pulse Evolution” which is faster, less expensive and easier to maintain.
From an operational standpoint, you can use Information Systems to gain a cost advantage over competitors or to differentiate yourself by offering better customer service. (Bert Markgraf, 2015). Since January 2010, shares of Domino’s have significantly surpassed the competition rising 750% while Papa John’s grew 193% and Pizza Hut grew 93%. The Story was the same in 2013 with Domino’s shares increasing 51% while Papa John’s shares increased 30% and Pizza Hut shares were flat for the year. (Forbes, 2013). The latest innovation from
DOMINO’S PIZZA SIZZLES WITH PIZZA TRACKER 4
Domino’s (Pizza Tracker) allows a customer to watch a simulated version of their pizza being made all the way through to the finished product. This is another way that Domino’s has used Information Systems and E-Business to reach their...