This paper explores the different kind of Information System, Domino’s Sizzles used to avoid losing its market share. The Transaction Processing System, Management Information System, and the Decision Support System. Each of this Information System has been proved very useful in increasing the customer’s satisfaction towards Domino’s Sizzles service. Along with these systems, they also have software named “Pulse” which helps them to increase their sales. This software maintains and manages functions in each of the restaurant of the Domino. Another strategy Domino did is by developing Online Tracking System with an Online Ordering System in it.
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This case study discuss about Domino’s pizza and how information systems have helped in development of its business. Many pizza shops have introduced home delivery system and Domino’s pizza. When a survey was conducted about home delivery system, Domino’s pizza home delivery was considered the worst among all others. Domino has had the largest market share of pizza in any U.S chains, so it was worried about losing its market share due to its competitors. Therefore, it has planned various strategies to improve its business. It has used different kinds of information systems as follows:- 1) Transaction processing system:
•The point of sales system captures purchases and payment at a location where goods and services are bought and sold using computers and other digital devices. The customers’ order is the input, it is stored in the database, and size, order of pizza, and delivery information and customer information are the outputs. 2) Management information system:-
•Input is from TPS and its processed and the output is amount of ingredients used, time taken to make a pizza, delivery distances, customer demographic data and employee performance etc.
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3) Decision support system
•Input is from TPS and external sources, it analyzed, and output is sales data per menu item and analyzing the past sales data to the present one.
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These systems have helped Dominos in increasing its sales. Pulse is software developed for this purpose was an important asset in maintaining consistent and efficient management functions in each of its restaurants. It has proved clear and analysts’ accept the fact that technology is working to cut costs and improve customers’ satisfaction. Dominos’ has also developed online tracking system, which also includes an online ordering system in it.
The system allows customers to watch a stimulated photographic version (graphically also) of pizza with size and toppings and sauces used of their desire. Once customer places an order, he can track its delivery using online tracker. As dominos’ completes each step of its order fulfillment a section of its bar becomes red. Even customers who placed order through can track their pizza using the tracker online. In 2010 dominos’ has introduced an online polling system to get feedback from its customers regarding pizza and employee services provided and many other things from its stores.
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Finally, these systems have proven to be useful in increasing customer’s satisfaction and business too. These systems have improved to execute its operations faster than its rivals in the market. Even though pizza hut and papa johns have online ordering system they lack in online pizza trackers and simulated pizza tracker system which dominos’ has implemented successfully. Today online ordering in dominos account for 20% which shows an increase compared to less than 15% in 2008. This shows that the information systems implanted in dominos has led to development and sustainability among its rivals in the market.
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Founded in 1960, Tom Monaghan together with his brother started the company by purchasing a single store in Ypsilanti Michigan. The company slowly grow, and by 1978, Domino’s had 200 stores. Today, the company is headquartered in Ann Arbor, Michigan, and operates almost 9,000 stores located in all 50 U.S states and across the world in 60 international markets. In 2009, Domino’s had $1.5 billion in sales and earned $80 million in profit.
With its great progress, Domino’s was involved in a heated battle among prominent pizza chains, including Pizza Hut, Papa John’s, and Little Caesar. Pizza Hut is the only chain larger than Domino’s in the U.S., but each of the four has significant market share. Domino’s also competes with local pizza stores throughout the U.S. To gain a competitive advantage, Domino’s needs to deliver excellent customer service, and most importantly, good pizza.