MANAGEMENT INFORMATION SYSTEM

KFC VIETNAM

Hanoi, 19th March, 2015

Contents
EXECUTIVE SUMMARY.......................................................................................................2
INTRODUCTION.....................................................................................................................3
1.

KFCs History................................................................................................................3

Management Information System in KFC

Vietnam
2.

Mission & Vision Statement..........................................................................................4

3.

Product line....................................................................................................................4

MANAGEMENT INFORMATION SYSTEM ANALYSIS.....................................................5

1.

Transaction Processing System.....................................................................................5

2.

Management Information System.................................................................................9

2.1 Customer Relationship Management...........................................................................9
2.2 Enterprise Resource Planning......................................................................................9

3.

Decision Support System............................................................................................10

CHALLENGE OF INFORMATION SYSTEMS AT KFC VIETNAM..................................11

SUGGESTION AND RECOMMENDATION........................................................................11
REFERENCE..........................................................................................................................13

EXECUTIVE SUMMARY
The report provides an overview on the field of an management information system in supply
chain support, sales administration, product administration and how it influences customer,
supplier, and seller. In this report, we will mainly discuss bout how KFC has changed the way
businesses operate and their products and services, describing the organizational, management
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and technology dimensions of KFC, how it improves business process. Then, we will give you
aspects of benefit as well as limitation of this software to its business.

INTRODUCTION
1. KFCs History
Colonel Harland Sanders in 1939 launched its most innovative product, the original recipe of
the dish Kentucky Fried Chicken. Since then, millions of people worldwide have enjoyed to his
restaurant to enjoy the food with fresh and hot biscuits. Colonel Harland Sandner - KFC's father,
who created the original recipe of the dish Kentucky Fried Chicken.
In 1939, the taste of KFC products is introduced to the world, the original formula of Kentucky
Fried Chicken dishes.
In the early 50s, Colonel Harland Sandner has traveled around the country by car from this
restaurant to another restaurant, cook chicken for restaurant owners to their comments so
restaurants pay him a nickel when they signed a contract to sell his fried chicken.
1964 Sander has more than 600 authorized dealers chicken business in the US and Canada.
Also this year for KFC was transferred to John Brown, the governor of Kentucky, with $ 2
million.
In 1971 Heublien Inc. acquired KFC with 285 million dollars; Heublien has developed
extensively over 3,500 restaurants worldwide.
May 1/1997, 4 brand KFC, Taco Bell and Pizza Hut where a company Tricon Global
Restaurants independent.
In 2002 company renamed Yum, the world's largest companies in the number of bars,
restaurants with nearly 32,500 dealers in more than 100 countries worldwide.
In 2004 and 2005, KFC has originated successful campaign called "soul singing" follow on
from the success of the campaign "Soul Food" in 2003 and 2004. Strategy "Soul Food" was
created to help KFC system a complete brand identity and build a good relationship with
customers.
KFC Corporation based in Louisville, with a system of chicken restaurant popular in the
world.
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In the UK KFC has built duoc1 680 warehouse system for storage of chicken. Company KFC
is one of the four leading brands of Yum worldwide. KFC restaurant chain restaurant industry is
the largest international retail strongest.
Growth of 25% since 1999 and the value of goods sold to 26.5 billion in 2004 (according to
Mintel).
The unit number of the service customers stood at 177.6 thousand in 2003, an increase of 6.8%
compared with 1999.
2003 has 5224 million transactions, up 15.6% compared to 1999 (according to Euromonitor).
Fast food continues to demonstrate its positive during the period accounted for 53.6% when
the last transaction of the food service in 2003, exceeding its market share of 52.2% in 1999
(by: Euromonitor)
2. Mission & Vision Statement
Mission of the KFC brand is bringing to consumers a leading brand of food, creating a bright
and fun for every one of all ages. Many studies indicate that KFC is now understood as a fun
brand and encompasses many meanings. The strategic value of "Soul Food" has been
understood and accepted by the customer.
The philosophy of "Soul Food" has made a real impact on the whole system of KFC stores. The
store was designed by the principles of philosophy; "Soul Food" has shown itself in all aspects
of communication, from windows, posters and a menu to the staff uniforms. The shop and the
menu has been standardized, the bright red, blue and yellow are replaced with natural colors.
3. Product line
KFC fast food restaurant specialize in chicken. The products have the same ingredients but yet
be well diversified create groups, types and different dishes. KFC menu divided into 10
categories with the chicken, rice and salad ... diversity.
The chicken: This is what has made the Colonel and KFC famous. From the traditional part of
the transformation is to have all kinds of people
Plated meals: Food served family style
Flavors & snacks: The fried chicken with spicy tomato sauce government should suddenly I
differ from traditional dishes.
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Bowls: food in a bowl:
Sandwiches: If you do not have enough time to enjoy at the shop and want content on the go,
try a delicious part sandwich.
Desserts: After satisfying hunger style your home, treat yourself to a dessert style of KFC.
Sides: KFC not only serve a single category of food but also provide different types as well as
the accompanying erosion of diners meals more diverse and abundant.
Food for children
Salads: Sometimes it needs a little "green" meal for added nutrition. Salad diversify add a new
flavor to the KFC menu
The different types of box section:
Products are mainly of KFC Buckets, Burgers and Twisters and Crispy Strips chicken with
Colonel dish style homeland. But in 2001, KFC has to draw up a plan to develop new products
for themselves and "Soul Food" is a new product in that strategy.
With such major items, dietary and taste of the dishes will be changed according to each country
customs and different cultures.

MANAGEMENT INFORMATION SYSTEM ANALYSIS

1. Transaction Processing System

Most of an organizations daily activities are recorded and processed by its transaction
processing system (TPS), which receives input data and converts them into output information
intended for various users. Input data are called transactions events that affect a business. KFC is
using the right information systems for their companies for example by using the TPS it let
the employees have more time for their customers and it also help them by saving time with
applying this system , its faster and more accurate to enter any data.
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Transaction processing system also helps KFC in keeping track on their suppliers as it
record relevant information about suppliers such as supplier name, address, the quality of the
items purchased and finally the invoice amount.

This helps in reducing the possible

complexity that the employees may face in physically keeping contacts with all the
suppliers and so eases process of ordering when in need.
A financial transaction is an economic event; it affects the firms assets, is reflected in its
accounting statements, and is measured in monetary terms.
Sales of goods to customers, purchases of inventory from suppliers, and salaries paid to
employees are all financial transactions. Everything else is a nonfinancial transaction. The
marketing department, for example, might add some demographic data to its customer database.
The information would be processed by the firms TPS, but it wouldnt be a financial
transaction.

Figure Transaction Processing System illustrates a TPS in which the transaction is a

customers electronic payment of a bill. As you can see, TPS output can consist not only of
documents sent to outside parties (in this case, notification of payment received), but also of
information circulated internally (in the form of reports), as well as of information entered into
the database for updating IT is being applied in order to process the order and payment of
their customers in efficient and fast manners, then the data that had been gathered in their POS
can be used in order to know the flow or the trends of the customers buying behavior that can
help the company to deal and meet the demands and wants of their customers.
Like above, Transaction Processing System that is used by KFC is a Point of Sale (POS) System.
POS Software is software for sales, charge that based on the actual needs of KFC stores. It is
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compatible with the equipment and POS hardware. Its functions are tracking currency, revenue
and expenditure management, inventory management, quantitative formula and report forms
related products.
It can be seen that POS hardware is a computer with a touch screen; the majority uses the
standard 15 "all in one. Because of the characteristics of the retail outlets are continuously
operated and service, requiring system must be stability, less error. POS computer is better than
normal computer because it is designed specifically for this sector. It can run 24/24 and its touch
screen that help staff use less the mouse, keyboard so time-service is quickly. In addition, KFC
has POS items that the device is attached to support sales.

Display

Devices

(Pole

display)

is code

information and costs of product for customers)

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(The display (2nd Display) for advertising)

(Magnetic Card Reader scan credit card, VIP card) Cash drawer store dedicated funds, each tray tidy)

(Cash Slip Printer (Thermal Printer) in 1 associated delivery charges for customers.)

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2. Management Information System

2.1 Customer Relationship Management

CRM provide information to coordinate all of the business processes that deal with customers in
sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.
It means emphasizes customer retention and satisfaction, rather than a dominant focus on sales
transactions through by the direct response marketing campaigns. The leader of the
organization, in specific in KFC case, the managers of each branch have to remember in mind
of it. The satisfaction of the customers is the most concern. Understanding better and more
depth in customers behavior and needs, KFC manager can see clearly that the problems that
they are faced.
By the way, creating VIP card for individual customer, account on Website KFC has Big Data
that aggregate customers information. From that, manager can make decision to care their
customer better. More clearly, KFC has delivery to orders place, by CRM, KFC could know the
address that always use large amount of KFC product. For example, a department of a company
can order a lot of combo chicken for staffs lunch every week. From that, KFC could give
special strategy for them such as decreasing 10% for their bill. This thing will help KFC build
customers loyalty.
2.2 Enterprise Resource Planning

ERP is provides accurate, relevant and timeliness information to all department on one software
system in order to coordination of daily activities, efficient response to customer orders
(production, inventory) and provide valuable information for improving management decision
making.
Review timeline, when KFC before implementing an ERP System, KFC was using multiple IT
solutions to address their business requirements. Because of this, integrity of the reports became
difficult to validate and management had a hard time tracking down their stocks. They became
burdened by multiple data sources that didnt integrate. Lots of time and money was lost from
duplication of order entries and business processes throughout the outlets. Numerous hours
were being spent each month manually creating reports, tracking invoices and handling payroll
to provide the Head Office with their month end financial reports. The reason behind these
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problems was evident: the systems could not communicate with one another. Therefore, the
KFC IT team updated KFCs Enterprise IT structure with JD Edwards Enterprise One to be able
to solve KFCs growing problem of MIS information and inaccurate reports.

JD EDWARDS ENTERPRISE ONE offers both the foundation and operational components,
including: Financial Management, Technical Foundation, Inventory Management, Asset
Management, Forecasting, Workforce Management, Time and expense Management. From that,
this software brought a lot of benefit for KFC such as: greater efficiencies-reducing duplicate
data entry/maintained, standardizes business processes, tracks and manages key data, greater
level of insight into how the business works, enables to plan ahead, provides business
applications for now, and into the future
3. Decision Support System:
A Decision Support System (DSS) is a computer-based information system that supports
business or organizational decision-making activities. DSSs serve the management, operations,
and planning levels of an organization (usually mid and higher management) and help to make
decisions, which may be rapidly changing and not easily specified in advance (Unstructured and
Semi-Structured decision problems). Decision support systems can be either fully computerized,
human or a combination of both.
In

KFC,

customers

provide

information to order product online

on Website or telephone then KFC
will delivery in 30 minutes. From
the information, DSS will support
middle

management

to

make

decision the store that is nearest to

customers address to delivery.
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CHALLENGE
VIETNAM

OF

INFORMATION

SYSTEMS

AT

KFC

First issue is to know who is allowed to access to the information system because it is
important to protect KFC information system from potential competitors so it is better to
implement a more secure information system in the future that is more difficult to hack into it, as
there is a lot of companys would want access to the informations of KFC.
Second issue is to know where the data is coming from; if it comes from collecting
from the customer, the customer should be informed about this and they should agree to
give this information about themselves so it will mean more accurate computations of this data
Third issue is measurement errors, so in future it is better to implement superior ways of
presenting the information which the system provides and better ways of applying this
information to make more money, for example it would be better to have the system give me
information which I could.
Fourth issue is to teach or train the employees who have access to KFC information system, how
to use that information system in a way to benefit.
Fifth issue is how to make sure that every KFC branch all over the world are using the same
information system

SUGGESTION AND RECOMMENDATION

Firstly, there is no doubt that KFC is considered as a global leader in terms of franchise
restaurants in the world. Many of the restaurants are being owned and control by owner-operator
and franchisees with the access to many of the global resources of the company such as
marketing, restaurant operations, real estate development, HR, training, learning and
development as well as quality control. Due to the said situation, the network of the owneroperators is so huge, and the information is so intense. That is the reason why the company is
having a difficulty in developing and maintaining their Intranet that will help to provide all the
groups regarding their needs.
In order to solve that problem it will be important to redesign the intranet system of the company
that will implement the content management system of CMS that will help to maintain in
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efficient and consistent manner the information across the site. Furthermore, it is also important
to consider the differences between the countries such as the language, connection speed as well
as personalized and customized information system.
Secondly, KFC is a fast food restaurant, so customer has to do it yourself. After ordering, they
must wait a lot of time in desk to take their ordered product. In cases, KFC is in a gold time
(crowded customers) all staff have not serve in time, the number of people waiting are much
more than in normal cases. Therefore it makes annoy to customer.
In Highland coffee, customer will be taken a device after ordering. When this device in their
hand vibrates and lights, they move to at desk to take their order.

(Ordered device in Highland)

We think that, KFC should add device like one in Highland to their POS system. The software is
a computer will be connected with this device. Staff will give it to customer after completely
process ordering. Customer come back and waits until this device vibrates and lights, they only
go to desk to take their dish. If they do that help in each restaurant provides better service and
their image in Marketing.
Thirdly, in Display Devices (Pole display) just show name of staff who are serving. Customer
cant check what they ordered and how prices products, quantity of them. They can check when
staff finishes process order and print paper bill.
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We think that, they add information about code price of product and allow them show in Pole
display to help customer can be checked in parallel with pressing order of staff. If having an
error, they can tell to staff to change immediately.
Fourthly, KFC dont have synchronization in 2nd display at all location. Some store, 2nd display is
an electronic table likes below image.

(Taken photograph at location in Nguyen Co Thach street)

However, in some place 2nd display is a paper table example in location in Cau Giay Street.
To solve this problem, they change all 2nd display from paper table to electronic table because of
some main reasons. Debating about qualification of image in table, an electronic table provide a
better than a paper table. In addition, if they add or change new menu, they can do in software.
So they can save time and cost about prints.

REFERENCE
-

Management Information Systems, Information System in Global Business Today,

Global E-business and Collaboration Kenneth C. Laudon, Jane P. Laudon, 12th edition,
Pearson education

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-

Trangvcu. Chin lc cnh tranh ton cu ca KFC (2011) [Online]. 20 th November

2011. Available from:http://bookluanvan.vn/f9/chien-luoc-kinh-doanh-quoc-te-cua-kfc-

34518/. [Accessed:16th March 2015]

Eric Platt, Ben Duronio. How KFC Became the Biggest Fried Chicken Joint on the
Planet [Online] 2012. Available from: http://www.businessinsider.com/kfc-history-2012-

7?op=1, [Accessed: 16th Mar 2014].

According Vef. H thng POS l g. [Online] 8th March 2013. Available from:
http://www.dichvu2tech.com/cns/dich-vu/he-thong-pos-pos-la-gi.html. [Accessed: 17th

Feb 2014]
According Vef. Implementation of Management Information System in Kentucky Fried
Chicken [PDF].Available from: http://vi.scribd.com/doc/105245537/Implementation-of-

Management-Information-System-in-Kentucky-Fried-Chicken-KFC#scribd.
[Accessed: 17th Feb 2014]

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