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GROUP ASSIGNMENTTECHNOLOGY PARK MALAYSIA
CT003-4-0-PT
PERSPECTIVES TECHNOLOGY
UCFF1003 {G2}
HAND OUT DATE: 2ND DECEMBER 2010
HAND IN DATE: 17TH MARCH 2011
PASS MARK IS: 40%
ASSIGNMENT TITLE: PIZZA HUT ONLINE ORDERING SYSTEM
NAME OF LECTURE: THAM HOONG CHING
NAME OF GROUP MEMBERS:
1) MUHAMMAD HAMMAD ZULFIQAR TP0236022) GHARIB KHAMIS MWINYI TP0243723) BAIJUMAN TP
Table of Contents
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ABSTRACT....................................................................................................................................3
INTRODUCTION TO THE PIZZA HUT RESTAURANT...........................................................3
The history of the Pizza hut.........................................................................................................5
Pizza Hut Technology..................................................................................................................5
COMPONENTS OF THE PIZZA HUT TECHNOLOGY.............................................................6
THE TECHNOLOGY AND THE WEB OF THE PIZZA HUT....................................................6
THE STRENGTHS AND WEAKNESS OF THE PIZZA HUT WEBSITE..................................7
PROCESS AND DESIGN OF THE PIZZA HUT ONLINE ORDERING TECHNOLOGY........7
LIFE CYCLE OF THE PIZZA HUT TECHNOLOGY..................................................................8
The growth of pizza hut technology............................................................................................8
The maturity of the pizza hut technology....................................................................................8
The decline of the pizza hut technology......................................................................................9
ALTERNATIVE OF THE PIZZA HUT TECHNOLOGY.............................................................9
Input Replacement (services)......................................................................................................9
Output Replacement (services)....................................................................................................9
Final Product................................................................................................................................9
Compare the pizza hut technology/product with the alternatives................................................9
THE EFFECTS OF PIZZA HUT ONLINE ORDERING SYSTEM............................................10
Convenience and reliability.......................................................................................................10
Information and reviews............................................................................................................10
FACTORS INFLUENCE TOWARDS PIZZA HUT TECHNOLOGY.......................................10
ETHICAL ISSUES........................................................................................................................10
THE FUTURE OF THE PIZZA HUT TECHNOLOGY..............................................................12
Previous stage............................................................................................................................12
Prediction of the next few stage.................................................................................................12
The reasons of placement, based on articles and market acceptance........................................12
CONCLUSION..............................................................................................................................12
WORK BREAKDOWN................................................................................................................13
REFFERENCE..............................................................................................................................14
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ABSTRACTThe purpose of this report which involving Pizza hut online ordering Technology, the components of the technology, and how this Pizza hut restaurant make their market through new technology of online ordering system (website) , and how this Pizza hut market being introduced, growth, maturity and also decline of the Technology. And also explain the whole process of online ordering system from customer to Operator.
INTRODUCTION TO THE PIZZA HUT RESTAURANT
Pizza hut is an American restaurant chain and international franchise which offering different
styles of pizza like Buffalo wings, pasta, garlic bread and etc, Pizza Hut was started in 1958, by
two brothers in Wichita, Kansas, Frank and Dan Carney had the idea to open a pizza parlor, they
borrowed $600 from their mother and opened the very first Pizza Hut in 1959, the first franchise
unit opened in Topeka Kansas and Almost ten years later, Pizza Hut would be serving one
million customers a week in their 310 locations.
In 1970 Pizza Hut was put on the New York Stock Exchange under the sticker symbol (PIZ)
and in 1986, Pizza Hut introduced delivery service and something no other restaurant was doing,
by the 1990's Pizza Hut sales had reached $4 billion worldwide and in 1998 Pizza Hut celebrated
their 40th anniversary and launched their famous campaign "The Best Pizzas Under One Roof".
In 1996 Pizza Hut sales in the United States were over $5 million, out of all the existing pizza
chains, Pizza Hut had the largest market share, 46.4%, however Pizza Hut's market share has
slowly eroded because of intense competition from their rivals Domino's Little Caesar's and
newcomer Papa John's.
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Home delivery was a driving force for success, especially for Pizza Hut and Domino's,
however, this forced competitors to look for new methods of increasing their customer bases,
many pizza chains decided to diversify and offer new non-pizza items such as buffalo wings, and
Italian cheese bread, the current trend in pizza chains today is the same, they all try to come up
with some newer, bigger, better, pizza for a low price.
Offering special promotions and new pizza variations are popular today as well, in the past Pizza
Hut has always had the first mover advantage, their marketing strategy in the past has always
been to be first, one of their main strategies that they still follow today is the diversification of
the products they offer, Pizza Hut is always adding something new to their menu and trying to
reach new markets For example, in 1992 the famous buffet was launched in Pizza Hut
restaurants worldwide.
They were trying to offer many different food items for customers who didn't necessarily wants
Pizza, another strategy they used in the past and are still using is the diversification of their
pizzas. Pizza Hut is always trying to come up with some innovative way to make a pizza into
something slightly different - different enough that customers will think it’s a whole new
product. In 1983, Pizza Hut introduced their Pan Pizza, which had a guarantee of being ready to
eat in 5 minutes when dining at Pizza Hut restaurants, in 1993 they introduced the "Bigfoot"
which was two square feet of pizza cut into 21 slices, in 1995 they introduced "Stuffed Crust
Pizza," where the crust would be filled with cheese and In 1997 they marketed "The Edge,"
which had cheese and toppings all the way to the edge of the pizza. Currently, they are marketing
"The Big New Yorker," trying to bring the famous New York style pizza to the whole country.
Lastly, Pizza Hut has always valued customer service and satisfaction, in 1995 Pizza Hut began
two customer satisfaction programs: a 1-800 number customer hotline, and a customer call-back
program. These were implemented to make sure their customers were happy, and always wanted
to return.
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The history of the Pizza hutThe history of Pizza hut began in 1958, when what is now the world's largest pizza franchise was
born. Today the Pizza hut company is part of the Pepsi Empire, but back then two brothers Dan
and Frank Carney, borrowed $600 from their mother to open a business in Wichita, Kansas.
They found a small, twenty five-seat restaurant and there was only enough space for nine letters
on their sign. The building resembled a hut so they called it Pizza Hut, since they wanted the
word pizza to appear in the name also.
Pizza Hut TechnologyPizza hut provide online ordering system to their customer through the internet, online ordering
solution is guaranteed to achieve increase revenue and customer satisfaction, Online pizza
ordering services are websites that feature interactive menus allowing customers to place orders
with local restaurants and different kind of pizza shown at the menu. Much like ordering
consumer pizza online, many of these allow customers to keep accounts with them in order to
make frequent ordering convenient. A customer will make register at the web site of pizza
hut.com and choose favorite style of pizza, choose from available items, and choose delivery or
pick-up. Payment can be by credit card or cash, with the restaurant returning a percentage to the
online food company. The online ordering has become one of the fastest growing segments of
the pizza hut business in recent years.
Ordering system throughout the world has relied on pens and papers, Problems such as missing
orders and information sent to the wrong place arise. Furthermore, some could not be able to
handle the massive volume of orders. Under the old manual ordering systems, it takes up too
much time to process Real time ordering and improved efficiency has been the focus of
entrepreneurs.
As with many business scenarios, getting rid of paper improves efficiency, reduces human
error and allows information to flow to an infrastructure without a time consuming data
input process. There is also less chance of handwritten orders being misread and a higher
customer turnaround as customers will be served faster.
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To keep pace with the modernization, there should be room for improvement in the field of
information technology, nowadays companies shift from manual to computerize primarily
because of advantages brought by the use of computers. Pizza hut ordering system, customer can
order through their website www.pizzahut.com , also it will be more advance technology through
implementing new technology at GPRS, customer will order pizza through their GPRS when
they are on driving to find near restaurant, and also last year pizza hut restaurants has been
introduced new ordering through iphone 3G and iphone 4.
COMPONENTS OF THE PIZZA HUT TECHNOLOGY
The pizza hut technology can be classified in to the medium technology because it’s a wide set
technology that fall between high and low technologies, on using Online ordering system, the
customer can order a pizza through the internet www.pizzahut.com this is the situation where by
customer can choose different kind of the pizza, and also pizza hut uses Mobile ordering system,
(Most Flexible Access) is the most and common way of the technology in the many pizza hut
restaurants in many countries especially in Malaysia, you can order pizza by using your mobile
phone and the system or data base of the pizza hut technology store the information about the
previous customers’ orders, at the next time when you call pizza hut restaurant all the history of
the customer are being shown as previously
THE TECHNOLOGY AND THE WEB OF THE PIZZA HUT
It easily to find a lot of information about pizza hut and into website on Google, You Tube and
Face book, Just search pizza hut on Google or You Tube you can find all information about its
online web site, ordering system information and food. Join pizza hut on Face book and be aware
from latest and cheap offers for pizza and other kind of food, and in cause of late delivery of
order they also give free pizza voucher to their customers so as to give be friendly and hopeful
with their customers.
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THE STRENGTHS AND WEAKNESS OF THE PIZZA HUT WEBSITE
Pizza Hut's weaknesses are the complex computer systems and internal conflicts from
franchisees. The complex computer system was contracted to develop delivery pizza service
because Pizza Hut management was convinced that the installation of this system was essential
to the delivery strategy and would be a significant competitive advantage.
This system allowed the customers in a particular market to call a single number to place in
order. The caller first was asked his or her phone number and the system ascertained whether the
caller had ordered. The operator would verify the caller's name and address and ask if the
customer would like the same type of pizza previously ordered. The order would then be
forwarded automatically to the appropriate delivery unit where a terminal would receive the
order information.
PROCESS AND DESIGN OF THE PIZZA HUT ONLINE ORDERING TECHNOLOGY
The online ordering system diagram of the pizza hut, a whole process of ordering food, it starts
from customer to operator, once operator receives the order from the customer. Then operator
send the order to kitchen for preparation of pizza or food after that operator will update sold and
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inventory files of the sold items. (Inventory file is a data base file of the system of the Pizza hut,
mostly uses the Microsoft Access), then pizza will be ready from kitchen and its send back to
operator and after then operator send pizza with a receipt to customer by using delivery
messenger.
According to the system Diagram the types of the system design is Computer aided design
because it is easy to understand the flow of the system Diagram of the pizza hut ordering system.
LIFE CYCLE OF THE PIZZA HUT TECHNOLOGY
On June 5, 2007, pizza hut firstly introduced their online ordering system at nearly of all U.S
delivery locations. Pizza hut is the largest pizza chain in the world that allows customers to order
online and have pizza delivered rights to their door or ready carry out at their nearest restaurant.
In Malaysia pizza hut firstly introduced their online ordering system on 23 June 2007.
The growth of pizza hut technology
Pizza hut chains always competed on product and price, but the use of new technology is
becoming just as important as the latest meal deal or promotional item. Interactive campaigns,
mobile coupons and advances in online ordering seek to reach consumers. Pizza Hut has taken
online ordering a step further with the launch of widgets, which allow consumers to place orders
more quickly and easily.
The maturity of the pizza hut technology
At the maturity stage, sales growth has started to slow and is approaching the point where the
inevitable decline will begin. More competitors have stepped forward to challenge the product at
this stage, some of which may offer a higher quality version of the pizza at a lower price. This
can touch off price wars, and lower prices mean lower profits, which will cause some companies
to drop out of the market. Pizza Hut Company will seek to lower unit costs at the maturity stage
so that profits can be maximized. The money earned from the mature technology should then be
used in research and development of new technology.
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The decline of the pizza hut technology
This occurs when the pizza hut technology peaks in the maturity stage and then begins a
downward slide in sales. Eventually, revenues will drop to the point where it is no longer
economically feasible to continue making the product. Investment is minimized. But the pizza
hut company sells the rights to supporting the product to another company, which then becomes
responsible for servicing and maintaining the product.
ALTERNATIVE OF THE PIZZA HUT TECHNOLOGY
Input Replacement (services)
It can’t be replace of the input of online web ordering system of pizza hut website because user
must have to input their address cell number and name to get pizza at time.
Output Replacement (services)
Pizza hut is still trying to improve its web software because customer still feel difficulty
sometimes in booking order at peak hours. They still trying to upgrade their old web software
with a new and better one to get fast output of customer’s order.
Final Product
Pizza hut’s final product is pizza and it can’t be replace with any other food or thing but they are
trying to make their pizza more tasty and delicious and better than before to get more and more
customers.
Compare the pizza hut technology/product with the alternatives
Pizza hut’s main competitors are Papa John’s and Dominos pizza. Dominos pizza fist introduced
their online ordering system. But short after dominos, pizza hut also introduces their online
ordering system. Most of people still like dominos pizza more than pizza hut because their web
software is still better and easy to use compare to pizza hut. That’s why pizza hut is still looking
forward to upgrade their software.
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THE EFFECTS OF PIZZA HUT ONLINE ORDERING SYSTEM
Convenience and reliability
Online ordering system are usually available 24hours a day, and many customers have internet
access both at work and home, other establishment such as internet cafes and schools provide
access as well. So customer is easy and simple to order Pizza anytime and anywhere without any
restrictions.
Information and reviews
Online ordering system must describe and display products for sale with text, photos, and
multimedia files, in online ordering system customer can view all photos and price of pizza so as
to be easy and simply to choose and select which is favorite to him/her.
FACTORS INFLUENCE TOWARDS PIZZA HUT TECHNOLOGY
Business: It’s a large scale business serving the whole people of country. Anyone who wants to
place it order can use it anywhere and anytime.
Economic: Online ordering system serving its part in national income of a country by providing
tax to government which is major benefit to economy.
Lifestyle: Online ordering system improve the lifestyle because you don’t need to go to
restaurant to place order just by staying in home you can place your order and can save lot of
time and can do other important work in that time.
ETHICAL ISSUES
Ethics: Whatever users put on pizza hut’s website they never share users privacy with anyone
and won’t spread users address and contact number, this is the biggest example of ethics.
Environmental Ethics: Pizza hut is careful about Environmental ethics, when any user sees the
food box of pizza hut he may see the logo of keep your country clean. This is advice from pizza
hut to their customers.
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Human rights (privacy & labor law): Customers put their contact number or address on their
website they never share it to anyone and keep it private, Pizza hut never use their customer
personal information for negative purpose, and they just use it to deliver food.
Business Ethics: Pizza hut always try to make healthy food for their customers, they always
follow business ethics about child labor, working hours of their employees according to the law
of country.
Legal implications: Pizza hut always do business under the law and always take responsibility
for what they make and sale.
Copyright Law: Pizza hut fully follow copyright law and they won’t copy others product or logo
for their own company, and no other company can use pizza hut products or logo for their own
use without their permission.
Intellectual Property: The Customer acknowledges that all intellectual property rights in the
Products do and shall continue to belong to Pizza Hut and the Customer agrees that it will not
infringe any of Pizza Hut's intellectual property rights.
Ethical threats: Pizza hut have many Ethical threats including hacking, copying and fake
franchise that uses their logo.
Hacking: Hacking is very serious issue for pizza hut online ordering system; if a hacker enters in
their web server he can steal the private information of their customers.
Privacy: Pizza hut never share privacy of their customers with anyone but if anyone can enter in
their server then he can steal personal information of their customers and can use it for negative
purposes.
Piracy: No other company is allowed to use pizza hut logo for their own firm; they must have to
take permission from pizza hut to use their logo as their franchisee.
Security: Pizza hut haired special networking security consultants for the security of their
website.
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THE FUTURE OF THE PIZZA HUT TECHNOLOGYThe future of the online pizza hut ordering system, the chairman from headquarter USA has already announced that they will produce new technology for ordering pizza when you are driving a car through GPS devices, on GPS devices, driver or any person within a car can order a pizza while they are in the journey or traveling from one area to another area especially in the city area.
Previous stage Firstly pizza hut introduced its online web online system in USA only. But after sometime they introduced it in other countries also. Before their web system was not good as it is now, when customers try to place their order pizza hut online system take a lot of time to place their order because of its slow speed and slow software.
Prediction of the next few stage
Pizza Hut is enabling mobile ordering of its European branches via its application for Apple’s
iPhone and iPad1 & 2. Pizza Hut’s application for iPhone and iPads aligns with its strategy to
proactively expand its customer base.
The reasons of placement, based on articles and market acceptance
Due to the maturity of the pizza hut technology, or decline of the pizza hut technology, the pizza
hut technology need to be upgrade its technology and make it widely and easily to their
customers.
CONCLUSIONFor concluding this report of the pizza hut online ordering system, we would like to advices the management and their franchises, for up to date their website by using multi languages, for example when a customer wants to order a pizza have a options on choose prefers language, because majority of the user or customers especially in Malaysia are locally so it’s better to use their language (Bahasa) while they order pizza from web site.
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WORK BREAKDOWN
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REFFERENCE
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