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Showing posts from November, 2019

Digital transformation and data centricity in fast food: The foray of McDonald's

McDonald's CEO is out , but his data-focused legacy is likely to stay. McDonald's has seemingly invested in digital transformation, including the digitization of operational processes such as  in-store ordering through kiosks  and  home delivery . On the face of it, a shift from ordering at a counter to ordering at a kiosk is straightforward and replaces fast-food workers with giant tablets. Obvious gains include efficiency from increased order processing capacity, and, as the ex-CEO argues, increased spending on kiosks*. There is more to that, though. Kiosks can collect richer customer data and potentially create more customer data. Using the kiosks, McDonald's can learn which products and extras customers scroll through before making a selection, whether they add an extra patty only to decide later not to keep it in their final order, etc. McDonald's can also add data products to these kiosks such as a recommender system to create and collect more behavioral data, and