It is all well and good to have goals for your business, but without a plan for these goals, they are just wishes. For businesses to succeed and digitally transform, there must be a viable plan in place and a proposed solution.
Going back to Pengs Chinese takeaways, after conducting some research, it was concluded that the most popular takeaways have adapted to the 21st centuries digital technologies and integrated them into their businesses. Therefore, rather than choosing one method to help the business, a combination of method 1 and 2 will be used.
Joining a third party platform is a great way to reach new customers and a bigger market. There are three main third party platform, Just-Eat, Uber-Eats and Deliveroo. Just-Eat charge the restaurants 10% commission per order where the other two charge 25%. In this proposed solution, Peng in to first start selling on Just-Eat. However, the prices on the Just-Eat menu will be slightly higher to make up for the 10% commission lost. According to the result, if it is successful, Peng should then consider also added his takeaway to Uber-Eats and Deliveroo, again increasing the menu prices.
Peng will build up a digital presence through a mobile app. Customers will then have the option to place their orders through the app which will then get sent straight to the restaurant. The app will take the customers order and then like the current system, the customer can choose to have their order delivered or pick it up from the shop and also have the option of paying by card or cash. When the customers come into the shop, they will be presented with a QR code for them to scan and then download the app to place their order if they wish to use this method.
Below is a new business process model of the proposed solution. Notice that the decision box 'Order method' has been increased from only having two options, to now having four options.
Benefits of proposed solution
Hopefully implementing these methods will benefit the business in various ways. Firstly it will reduce some pressure of the workers as instead of constantly being on the phone taking orders and serving a long queue of customers, they can use this time to be focusing on the food preparation. Secondly, it will in the long run be saving the business money as there isn't a need for a member of staff to be at the tills at all times. Next, customers will have a range of options to choose from when placing an order and in some situations this may make them feel more comfortable. For example, some customers might not want to have a conversation with someone to give their order, they can just place their order through their phone without any verbal contact. Lastly, less mistakes will happen as the element of human error will be eliminated.
Challenges with Proposed Solution
With every solution, there are also challenges and risks. Overall, the digital transformation will have a positive effect on the business but there are also some minor setbacks which may occur. Whilst most businesses are successfully adapted to these new transformations, some customers may find it hard. As mentioned in the previous blog, elderly customers may find it difficult to use these new technologies. As well as ease of use, all of these new transformations can cost a lot of money. For the development of an app, it can cost around $40,000 to $60,000, which for many businesses is not affordable. As well as development costs, there are also maintenance costs.