{"id":28236,"date":"2017-03-24T13:54:19","date_gmt":"2017-03-24T05:54:19","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=28236"},"modified":"2017-03-24T13:54:19","modified_gmt":"2017-03-24T05:54:19","slug":"digital-transformation-enhances-the-shakeys-fun-family-and-pizza-experience","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2017\/03\/24\/digital-transformation-enhances-the-shakeys-fun-family-and-pizza-experience\/","title":{"rendered":"Digital transformation enhances the Shakey\u2019s \u2018fun, family and pizza\u2019 experience"},"content":{"rendered":"

Two years ago, Mauch Franco, CIO at Shakey\u2019s Philippines, experienced how it was difficult for them to cater to the needs of their guests, especially during special occasions such as Valentine\u2019s Day, Mother\u2019s Day and Father\u2019s Day, or whenever Manny Pacquiao has a fight, and other big functions. It is during these events when demand is at its peak as people usually come to\u00a0Shakey\u2019s to celebrate.<\/strong><\/p>\n

\"\"<\/a>

From left: Cian O\u2019Neill, COO and CMO of Microsoft Philippines, Mauch Franco, Shakey\u2019s Philippines, CIO, and Jorge Concepcion, Shakey\u2019s Philippines, GM.<\/em><\/strong><\/p><\/div>\n

Behind this troublesome situation was an old infrastructure that could not deliver what was required to efficiently serve guests.<\/p>\n

\u201cWe have our own infrastructure that supports our servers. The problem usually is on-premise, which includes factors such as hardware obsolescence, and capacity problem. Every five years,<\/p>\n

we have to replace them. Every five years, we have to scale up,\u201d Franco relates.<\/p>\n

Realizing the fact that their system cannot support the demand during peak times, Shakey\u2019s only recourse was to embrace digital transformation to streamline its operations, putting a lot of emphasis on the delivery service.<\/p>\n

\u201cOne of the things that we\u2019re currently working on is our retail system. In essence, what we want is to have a basic integration of various systems that we\u2019re using. What we want is to have our systems integrated to become much more seamless, meeting our production requirements faster, and be able to identify bottlenecks to the system. We want to know when and at what point certain deliveries are asked,\u201d explained Franco.<\/p>\n

Bye, bye old hardware; hello, cloud<\/b><\/p>\n

The transformation started with the retirement of Shakey\u2019s old hardware, and partnered with<\/p>\n

Microsoft to replace these with Microsoft Dynamics AX that runs on the Microsoft Azure cloud system to support its delivery system. Its online portal as well as servers also had been migrated to have the scalability it needs.<\/p>\n

\u201cWe know for a fact that cloud technology can actually help us change all processes. We want to<\/p>\n

reap all the benefits of cloud technology and this is the reason why we partnered with Microsoft \u2013 to provide the infrastructure we need,\u201d Franco said.<\/p>\n

Franco said they chose Microsoft because they need to support the business. \u201cIt was a choice between continuing to buy very expensive machines to be used on-premise versus getting services of Microsoft infrastructure which will help us reap back scalability demand, he said, explaining that during peak days, we need to scale up the capacity of servers so if we buy solutions from Microsoft to be able to scale up when and if we want, it doesn\u2019t make sense. It now becomes more cost-efficient and effective in our needs as demands change every year.\u201d<\/p>\n

The migration, which took about a year and three months, was prepared by both Shakey\u2019s and Microsoft and its partners. \u201cIt\u2019s not all in one time. We gradually focus first on the system that we need the most. Like our online system which we prioritized to be on the cloud,\u201d said Franco.<\/p>\n

Franco said the number of people needed to migrate to the new system depends on how big the system is or on what you intent to do. \u201cOnce you discuss your plans with your business partners, they should be able to tell you how many resources are needed and sometimes, a lot of people are involved at the start and in the end, there are a couple of people doing the fine-tuning.\u201d<\/p>\n

Major systems<\/b><\/p>\n

To date, there are two major systems categories that are deployed at Shakey\u2019s. One is the Enterprise Resource Planning (ERP) which includes its financial, inventory and warehousing systems; and the second is its retail systems which include POS, people management, kitchen management, table management, and recipe management. Part of its retail systems are delivery system, website and mobile app.<\/p>\n

Although the systems have been deployed and helped Shakey\u2019s in its operations, there are challenges the company had to contend with while embarking on its digital transformation. The major challenge is change management as they\u2019re transforming from manual to a paperless environment, which to its employees constitute a big change. Besides, the transition process must be well-planned and designed when a new system needs to be rolled out.<\/p>\n

\u201cEmployees, even those who don\u2019t want the change, need to learn as we don\u2019t want a situation that affects the operations while we are putting in the new system. We have to plan or design the system well in order to be able to transition smoothly. Our management is very much supportive of the digital initiatives which we are doing and we\u2019re thankful for that as they can adapt to the changing times,\u201d said Franco.<\/p>\n

\u201cWow-ing\u2019 support<\/b><\/p>\n

During the first year of systems integration, Shakey\u2019s had to scale back seven times. This is something that is quite impossible. But with the new system, Franco said, \u201cwe are able to do so because of the scalability that we have in our new infrastructure. This, of course, has been translated to more guests especially our \u2018Super Card\u2019 customers being able to order more than what we were able to have in previous years. This way, it makes it more convenient for our guests to avail of both dining, carry out and delivery services.\u201d<\/p>\n

\u201cThis is where the \u201cwow-ing\u201d support for our guests was experienced in our delivery segment,\u201d according to Jorge Concepcion, General Manager at Shakey\u2019s Philippines. \u201c I think when connections and communication are integrated, you will be able to have efficiency.\u201d<\/p>\n

\u201cIn Shakey\u2019s organization, which consists of 200 stores nationwide, we talk about \u2018wow-ing\u2019 function. We should always be better than before. We have to constantly wow our guests. We should be better than what our guests expect, claims Concepcion.<\/p>\n

Key ingredient: A good database<\/b><\/p>\n

Shakey\u2019s also leverages on the use of its database to make sure it helps improve operations and the services its guests deserve.<\/p>\n

\u201cWe have the benefit of a good database. Our Super Card base covers millions of Super Card holders. Our online delivery is among the top segments of our retail systems used in our stores nationwide. This is an opportunity for our guests,\u201d Concepcion said.<\/p>\n

Franco, likewise, said they are also able to use analytics tools to enrich their data. One of these tools is the Power BI which is now used by their Marketing and Sales departments in order to have the ability to analyze data.<\/p>\n

\u201cTwo years ago, our online service could not handle the demands. Today, it comes to a point where we have to say \u2018No\u2019 as we reached the production peak.\u201d<\/p>\n

More payment channels<\/b><\/p>\n

 <\/p>\n

As part of its operational efficiency transformation, Shakey\u2019s will come out with other payment channels to wow more its guests. The company is currently supporting credit cards, PayPal, debit cards and cash payments as 85% of transactions in the Philippines still done in cash. It will also soon support \u2018bitcoins\u2019 for more convenience for its guests in transacting with Shakey\u2019s and be able to deliver its products whatever payment channel is used.<\/p>\n

The systems integration implemented in Shakey\u2019s did not affect its employees. There was no reduction in terms of headcount. The company, instead, transforms what they are doing to better their lives.<\/p>\n

\u201cIf they do a lot of overtime before, now they can be able to do their work more efficiently and be able to go home on time. When they are now in an environment where they have a lot of data to work with, they actually work more efficiently instead of wasting time doing things two, three or more times. With the new system, they do it once. Repetitions in their work are removed, and in fact, we\u2019re hiring,\u201d said Franco.<\/p>\n

Shakey\u2019s has gained from the deployment of Microsoft cloud system in its operations. \u201cScalability, predictability and security are the benefits Shakey\u2019s has derived from its systems. And with Microsoft, being ISO-certified, our data is actually much more protected in their environment,\u201d claims Franco.<\/p>\n","protected":false},"excerpt":{"rendered":"

Two years ago, Mauch Franco, CIO at Shakey\u2019s Philippines, experienced how it was difficult for them to cater to the needs of their guests, especially during special occasions such as Valentine\u2019s Day, Mother\u2019s Day and Father\u2019s Day, or whenever Manny Pacquiao has a fight, and other big functions. It is during these events when demand […]<\/p>\n","protected":false},"author":4,"featured_media":28237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,25],"tags":[414,148,2294,3362,4298,4297,5187],"class_list":["post-28236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-headlines","category-software","tag-case-study","tag-cloud-computing","tag-digital-transformation","tag-microsoft","tag-microsoft-azure","tag-microsoft-dynamics-ax","tag-shakeys"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/28236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=28236"}],"version-history":[{"count":0,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/28236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/28237"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=28236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=28236"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=28236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}