Rock in a Hard Place Assignment
1. What problems did the Rank Group find with the Hard Rock’s three main internal information systems (restaurant operations, merchandising, and financial)? Why was this a problem?
When they first assessed the situation Rank Group realized that there was a severe lack of communication and standardized business practices from branch to branch. The restaurant operations, merchandizing data, and financial information were all reported and recorded uniquely from business to business. This created an extreme lack of communication internally. The merchandise inventory system that was being utilized was controlled by restaurant managers with no prior merchandizing experience, and thus did not understand the importance of keeping a quality inventory record. The financial information from every branch was eventually compiled at some point; however, the inconsistencies in the reporting process and transportation of the information itself faced large inaccuracies. The restaurant operations were also extremely de-centralized and unique from branch to branch. From a corporate standpoint, The Hard Rock Café was an absolute nightmare. Without a standardized business process, the Café had no potential for economic prosperity.
2. What’s the solution?
The solution that was settled upon completely altered the preexisting infrastructure and corporate systems. In the end of 1998 through the first half of 1999, the IT department created a $1Million data warehouse system that was built using MicroStrategy. The new data warehouse now created a standardized location for all of the point-of-sale data that was collected in their restaurants and gift shops. With the data warehouse in place, the need for a chain wide merchandise system was imminent. Therefore, Hard Rock implemented a $1.5 Million Radius inventory management system from Transatlantic Software. This software enabled them to track inventory flow from all their branches utilizing one...