{"id":2335,"date":"2015-09-06T18:14:50","date_gmt":"2015-09-06T10:14:50","guid":{"rendered":"http:\/\/www.www.innovationiseverywhere.com\/?p=2335"},"modified":"2015-09-06T18:14:50","modified_gmt":"2015-09-06T10:14:50","slug":"mcdonalds-digital-innovation-strategy-building-the-restaurant-of-the-future-as-a-startup","status":"publish","type":"post","link":"https:\/\/innovationiseverywhere.com\/fr\/mcdonalds-digital-innovation-strategy-building-the-restaurant-of-the-future-as-a-startup\/","title":{"rendered":"McDonald&#039;s digital innovation strategy: building the restaurant of the future as a startup"},"content":{"rendered":"<p>With 35,000 restaurants in 121 countries, McDonald\u2019s is not a so much a F&amp;B outlet, it\u2019s a machine, <strong>an army of operational excellence<\/strong>.<\/p>\n<p>It\u2019s also a network of franchisees, which makes <strong>innovation a bit harder<\/strong>, as you can\u2019t really design a new service or product and just push it to the network.<\/p>\n<p><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-ks_large wp-image-2370\" src=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-4-490x350.jpg\" sizes=\"(max-width: 490px) 100vw, 490px\" srcset=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-4-140x100.jpg 140w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-4-280x200.jpg 280w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-4-490x350.jpg 490w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-4.jpg 635w\" alt=\"mcdonalds innovation digital strategy zaki fasihuddin 4\" width=\"490\" height=\"350\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>During the <a title=\"Break Go to Swell Mike Chen\" href=\"http:\/\/www.thebreak.co\/\" target=\"_blank\" rel=\"noopener\">Break conference<\/a> in Bali, <a title=\"Zaki Fasihuddin\" href=\"https:\/\/www.linkedin.com\/in\/zfasihuddin\" target=\"_blank\" rel=\"noopener\">Zaki Fasihuddin<\/a> shared the story of <strong>McDonald\u2019s digital innovation team<\/strong> which tries to reinvent the experience and, who knows, take the lead on the <strong>restaurant of the future, <\/strong>a necessity when revenues are rather on the downward path for the fast-food giant.<\/p>\n<h2>McDonald\u2019s digital innovation team: from 3 to 130 employees in 18 months<\/h2>\n<p>Zaki joined the McDonald\u2019s digital team in early 2014, with previous experiences at <strong>PayPal, American Express,<\/strong> and mentoring roles in the startup scene of San Francisco.<\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-2369\" src=\"http:\/\/innovao.cluster030.hosting.ovh.net\/wp-content\/uploads\/2015\/07\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-1-1.jpg\" alt=\"mcdonalds innovation digital strategy zaki fasihuddin 1\" width=\"497\" height=\"331\" \/><\/p>\n<p style=\"text-align: center;\"><em>On the left, Zaki Fasihuddin<\/em><\/p>\n<p><strong><em>\u201cThe brand was global, the scale as well, but there was no holistic approach of the digital\u201d<\/em><\/strong>, he says, adding they acknowledged lacking talent in house on this topic.<\/p>\n<p>Zaki was recruited to open <strong>McDonald\u2019s office in the Silicon Valley<\/strong>, to bring folks who \u201cget it\u201d in the company, with experience in coding, shipping and product typically. The idea was to <strong>create an internet company inside this company,<\/strong> to bridge both offline and online worlds.<\/p>\n<p><em>\u201cWhat is the McDonald\u2019s of the future, from a customer experience first. We take the <strong>customer journey<\/strong>, in the restaurant, at the airport, in the car, the physical engagement level\u201d.<\/em><\/p>\n<p>And the assets of the burger brand don\u2019t stop here:<em> \u201cwe\u2019re also <strong>a brand of fun<\/strong>, with key partnership with <strong>sports<\/strong> events such as the Olympics, so we can create engaging experiences. I went from being focused on payments to content creation, <strong>music<\/strong> and games, connected car, virtual reality, because the brand is so broad\u201d<\/em><\/p>\n<p>The <strong>McDonald&rsquo;s digital innovation team has two hubs in Chicago and SF,<\/strong> and then all over the world, with the team now counting <strong>130 people globally<\/strong>. The CEO gave them a mandate to re-imagine the restaurant experience of tomorrow.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-ks_large wp-image-2371\" src=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-2-466x350.jpg\" sizes=\"(max-width: 466px) 100vw, 466px\" srcset=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-2-133x100.jpg 133w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-2-266x200.jpg 266w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-2-466x350.jpg 466w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-2.jpg 534w\" alt=\"mcdonalds innovation digital strategy zaki fasihuddin 2\" width=\"466\" height=\"350\" \/><\/p>\n<h2>From a consistent brand to mass personalization through context<\/h2>\n<p>Rather than <em>\u201cmaking fast food faster\u201d<\/em> as suggested Mike Chen from <a title=\"Go to Swell\" href=\"http:\/\/www.gotoswell.com\/\" target=\"_blank\" rel=\"noopener\">Swell<\/a>, the organiser of the conference, the objective was to integrate each customer\u2019s context into the overall experience.<\/p>\n<p>Digital at McDonald\u2019s is not just marketing, and Zaki\u2019s teams innovate on the <strong>customer journey in two main areas:<\/strong><\/p>\n<ul>\n<li><strong>customer experience:<\/strong> innovation on a specific future (<strong>ordering, payment, mobile<\/strong>), by building products, it\u2019s a model where they switch from agency reliance to <strong>bring it in house<\/strong>, as they want to own their future and skills;<\/li>\n<li><strong>customer engagement:<\/strong> how to ship, to distribute, to engage on social networks, or when we ship a mobile app, customers have a reason to continue using it<\/li>\n<\/ul>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-ks_large wp-image-2372\" src=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-3-540x350.jpg\" sizes=\"(max-width: 540px) 100vw, 540px\" srcset=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-3-154x100.jpg 154w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-3-309x200.jpg 309w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-3-540x350.jpg 540w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-3.jpg 630w\" alt=\"mcdonalds innovation digital strategy zaki fasihuddin 2\" width=\"540\" height=\"350\" \/><\/p>\n<p>Beyond the customer journey itself, <strong>three categories are assessed as strategic for McDonald\u2019s digital innovation teams:<\/strong><\/p>\n<ul>\n<li><strong>In-restaurant experience<\/strong>, and how could a user control the restaurant with the remote control that the smartphone is becoming. <em>\u201cToday you can either be in line in the restaurant or drive-in. How can you change it? <strong>Customise your food, where you\u2019re seating, who you would want to meet?<\/strong> There are core items such as fries, Big Macs, but also a lot of thing to \u201cunbundle the restaurant experience\u201d<\/em>, says Zaki<\/li>\n<li>The <strong>next generation of drive-ins<\/strong>, to reduce frictions in the drive-through. <em>\u201cHow about <strong>ordering while driving?<\/strong> How to integrate the car experience? That\u2019s why we also work with the smart car ecosystem\u201d<\/em><\/li>\n<li><strong>Food anywhere.<\/strong> <em>\u201cWhy can\u2019t the food come to you? We do it well in Asia with delivery. The <strong>sharing economy<\/strong> model in transportation now allows it. <strong>What is the uberification of food?<\/strong> It\u2019s key for us, at McDonald\u2019s we know that if people don\u2019t take cars anymore, there\u2019s a huge impact\u201d<\/em><\/li>\n<\/ul>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-ks_large wp-image-2373\" src=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-5-626x350.jpg\" sizes=\"(max-width: 626px) 100vw, 626px\" srcset=\"http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-5-179x100.jpg 179w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-5-358x200.jpg 358w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-5-626x350.jpg 626w, http:\/\/www.www.innovationiseverywhere.com\/wp-content\/uploads\/2015\/09\/mcdonalds-innovation-digital-strategy-zaki-fasihuddin-5.jpg 633w\" alt=\"mcdonalds innovation digital strategy zaki fasihuddin 5\" width=\"626\" height=\"350\" \/><\/p>\n<h2>How to reconcile the corporate and the startup teams and rhythms?<\/h2>\n<p>As in many corporate innovation case studies, one of the main challenge is the <strong>culture clash between an ageing, processed and risk-adverse corporate workforce<\/strong>, and the \u201cbreak everything, and as fast as possible\u201d mindset of startupers.<\/p>\n<p>When ApplePay launched, for instance, Zaki and his team created <strong>a secret project with 20 people in the company, from the CEO to people in the restaurant, both to have the decision making, the support and people who understand the behavior<\/strong>. It took them <strong>less than 90 days<\/strong> for the whole project, rather than the usual months it would have taken with the corporate process.<\/p>\n<p>The main issue with the F&amp;B, he adds, is that <em>\u201ceverything is about safety and control, no one gets sick after a McDonald\u2019s despite the huge volumes sold everyday, everywhere\u201d.<\/em><\/p>\n<p><strong>Tech, on the other side, is all about risk-taking<\/strong>. <em>\u201cOur team is not so much about digital experiences, but that there\u2019s a different way to work. Once you did it once, you can do it again and again\u201d,<\/em> he adds.<\/p>\n<p>For him, what\u2019s important is also the co-creation opportunities between big and small companies, rather than \u201coff the shelf\u201d purchase.<\/p>\n<p>You can find another of our case study from the same conference with <a title=\"Lufthansa startups\" href=\"http:\/\/www.www.innovationiseverywhere.com\/lufthansa-innovation-hub-and-the-travel-space-a-startup-within-the-company\/\" target=\"_blank\" rel=\"noopener\">Lufthansa Innovation Hub<\/a>, and we&rsquo;ll be publishing soon about Absolut in the field of F&amp;B too.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With 35,000 restaurants in 121 countries, McDonald\u2019s is not a so much a F&amp;B outlet, it\u2019s a machine, an army of operational excellence. It\u2019s also a network of franchisees, which makes innovation a bit harder, as you can\u2019t really design a new service or product and just push it to the network. &nbsp; During the [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2374,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[75,49],"tags":[408,409,406],"class_list":["post-2335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporates","category-innovators-category","tag-customer-journey","tag-fb","tag-open-innovation"],"_links":{"self":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts\/2335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/comments?post=2335"}],"version-history":[{"count":0,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts\/2335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/media?parent=2335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/categories?post=2335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/tags?post=2335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}