2015年4月27日 星期一

Cloud Computing in Food and Beverage Industry

Definition of Cloud Computing

Please refer back to our group blog introduction.

Definition from The National Institute of Standards and Technology (NIST)
Technical Information from Microsoft

The status of Food and Beverage industry

In Hong Kong, food and beverage industry is one of the core service industry in this city named “food paradise”. It included restaurants, cafes and bars which have small business and large chain stores. They served their customers with food and drinks as well as service. Therefore, food quality, atmosphere of the restaurant and service were all important in this industry.

How Cloud computing impact Food and Beverage industry

In the concept of cloud computing, it can provide “anything as a service” for business users. Service providers can sell their cloud service like selling an IT solution cover some or all business functions or sharing IT resource for many companies who scribe their service. Unlike the traditional times, companies needed to acquire the whole set of infrastructure to go for any IT solution. The maintenance and training cost is also high as they need to maintain their own specify system. Especially in F&B industry for food ordering process, full manual process with pen and paper may be more efficient than using computer ordering system for smaller restaurants. It is even not possible for SMEs in food and beverage industry with low profit margin to invest so much money for whole set of infrastructure like server and terminals while they cannot utilize them as their companies scale is not big and limitation on physical space. So, cloud computing created many new business opportunities and cost reduction ideas for food and beverage industry as the business owner can have small investment with large benefit. For large corporates, maybe they have existing infrastructure, cloud computing can help to organize and streamline the current IT environment. With cloud computing facilitates, it can better use of existing resources and do more with fewer resources (Ebbers, 2009). Also, according to KPMG 2013 Food and Beverage Industry Outlook survey, nearly two-thirds of executives say they have adopted or plan to adopt cloud technologies, with 44 percent saying it will dramatically shift their business model and 78 percent believing it will increase transparency (Gould, 2015).

Impact to Food and Beverage Industry

Thin Clients in Cloud computing


Cost was always the barrier for SMEs in food and beverage industry to adapt IT. With cloud computing, it can allow smaller business to subscribe required resource as they needed without excess. Therefore, thin clients would be a good concept for smaller business in food and beverage industry to enjoy the benefit of cloud computing. Thin clients are bare bones computer with minimum hardware that allows users to access programs, files, and functionality that is hosted on physical server or cloud server. The server pushes the operating system, programs and information to the thin client when a user logs on (Tricerat, 2015). So, it is just like a device to access the server with computing power. If you still don’t understand, please think of our classroom computer in the lecture. They are all thin clients with display and network function only, all computing power were from the physical server controlling all clients.


Thin clients can impact food and beverage industry a lot as it is a very small device with low power consumption which can be installed anywhere. Even in the market, some thin client manufacturers can add conformal coating in order to add a layer of protective coating that further protects computer components, making them impervious to dust, oil vapors and water vapor (Ramanuja, 2014). With small devices, it can have more flexibility for restaurants to install. For this kind of customer facing service, down time related to IT would lead to customer dissatisfaction. But for thin client model, it would also save down time and maintenance time since the business users can just replace the thin client with another backup thin client when there is any error. Also, as all devices were connected and maintained in the cloud server, all software can deploy and maintain in server, so there is not necessary to maintain each client one by one. Besides, with this kind of infrastructure, restaurants can also move their point of sales system to thin clients or mobile clients and handle all sale process in the cloud server. So, with cloud computing, only terminals were needed in the restaurants.

Centralized decision making system for management

For cloud computing, it can allow all restaurant branches with different business locations share the same company server and database. It can share internal software and information without time lag. The main advantage for management would be able for them to have the real time status of all branches including operations figures like stocks, sales and customer information like customer preferences on menu. It can increase the response time on the whole to minimize the chance of out of stock which may lead to customer dissatisfaction.

New concepts to Food and Beverage industry by Cloud computing

With cloud computing, food and beverage industry recently adapted some new concepts such as online mobile restaurant reservation system like New Town Plaza app. It is a booking system allowed people to connect to the cloud server of the shopping mall. The cloud server centralized all booking of different restaurants in the mall. So customers can use the app to access all booking of restaurants in the mall easily. All restaurants shared the same service from the cloud so the cost of each restaurant is much lower than setting up the own online mobile reservation system. Also, with this kind of system having real time information to customers, it can also boost the sales of all restaurants in the mall and become more competitive than those restaurants nearby but not supported by the system. Apart from New Town Plaza, Food GULU would be another app involved cloud computing which have the same concept.

Another new concepts is online ordering system supported by cloud computing, such as the latest ordering app from Café De Coral. It allowed customers to order meals from the mobile app by showing specific branches menu. Customers can pre-order online and pay with electronic payment at the self-serviced terminals in the shop. The whole concepts was linked all mobile apps and point of sale terminal in the restaurant with cloud server. Each branches updated their specific menu of that day to the cloud and allow customers to pre-order. The whole concept can reduce waiting time of customers, reduce handling of cash and reduce workload of employees. Apart from Café De Coral, some full service restaurants also used an electronic ordering system which connected to the cloud with real time updates of the menu. Such as Gyu-Kaku in Hong Kong, they provided dine in customers an iPad mini to order food themselves. All menu and ordering information is processed by cloud server. It can also reduce workload and reduce human errors.


Cloud Computing Stories: Restaurant Point-of-Sale Systems

In US, Macayo’s Mexican Kitchen adopted cloud computing in his 18 restaurants chain business. Their cloud computing model was included mainly private cloud. With cloud computing, the company can centralize all information put in the cloud server and have the information readily at hand. As the example mentioned in the case, “ if we notice an item running low at one store—maybe salsa or chips or tamales—we can easily see what’s on hand in other locations and quickly take from one store to get through the busy time. We can also change our delivery schedule to get a shorted item to another place within hours if necessary” (Schnoor, 2015). It is the benefit of cloud computing with centralized control and information even the business is located in many locations. With high transparency and real time information, management of the restaurant can response to any changes in customers, food stocks, sales easily in office without time lag and the response time to business risk can be very short.

However, there is also noticed fact that the network traffic increased with cloud computing adapted. The restaurant needed to invest on network infrastructure to maintain a high and stable bandwidth to make sure the cloud computing system work properly and work in high performance. Although the investment on restaurant IT infrastructure can be reduced, network stability and bandwidth would also be another limitation and important factor for adapting cloud computing.

Conclusion

Thanks to cloud computing, food and beverage industry can mainly benefit with some new concept providing better customer experience such as mobile reservation system. Management of food and beverage industry can have higher responsiveness to all business situation with centralized tools from cloud computing. Also, smaller business in the industry can also afford to use computerized management system with subscribing cloud service at an affordable cost. Cloud computing benefit the whole industry from SMEs to large corporate with different new concepts and cost efficiency.

Reference

Ebbers, M. (2009). Cloud Computing: Save Time, Money, and Resources with a Private Test Cloud . New York: IBM Red Books.
Gould, D. (2015, 4 25). Technology Will Drive Food Industry Growth, Finds KPMG Survey. Retrieved from Forbes: http://www.forbes.com/sites/daniellegould/2013/08/16/technology-will-drive-food-industry-growth-finds-kpmg-survey/
Ramanuja, R. (2014, 9 26). Thinlabs Thin Client Solutions For The Food Industry. Retrieved from ThinLabs: http://thinlabs.com/blog/thinlabs-thin-client-solutions-food-industry
SchnoorLee. (2015,26). Cloud Stories: Restaurant Point-of-Sale Systems. Retrieved from Intel: http://www.intel.com/content/www/us/en/cloud-computing/macayos-mexican-kitchen-cloud-story.html
Tricerat. (2015, 4 26). Thin Clients and Cloud Computing. Retrieved from Tricerat: http://www.tricerat.com/resources/topics-library/thin-clients-and-cloud-computing