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In 2001, McDonalds Restaurant undertook a project called “INNOVATE”. The main objective of this project is to create an intranet connection within all McDonalds restaurant. This project connects the headquarters with its 30,000 restaurants operating in 120 different countries. The Innovate provides various operational information to the headquarters. Under this project, the manager at Oak brook can identify any slowness in the sales rate at a franchise which is located at Orlando, Fla or the grill temperature in a particular franchise was very low. This could have also been useful to monitor the quality of oil used in each and every McDonalds franchise which would have resulted in the improvement of customer service eventually. This project could have promoted the executives to watch every franchise of McDonalds 24x7 and to take preventive actions to correct them instantly. Innovate would also monitor temperatures of cooking utensils, and even the exact usage of food and packaging supplies to improve the product consistency. The basic idea behind this project was to create a global Enterprise Resource planning which connects each and every McDonalds to its headquarters.For the implementation of this project McDonalds have spent over $170 million on consultants and initial implementation planning.McDonald's ultimately described this project in a paragraph that deals with the management's decision to terminate Innovate.An idea of creating a global network connection, delivering real-time operational information to all stores situated in countries that even lacked network infrastructure, was a failure. Even though this terminated project was projected to give long-term benefits, it was not viewed as the best use of capital in the current environment, as the anticipated system worldwide would cost over excess of $1 billion.
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