By Sue Grossbauer
As computer technology continues to emerge, foodservice professionals are faced with new possibilities for information management. At issue is not which applications to computerize; the foodservice industry has outgrown the basic questions of whether to computerize recipes, nutritional analysis, accounting, inventory, purchasing, or diet office. Today, the industry recognizes the benefits of all. Now the issues are integrating applications, improving usability, and
adapting technological tools in order to achieve business objectives.
Traditionally, foodservice management software systems have been based on proprietary programming. This means a user could not alter a program, but had to use it "as is." For modifications, a user might work through a users group to persuade a software vendor to release enhancements to achieve desired functions or customizations. And, if a software vendor should go out of business, the user might be left holding an expensive "bag"
of software that could no longer be updated.
In addition, traditional, proprietary software offers little means for connecting information systems. A case in point is the foodservice director who wants to plug sales data from a point-of-sale system and data from inventory records into a spreadsheet for budget planning. In the best scenario, the choice is to perform cumbersome "ASCII file" exports and imports to move data from one program into another, because formats for handling data
do not match. More typically, though, a foodservice director or secretary enters numbers from a printout into another program. Or, the director simply has to forgo the benefits of pulling all the information together for informed decision-making.
A typical computerized foodservice operation uses several proprietary software systems. One may be for kitchen management, another for point-of-sale, another for nutritional analysis. Perhaps the operation also uses separate packages for desktop publishing, word processing, spreadsheet, employee scheduling, meeting room scheduling, and more. In case-by-case instances, vendors of proprietary foodservice software have developed custom interfaces (links)
from one program to another to attempt to open communications among applications. These interfaces are expensive to develop, and of limited availability. For example, one package may offer a link to one prime vendor's ordering system, but not to another's. Or, it may link to one nutritional analysis tool, but not another. One may offer no link whatsoever to an accounting package, or a catered event room scheduling package. These situations leave individual foodservice
directors in the lurch, with few choices and no easy solution to achieve a highly integrated management information system.
With the advent of the Microsoft Windows operating platform, which supports standard data transfer protocols, the basic operation of personal computers is being modified to allow simple integration of a variety of functions. Programs written specifically for Windows may support object linking and embedding, a feature in which data readily pass from one program to another. Windows allows computer users to multitask (let the computer and the user work on
more than one task at a time), and it offers a graphical user interface (use of icons or pictures and an input device such as a mouse to allow users to direct the computer). Compared with its predecessor, DOS, it supports greater use of memory by a personal computer. And, it now supports 32-bit processing meaning that in essence, the channels through which data flow are wider. As a result, Windows supports greater computing power and stronger performance.
In fact, according to one industry expert, "Due to the widespread availability of programs and business applications that run in Windows and Windows 95, this environment has become the most widely accepted and thus, de facto operating environment." 1
Key to the information technology choices being made today by industry leaders are two terms: non-proprietary and open architecture. A proprietary application is one in which the tools used to develop the software are not industry-standard. In contrast, a non-proprietary or open architecture system uses openly available tools and technologies. Customizing and connecting systems becomes less expensive.
Similarly, open architecture allows a system to connect readily with other technologies. For example, an open system from one developer may easily accommodate a bar-coding or radio-frequency device developed by another. Open systems provide flexibility to advance with the technology regardless of which developer has the technology in demand.2 A choice for open systems also arms the foodservice operator with shopping power the ability to shop
among vendors for the best product fit and the most competitive price.
In all, non-proprietary, open systems permit users to keep pace with advancing technology. Users can pick and choose the most effective management tools, without being limited by the technological capabilities, time constraints, or pricing structures of any single vendor.
Software applications developed for MS Windows and other open, non-proprietary technologies form the basis for many emerging trends in the application of information technology to foodservice, with emphasis on innovative cost management.3 Among them are purchasing, receiving, inventory, menu planning, point-of-sale integration, and overall systems integration.
TOP Purchasing
To manage food costs effectively, managers are employing several strategies. One is just-in-time purchasing, which requires finely tuned product forecasting, as well as the ability to place and process orders with a short turnaround time. Technologies such as EDI (electronic data interchange), singular user interfaces for placing electronic orders for purchasing through a variety of distributors' computer systems, and fax modem transmission are all
replacing traditional telephone ordering. Two-way communication supported by computers means that purchasers can receive feedback and troubleshoot order fulfillment problems more efficiently.
Managers who use bid analysis as a basis for purchasing decisions can obtain price information electronically and automate the process. What about the single bid that involves multiple vendors? Complex variations of the bid system can be accommodated through relational database systems.
Purchasing flexibility based on price poses additional issues. The manager who does not wish to be locked into a single distributor for any one product needs a robust information system to support flexibility. To make cost effective decisions as prices fluctuate, the manager needs to know current prices and which purveyor offers the lowest price today. An information system built to accommodate electronic price updates can provide real-time price
information, and identify the lowest price for each item if desired.
If the system is designed using a relational database, it can also permit queries and user-defined reports to identify products with significant price swings. For example, a user might choose to query a relational database to find out which items have changed in price by more than 10% since the last order, or which five items contribute the highest cost to tomorrow's menu. A query is a tool that permits users to "mine" their own databases for
useful information in a self-directed, dynamic fashion. Today's software tools even allow users to word their queries in plain English, rather than having to understand data fields and database design. Based on information received through queries and customized reports, a manager can make up-to-the-minute decisions to control food costs.
TOP Receiving
To track and control product flow, many operators use bar-coding technology or pen-based computing for data entry. Radio frequency devices may be used to transmit information from a bar-code scan to a computerized inventory system wirelessly and in real-time. Another technology, voice recognition, is gaining some popularity because it is hands-free and can improve productivity.3 Each of these technologies is broadly available on an open platform. In
addition, the most efficient systems allow users to check in orders by exception-only data entry. Then, they automatically place products, with up-to-date cost information, into the inventory database.
TOP Inventory Control
One expert sums up the trends in inventory management as a shift towards "a continuous flow of material and information," and adds that "On-line and even real time information systems are replacing batch systems." 4 The rapid availability of information supported by new technologies is essential to this management process.
Today's information systems offer another type of flexibility, too. A user who wishes to switch vendors and/or products frequently, in order to reap cost advantages, has to contend with varying pack sizes and issue units. Maintaining product information in a relational database system makes it easier for users to specify multiple sets of data related to a single item multiple vendors, prices, and packaging, for example. Inventory changes sometimes
require changes to recipes, too. These are accomplished easily through real-time, global updates.
TOP Menu Planning
From a menu planning perspective, the value of contemporary technologies is in "what-if". A user can experiment with various menu offerings and recipe ingredients to find the cost-effective choice that meets nutritional, aesthetic, and quality requirements. As food prices change, a user can experiment with alternatives, immediately viewing the impact on the per-serving cost, menu cost, forecasted revenue, or other user-defined financial
criteria. Queries may help the user identify possible inventory items that meet specified criteria, such as a tomato-based product that costs less than five cents per-serving, or the salad green with the lowest price this week. As alternatives are selected, they may be plugged in on a menu screen, with real time updates carrying through to published menu descriptions, inventory requirements, ingredient pull lists, production instructions, scaled recipes, nutritional
analysis totals, and so forth.
TOP Point-of-Sale Systems
Foodservice operators who use point-of-sale (POS) equipment are increasingly seeking connectivity with back-of-the house systems. By establishing communications between POS systems and foodservice management systems, operators can capture sales data to plug into forecasting formulas, profitability analyses, and menu planning and pricing activities. They can make POS records flow into routine financial reports such as cash reporting, and profit/loss
statements. Finally, sales records can provide information that assists managers in making cost-effective staffing decisions.
In the retail marketing arena, analysts view the right technologies as vehicles for enhancing customer service.5,6 Touchscreen is one such technology that can streamline data entry time, and improve service.5,6 While this technology costs more than keyboard entry systems, the payoff may be in reduced training time for employees.5,6
Historically, POS systems, like back-of-the-house systems, have been proprietary. But, claim POS soothsayers, this is changing rapidly. "Operating systems are moving away from proprietary systems to more widely accepted platforms, such as Windows NT."1 The market share of Windows NT in the POS operating systems pie will grow steadily, they claim, at the expense of proprietary systems.
Why Windows NT? Its graphical user interface reduces training expenses, improves usability, and in the end improves customer service. Built-in network support also means that Windows NT provides low-cost networking capability. And, as users select non-proprietary POS systems, they are likely to reduce their expenses for two reasons: 1) Development costs for non-proprietary operating systems are less, and 2) Users can comparison shop for the features
and technologies they need.
Another advantage of Windows NT is that it can be used as an applications server. In the past, applications servers have required using mainframe or minicomputer systems that were expensive and difficult to use. Windows NT combines the power of UNIX as an applications server with the ease of use of Windows. There are now many server-based databases such as Oracle, DB2, MS SQL Server, and others that were previously available only on more expensive
systems.
Virtually all of the major database vendors consider Windows NT to be one of their primary platforms, on equal footing with UNIX. Because of the broad database support, many of the UNIX applications have been ported to Windows NT. These applications include packages for accounting, payroll, POS, and more. What this means is that it has never been easier to integrate with other systems in the organization.
In fact, industry experts advise sticking with open systems, in order to: make use of relevant technologies, achieve cost effectiveness, and connect systems.1,2 As any emerging technology presents solutions for business problems, users can mix and match technologies such as touchscreen, identification devices, and voice recognition technologies.
POS systems, they are likely to reduce their expenses for two reasons: 1) Development costs for non-proprietary operating systems are less, and 2) Users can comparison shop for the features and technologies they need.
Another advantage of Windows NT is that it can be used as an applications server. In the past, applications servers have required using mainframe or minicomputer systems that were expensive and difficult to use. Windows NT combines the power of UNIX as an applications server with the ease of use of Windows. There are now many server-based databases such as Oracle, DB2, MS SQL Server, and others that were previously available only on more expensive
systems.
Virtually all of the major database vendors consider Windows NT to be one of their primary platforms, on equal footing with UNIX. Because of the broad database support, many of the UNIX applications have been ported to Windows NT. These applications include packages for accounting, payroll, POS, and more. What this means is that it has never been easier to integrate with other systems in the organization.
In fact, industry experts advise sticking with open systems, in order to: make use of relevant technologies, achieve cost effectiveness, and connect systems.1,2 As any emerging technology presents solutions for business problems, users can mix and match technologies such as touchscreen, identification devices, and voice recognition technologies.
TOP Overall Systems Integration
Traditional foodservice information systems planning has focused on "stand-alone." Gradually, operators began to examine the value of interfacing systems. Today's business information systems are transcending the concept of interfacing, choosing instead a seamless integration approach. 1,7,8,9
One such approach is data warehousing. Based on client/server technologies, a warehouse uses one, massive database system for all an organization's information. As designated, users can access the information they need. As users enter data, the information immediately becomes part of the single, enterprise-wide database. This approach is being adopted in major materials management systems, as well as in healthcare organizations.
To share information over distances a strategic goal of any organization with multiple sites information systems professionals are taking advantage of other new technologies. MS Windows has many built-in capabilities that support communications. For example, remote access may be used to link a facility to a corporate office. Payroll time sheets, invoices, and other time-sensitive electronic documents may be transmitted this way. A manager may also use
remote access to telecommute to check on the day's sales, print reports, or place orders, for example.
Built-in to MS Windows is connectivity to the Internet. The Internet and intranets (internal networks operating under browser software and supporting Internet connections) can improve communications by e-mail, and make common applications and data available to a multitude of users. At the same time, the technologies allow users to tap into selected resources on the Web.
TOP Clinical Nutrition Systems
In healthcare, systems integration takes on special significance for clinical nutritional care applications. Traditionally, the major expenses in managing patient menus have been recording and updating patient information whether manually or through data entry into a computer. Ease of integration means ease of updating data such as patient name, location, and diet order electronically. In addition, integration is consistent with current JCAHO
standards, which require eliminating duplicate data entry. Full integration translates into labor efficiency and cost savings. If integration is also used to connect clinical data such as laboratory results and prescribed medications with clinical nutrition records, additional benefits ensue from improved nutrition screening, effective nutrition intervention, and thorough DRG assignment/billing.
With contemporary and emerging technologies, it is also possible to provide paperless menu alternatives that reduce menu-related costs even further, and can support a just-in-time meal service. Technologies currently in use with relational database and client/server systems include: interactive voice technology, in which a patient orders meals through a bedside telephone, wireless networking using notebook PCs at the patient bedside, and bedside
workstations permanently located in patient rooms. These devices, connected to a client/server system, can later retrieve menu selections, which can then be used to calculate personalized nutritional analysis.
TOP Summary
While the state of technology changes daily, systems designers can now choose one constant: the choice of non-proprietary, open architecture technologies. These are "technically ready" for any technological options a foodservice operator may choose, now or in the future, to achieve desired results.
TOP References Cited
- Lynch, S. and A. McCready. Operating systems gear up for change. Retail Systems Reseller, Sept. 1996, p. 51.
- Hill, E. Computers in foodservice: keeping up to speed. Healthcare Foodservice, Summer 1996, p. 13.
- Moore, B. Speak easy. Automatic ID News, October 1996, p. 48.
- Olson, D. Seven warehousing trends of the next millennium. Automatic ID News, October 1996, p. 46.
- Hotchkiss, D. Thirteen money makers in quick service. RT Reseller, September 1996, p. 11.
- Touchscreen POS helps O'Charley's improve its service. Retail Technology, October 1996, p. 69.
- Weekes, M. Managing in the information age. Food Management, November 1996.
- Smith, L. Prescribe the right hardware to fit your organization's needs. Health Management Technology, October 1996, p. 28.
- Swan, D. Yesterday's technology troubles foretell today's PC problems. Health Management Technology, October 1996, p. 66.
Submitted by Vision Software Technologies (VST)
Vision Software Technologies, Inc. (VST) is an international company serving more than 500 foodservice clients with software that is easy to install, easy to use, and easy to maintain. Users represent healthcare operations, correctional facilities, business and industry settings, schools, and foodservice management organizations.
More than 20 years of broadly based experience in the industry is your guarantee that with every VST product, you receive the quality of analysis, design, workmanship, and service that are VST hallmarks today.
With permission of VSAT, Inc.
Developers of HACCP
PRO™ Systems
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