dmgt-750: collaborative culture in design …...2014/09/29 · dmgt-750: collaborative culture in...

Diffusion of Innovation: McDonald’s Innovation Center & Equipment SuppliersDMGT-750: Collaborative Culture in Design Organizations • Winter 2015 Professor Tom HardySavannah College of Art & Design

Table Of Contents

DMGT-750: Collaborative Culture in Design Organizations - Winter 2015 - Professor Tom Hardy

Project Plan •1.1 Core Statements •1.2 Executive Summary •1.3 Project Overview • a. Expected Results • b. Questions To Suppliers • c. Key Problems •1.4 Methodology •1.5 Project Timeline •

Secondary Research •2.1 User Journey Map •2.2 Process Map •2.3 Brand Properties • a. Brand Attributes • b. Brand Identity Map •2.4 Case Studies •2.5 Key Learnings •

PRIMARY RESEARCH •3.1 Interviews •3.2 ERAF Systems Diagram •3.3 Key Learnings •

• 4-13• 6• 7

• 9• 10• 11• 12• 13

• 14-38• 16-17• 18-19

• 21-25• 26-30• 31-37• 38

• 39-45• 41-42• 43-44• 45

• 46-68• 48• 49-51• 52-55• 56-58• 59-64• 65-67• 68

• 69-74• 71• 72-73• 74

• 75• 76• 77

INNOVATION CENTER WORKSHOP •4.1 Workshop Blueprint •4.2 Quad A Diagnostic •4.3 Innovation Influence Map •4.4 Priorities Matrix •4.5 Tollgate Timeline •4.6 Interactive Connections Map •4.7 Key Learnings •

CONCEPT SOLUTIONS •5.1 Concept A - Golden Arches Fellowship •5.2 Concept B - Joint Research Think Tank •5.3 Concept C - McDonald’s Equipment Innovation Council •

CONCLUSION •SOURCES •TEAM MEMBERS •

“Communities of Practice are groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their

knowledge and expertise in this area by interacting on an ongoing basis.”

- Etienne Wenger (Cultivating Communities of Practice, 2002)

Project PlanCore Statements & Methodology


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1.1 Core Statements1.2 Executive Summary1.3 Project Overview a. Expected Results b. Questions To Suppliers c. Questions To Competitors1.4 Methodology1.5 Project Timeline

The purpose of this project was to understand opportunities in strengthening the bond between equipment suppliers and the McDonald’s Innovation Center. Furthermore, the ultimate goal was to improve their relationship in order to diffuse the developed innovations into production for use in McDonald’s restaurants. The research was conducted by Design Management and Industrial Design graduate students at the Savannah College of Art & Design (SCAD) in two stages: - Secondary Research - Primary Research


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1.1 Core Statement Problem & Opportunity Statement

Problem Statement: Currently, a dilemma exists between McDonald’s Innovation Center and the company’s restaurant equipment suppliers. The conflict exists in the balancing of corporate cultures, financial goals and organizational agendas. The McDonald’s Innovation Center needs to effectively engage its equipment suppliers with innovation while still aligning with the suppliers’ need for competition and profit gain. Furthermore, there is a need to align each of these entities to develop one community. This needs to be done to effectively diffuse and integrate innovation into the larger system which includes McDonald’s Innovation Center, equipment suppliers and restaurant owner-operators.

Opportunity Statement: To develop methods of engaging each entity within one community, our team plans to help the McDonald’s Innovation Center and its suppliers to form a shared vision that furthers the diffusion of innovation in the restaurant equipment industry. Our team had the opportunity to create engagement through a workshop involving each party. By bringing each part together, our team was able to further study the relationship between McDonald’s and suppliers as well as how the two communicate between and amongst themselves. Innovation?Innovation?


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1.2 Executive SummaryOur team was tasked with assessing the communication style between the McDonald’s Innovation Center, restaurant equipment suppliers, and owner-operators as they work to improve opportunities for innovation. In order to do this, our team broke down the McDonald’s brand and the function of the Innovation Center. Our team also researched each equipment supplier, called original equipment manufacturers (OEMs), and how each OEM functions; both as individuals and as members of the ecosystem. Secondary research was conducted surrounding researched case studies that incorporated innovation and collaboration to find patterns of techniques that worked and were insightful. The most important case studies and articles became tools to address the needs of the McDonald’s Innovation Center and how these techniques could be implemented into McDonald’s collaboration goal.

After much of the secondary research was completed, our team interviewed members from each company involved in the process. A few issues repeated themselves throughout the conversations, revealing areas that needed to be addressed. These issues provided our team with a platform for a workshop. Common models to address relationships were filled out by representatives of each company. Each model helped to demonstrate the connectivity between the McDonald’s Innovation Center and OEMs. The

models allowed each participant to examine both his or her relationship with others as well as an inside look at his or her workings. Once finished one last round of conversation helped to fill in any gaps and allowed for wrap-up.

Upon completion of the workshop, our team deconstructed all the information gathered, which helped us to find opportunity areas worth improving. Our team looked at overlaps, concerns and holes in the system. We analyzed the models filled out by participants during the workshop and affinitized the data collected during interviews. This analysis informed the three solutions formed by our team. The solutions consist of the following: The Golden Arches Fellowship, the Joint Research Think Tank and the McDonald’s Equipment Innovation Council. The Golden Arches Fellowships involves OEM representatives participating in an on-site integration at the McDonald’s Innovation Center. The Think Tank is a joint-venture on behalf of all participating parties to invest in scientific research surrounding restaurant equipment. Lastly, the McDonald’s Equipment Innovation Council creates a space for open communication surrounding intellectual property, request for proposals, and other common areas of interest. Each of these solutions creates an environment for communication and open collaboration to better enable the diffusion of innovation.

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Secondary research was conducted to gain an understanding of how inter-company collaboration can lead to innovative solutions. The team looked into two main categories of secondary research:• Case studies where the circumstances,

relationships between stakeholders, and desired goals are similar to those between McDonald’s and its equipment suppliers.

• Design thinking frameworks that have been used successfully in the past in order to accomplish outcomes similar to those desired for this project.

Primary research was conducted in the form of interviews to better gain a baseline understanding of the existing relationship between equipment suppliers and McDonald’s, as well as suppliers’ relationships with other large restaurant chains. Suppliers were contacted directly, with the help of representatives from McDonald’s

Frameworks that were used throughout the project are listed in the order of their occurrence:• User Journey• Process Map• Brand Attributes• Brand Identity Map• ERAF Systems Diagram• Quad A Diagnostics• Innovation Influence Map• Priorities Matrix• Tollgate Timeline• Interactive Connections

1.3 Project OverviewResearch & Frameworks


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1.3a Expected Results

Expected Results: The data gathered via this research helped the team in determining the best type of solution to provide to McDonald’s. It was important to learn how unique McDonald’s relationship is with its suppliers as compared to its competitors, how influential they are in the development of new technology for the fast food industry, and most importantly, where opportunities lie in strengthening the restaurant-supplier relationship.

Innovative

VisionCulture

PerspectiveExpertise

Equipment

VisionCulture

PerspectiveExpertise

Innovative Equipment

Shared Vision Union of Cultures

Pact of Perspectives Partnership of Expertise


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1.3b Questions To Suppliers

• How do you view the relationship that your company has with McDonald’s? Has the dynamic of your relationship changed in recent years? If so, how?

• What is your opinion on the work that McDonald’s does in their Innovation Center?

• What do you think are your company’s greatest strengths/weaknesses/opportunities/threats with regards to its relationship to McDonald’s?

• What do you think are the greatest strengths/weaknesses/opportunities/threats of the McDonald’s Innovation Center, from your perspective?

• What are some of the obstacles that have gotten in the way of the development and launch of the McDonald’s “iRestaurant” initiative?

• How do you feel about the way McDonald’s conducts its request for proposals regarding new equipment? Are there ways this process could be made to work better for your company?

• How do you balance the demand of a large client with regard to customization and proprietary technology vs. your needs to sell to a broader market?

• How do the issues of customized/proprietary technology influence your company’s own innovation initiatives?

• What initiatives does your company take in order to promote innovation in your products?

• How would you like to see the supplier-restaurant relationship be improved?

• Who is your biggest client?


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1.3c Key Problems

How Might We...

...effectively engage equipment supplier partners with innovation?

...align the equipment supplier community?

...influence equipment suppliers or the industry?

...effectively diffuse and integrate innovation?


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1.4 Methodology

SecondaryResearch

AnalyzeFindings

Workshop

Diverge

nt Th

inking

Convergent Thinking

Convergent ThinkingDive

rgent

Think

ing

PossibleSolutions

Double Diamond Model (British Design EIC)

Problem Definition Delivery


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1.5 Project Timeline

1/5 1/6 1/7 1/8 1/9 1/10 1/11

1/12 1/13 1/14 1/15 1/16 1/17 1/18

1/19 1/20 1/21 1/22 1/23 1/24 1/25

1/26 1/27 1/28 1/29 1/30 1/31 2/1

2/2 2/3 2/4 2/5 2/6 2/7 2/8

2/9 2/10 2/11 2/12 2/13 2/14 2/15

2/16 2/17 2/18 2/19 2/20 2/21 2/22

2/23 2/24 2/25 2/26 2/27 2/28 3/1

3/2 3/3 3/4 3/5 3/6 3/7 3/8

3/9 3/10 3/11 3/12 3/13 3/14 3/15

Week 1

Mon Tue Wed Thu Fri Sat Sun

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10

START OF RESEARCH PERIOD

RESEARCH RESEARCH

RESEARCH RESEARCH

RESEARCH DEVELOPMENT

DEVELOPMENTDEVELOPMENT

DEVELOPMENT

FINALIZATION

FINALIZATIONFINALIZATION

FINALIZATION

Class Mtg

Class 1 Class 2 Class Mtg

Class Mtg

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Class Mtg

Class MtgRehearsal

Rehearsal

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Class 3Client Mtg

MT/ Client Mtg

Research Plan

Class 4

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Class 9Email

Email

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Class 15 Class 16

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DMGT 750 - Project TimelineCollaboration Culture in Design OrganizationsWinter 2015Professor Tommy Hardy

Draft Review Print Deadline/ Proof Reading Print Deadline/ Proof Reading

Pilot Workshop

MT Content Feed

MT Content Feed

Solution Feed

Final Client Mtg

DEVELOPMENT DEVELOPMENT

DEVELOPMENT

Secondary ResearchFrameworks & Case Studies


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The team conducted secondary research as a way to gain a better understanding of both the McDonald’s Innovation Center and equipment suppliers (Manitowoc, A.J. Antunes and Taylor Company). With a better understanding of the core values of the organizations, the team was equipped to conceive a method of creating a shared vision. The team also researched case studies involving companies and organizations that appeared to have similar issues to those between the Innovation Center and the equipment suppliers.

2.1 User Journey Map2.2 Process Map2.3 Brand Properties a. Brand Attributes b. Brand Identity Map2.4 Case Studies2.5 Key Learnings


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What It Is: The journey begins with employees at the Innovation Center developing an idea. The idea passes through management who then calls the sales representatives from the equipment suppliers. The sales representatives spread this information to the manufacturing engineers. The suppliers, individually, develop proposals and send them to McDonald’s.

Why It Is Important: The user journey allowed our team to visualize and develop a better base understanding of how the suppliers and the McDonald’s Innovation Center interact. This model acted as a starting point to see where more research was needed.

2.1 User Journey

PROPOSAL

$

Romeoville, IL

Hmm...

DMGT-750: Collaborative Culture in Design Organizations - Winter 2015 - Professor Tom HardyDMGT-750: Collaborative Culture in Design Organizations - Winter 2015 - Professor Tom Hardy

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2.1 User JourneyInsights

• There are different starting points for each user in the production process. Not all stakeholders enter into the process at the same point.

• Stakeholders would like to be involved in the pre-planning stage of the process and not just at the start of the RFP stage.

• All users want the process to be shorter and more aligned.


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2.2 Process Map

What It Is: As part of the beginning stage of this project, our team created a process map to further illustrate the interactions and touchpoints between the suppliers and the Innovation Center. Our team developed a cyclical model with the assumption that each time a new piece of equipment is developed and integrated it goes through a cycle.

Why It Is Important: The process map demonstrates our team’s understanding of the system within McDonald’s, how it interacts with internal touchpoints, and where it seeks to interact with external touchpoints.

PROPOSAL

$

INSIGHTS

A-HA

IDEAS

PROTOTYPE

TEST

McDonald’s internal process?

IDEA ISOKAYED

RFP

PROPOSALSARE SELECTED

PRODUCT RELEASE

OBSERVATIONS& FEEDBACK

... RESEARCH

When do theycome in?

“Danger Zone”

- What are suppliers’ criteria?- What are McDonald’s criteria?- Suppliers’ bottom line vs. Mc- Donald’s bottom line.- Negotiations?

- Test in pilot

- Trade Show- Diffusion happens as models become obsolete


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2.2 Process MapInsights

• None of the processes overlap with one another. They all have a different journey.

• Most stakeholders want more time to work out the product production kinks early in the process, before the product hits the market.

• The suppliers want to be equal partners, with more say in the production process.

• The suppliers want to be able to use their time more efficiently/wisely.


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What It Is: Brand Attributes describe the brand in a way that allows stakeholders to better understand the fundamental shared values of the company. This understanding provides insight into how the brand is intended to be perceived by its constituents.Why It Is Important: A set of key descriptors of the brand, based on emotional and rational characteristics and the brand archetypes. These descriptors can be found in the language used to describe the brand by the organization.

What It Is: Brand Identity Map personifies the brand through first-person statements. These statements help to define aspects of the brand that must be expressed clearly and concisely.Why It Is Important: It identifies key components that create and differentiate McDonald’s from its competitors. Starting clockwise from the heritage, each component builds a story about who McDonald’s is and what they do.

2.3 Brand PropertiesBrand Attributes & Brand Identity Map


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2.3a Brand AttributesMcDonald’s

Quality Oriented

FriendlyEfficient NourishingCustomer- Centric

Helpful

EmotionalRational

Works hard to ensure the products, services, and systems are as good as can be.

Welcoming to people of all kinds and cultures, both internally and externally.

Constantly experiments and improves its systems in order to ensure quick and effective delivery of services.

Provides an offering of filling products in a setting made to make people feel welcome and comfortable.

Makes people a priority in every step of the process, from crew members to owner operators and restaurant guests.

Focuses on making sure guests’ needs are met in a timely and efficient manner.


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Customer-Centric AcceptingCollaborative ResponsibleInnovative Open

EmotionalRational

Delivers high-quality, user-centered products and support services.

Embracing the diverse talents, backgrounds, cultures and experiences.

Works with stakeholders inside and outside the firm foster environment of effective communication

Improves the community of which it is a part.

Driving innovation of products and staff management by supporting education and ongoing development

Focuses on improving economic values for share holders.

Manitowoc


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A.J. Antunes

Customer-Centric EthicalQuality

Focused ResponsibleAdaptive Passionate

EmotionalRational

Since its inception A.J. Antunes’ business model has thrived on its connections with the industry and being able to react to its customers needs.

Recognition that it offers more than just products to their customers and holds itself to “one” high standard of integrity.

Holds itself to the highets standards of effectiveness, efficiency, and performance.

Strives to make customers successful by constantly looking at how to improve its offerings.

Based on customer needs it is able to create custom solutions and prides itself in its ability to improve customers business.

Founded in family values, A.J. Antunes takes pride in being a private company, investing in itself and its people.


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Taylor Company

HighPerformance ResponsibleSafe InnovativeFast Facilitating

EmotionalRational

Strives for continuous growth to reinforce its leadership position. Achieves world-class financial performance.

Environmentally responsible and driven to sustainability. Actively supports the communities in which it does business.

Cares for the health and safety of its employees and customers.

A company of ideas, committed to research and development. Inspired to reach the next innovative, powerful and marketable idea. Continuously investing in new products, technologies and intelligent systems.

Continuously improves the productivity of its assets, resources and everything it does.

Thoroughly designed products and services allowing users to achieve more with less effort.


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2.3a Brand AttributesInsights

• McDonald’s views A.J. Antunes as ethical when it comes to their greatest brand attribute.

• Taylor’s greatest brand attribute is innovative as viewed by McDonald’s.

• Manitowoc’s desire to improve economic value for shareholders in an open manner is the attribute McDonald’s acknowledges most.

• Overall, there is a correlation between how the suppliers project their brand and how McDonald’s views the suppliers.


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HeritageI am built out of the needs of restaurant

goers in the U.S.for fast, filling meals.

2.3b Brand Identity MapMcDonald’s

OfferingI facilitate the access to

affordable, easily accessible meals.

AudienceI cater to families, students, executives, and people on the go who don’t have

time to wait long for a meal.

VisionI provide people with access to

affordable meals of consistent taste and quality, with optimal service.

BenefitsI provide convenient access to affordable

fast food.

PersonalityI am a friend, a nurturer, and a facilitator.

Values & Beliefs

I believe in feeding as many people as possible in a fast, consistent manner.

Mission I serve to provide consistent quality of food products at affordable prices

worldwide.


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Manitowoc

HeritageI am built out of the needs for industrial

and food service equipment around the world. Offering

I deliver variety, high-quality, customer-focused products and support services.

AudienceI cater to restaurants and business

owners who are in the food industryin the world.

VisionI maintain my leadership in the field

through product innovation and product support services.

BenefitsI support my shareholders who want to

improve its customer experience through my products.

PersonalityI am a responsible, innovative and an

adaptive provider.

Values & Beliefs

I believe my services empower stakeholders’ competitive edge.

Mission I serve to continuously improve

economic value for my shareholders.


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A.J. Antunes

HeritageI am built from the ingenuity and efforts

of one man who listened to the needs of his customers and created quality solutions to help them do business.

OfferingI deliver quality, long lasting commercial and non-commercial kitchen appliances,

water filtration systems and OEM electrical switches and controls.

AudienceI cater to QSR, casual dine, convenient

stores and dealers and distributors around the world.

VisionAs my customers image and reputation

improves, so will mine.

BenefitsI have my ear to market needs to provide

equipment that gives consistent and accurate results time after time.

PersonalityI am a supporter, listener and creator

built on family values.

Values & Beliefs

I continually look at the big picture by focusing on five core values: Integrity,

People, Excellence, Passion and Family.

Mission I exist to make my customers successful.


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Taylor Company

HeritageI am built out of the needs of food

providers to create food products easily and affordably. Offering

I provide quality food service equipment with a variety of uses.

AudienceI cater to a variety of food service establishments such as restaurants,

convenience stores and dining services.

VisionI provide people with the tools they need

to create the food they envision.

BenefitsI provide high quality equipment to

make high quality food.

PersonalityI am a dependable and helpful partner in

your business.

Values & Beliefs

Quality and performance is the common denominator in everything I do.

Mission I strive to provide quality food service equipment and dependable service.


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2.3b Brand Identity MapInsights

• All companies are quality focused and place a premium on product and process.

• Not one company promotes themselves as sitting at the head of the table.

• All companies are built on catering to their customers’ needs.


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2.4a Case StudiesDockers & APE

Founded in 2001, American Pacific Enterprises is a trading company that designs, manufactures, imports and markets home textiles. The company maintains a middle level brand reputation. Dockers is a brand of khaki garments and other accessories. Unlike American Pacific Enterprises (APE), Dockers maintains the number one position in the sale of men’s khaki pants. In 2003, Dockers signed a licensing agreement with APE for the latter to design, manufacture, and market the Dockers Home Collection. As part of the deal, APE received an abundance of benefits in using a strong brand logo to increase their market share. Docker believed that by entering this agreement, it would save the corporation the cost of entering the home textile market, which was new for them. Unfortunately, the Dockers brand suffered because their name was on unrelated products. The contract between APE and Dockers was not mutually beneficial for both parties. The relationship ended after just 3 years.


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2.4b Case StudiesForbes

When it comes to cross collaboration between more than two companies, it is not uncommon for two companies to come together and bully the third company. This conflict creates animosity, a loss of ultimate technological advancement, and a single win mentality.When three companies come together and learn to communicate in twos, everyone’s needs generally get heard and are represented in the system. The use of the two party system implementation helps to alleviate the strain of corporate culture clashes, divergent strategic interests, intellectual property poaching, innovation drain, bullying and animosity and micromanaging. Along with an outcome of shared property, a “good-faith atmosphere” helped to drive one another to align which was especially beneficial for long-term goals. Everyone could leave taking the research in whichever direction they choose. Everyone gains from the process.


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2.4c Case StudiesGeneral Electric

FirstBuild is a maker space funded by General Electric and paired with the University of Louisville and Local Motors for individuals from all sides to create new innovations. They can use the space to toss ideas off one one another and experts in the technology field. The idea to create the space came when GE couldn’t solve a problem, so they implemented a contest for an individual to solve it. The answer came from a student with a fresh look at engineering than traditional skills. Internal patterns of production were hindering the development process. When the open-source option worked, they found value in the community platform of production, so they invested in it. So far, FirstBuild has been working and GE is expanding the project beyond Louisville. This will widen their ideas audience and shorten production processes.


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2.4d Case StudiesJohnson & Johnson

Johnson & Johnson has been dedicated to the use of innovation and collaboration with their own Innovation Center for about 40 years now. They offer the ability for individuals to submit ideas to the company and download toolkits. They have also been collaborating on special projects where one company is an expert in a particular field and and the other in a separate field. In the collaboration both end up benefiting. They have consistantly collaborated with companies such as Janssen and the United States Agency for International Development (USAID) to help create and distribute various drugs to developing countries. One aspect that they have taken as a must in their production process is that they collaborate with “like minded” companies; ones that desire the advancement of life saving products. This has helped them improve their goal oriented process and made products eligible for a wider audience.


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2.4e Case StudiesLego

Lego began mastering the collaboration effect back in late 90s by tapping into the needs of their user. They offered up forums for customers to advance their lego kits. People began sharing the information, so Lego decided to tap into the collaboration environment. They used advice from their users to integrate Lego into new markets. Where Lego could not supply the right manufacturing, they joined forces with a company that could. So as video games and games based on movies became popular, Lego collaborated to help make Lego versions of the two. To ensure the best outcome of a product they followed the rules of 1) use external suppliers to fill in gaps, 2) utilize the “weak ties” in the community, 3) develop clear rules and expectations, 4) make sure both sides win, 5) customers aren’t employees, 6) there is no one community member, and 7) be transparent and open. Following these rules has helped Lego grow as a business.


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2.4f Case StudiesToshiba & IBM

In 1993, the desire to have a bright high resolution screen on computers was becoming popular. Toshiba was creating these screens, but had nowhere to put them. IBM also wanted to find a way to build up their laptop brand, so the two companies created a joint venture called Display Technologies Incorporated (DTI) in order to blend each company’s expertise. IBM owned 50 percent of DTI and Toshiba owned the other 50 percent. IMB could supply their knowledge of computing while Toshiba could find ways to integrate their screens into new laptops. This venture helped to double their production due to two companies needing the technology. It also helped both companies advance their technology output as they were taking the work in an extra direction. They added a new option to each company. As they improved, competition went down and both companies gained advantages over their respective competitors.


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2.4g Case StudiesInsights

“Filling the Gaps”

“Creating Open Spaces” “Sharing is Caring”

“It Takes Two”When two experts come together, they communicate productively; where one

expert is lacking the other can fill the gap.

With collaboration, areas that did not previously exist can now come to life.

Joint ventures can create equality in many ways, so each entity gains within the market.

If partnerships are not balanced, opportunities for success are diminished.


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2.5 Secondary Research Key Learnings

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There are a few areas that could be assessed after having gone through our team’s research process. McDonald’s and their manufacturers do not have an aligned cause within their partnerships. By addressing one another’s values and missions, they might be able to find more commonality and strive for creating an impressive end product. It is also imperative that everyone is involved in the production process. Instead of passing the torch with little predetermined information, discussing the process as a group can ease the process. Coinciding with a discussion process, it is important that strategic partnerships are created. Finding an “evangelist” to guide and encourage the process deters strain in the communication process. And lastly, lowering fear of corporate culture clashes, divergent strategic interests, and intellectual property poaching can facilitate momentum on a project.

Primary ResearchInterviews & Findings

Primary research was conducted by interviewing the suppliers as well as the McDonald’s Innovation Center. These interviews provided a baseline understanding for the current, existing relationship between equipment suppliers and the McDonald’s Innovation Center. The suppliers were contacted directly by our team through contact points associated with the McDonald’s Innovation Center representatives. Utilizing the data collected during interviews and influenced by the secondary research, an ERAF Systems Diagram was generated as a way to visualize the entities and view the connections between them.

3.1 Interviews3.2 ERAF Systems Diagram3.3 Key Learnings


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3.1 InterviewsInterview Questions

Interviews were conducted over the phone with each of the equipment supplier companies. Our team spoke with multiple representatives from McDonald’s, A.J. Antunes, and Taylor, as well as with one representative from Manitowoc. These interviews provided us with a better understanding of how the equipment suppliers viewed their respective relationships with McDonald’s. The interviews included a set number of questions and lasted 30 minutes each. Not every question was answered by each representative during interviews due to the short time period in which the interviews were conducted.

• How do you view the relationship that your company has with McDonald’s?

• Has the dynamic of your relationship changed in recent years? If so, how?

• What is your opinion on the work that McDonald’s does in their Innovation Center?

• What do you think are the greatest strengths/weaknesses/opportunities/threats of the McDonald’s Innovation Center, from your perspective?

• How do you feel about the way McDonald’s conducts its request for proposals (RFPs) regarding new equipment?

• Are there ways this process could be made to work better for your company?


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3.1 InterviewsInsights

Our team reviewed the data collected from the interviews. Then we affinitized the data, looking for patterns, commonalities, and outliers. These patterns, commonalities, and outliers led us to develop insights. The categories generated by these patterns, commonalities, and outliers then formed larger overarching groups: General Communication, Self Interest, Inclusive Immersive Process, and RFP Process.

BoardSep 29, 2014 83 notes

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Group D

Group C

Group FGroup E



Group D

Group C

Group FGroup E



Group D

Group C

Group FGroup E



Group D

Group C

Group FGroup E

Self Interest

General Communication

RFP Process

InclusiveImmersive Process


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3.2 ERAF Systems Diagram

Quick Service

Restaurants (QSR)

Full Service Restaurants

Grocery Stores

SharedSpaces

Home Kitchens

McDonald’s

KFC

Chick-fil-A

Wendy’s

Burger King

White Castle

Subway

Manitowoc

Taylor

AJ Antunes

5 Guys

Panera

Chipotle

Red Lobster

Shake Shack

Chili’s

IHOP

Denny’s

Longhorn

Outback Original Equipment

Manufacturers(OEM)

EquipmentDealers

KES

Catering

Food Suppliers

SYSCO

Perdue

Tyson

Foster

Innovation center RFPOne way relationship

Built-in connection

Two way relationship

Weak two way relationship

Size-Importance correlation

Sub-entities

Receiver Entity

Supplier Entity

Non-Food Service Industry Entity

What It Is: This visualizes the connections between constituents and organizes them into groups to gain a better understanding of how these constituents interact with each other. The systems is described based on Entities, Relationships, Attributes, and Flows.

Why It Is Important: This model guide provided our team with a basis as to how the constituents and stakeholders interact with each other based on primary and secondary research. This model can act as a working document to continually add, subtract, or move constituents as time goes on.


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3.2 ERAF Systems DiagramInsights

• QSRs are entering into grocery markets

• The food service industry is highly connected from equipment manufacture to food production and sale of food products

• There is a connection between the KES and QSR which creates competition between the KES and OEM

• The RFPs connect both KES and OEM to the McDonald’s Innovation Center

• There are fewer suppliers for both food and equipment than there are Food Service Restaurants (both QSR as well as Full Service)


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3.3 Primary Research Key Learnings

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Overall, primary research allowed our team to combine this area with secondary research to better inform the ERAF Systems Diagram while generating a baseline understanding for the dynamics between the equipment suppliers and the McDonald’s Innovation Center. The interviews provided insight to how suppliers view their relationship with McDonald’s. Primary research led us to understand there is a disconnect between the suppliers and McDonald’s. The data collected led to the validation of some of the general assumptions our team made in the beginning, while providing new information surrounding the RFP process and the various mechanics of their dynamics.

Innovation Center WorkshopFrameworks

On Friday, February 13th, we gathered at McDonald’s Innovation Center in Romeoville, IL, to present findings on each company and their role within the innovation ecosystem. Our team and the McDonald’s Innovation Center representatives discussed how each company has its own mission and set of goals. We also presented various case studies of successful collaborative communities. Lastly, we requested the representatives participate in comparative company breakdown activities with both our team and representatives from the equipment supplier companies. These activities were aimed at demonstrating any disconnects in their communication strategies.

4.1 Workshop Blueprint4.2 Quad A Diagnostic4.3 Innovation Influence Map4.4 Priorities Matrix4.5 Tollgate Timeline4.6 Interactive Connections Map4.7 Key Learnings


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4.1 Workshop Blueprint

Framework 2:Tollgate Model

Framework 3:Innovation

Influence Map

Framework 1:Quad A

Framework 1:Priority Matrix

Framework 5: Interactive Connections

Designers that are in-charge of the framework Participants from each

supplier company and McDonald’s

Stations that are dedicated to Part I of the workshop (individual completion)

All participants collaborate to complete the Part II of the workshop

Participants switch off stations every 15 minutes


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4.2 Quad A DiagnosticWHAT IT IS: �e Quad A diagnostic helps organizations describe themselves in the categories of activities, ambitions, anxieties, and attitudes. �is framework generates a quick view of the current context of the stakeholders within the organization.

WHY IT IS IMPORTANT:�is framework enables the constituents and stakeholders to look at both current actions and future goals. Furthermore, the framework allows the stakeholders to verbalize and visualize the possible fears and important perceptions.

Quad-A Diagnostics

Activitiesprojects, efforts, and

work streams

Ambitionslonger-term, bigger-

picture goals

Anxietieswhat keeps them up

at night?

Attitudesrelevant perceptions

and opinions

What It Is: The Quad A diagnostic helps organizations describe themselves in the categories of activities, ambitions, anxieties, and attitudes. This framework generates a quick view of the current context of the stakeholders within the organization.

Why It Is Important: This framework enables the constituents and stakeholders to look at both current actions and future goals. Furthermore, the framework allows the stakeholders to verbalize and visualize the possible fears and important perceptions.

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4.2a Quad A DiagnosticWorkshop Images

A.J. Antunes

McDonald’s

Manitowoc

Taylor

50


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4.2b Quad A DiagnosticInsights WHAT IT IS:

�e Quad A diagnostic helps organizations describe themselves in the categories of activities, ambitions, anxieties, and attitudes. �is framework generates a quick view of the current context of the stakeholders within the organization.

WHY IT IS IMPORTANT:�is framework enables the constituents and stakeholders to look at both current actions and future goals. Furthermore, the framework allows the stakeholders to verbalize and visualize the possible fears and important perceptions.

Quad-A Diagnostics

Activitiesprojects, efforts, and

work streams

Ambitionslonger-term, bigger-

picture goals

Anxietieswhat keeps them up

at night?

Attitudesrelevant perceptions

and opinions

Next generation projects Leader in field Crave challengeSafety

Operations transformations

Change faster Trust, relationships, and loyalty are important

Global economy

Performance reviews

Improve ease of doing business

Short term vs. Long term

Endless Communication

Collaboration

Commonalities:A.J. AntunesMcDonald’sManitowocTaylor

NOT A LOT OF COMMONALITIES

In each of the categories, McDonald’s aligns more with one of the suppliers depending on the category. In the Anxiety category, both the suppliers and the McDonald’s Innovation Center have large commonalities. The Attitudes category demonstrates the largest discrepancy between the McDonald’s Innovation Center and the suppliers. This lack of commonalities in this category presents a major breakdown in the relationship.


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4.3 Innovation Influences Map

What It Is: Using the brand attributes our team identified during secondary research, the participants rank the brand’s fulfillment of each of the attributes, which are then connected to further highlight which attributes are more on-brand or off-brand. Users then plot themselves on the map according to the axes on how the participants see their brands from less influential to more influential and less innovative to more innovative.

Why It Is Important: The 2x2 model visualizes how the brand sees itself amongst others and vice versa. This exercise unveils how well the participants consider the brand fulfills the attributes. Furthermore, this allows participants to see how each brand achieves its core values.

Innovation Influence Map(McDonald’s)

Collaborative

Innovative

Customer-Centric

Accepting

Responsible

Open

Seperate

Dull

Absent

Rejective

Debatable

Inaccessible

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

Quality Oriented

Efficient

Customer-Centric

Friendly

Nourishing

Accommodating

Budget Oriented

Idle

Absent

Disagreeable

Unwholesome

Uncooperating

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

Quality Oriented

Adaptive

Customer-Centric

Ethical

Responsible

Passionate

BudgetOriented

Dysfunctional

Absent

Unethical

Debatable

Detached

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

HighPerformance

Safe

Fast

Responsible

Innovative

Facilitating

Inactive

Adverse

Laggard

Disputable

Dull

Unhelpful

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

Innovation

InfluenceLess

Less

WHAT IT IS: Using the brand attributes the team identi�ed during secondary research, the participants rank the brand’s ful�llment of each of the attributes. After ranking each attribute, the points are connected to further highlight which attributes are more on-brand or o�-brand.

WHY IT IS IMPORTANT:�is exercise unveils how well the participants consider the brand ful�lls the attributes. Furthermore, this allows participants to see how each brand achieves its core values.

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4.3a Innovation Influence MapWorkshop Images

AJ Antunes

McDonald’s

Manitowoc Taylor

53


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4.3b Innovation Influence MapInsights - Diametric Analysis

What It Is: Using the link analysis, our team colors in the sections correlating with the five point scale of the Brand Attribute Link Diagrams. This model illustrates the weak points and the strong points in the brand’s fulfillment in these attributes.

Why It Is Important: When these models are placed side by side for each brand, one can see where their brands align or where another’s brand better fulfills one of their values or attributes.

Positive Brand Attributes

Negative Brand Attributes

Ratings (High to low, 5 to 1)


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4.3b Innovation Influence MapInsights - Diametric Analysis

From the Interactive Connections Map, our team saw that the connections related the to adoption of innovation process as seen in Everett Rogers’ book, Diffusion of Innovations. In the case of the McDonald’s Innovation Center and the equipment suppliers, an s-curve is also present in their processes. Overall, the Interactive Connections Map helped us see the links between each entity involved in the process as well as a common pain point for them.


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4.4 Priority Matrix

What It Is: This model illustrates the priorities of each company. The participants rank each priority based on the importance or value to the company. The ranking of each priority is on a scale of 1 to 3, where 1 is lowest and 3 is highest.

Why It Is Important: This model highlights which priorities are the most important and of most interest to the participants.

WHAT IT IS: �is model illustrates the priorities of each company. �e participants rank each priority based on the importance or value to the company. �e ranking of each priority is on a scale of 1 to 3, where 1 is lowest and 3 is highest.

WHY IT IS IMPORTANT:�is model highlights which priorities are the most important and of most interest to the participants.

Priorities MatrixM

ARKE

T

PRIORITIES (Offerings)

McDonald’s

SpeedyDelivery

CostEffective

AdvancedTechnology

Ease ofCollaboration

Commu-nication

GlobalReach

SocialResponsibility

Diffusion Rate

IP Protection

Taylor Company

AJ Antunes

Manitowoc

1 HIGH

2 MEDIUM

3 LOW

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4.4a Priority MatrixWorkshop Images

A.J. Antunes

McDonald’s

Manitowoc

Taylor

57


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4.4b Priority MatrixInsights

This model helped our team identify the highest and lowest priorities for all of the entities involved as well as where there are points of inconsistency. There is a major inconsistency between the ease of collaboration and communication; where collaboration is a high priority while communication is not a high priority. These two are integral but are not priorities for everyone.

WHAT IT IS: �is model illustrates the priorities of each company. �e participants rank each priority based on the importance or value to the company. �e ranking of each priority is on a scale of 1 to 3, where 1 is lowest and 3 is highest.

WHY IT IS IMPORTANT:�is model highlights which priorities are the most important and of most interest to the participants.

Priorities MatrixM

ARKE

T

PRIORITIES (Offerings)

McDonald’s

SpeedyDelivery

CostEffective

AdvancedTechnology

Ease ofCollaboration

Commu-nication

GlobalReach

SocialResponsibility

Diffusion Rate

IP Protection

Taylor Company

AJ Antunes

Manitowoc

1 HIGH

2 MEDIUM

3 LOW

1 1 1

11 1

1 1 1

1 1 13 3 3

3

3 3 3

3 3 3

3 32

2 2 2

2 2

2 2

2 2

2

2

612

612

1112

912

912

812

612

812

912


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4.5 Tollgate Timeline

What It Is: This model illustrates the production process. It is designed to compare the reality of the production process to the desired production plan. Aligning these two allows for the successes and obstacles to be visualized.

Why It Is Important: This model helps assess the areas that work well and the areas that need improvement. Also, it helps identify questions that can guide the process to be more succinct.WHAT IT IS:

�is model illustrates the production process. It is designed to compare the reality of the production process to the desired production plan. Aligning these two allows for the successes and obstacles to be visualized.

WHY IT IS IMPORTANT:�is model helps assess the areas that work well and the areas that need improvement. Also, it helps answer questions that can guide the process to be more succinct.

Tollgate TimelineReal vs. Ideal

Woes

Year 1 Year 2 Year 3Product Review

Year 1 Year 2 Year 3

Whoo-hoos

Real:

Ideal:

Questions:

Product Review

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4.5a Tollgate TimelineWorkshop Images

A.J. Antunes

McDonald’s

Manitowoc

Taylor

60


61

4.5b Tollgate TimelineInsight Timeline (Participants’ Ideal Process)

The Tollgate Timeline’s ideal stage helps to find areas that each company would like to improve. An example of this would be that all the companies would like to have the Alpha stage come earlier in the process overall. Another would be more time spent testing the product before it goes into pilot stores.


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4.5c Tollgate TimelineInsight Timeline (Participants’ Real Process)

The Tollgate Timeline helped to establish gaps in the production process and areas worth addressing. A clear problem that presented itself, was that all the companies have a different view of the production process.


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4.5d Tollgate TimelineInsight Timeline (Our Ideal Process Interpretation)

The beginning stages for everyone is different. McDonalds starts with the pre-planning stage with everyone coming in at the RFP stage. This means that the manufacturers have limited information for when they create an RFP. This also affects the scope creeping process (slowing it down) and the budget.


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4.5e Tollgate TimelineInsight Timeline (Our Real Process Interpretation)

All the manufacturing companies would prefer to be brought in during the pre-planning stages, so they can assist with foreseeable problems and help to streamline the process.


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4.6 Interactive Connections Map

What It Is: This model enables the participants to see how they each fit into the larger system and how they see the system functioning. It allows the participants to place themselves into one of three groups, visualizing how they connect to others on the model. The participants write descriptions to the connections between entities.

Why It Is Important: The interactive connections model helps to visualize individuals perception of themselves within the larger system. This model is also completed by the participants at the workshop to develop interactions and create a shared vision of the system.

WHAT IT IS: �is model allows the participants to place themselves into one of three groups, visualizing how they connect to others on the model. �e participants write descriptions to the connections between entities.

WHY IT IS IMPORTANT:�e interactive connections model helps to visualize individuals perception of themselves within the larger system. �is model is also completed by the participants at the workshop to develop interactions and create a shared vision of the system.

Interactive Connections Map

Creators Users

InnovatorsMcDonald’sTaylorManitowocAJ AntunesKESCrew MembersOwner OperatorsRestaurant GuestsMcD’s CompetitorsOEM Support NetworkGlobal MarketsMcD’s CommercialSpendSmart

KEY:

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4.6a Interactive Connections MapWorkshop Images

66


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4.6b Interactive Connections MapInsights

Innovators2.5%

• McD’s Innovation Center• Taylor

• Manitowoc• AJ Antunes

• McDonald’s Corp.

SpendSmart

• Owner Operators• Global Market

• General Market• Competitors

EarlyAdopters

13.5%

2 Year Contract With McDonald’s

EarlyMajority

34%

LateMajority

34%

Laggards16%

The innovation adoption curve from Everett Rogers’ book, Diffusion of Innovations (1962) defines adopter categories based on their ability to spread innovations associated with their communication reach and opinion leadership. Using the information gathered from the Interactive Connections Map, our team was able to determine what role each stakeholder plays in the diffusion of innovation and how communication between participants facilitates or hinders the length of the rate of diffusion by placing them on a corresponding adopter category.


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4.7 Workshop Key Learnings

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After conducting a workshop with McDonald’s, A.J. Antunes, Manitowoc, and Taylor, our team learned that each company has different goals; separate starting points in the production process; unequal respect towards one another; different values that they see in one another, themselves and their roles within the community; and lastly, they have different views on the whole production process.

Along with un-aligned goals, all companies see SpendSmart as a hinderance to their partnership as it puts a great deal of limitations on the production process. SpendSmart is very much in charge of short term spendings and finding ways to curb expenses. The work conducted within the collaboration process of McDonald’s, A.J. Antunes, Manitowoc, and Taylor is consistently long-term oriented, where short-term goals are not beneficial to the process.

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Concept Solutions

After analyzing each of the models used during the workshop, our team developed possible solutions to the overarching dilemma described in the problem statement. The solutions are a culmination of insights gathered from primary and secondary research as well as the insights from the Innovation Center Workshop. We came together to brainstorm and develop ideas based on the data and insights. Overall, we developed ideas in the classic manner of three iterations (A, B, C). Most of the ideas centered around creating a space for communication to occur and including all of the key constituents who would be involved in the process of developing and then producing a new piece of equipment.

5.1 Concept A - Golden Arches Fellowship5.2 Concept B - Joint Research Think Tank5.3 Concept C - McDonald’s Equipment Innovation Council (EIC)


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5.1 Concept A: Golden Arches FellowshipOverview, Value Proposition, and Mission Statement

Overview:The Golden Arches Fellowship involves OEM engineers immersing themselves into the McDonald’s Innovation Center for at least one year. Here, the OEM engineers will acquire a complete understanding of the McDonald’s ecosystem and be able to work more collectively on projects. This ability will increase transparency and collaboration between all parties involved.

Value Proposition:For McDonald’s and original equipment manufacturers that desire a more collaborative innovation environment, the Golden Arches Fellowship invites OEM research and development professionals the opportunity to participate in a full-time joint team with the McDonald’s Innovation Center and creates an immersive experience at the product development level. Unlike the current innovation process, this partnership fully integrates OEMs while offering a deeper collaborative environment; thus, facilitating the develop process and creating shared ownership of ideas.

Mission Statement:The Golden Arches Fellowship creates an immersive environment where concepts are ideated and developed in a collaborative manner. Furthermore, this fellowship creates an opportunity for openly sharing information and forms a collective view by bringing together engineers, designers, and strategists from McDonald’s and original equipment manufacturers, working full-time on-site at the McDonald’s Innovation Center.


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5.2 Concept B: Joint Research Think TankOverview, Value Proposition, and Mission Statement

Overview:The Joint Research Think Tank is a joint-venture that allows both McDonald’s Innovation Center and equipment suppliers to invest in an outside research and development coalition. The joint-venture provides equal opportunity for the application of new technologies by all investors.

Value Proposition:For McDonald’s and original equipment manufacturers that want collaborative innovation, the Joint Research Think Tank reframes “competition” to foster innovation by creating a joint venture for science and technology. Unlike the current innovation process, the Joint Research Think Tank offers a more level playing field for research and development which further facilitates the pre-development process while creating shared ownership and expenses.

Mission Statement:The Joint Research Think Tank is designed to create high quality scientific research nurturing innovation within the McDonald’s through collaboration and shared goals. The Think Tank is a joint-venture investment opportunity consisting of experts in science and technology research fields as well as leading academic institutions to explore and develop new technology that can be applied in new equipment offerings.


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5.2 Concept B: Think Tank

RFP

Creator

CoIN EICLicensed IP/ Selected Suppliers

CLN

OEM

CINCollaboration Innovation Network: COIN (COINSConference.org)• Self motivated people (in a team) with a

collective vision to innovatively collaborate by sharing ideas, information, and work enabled by technology; powered by swarm creativity, people work together in a structure that enables fluid creation and exchange of ideas.

Collaboration Interest Network: CIN• A larger system which may contain a COIN, but

moreover is a collection of people with shared interests who do very little work together as a team. Many in this network are seekers of information while a select few contribute for those to understand.

Collaboration Learning Network: CLN• People who come together who share common

knowledge and practices as well as a common interest; thus, people who join this network have a desire to gain knowledge from those who share the same interests.

CoIN

CLN

CIN


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5.3 Concept C: McDonald’s Equipment Innovation Council (EIC)Overview, Value Proposition, and Mission Statement

Overview:The McDonald’s Kitchen Equipment Innovation Center (EIC) is a joint consortium consisting of key representatives from McDonald’s (the Innovation Center, US and Global Markets, SpendSmart, sensory testing, and owner operators), and key OEM’s (Taylor, A.J. Antunes, Manitowoc). The EIC’s mission is to establish standard operating procedures via Request for Proposals, Intellectual Property ownership, project needs and scopes, as well as generate alignment in budgetary procurements, user testing, and global adoption of equipment offerings.

Value Proposition:For McDonald’s and Equipment suppliers who want more effective product development, the council is a group of key constituents which deliver a Community of Practice between restaurants, OEMS, owner-operators, and SpendSmart. This new process of a council is designed to foster a collaborative environment through which innovation can successfully be diffused.

Mission Statement:The EIC works to ensure that research, development, and production processes are inclusive, collaborative, and effective; thus, enabling diffusion of innovation in restaurant equipment to be beneficial and effective for both internal and external constituents.

The current dilemma between the McDonald’s Innovation Center and the OEMs centers around the need for more open communication as well as create a shared vision amongst all parties. The solutions developed by our team can have an impact on both of these areas in different ways. The underlying commonality between each of these solutions is the creation of a space where communication can take place in a more collaborative and productive manner.

In future exploration of this dilemma, a closer look should be taken at the relationships between the individual suppliers and the McDonald’s Innovation Center. This team examined the relationships between the OEMs and the McDonald’s Innovation Center as a whole system.

ConclusionFeasibility Map

Most Advantageous

Less Advantageous

LessCostly

MoreCostly

Design Council

FellowshipThinkTank

You Are Here


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Gilpin. Lyndsey, 2014. GE launches “microfactory” to co-create the future of manufacturing. Retrieved March 10, 2015, from http://www.techrepublic.com/article/ge-launches-microfactory-to-co-create-the-future-of-manufacturing/

Matsui, R., West, J., Bowen, H.K. (1997). Display Technologies Incorporated. Harvard Business School.

Soh, M., Hambali, N., Shaadun, N., Yusof, S., and Aggilanda, E (2013).Starbuck & Dockers and American Pacific Enterprises. Re-trieved March 10, 2015, from https://prezi.com/dyrmzuvzmiiz/starbuck-dockers-and-american-pacific-enterprises/

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Sources

Haoting Zhang Kaan Yaylali Nicole Andrews Santiago Castillo Sandra Montalvo Hui-i Chuang Eva Dunn Andrew Moore

Team Members

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