Service Systems Application
Companies apply different types of systems while handling transactions with their customers. McDonald’s is one of the companies applying transaction processing systems to better their customer service. Notably, the application of the transaction processing system in the service is a subsection of the entire company’s information system, composed of communication systems, information processing systems, information storage systems, and other complex systems: Service Systems Application.
The customer service segment of the company greatly relies on an information system to process customer transactions. The system’s application has strengths and weaknesses that are discussed in the next section.
The application of the transaction processing system by the customer service department of McDonald’s improves the overall cost-effectiveness of the company. Notably, this is so because using the service systems enables the company to simplify its processes through computerization, which saves costs. When costs are reduced, better prices are offered by the company, which produces a significant effect on the industry dynamics.
Major industry competitors such as KFC, Starbucks, Wendy’s, Subway, and Burger King utilize information systems to achieve cost-effectiveness. As stated by the company’s top manager, Jack Greenberg, information systems result in a 1% increase in sales for every six seconds saved in the customer service department (Divine & Taelman, 2025). Essentially, this explains why the systems help the company to keep pace with industry developments.
The strength of the transaction processing system applied by McDonald’s is that it works all the time. The system is always active and efficient 24 hours a day and thus helps the company remain open worldwide every day of the week. Notably, this advantage extends to the industry because opening always helps the company to service its customers without leaving them a chance to purchase products from competitors. As a result, the company maintains its customers’ loyalty.
The company’s competitors operate on a 24-hour system, which makes the competition stiff. Thus, the system allows McDonald’s to remain competitive. Additionally, the transaction processing system helps the customer service department enhance productivity through reduced effort and time.
Essentially, the company relies on the service system to reduce the time and effort spent on every customer, enabling the company to serve many customers. By servicing many customers, the sales of the company increase, and customers get satisfied by the fast rate at which they are serviced and return from time to time to make orders from the company.
The application of the transaction processing system in the customer service department has its weaknesses despite the strengths identified above. One major weakness of the system is its susceptibility to halting overall company operations if a failure occurs. According to Omol (2023), McDonald’s restaurants rely on a single integrated system, which can be a source of potential risk.
In the case of failure of an element of the system, the company will face delays and difficulties in processing customer transactions across all restaurants, which may negatively impact the company. For instance, customers can cancel their orders and opt for the services of the company’s competitors. Losing customers in the competitive industry can be detrimental to the company’s future in terms of sales and productivity.
References
Divine, R., & Taelman, J. A. (2025). How the burger war was won: An analysis of 18 years of data on customer hamburger preferences. Journal of Consumer Studies and Applied Marketing, 3(1), 40-48. https://doi.org/10.58229/jcsam.v3i1.288
Omol, E. J. (2023). Organizational digital transformation: From evolution to future trends. Digital Transformation and Society, 3(3), 240-256. https://doi.org/10.1108/DTS-08-2023-0061
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Question 
OPS/574 Wk. 3 “Service Systems Applications”
Assignment Instructions
The purpose of this assignment is to align proper service system applications to certain industries. You will also analyze and evaluate a company’s customer service strengths and challenges.
Select a company you are familiar with, such as your own employer or a public company that you know you can find customer service data on.
Identify the type(s) of service system used in the company or a certain part of the company.
Write a 350- to 525-word summary that outlines and highlights the system strengths and weaknesses. Include an analysis of industry comparisons, if available.
Service Systems Application
Choose a service system from this assignment that you will implement in the Supply Chain Template assignment in Week 6.
Cite references to support your assignment.
Format your citations according to APA guidelines.
Submit your assignment.
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