McDonald's spent $1 billion on a 5-year project called "Innovate" to create a real-time digital network connecting its restaurants and suppliers. However, the project was too ambitious in scope and failed to address the company's most pressing needs. McDonald's ultimately wrote off $170 million for the failed project. Key lessons included having proper scoping and feasibility studies, gaining user buy-in, and phased implementation with risk checkpoints.

1. McDonald’s: McBusted Business-Smart IT Applications

3. McDonald’s: McBusted IM Group 3 “ Over and over again, companies take a monolithic approach to these implementations, telling themselves that they're going to spend a lot of money without seeing any real returns until that magical day when they flip the switch and go live five years down the road.” - Andrew McAfee, Harvard Business School

4. McDonald’s: McBusted IM Group 3 “ No one wants to talk about this project.” “ If you're doing business with McDonald's, you're not going to talk. And if you're not, you're not going to talk because eventually you're going to want to do business with them.” - Former McDonald’s Information Systems Manager

5. McD’s Core Objective IM Group 3 “ Our Plan To Win is designed to deepen our connection with customers by delivering great McDonald’s experiences in every restaurant, every time. This Plan revolves around five customer-focused business drivers - People, Products, Place, Price and Promotion . Through the ongoing alignment of our owner/operators, employees and suppliers, we will continue to capture our opportunities and drive long-term profitable growth.” Source: http://www.mcdonalds.com/corp/invest/pub/2006_fact_sheet.html

6. Agenda IM Group 3 1. The Scene In 2003 2. The “Innovate” Project 3. The CONsultants 4. Lessons Learnt

9. "Innovate" - The Golden Goose or Pandora’s Box? IM Group 3 Internet-based network to link 30,000+ restaurants and 300+ approved vendors, 24x7 , to the back-office system Spend $1,000,000,000 Over a period of 5 years To build

11. "Innovate" – Lofty ( Impossible? ) Goals IM Group 3 Strategic Supply Chain HR Ops Esoteric

14. "Innovate" – Lofty ( Impossible? ) Goals IM Group 3 To downright crazy! Executives wanted to know: “ Are potatoes being baked at the right temperature in that corner McD outlet on Elm Street?” “ Has the CO 2 fizzled out in the soda tower in that money spinning McD outlet on Wall Street?”

21. IM Group 3 Q & A