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Starbucks has undergone a major digital transformation by implementing mobile ordering and payment capabilities that allow customers to order and pay for drinks on their phones. This has increased revenue and reduced wait times. Starbucks also offers a loyalty program through its mobile app and provides free WiFi and digital content to customers through partnerships. Looking to the future, Starbucks is experimenting with drone delivery and automated inventory management to further improve operations.

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Pratyush Ballepu
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99 views7 pages

Epsd MS21GF117

Starbucks has undergone a major digital transformation by implementing mobile ordering and payment capabilities that allow customers to order and pay for drinks on their phones. This has increased revenue and reduced wait times. Starbucks also offers a loyalty program through its mobile app and provides free WiFi and digital content to customers through partnerships. Looking to the future, Starbucks is experimenting with drone delivery and automated inventory management to further improve operations.

Uploaded by

Pratyush Ballepu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Emerging Platforms & Services for

Disruption

Individual Assignment

Submitted by: Akshay Yadav (MS21GF117)

Submitted to: Dr. Dhrupad Mathur


STARBUCKS DIGITAL
TRANSFORMATION JOURNEY

 History of Starbucks

Amid 1971, Starbucks' origin story begins in the cobblestone


passageways of the historic Pike Place Market. Offering freshly
roasted coffee beans, tea, and exotic flavors to go, the main
Starbucks store debuted in this location. Our enterprise was named
after the amazing classic "Moby-Dick," which popularized the early
nautical practice of drinking coffee.
 Starbucks' Utilization of Technology
Since the company's inception in 1971, Starbucks has given consumers
with exceptional espresso served with polite, individualized service in
an upmarket yet inviting retail environment. In response to changing
consumer tastes, the firm has produced single-serve espresso for
home or office use, drive-through windows for enhanced convenience,
and culinary products to complement its beverages. Starbucks has
invested much in technology over the past decade to enhance the
customer experience and stay up with its customers' ever-changing
preferences. Starbucks' three most productive technological additions
were:

Implementing a Digital Payments and Loyalty Program for


Mobile Ordering and Payment

In December 2014, Starbucks released its mobile app for iOS and
Android, allowing consumers to place orders and make payments on the
go. To be successful, a consumer must accomplish two things: You can
(1) pre-order products and (2) pay for them when you pick them up in-
store. Online requests accounted for 25% of the company's 2016
revenue, a 20% increase over the previous year's total. Even though
not all stores had mobile app compatibility, this technological strategy
contributed to a 6% rise in sales during the fourth quarter. Using
mobile order and digital payment, Starbucks can accomplish all three of
its objectives. Reduce the time between placing an order and receiving
payment.

 Helped staff better manage client orders and reduce wait times.
 Boost Revenues

Mobile Order and Pay's digital loyalty program has also enabled
Starbucks to offer more personalized services, such as sending
birthday gifts and offering discounts during slow hours. Starbucks has
partnered with other internet businesses, such as Lyft and Spotify, so
that customers may earn "stars" of loyalty by using these services.

Personal Barista Plan and Starbucks Network


Starbucks began providing free Wi-Fi to customers within its stores in
2008 and formed partnerships with Yahoo and other digital content
websites and platforms to launch the Starbuck Digital Network, which
offers access to high-quality digital publications such as The New York
Times, The Wall Street Journal, and The Economist.

Transportation through Unmanned Aircraft Systems and


Eco-Friendly Aprons
Starbucks announced the Green Apron organization in October of
2015. The shipping firm of the customer now has access to mobile
order and payment alternatives. The Empire State Building in Midtown
Manhattan placed an initial order for the green apron organization and
received it for the first time to resist the severe conditions of a big
city. After seeing such amazing success in New York, the association
partnered with Postmates, an innovative grocery delivery layer, to
attract clients from other big cities.

Starbucks and Google X are experimenting with drone


deliveries to increase our capacity for transporting things.
Starbucks acquires an inventory management system to automate and
remove manual waste reduction by monitoring expiration dates,
restocking levels, and distribution regulations. Temperature regulation
that permits customization or just improves temperature stability. It
is possible that the corporation will launch a "My Starbucks Idea"
campaign to solicit customer feedback from those who regularly use
and track the company's products.

References
 @starbucksprtnrs. “About Us: Starbucks Coffee Company.” About Us: Starbucks Coffee
Company, www.starbucks.com, https://www.starbucks.com/about-us/. Accessed 25 Aug.
2022.

 “Starbucks: A Technology Pioneer - Technology and Operations Management.” Technology


and Operations Management, digital.hbs.edu, 18 Nov. 2016, https://digital.hbs.edu/platform-
rctom/submission/starbucks-a-technology-pioneer/.

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