In the article I looked at, Howard Schultz, chairman and CEO of Starbucks, gives his views on Apple Pay and how he thinks it will revolutionize business. Many retailers have expressed their dislike for the new payment platform but Schultz says that “he is not intimidated by Apple Pay.” He explains how anything, like Apple Pay or Paypal, that consumers can trust, is better for his business model, referring to the new cash-less system set up at Starbucks. Schultz predicts that in the coming years, cash and coins with be obsolete in the marketplace and people will solely use mobile payment methods.
If anyone has been to Starbucks recently, you’ve probably noticed that people pay with their mobile devices all the time. This new option has definitely added speed and efficiency, which is perfect for a place like Starbucks considering it gets a lot of its customers during the morning rush-hour. This is an example of operations management because it addresses two of the strategic operations management decisions: managing quality and process and capacity design.
Apple Pay helps to put Starbucks on the cutting-edge, in terms of technology. Some customers have come to expect the mobile payment option and when Starbucks offers this system, it can help to increase customer satisfaction because it creates more flexibility for them. In regards to process and capacity design, Apple Pay adds this specific technology to the Starbucks system and, again, makes things easier and more efficient for customers.
I, personally, have never used a mobile payment system but I definitely think it is effective and could possibly replace cash in the future. In today’s world, everything is based on speed and convenience and I think Apple Pay addresses both of those needs. The one aspect that I think could pose a problem for mobile pay systems is cyber fraud. As society is introduced to more technology, we are exposing ourselves to a whole lot more, in terms of the cyber world, which I think comes with a lot of unknowns. As our technology continues to advance, I think we need to think about safety and make sure that we take precautions in order to keep our money safe.
Overall, I think mobile payment has helped to improve the business model at Starbucks and will continue to do the same for many other companies. As technology revolutionizes our world, business models and operations will continue to change and grow in order to fit the needs of consumers.
What are your thoughts on Apple Pay? Have you used it? Do you think methods of mobile payment will replace cash and coins in the future? Can you think of any examples of businesses that could not use a mobile payment method?