The best way is to pick it up with a shovel and place it in a plastic bag, I use the ones I get grocery shopping. You can then throw these away like any trash.
Do not compost pet waste as it will kill your plants. The best way to dispose of dog waste is to pick it up in a bag and put it in the garbage. There are companies that will come to your house and dispose of the waste for you for a fee.
Call the owner of the dog and tell them to come clean up after their dog. Or you can scoop it up and put it in a bag and put it out with your garbage the garbage company will take it no problem. Or you can start a compost pile and use it there.
Utilize the dog scat and put it in your dirt, whether it be a flower garden or vegetable garden, the poop is fertilizer. Another good way to utilize this would be to work this into your yard.