Managing the Principles of E-Business: A Critical Evaluation of Domino's Digital Transformation Efforts

This report evaluates the digital transformation efforts of Domino's Pizza, a renowned American multinational pizza restaurant chain. It provides an industry overview and critical evaluation of the organisation's digital transformation efforts. The report also offers recommendations for progressing digital transformation efforts, such as unlocking data, embracing change, leveraging effective digital technologies, forming a research and development team, empowering people to work in new ways, and communicating frequently with employees and customers.

Managing the Principles
of E-Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Industry Overview.......................................................................................................................3
Critical evaluation of organisation's digital transformation efforts.............................................4
Recommendation for progressing digital transformation efforts................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
E-business is a process of conducting business process on internet and also it helps in
making faster decision which saves time and money. There are various principles of e-business
such as user friendliness, unique design elements, emphasise on security, responsive technology,
effective product description and many other (Thomas, 2016). E-business have several
components such as business intelligence, supply chain management,customer relationship
management, enterprise resource planning and online activities among business. The two main e-
business model are business to consumer and business to business (Zhu and et. al., 2015). The
project is based on managing the principles of e-business in which the critical evaluation of
organisation's digital transformation efforts. Further, the recommendation for progressing digital
transformation efforts is determined. For accomplishing this project, the chosen organisation is
Domino', it is one of the renowned American multinational pizza restaurant chain which was
founded by Tom Monaghan and his brother in 1960. The headquarter of company is in Domino's
Farms Office Park, Ann Arbor, US. Domino's operate their business in 83 countries and across
5701 stores in World.
Industry Overview
Domino's works in Fast food industry is one of the growing industry in UK that offers
food and drink to people. The food is served to consumers in cartoon or bags for minimising the
cost and maximising the profit. Fast food restaurants provide take away, sit down or take out
facility to customers (Bresciani and et. al., 2021). There are various factors which may affect the
progress of Fast food industry such as high setup cost of restaurant, safety and health concern,
price and income of consumers are expected to hamper the growth of this industry. In fast food
industry, there are various players that have adopted business expansion and product launch as
their key development strategies which helps in increasing profitability, expanding market share
and gain competitive advantage in market. The few players which have expanded their business
in fast food industry are Auntie Anne's Inc., Domino's Pizza, McDonald's, Firehouse restaurant
Inc., Hardee's restaurant LLC and many other.

From the above chart it is being determined that fast food industry is highly fragmented
among various companies. The char shows clearly that the leading brand in fast food industry
was McDonald's with 21.4% market share in 2018 whereas Starbucks was with 7.52 %. KFC
also have active presence with 2.82% market share. Subway has gained market share with 2.8%
in 2019 whereas Domino's Pizza also gained 1.57% market share. Whereas, Pizza Hut and
Burger King gained market share with 1.2 %.
Critical evaluation of organisation's digital transformation efforts
In 1960's, Domino's Pizza have started their business as a small pizzeria by Tom and
James Monaghan. The brand is growing substantially and managing to emerge as a high quality
pizza provider. Domino's has more than 290,000 employees and 16000 outlets across world.
Company has gained success due to willingness to change and required transformation. For
gaining success in market, digital transformation plays a vital role in past decade. Through
unique digital technologies, Domino's has transformed its user commitment and brand image.
They also undertaken significant technology driven transformation. The brand is famous for
promising to deliver pizza in 30 minutes or less. Domino's have adopted various digital
innovation such as driverless delivery, GPS tracking, e-bikes, AI technology and many other
technologies in order to improve the experience of consumer by providing high quality of
services. The organisation focuses on improving its product quality, by recognising the need for
(Illustration 1: Global Fast Food Market Revenue by Brand, 2019)

rock solid digital strategy in order to improve brand image and customer engagement (Jafari-
Sadeghi and et. al., 2021). They encourage their customers to share their opinions on social
media and the popular opinion and suggested solution will get reward in the form of money. The
brand has focused on digital transformation by creating a digital platform for consumers. They
also made huge investment in multiple digital platforms. The brand was first fast food restaurant
to provide delivery services through drone. They also introduced pizza tracker due to which
company and consumer can easily track an order from oven to customer's home. This process
gives complete transparency to consumers from beginning. The main motive of Domino's is to
deliver great experiences to customers in order to increase customer base and enhance the
profitability of business (Batat, 2021). Through adopting digital technologies, Domino's have
increased the value among customer by simplifying the barriers for ordering and delivering the
pizza. By creating value, company lays emphasis on the fact that they not only deal in pizza
making business but also involved in pizza delivery business.
In Australia, Domino's have introduced “DOM Pizza checker”, it is one of the technology
which is used to tackle the issues related to store of customer quality complaints. This tool
mainly uses ceiling mounted camera and AI software in order to check the standards of pizza.
The AI software helps in monitoring the video feed and also judge whether pizza is up to the
mark (Guinan, Parise and Langowitz, 2019). If pizza passes from AI test it gets delivered
whereas if pizza get rejected a new one is made. The users can order their pizza from company's
own website, Twitter, Facebook Messenger, company's mobile app and many other ways.
Domino's partnered with Red Power Bikes in order to deliver pizza by e-bike. The brand has also
partnered with Ford for launching driverless delivery in 2019. The car which was used for
driverless delivery is Nuro R2 which travels 25 miles per hour. Customers who avail driverless
delivery will get a code to enter on screen on outside of vehicle in order to receive their order.
Domino's also provide GPS tracking opportunity to people, it also helps in improving the labor
efficiency. The company is one of the leader in innovation form inventing insulated bags that
keep food hot to 3D car-top sign. This technology also helps in optimising in store logistic
planning and provide digital transparency to its consumers (Friesendorf and Uedelhoven, 2021).
They also focus on AI Ordering which helps in removing friction form ordering experience Dom
is digital innovation which helps in increasing sales. Through adopting this technology, company
has diversified their offerings and generate more and more revenues.

Recommendation for progressing digital transformation efforts
 In order to progress digital transformation efforts it is important for company to focus on
improving the performance of business by adopting new technologies and way of
working. Organisation must focus on unlocking data as it is one of the foundation of
digital transformation. It is necessary for company to produce more data by focusing on
collecting reliable and accurate data ans use it in a right way. They must collect the data
and identify the opinion of consumers related to pizza. Through collecting data, Domino's
can solve the issues of consumes and provide better user experience. Security concern is
one of the roadblock in digital transformation journey (O'Farrell and Montagnier, 2020).
The security concern must be addressed by Domino's by focusing on implementing
industry standards and best practices. They must focus on taking advantage of cloud
technologies in order to protect system, data and assets so that they can improve privacy
posture and current security. Domino's must have holistic, proportionate, coherent and
risk based security strategy in order to support digital transformation initiative.
 Domino's must focus on embracing change by adopting new technologies and ensuring
company wide cultural and behavioural changes. Through embrace change, organisation
can provide better working environment to employees and also offer high quality of
products and services to consumers (Savov and et. al., 2020). In order to overcome the
resistance to digital transformation efforts, it is important to involve all employees in
change management process and collect their opinions related to change so that they can
work effectively and efficiently.
 It is the responsibility of company to leverage effective digital technologies that improves
the experience of consumers. They must focus on investing, leveraging and using the
right technologies that can increase the profitability and productivity of business. It also
helps in bringing company, business and brand closer to customers. The brand must focus
on adopting right digital technology that helps in improving the performance and
efficiency of business (Stark, 2020). There are various social media platforms which
helps in reaching to maximum number of customer such as Facebook, Instagram, Twitter
and various other. Domino's have strong presence on social media platforms with active
number of followers. The brand must focus on adopting live streaming technology on
social media platforms in order to interact with customer directly and solve their issues.

 It is important for Domino's to form research and development team for digital
transformation system as they help in maximising the usage of available technologies. By
forming a research and development team helps in improving the system for digital
transformation initiatives (Hof, Schmidt and Brehm, 2015). They help in adopting new
and advanced technology that improves the business performance and growth of
Domino's. The research and development team helps in keeping up with demand of
market and also encourage innovation. Thus, it is important for Domino's to focus on
building strong research and development team so that they can bring changes and
innovation within market and company.
 Domino's must empower people to work in new ways as it helps in progressing digital
transformation efforts. While transforming digitally, it requires behaviour and cultural
changes such as increased collaboration, customer centricity and calculated risk taking.
Organisation must focus on reinforcing new ways and behaviour of working by formal
mechanism as it helps in supporting organisational change (Wißotzki, Sandkuhl, and
Wichmann, 2021). The other way through which company can empower employees to
work effectively is to ensure that each employees must play their role in reinforcing
change. Domino's can gain success when leaders and staff work together in order to
achieve the goals and objective of business.
 Organisation must focus on communicating with employees and customers frequently via
traditional and digital methods. Communication plays an important role in increasing the
performance and productivity of business (Lee, Chen and Lee, 2020). There must be
proper communication between the employees and manager in order to solve the issues
and problem that occurs in workplace.
CONCLUSION
It is being concluded from the above information that the global fast food industry is
growing rapidly by owning to increase in number of fast food restaurants, change in customer
taste and preference, tech-savvy ordering options, rise in number of working women and rise in
demand for international cuisines. One of the digital technology that improves the level of
customer engagement and reaches to large number of people is social media platforms. Through
these social media platform, company can attract more and more customers towards the brand
and also solve their issues effectively.

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