Innovation and Business Development: Analysis of Business Model and Smart Connected Products for Dominos Pizza

The paper analyzes the review of literature on business model and disruption which is used in the modern day business operations. It is describing that how business model can be useful to implement in modern day business organizations for the smooth running of the businesses. It is also describing the influence of the application of smart connected products to the business model of Dominos Pizza which is selected as the organization in this study.

0Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
Name of Student
Name of University
Author Note

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Introduction
The paper is analyzing the review of literature on business model and disruption which is
used in the modern day business operations. It is describing that how business model can be
useful to implement in modern day business organizations for the smooth running of the
businesses. It is also describing the influence of the application of smart connected products to
the business model of Dominos Pizza which is selected as the organization in this study. It
should also be focusing on the analysis of the business model framework and illustrate the
findings of the study(Johnson, Christensen &Kagermann, 2008).It should also be analyzing the
different business model perspectives which involve the business model as value proposition,
business model as the set of capabilities and resources, the system of processes and the profit
formula to the analysis. The paper is also reflecting on the analysis of the threats and
opportunities caused due to the implementation of smart connected products in the existing
business model for Dominos Pizza in this study. It should also be focusing on the impact of the
existing business model on the overall performance of Dominos Pizza. The essay should be
highlighting the effect of the existing business model on the future of business for Dominos
Pizza.
Analysis and evaluation of business model of Dominos Pizza
According to Veit et al.(2014) business model is basically a tool by which the business
operations of any business should be able to recognize as well the key internal capabilities and
resources to be judged. This is a tool which is useful in analyzing the revenue and the
profitability of any organization operating in the professional field of business. It will be
determining the revenue of the business by which the organizations should be doing the

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operations in a roper way. The business model also depicts the competitive positioning of any
organization and provides value to the logistics involved in any business. It is seen that in the
modern day business the business model has been changed from time to time. There is no fixed
business model to be working for a long period of time for any business to be able to operate in a
proper way. Due to the rapid competition and the high involvement of technology there is
disruption in the business model to be taken place. Dominos has also changed their business
model for the generation of higher revenues and for adding value to the customers towards the
greater sustainability of their business. On the other hand disruption is defined as the total
displacement and destruction of anything. In the modern day business when technology is
creating a huge impact on the development and sustainability of the business, there is high
chance of total disruption of the business model.
Dijkman et al. (2015) states that the business models are not so stable than they were
developed in the past due to the effect of changing internal and the external environment to be
taken place. The internal and the external environment have a great influence on the changes as
well the disruption of the existing business model which is developed by the different
organizations.
It is quite obvious that due to the rapid development of technology there is significant
effect on the existing business model of Dominos Pizza. The smart connected products are the
physical devices which is interfaced with the software technology or the devices in order to
improve and change the complexion of the business model. The smart connected products are
providing the opportunities to make the business model flexible and stable enough to improve on
the sustainability of the business(Johnson, Christensen &Kagermann, 2008).The smart connected
products provide the opportunity for the existing business model of Domino’s Pizza to become

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detect that how much value should be provided to the customers(Johnson, Christensen
&Kagermann, 2008).This also provides the opportunities to make the business model much more
advanced in competing with the competitors. The smart connected products should be able to
handle huge amount of data which is embedded with the sensors used at the bill ordering system
for Dominos Pizza so that they can detect the data usage patterns of the customersde (Jong & van
Dijk, 2015).
The smart connected products also help in the initial forecasting of the business model of
the company. The smart connected product also provides the opportunities in improving the
effectiveness and efficiency of the internal as well the external operations for the company(Zott,
Amit& Massa, 2011).The smart connected products applied in the existing business model of
Domino’s Pizza also help in making the logistics operations of Domino’s Pizza to be streamlined
and flexible as well.
The threats caused due to the application of smart connected products in the business
model could be the overestimation of the internal capabilities.(Porter &Heppelmann, 2015).The
demand for the new technologies, skills and the processes in the entire value chain has been
enhanced. The threats caused due to the application of smart connected products in the existing
business model of Dominos Pizza could be the huge investment in maintaining the security
levels of the company(Veit et al., 2014).The smart connected products open major gateways to
the corporate systems which might hamper the business model.
The next could be the huge resources to be applied for the smart connected products to
make it feasible. The smart connected products fail to analyze new competitive threats or the
new business model which can reshape it and there are chances of degradation to be taken place.

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In accordance with Osterwalder and Pigneur (2010) the business model canvas is the
pictorial representation where the different operations and the strategies are laid in a
comprehensive way by which the decision makers and the strategists could be able to analyze the
elements properly (Joyce &Paquin, 2016).
It constitutes of nine blocks which includes the key partners, key activities, customer
relationships, customer segments, key resources, value propositions, channels, cost structure and
revenue streams. The business model canvas has been depicted in the form of block below.

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The existing business model of Dominos Pizza certainly creates value proposition for the
company as well for the customers in Australia. The existing business model has been useful in
generating high revenue with the streamlining of the operations and proper financial stability to
be given to Dominos Pizza adds value for the company (Clark,Osterwalder&Pigneur, 2012).This
is applicable in improving the profitability of the company. With the innovation to be done at the
business model adds value for the company to compete and operate easily within the fast food
industry in Australia.
Key Partners Key Activities Value Propositions Customer Customer
Relationships Segments
Suppliers Risk assessment Innovative recipes 30 mints delivery Families
Distributors Customer Service Menu planning Free home delivery Young adults
Local fast food market IT investments Discounts on Products Online orders Children
Fast Food companies Channels Customer Service Key resources
Websites Wide range of products Trained staffs
Mobile GPS tracking
Social networks & stores Store Volume
Cost Structure Revenue Streams
Staff Compensation Local Franchisees
IT Investments Supply chain
Infrastructure Cost International franchisees.
Company owned stores.

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In the context of the customers, the business model adds value to them if the product or
service provided to them is completely new one and the product or service could be able to
resolve the issue for them. In the case for Dominos Pizza, they have been improving their service
with the smart connected products to be installed adds convenience and reliability. The
innovative recipes and high quality ingredients they are using to develop their food items creates
value for the customers(Dudin et al., 2015). The use of technology in their operations also adds
value for them. The development and the implementation of the CSR activities which involves
the participation in various charities, providing free education to the children and funding to
schools which does not have enough financial strength helps in enhancing the brand reputation of
Dominos Pizza. The GPS tracker and the commitment of pizza delivery in 30 minutes creates
value proposition for the customers.
They have the talented and trained professionals who are able to provide high quality
services to the customers. They have huge number of stores which are located in central regions
helps in timely and convenient delivery of pizza for the customers (Abraham, 2013).This
enhances customer trust and loyalty towards the operations. Most of the stores are franchised and
some they have owned (Hong & Fauvel, 2013). The inventory is very less for Dominos Pizza
which helps in reducing down the overall cost of the company. This enhances their capabilities
of expanding the services across the globe. They have the capability of delivering the pizzas
online and free home delivery. They also have the pulse point of sale and assembly line. The
Dominospizza also has the capability of finding the location easily where they want to deliver it
and this is done through the implementation of the GPS tracker(Hong &Fauvel, 2013).

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Conclusion
The significance of the findings to the business is that the business for Dominos has high
growth and sustainability in the future. It can evolve as one of the largest and profitable fast food
organizations having its greatest existence within the fast food industry. It has significance to the
business model as well as Dominos Pizza will be changing its business model and making it
innovative. The future of the business is very good and stable as they have the key resources and
the internal capabilities of Dominos Pizza is very string. They have the talented and skilled staffs
providing excellent quality customer services providing high customer satisfaction. This leads to
bright and sustainable future of business to be taken place.

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