Innovation and Sustainable Business Development

This study focuses on the critical review of literature on business model and disruption. It outlines the opportunities and threats of smart connected products in the business model of Dominos Pizza. The paper also highlights the usefulness of the business model to the future of the business and it concludes with the outcome of the study.

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

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Table of Contents
Introduction......................................................................................................................................2
Demonstration of business model....................................................................................................2
Outlining the opportunities and threats of smart connected products in the business model..........3
Application of business model framework and analysis on the different business model
perspectives......................................................................................................................................4
Business model as Value Proposition..........................................................................................5
Business Model as Set of Capabilities and Resources.................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The study is basically highlighted on the critical review of literature on some of the terms
like business model and disruption. It is focusing on the understanding of business model and its
use in today organizations where there has been high involvement of technology to be taking
place. It is also reflecting on the analysis and evaluation of the business model framework for
addressing the business model perspective which involves the business models as the value
proposition and the business models as the set of capabilities and resources (Wirtz et al., 2016).
It should also be describing the opportunities and the threats caused by the smart connected
products in the existing business model for Dominos Pizza which is taken in this study. It is also
focusing on the application of the framework taken into the findings for how the theory will be
applied which has an effect on the existing business model on the overall business performance
of Dominos Pizza. The paper is also highlighting the usefulness of the business model to the
future of the business and it concludes with the outcome of the study.
Demonstration of business model
The business model is defined as the model or strategy framework where it should be
providing value to the user based on the context of technology. It should be identifying a market
segment and it should be specifying that how the revenue should be generated. It should be
determining the revenue strategy by which any organization should be doing their operations in a
successful manner (Voigt, Buliga & Michl, 2017). It should also be describing the position of
any organization which is providing value to the networking operations including the suppliers
and customers and the identification of the competitors. The business model in these days is
changed from time to time as there is high competition and innovation for the companies

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operating within the fast food industry. Dominos has also changed their business model for
enhancing the revenue and making their operations flexible enough to compete within this
industry.
The business models are aid to be less durable than they were used it before. The
business models were inherently used by the companies better than the competitors. According
to Priem, Wenzel & Koch (2017) the business models are in the verge of disruption and
displacement and in extreme cases they are getting totally destroyed due to internal as well the
external changes to be made at the business organizations.
Outlining the opportunities and threats of smart connected products in the business model
The advances in the smart connected products have been quite useful in the fast food
industry. These are the physical products which are integrated with the software interface in
order to have technological growth and advancement for the organizations (Osterwalder &
Pigneur, 2010). The smart connected products helps the service oriented companies like
Dominos Pizza to become much more advanced and compete with the competitors. The smart
connected products help in enhancing the business capabilities of Dominos Pizza. This will help
in enhancing the revenue and the value proposition for Dominos Pizza as well (França et al.,
2017). The smart connected products in the business model has provided the opportunities to be
able to change the organizational culture and make the staffs working in Dominos Pizza to
provide innovation in their services as well (Taran et al., 2015). The smart connected products
also provides the opportunities for the customers to be able to get innovative services and the
mode of transactions they are using it in order to improve the efficiency of operations done at
Dominos Pizza. This will also help Dominos Pizza to increase the safety of the services and

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increase in customer loyalty to be taken place by the customization of the products ordered at
Dominos Pizza. The smart connected products in the existing business model of Dominos Pizza
enables the customers to get the value to be proposed for them. It should also be providing the
opportunities to leap in business quickly as there is the streamlining of the supply chain
operations to be taken place through the installation and adoption of smart connected products in
Dominos Pizza.
The threats which are witnessed in the business model of Dominos Pizza due to the smart
connected products to be adopted could be the dissatisfaction of the customers for the
functionality what the customers do not want to pay for (Joyce & Paquin, 2016). The smart
connected products in the existing business models can reduce down the security levels for
Dominos Pizza as. There is huge investment to be done for the installation and the adoption of
smart connected products which might be the threat to the existing business model of Dominos
Pizza (Osterwalder & Pigneur, 2010). The overestimation of the internal capabilities which
involves the changes in the skills and knowledge of the employees working in the different stores
of Dominos Pizza might reduce the level of customer service value proposition.
Application of business model framework and analysis on the different business model
perspectives
According to Osterwalder and Pigeon (2010) the business model canvas is termed as the
main tool on how to be effectively think of the business operations by any organization. The
business model canvas is basically the visual presentation where the operations as well the
strategies in completing the operations successfully are laid properly. This will provide a clear
understanding of the nine blocks which constitutes in a business model canvas.

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Business model as Value Proposition
In relation with the business model of Dominos Pizza it creates value proposition both for
the company itself as well for the customers. Dominos Pizza puts great emphasis on the high
quality food and excellent quality services to be given to the customers. Dominos Pizza has been
targeted the segment and the audiences in a great way. The changes in the recipes by using the
best quality ingredients in the development of the Pizza creating high value proposition through
the effective business model (Johnson, Christensen & Kagermann, 2008). The use of the
innovative things in their menu appeals the people in the local market which develops tasty and
mouth watering pizzas for the customers. The development of the CSR programs for Dominos
Pizza helps in implementing value proposition for the customers as well for the management.
They have been participating in the numerous charity events and providing education to children
and rendering assistance to schools for the children. His is useful in developing and making the
communities to get engaged with Dominos Pizza enhancing the value for the customers. The
changes in the mode of transactions and the development of their new online ordering system
creates value proposition for the customers (Dijkman et al., 2015).The GPS system introduced
online by Dominos Pizza helps in making the customers to get the food within 30 minutes which
is the commitment from them adds value to their operations and the excellent service provided to
the customers.
Business Model as Set of Capabilities and Resources
In the context of the capabilities and the resources, the business model of Dominos Pizza
is quite unique and effective enough to generate revenue and profitability for the firm. They have
the capability of taking the orders in huge volumes. They have the capability of delivering the
pizzas in 30 minutes time which is quite incredible achievement for them (Bertels, Koen &

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Elsum, 2015). They also have the capabilities of producing huge volume of stores at the different
locations across the globe to make the product reached at the indicated time and also at the
proper quantity towards the customers. The stores are located in central locations which provide
frequent home delivery for the customer and this enhances the convenience for them. They also
have the capability of developing the franchising system in order to get the products arrived at
the right time for the customers (Chesbrough, 2010). They have many stores own and franchised
and they also have stock replenishment which sets the comprehensive business model.
They have the proper resources as well in developing and sustaining the capabilities of
the firm. They have the trained and skilled staffs working in peak hours in the different stores of
Dominos Pizza which results in providing accurate and timely delivery of Pizza to the customers
(Chesbrough, 2010). They also have the smart connected process technology which includes the
hot bag, pulse point of sales, assembly line of pizza as well the pizza tracker apps for providing
online orders with the application of mobiles.
Conclusion
It is concluded from the findings that the business model has great significance in the
development of sustainability and growth of any business firms. It is evident that Dominos Pizza
will be developing an innovative business model for enhancing their opportunities to stay right at
the top and competing with the competitors within the fast food industry. It concludes that the
development and adoption of smart connected products in Dominos is creating value proposition
for the customers as well for the management of the firm.

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It is concluded that with the development of the business model by Dominos Pizza, the
future growth and profitability of the firm is enhanced. The future for Dominos Pizza is very
good and it should be highly demanding for the industry. It will also change the total complexion
of the fast food industry on its head with the adoption of new business model by Dominos Pizza.

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References
Bertels, H. M., Koen, P. A., & Elsum, I. (2015). Business models outside the core: Lessons
learned from success and failure. Research-Technology Management, 58(2), 20-29.
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range
planning, 43(2-3), 354-363.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-678.
França, C. L., Broman, G., Robèrt, K. H., Basile, G., & Trygg, L. (2017). An approach to
business model innovation and design for strategic sustainable development. Journal of
Cleaner Production, 140, 155-166.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business
model. Harvard business review, 86(12), 57-68.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How
to create products and services customers want. John Wiley & Sons.
Priem, R. L., Wenzel, M., & Koch, J. (2017). Demand-side strategy and business models: Putting
value creation for consumers center stage. Long Range Planning.

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Taran, Y., Nielsen, C., Thomsen, P., Montemari, M., & Paolone, F. (2015). Business Model
Process Configurations: A Mapping Tool For Fostering Innovation. In R&P Management
Conference (Vol. 11).
Voigt, K. I., Buliga, O., & Michl, K. (2017). The Business Model Concept. In Business Model
Pioneers (pp. 7-10). Springer, Cham.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, development
and future research perspectives. Long Range Planning, 49(1), 36-54.