Innovation, Business Models & Sustainable Development: An Essay
VerifiedAdded on 2023/06/13
|8
|2177
|318
Essay
AI Summary
This essay examines the role of business models in fostering innovation and sustainable business development, using Domino's Pizza and the Internet of Things (IoT) as a case study. It discusses disruptive innovation, analyzes threats and opportunities arising from smart connected products, and applies the Osterwalder and Pigneur business model framework. The essay also explores business models from the perspective of profit formulas and value propositions, concluding that the integration of IoT enhances efficiency in fast-food restaurants. The study highlights the importance of effective temperature management and the impact of business models on value proposition and profit generation.
Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Sustainable Business Development
Name of the Student:
Name of the University:
Author Note:
Sustainable Business Development
Name of the Student:
Name of the University:
Author Note:
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
1INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
A business model is a conceptual framework or structure that works to provide support to
product viability or the viability of a company. The business model includes goals and the
purpose of a company and how it will plan to achieve them. All the business policies and the
business process that a company follows and adopts are part of the business model. The business
model is a description that how a company captures, delivers, creates the value for its customer
and also for itself. Due to the emergence of a computer, the usage of the business model also
came forth (Harvard Business Review., 2018a).
Literature review on the Business model and disruption- a Business model is a term
which has been used for several years. From the beginning of a business, the companies try to
innovate. Define and create the business models from the initiation of the business. The term
business model was first coined by a financial journalist named Michael Lewis. He predicted that
the companies in future will be based on the business models that will be connected to the
internet. Business models have no fixed and formal connection with the theories in economics. It
is really hard to designate the components and the processes that will be necessary for the
business and defines the values of a company fundamentally. Business models are also
considered by some authors as a model for making money. According to some authors, a
business model is an economic concept that will create produce costs and revenues. The business
model is a system of activities and resources, that creates the values which are useful for the
customers and in turn generates revenues for the company (Slavik & Bednár, 2014). Disruptive
innovation is a management term that describes an innovation with respect to the value and
market network and this eventually leads to the displacement of the established market alliances,
market products. Innovative production and the production systems are based on the new
technologies that help in competition to gain the sustained differentiation. Technological
A business model is a conceptual framework or structure that works to provide support to
product viability or the viability of a company. The business model includes goals and the
purpose of a company and how it will plan to achieve them. All the business policies and the
business process that a company follows and adopts are part of the business model. The business
model is a description that how a company captures, delivers, creates the value for its customer
and also for itself. Due to the emergence of a computer, the usage of the business model also
came forth (Harvard Business Review., 2018a).
Literature review on the Business model and disruption- a Business model is a term
which has been used for several years. From the beginning of a business, the companies try to
innovate. Define and create the business models from the initiation of the business. The term
business model was first coined by a financial journalist named Michael Lewis. He predicted that
the companies in future will be based on the business models that will be connected to the
internet. Business models have no fixed and formal connection with the theories in economics. It
is really hard to designate the components and the processes that will be necessary for the
business and defines the values of a company fundamentally. Business models are also
considered by some authors as a model for making money. According to some authors, a
business model is an economic concept that will create produce costs and revenues. The business
model is a system of activities and resources, that creates the values which are useful for the
customers and in turn generates revenues for the company (Slavik & Bednár, 2014). Disruptive
innovation is a management term that describes an innovation with respect to the value and
market network and this eventually leads to the displacement of the established market alliances,
market products. Innovative production and the production systems are based on the new
technologies that help in competition to gain the sustained differentiation. Technological
2INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
advancements have resulted in the companies to establish their business. This has also resulted in
the emergence of threats to the established business as well. specifically, this is valid for a certain
type of disruptive technology like the Additive Manufacturing. Addictive manufacturing is
considered to displace the conventional manufacturing technology and also at the same time
open up other types of possibilities in future. Disruptive technologies are the ones that are ones
that have a far-reaching effect on the value creation and future structure of the business. It is also
important to note that the disruptive technologies differ a lot from the sustaining technologies.
With respect to the traditional form of the performance criteria, the established products
underperform through the disruptive technologies (Amshoff et al., 2015).
Analysis of threats and opportunities Domino’s Pizza restaurants caused by the
advancement of the smart connected products- In the fast food service industry, the connected
technology has found its place. The Domino’s pizza has now taken into account the IoT
deployment and also help in improving the management process (Harvard Business Review,
2018b). The internet of Things also assists in the predictive maintenance, customer satisfaction,
food safety and temperature monitoring. Total Connect Now Operations Performance Suite
(TCNOPS) is built with respect to the needs of a company (VoIP-Info., 2018). It has the highest
Quality Routing Protocol broadband connection, this suite helps in bringing the Small and mid-
size businesses to come together in this connected age. This leads to a real-time monitoring
system which is proactive and full-fledged. Working with a lot of the hardware vendors which
includes the Zen and Samsung has led to the effective build of the restaurants with the optimal
levels of the internet of things deployment for the customers and the clients, it also ensures that
the restaurants operate in accordance with the regulatory compliances. Previously, the restaurants
used to rely on the workers to control the temperature manually by keeping a note on the
advancements have resulted in the companies to establish their business. This has also resulted in
the emergence of threats to the established business as well. specifically, this is valid for a certain
type of disruptive technology like the Additive Manufacturing. Addictive manufacturing is
considered to displace the conventional manufacturing technology and also at the same time
open up other types of possibilities in future. Disruptive technologies are the ones that are ones
that have a far-reaching effect on the value creation and future structure of the business. It is also
important to note that the disruptive technologies differ a lot from the sustaining technologies.
With respect to the traditional form of the performance criteria, the established products
underperform through the disruptive technologies (Amshoff et al., 2015).
Analysis of threats and opportunities Domino’s Pizza restaurants caused by the
advancement of the smart connected products- In the fast food service industry, the connected
technology has found its place. The Domino’s pizza has now taken into account the IoT
deployment and also help in improving the management process (Harvard Business Review,
2018b). The internet of Things also assists in the predictive maintenance, customer satisfaction,
food safety and temperature monitoring. Total Connect Now Operations Performance Suite
(TCNOPS) is built with respect to the needs of a company (VoIP-Info., 2018). It has the highest
Quality Routing Protocol broadband connection, this suite helps in bringing the Small and mid-
size businesses to come together in this connected age. This leads to a real-time monitoring
system which is proactive and full-fledged. Working with a lot of the hardware vendors which
includes the Zen and Samsung has led to the effective build of the restaurants with the optimal
levels of the internet of things deployment for the customers and the clients, it also ensures that
the restaurants operate in accordance with the regulatory compliances. Previously, the restaurants
used to rely on the workers to control the temperature manually by keeping a note on the
You're viewing a preview
Unlock full access by subscribing today!
3INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
temperature variance. This results in noncompliance and the company have to pay the hefty
price. This is a scenario for one restaurant and can be worse if there are 100 restaurants. The
presence of the real-time temperatures displayed is great for the assistant and the store managers.
The temperature monitoring system even gets better when it sends the alerts to the upper
management system (Planet Retail, 2018).
The implementation of the Internet of things has led to the task automation. This includes the
monitoring the store temperature and also monitoring the temperature of the exhaust systems,
refrigeration system, and the production tables. The information collected is then fed into the
wallboard display of the visual performance software suite. Data is provided along with the other
real-time and historical data which includes the local weather, telephone line status and staff
performance. The temperature alerts provide a chance to avert major accidents. Beyond
temperature monitoring for the purpose of compliance and food safety, the deployment of the
internet of things also includes the incorporation of the smart thermostats for controlling the
ambient temperature control and the smart building functionality. The TCNOPS has the real-time
alerts that help to monitor the when the door of the freezer is kept open for too long and for the
purpose of proactive maintenance offers a predictive analysis. The deployment of the TCNOPS
is very attractive and it only includes the 150 dollars per month (IoT Agenda, 2018).
The threats arising from the implementation of the internet of things is the loss of jobs, over-
reliance on the technology and the breach of privacy. The privacy issues are a big question and it
relates to who controls the internet of things? There are glitches and errors that occur
consistently within this technology and the also includes the risk of breaching the privacy of the
consumer data. The over-reliance is one of the biggest faults of the internet of things. Nos system
is error and fault free, thus depending too much on a single technology may lead to devastation
temperature variance. This results in noncompliance and the company have to pay the hefty
price. This is a scenario for one restaurant and can be worse if there are 100 restaurants. The
presence of the real-time temperatures displayed is great for the assistant and the store managers.
The temperature monitoring system even gets better when it sends the alerts to the upper
management system (Planet Retail, 2018).
The implementation of the Internet of things has led to the task automation. This includes the
monitoring the store temperature and also monitoring the temperature of the exhaust systems,
refrigeration system, and the production tables. The information collected is then fed into the
wallboard display of the visual performance software suite. Data is provided along with the other
real-time and historical data which includes the local weather, telephone line status and staff
performance. The temperature alerts provide a chance to avert major accidents. Beyond
temperature monitoring for the purpose of compliance and food safety, the deployment of the
internet of things also includes the incorporation of the smart thermostats for controlling the
ambient temperature control and the smart building functionality. The TCNOPS has the real-time
alerts that help to monitor the when the door of the freezer is kept open for too long and for the
purpose of proactive maintenance offers a predictive analysis. The deployment of the TCNOPS
is very attractive and it only includes the 150 dollars per month (IoT Agenda, 2018).
The threats arising from the implementation of the internet of things is the loss of jobs, over-
reliance on the technology and the breach of privacy. The privacy issues are a big question and it
relates to who controls the internet of things? There are glitches and errors that occur
consistently within this technology and the also includes the risk of breaching the privacy of the
consumer data. The over-reliance is one of the biggest faults of the internet of things. Nos system
is error and fault free, thus depending too much on a single technology may lead to devastation
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
in the future. The final threat is the more devices that get connected to the internet, the number of
jobs will be lost. The automated tasks within the purview of the internet of things will lead to
fewer prospects of employment (Internet Of Things, 2018).
Business model framework by Osterwalder and Pigneur (2010)- The 4 different pillars
include the product pillar, customer interface pillar, infrastructure management pillar, financial
aspects pillar. The product pillar has the value proposition model element: Domino's Pizza serves
pizza and the associated food products via its restaurants and the home delivery provisions
(Dominos.com.au., 2018b). The customer interface provides with the 4 different business model
element: customer segments- the segments of the customer that Dominos especially focuses
ranges from age 6 to 60 years; channels- the customers are connected via the SMS, emails,
telephone calls and app queries; Customer relationships- the link via which the Dominos tries to
establish itself with the customer is the quality pan pizzas. The infrastructure management
includes the following business model elements: key resources- the key resources are the
different constituents of a pizza and the different suppliers through which Dominos maintains its
stock; Key activities- the key activities ranges from the opening of the restaurants that serve
Pizzas and home delivery of the pizzas according to the demand for home delivery
(Dominos.com.au., 2018a); key partners- the key partner is the IFTTT inclusive that helps to
provide the real-time tracking of the pizza delivery. The financial aspects pillar provides with 2
business model element: revenue streams- the Domino's pizza makes money via the online order
through the app and earn revenues via serving pizzas via its fast food restaurants; cost structure-
a Domino's pizza store costs around 450,000 dollars and also includes an initial franchise fee of
60,000 dollars (Dominosfranchise.com.au., 2018).
in the future. The final threat is the more devices that get connected to the internet, the number of
jobs will be lost. The automated tasks within the purview of the internet of things will lead to
fewer prospects of employment (Internet Of Things, 2018).
Business model framework by Osterwalder and Pigneur (2010)- The 4 different pillars
include the product pillar, customer interface pillar, infrastructure management pillar, financial
aspects pillar. The product pillar has the value proposition model element: Domino's Pizza serves
pizza and the associated food products via its restaurants and the home delivery provisions
(Dominos.com.au., 2018b). The customer interface provides with the 4 different business model
element: customer segments- the segments of the customer that Dominos especially focuses
ranges from age 6 to 60 years; channels- the customers are connected via the SMS, emails,
telephone calls and app queries; Customer relationships- the link via which the Dominos tries to
establish itself with the customer is the quality pan pizzas. The infrastructure management
includes the following business model elements: key resources- the key resources are the
different constituents of a pizza and the different suppliers through which Dominos maintains its
stock; Key activities- the key activities ranges from the opening of the restaurants that serve
Pizzas and home delivery of the pizzas according to the demand for home delivery
(Dominos.com.au., 2018a); key partners- the key partner is the IFTTT inclusive that helps to
provide the real-time tracking of the pizza delivery. The financial aspects pillar provides with 2
business model element: revenue streams- the Domino's pizza makes money via the online order
through the app and earn revenues via serving pizzas via its fast food restaurants; cost structure-
a Domino's pizza store costs around 450,000 dollars and also includes an initial franchise fee of
60,000 dollars (Dominosfranchise.com.au., 2018).
5INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Business model perspectives- Business models as a profit formula: Domino's pizza sales
have increased 5 times since the year 2005 and the revenue earning has increased 7 times. The
shares at the same time have increased by 30 times. The issues price has increased by 2.20 dollar.
According to the network of the company, the Domino's Australian franchise has experienced
profitability. The Domino's pizza focuses on the profit formula and emphasizes on the selling a
pizza for 5 dollars by delivering pizza within 10 minutes. The products are sold with added
discounts which also help in earning more profit (Financial Review. (2018). Business models as
the value proposition- the core value proposition of Domino's pizza is the fast delivery of the
pizza. Domino's provides the assurance of delivering the pizza within a 30-minute deadline and
the company also charges extra money for a super-fast delivery of pizza within the deadline of
10 minutes (dominos, 2018).
Thus from the above study, it can be concluded that the smart integration of the internet
of things into the fast food restaurants of Domino's pizza has led to the increase in the efficiency
of the fast food restaurants. The effective monitoring of the temperature in the restaurants has led
to the effective management of the perishable goods. Finally, the two business models that are
for the study are the business model for value proposition and business model for profit formula.
Business model perspectives- Business models as a profit formula: Domino's pizza sales
have increased 5 times since the year 2005 and the revenue earning has increased 7 times. The
shares at the same time have increased by 30 times. The issues price has increased by 2.20 dollar.
According to the network of the company, the Domino's Australian franchise has experienced
profitability. The Domino's pizza focuses on the profit formula and emphasizes on the selling a
pizza for 5 dollars by delivering pizza within 10 minutes. The products are sold with added
discounts which also help in earning more profit (Financial Review. (2018). Business models as
the value proposition- the core value proposition of Domino's pizza is the fast delivery of the
pizza. Domino's provides the assurance of delivering the pizza within a 30-minute deadline and
the company also charges extra money for a super-fast delivery of pizza within the deadline of
10 minutes (dominos, 2018).
Thus from the above study, it can be concluded that the smart integration of the internet
of things into the fast food restaurants of Domino's pizza has led to the increase in the efficiency
of the fast food restaurants. The effective monitoring of the temperature in the restaurants has led
to the effective management of the perishable goods. Finally, the two business models that are
for the study are the business model for value proposition and business model for profit formula.
You're viewing a preview
Unlock full access by subscribing today!
6INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Reference
Amshoff, B., Dülme, C., Echterfeld, J., & Gausemeier, J. (2015). Business model patterns for
disruptive technologies. International Journal of Innovation Management, 19(03),
1540002.
dominos. (2018). dominos. Retrieved 17 April 2018, from https://www.dominos.co.in/hot-pizza-
30-minutes-delivery-guarantee-at-dominos-get-pizza-hot
Dominos.com.au. (2018a). Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. Dominos.com.au. Retrieved 17 April 2018, from
https://www.dominos.com.au/
Dominos.com.au. (2018b). Domino's Corporate - Domino's Pizza. Dominos.com.au. Retrieved
17 April 2018, from https://www.dominos.com.au/inside-dominos/corporate
Dominosfranchise.com.au. (2018). Domino's Franchise Australia - FAQ.
Dominosfranchise.com.au. Retrieved 17 April 2018, from
https://www.dominosfranchise.com.au/frequently-asked-questions
Financial Review. (2018). Domino's Pizza system profits under spotlight. Financial Review.
Retrieved 17 April 2018, from http://www.afr.com/business/retail/dominos-pizza-
franchise-system-under-spotlight-20160707-gq0jxa
Harvard Business Review. (2018a). What Is a Business Model?. Harvard Business Review.
Retrieved 17 April 2018, from https://hbr.org/2015/01/what-is-a-business-model
Reference
Amshoff, B., Dülme, C., Echterfeld, J., & Gausemeier, J. (2015). Business model patterns for
disruptive technologies. International Journal of Innovation Management, 19(03),
1540002.
dominos. (2018). dominos. Retrieved 17 April 2018, from https://www.dominos.co.in/hot-pizza-
30-minutes-delivery-guarantee-at-dominos-get-pizza-hot
Dominos.com.au. (2018a). Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. Dominos.com.au. Retrieved 17 April 2018, from
https://www.dominos.com.au/
Dominos.com.au. (2018b). Domino's Corporate - Domino's Pizza. Dominos.com.au. Retrieved
17 April 2018, from https://www.dominos.com.au/inside-dominos/corporate
Dominosfranchise.com.au. (2018). Domino's Franchise Australia - FAQ.
Dominosfranchise.com.au. Retrieved 17 April 2018, from
https://www.dominosfranchise.com.au/frequently-asked-questions
Financial Review. (2018). Domino's Pizza system profits under spotlight. Financial Review.
Retrieved 17 April 2018, from http://www.afr.com/business/retail/dominos-pizza-
franchise-system-under-spotlight-20160707-gq0jxa
Harvard Business Review. (2018a). What Is a Business Model?. Harvard Business Review.
Retrieved 17 April 2018, from https://hbr.org/2015/01/what-is-a-business-model
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
7INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Harvard Business Review. (2018b). How Smart, Connected Products Are Transforming
Competition. Harvard Business Review. Retrieved 17 April 2018, from
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition
Internet Of Things. (2018). Internet of Things Advantages and Disadvantages - Internet Of
Things. Internet Of Things. Retrieved 17 April 2018, from
https://internetofthings.net/internet-of-things-advantages-disadvantages/
IoT Agenda. (2018). Domino's Pizza IoT deployment delivers temp monitoring, food safety. IoT
Agenda. Retrieved 17 April 2018, from
https://internetofthingsagenda.techtarget.com/feature/Dominos-Pizza-IoT-deployment-
delivers-temp-monitoring-food-safety
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Planet Retail. (2018). DOMINO’S PIZZA monitors temperature with IoT tech. Planet Retail.
Retrieved 17 April 2018, from
https://www.planetretail.net/NewsAndInsight/Article/158763
Slavik, S., & Bednár, R. (2014). Analysis of business models. Journal of competitiveness, 6(4).
VoIP-Info. (2018). Welcome to the VOIP Wiki - a reference guide to all things VOIP. - VoIP-
Info. VoIP-Info. Retrieved 17 April 2018, from https://www.voip-info.org/
Harvard Business Review. (2018b). How Smart, Connected Products Are Transforming
Competition. Harvard Business Review. Retrieved 17 April 2018, from
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition
Internet Of Things. (2018). Internet of Things Advantages and Disadvantages - Internet Of
Things. Internet Of Things. Retrieved 17 April 2018, from
https://internetofthings.net/internet-of-things-advantages-disadvantages/
IoT Agenda. (2018). Domino's Pizza IoT deployment delivers temp monitoring, food safety. IoT
Agenda. Retrieved 17 April 2018, from
https://internetofthingsagenda.techtarget.com/feature/Dominos-Pizza-IoT-deployment-
delivers-temp-monitoring-food-safety
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Planet Retail. (2018). DOMINO’S PIZZA monitors temperature with IoT tech. Planet Retail.
Retrieved 17 April 2018, from
https://www.planetretail.net/NewsAndInsight/Article/158763
Slavik, S., & Bednár, R. (2014). Analysis of business models. Journal of competitiveness, 6(4).
VoIP-Info. (2018). Welcome to the VOIP Wiki - a reference guide to all things VOIP. - VoIP-
Info. VoIP-Info. Retrieved 17 April 2018, from https://www.voip-info.org/
1 out of 8
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.