MGMT20132 Innovation & Sustainable Business: Business Model Analysis

This essay provides a literature review of business models, focusing on opportunities and challenges within the context of innovation and sustainability. It examines the disruption caused in Domino’s Pizza Australia, applying the Osterwalder and Pigneur business model framework. The essay discusses key aspects of the business model including value proposition, capabilities, resources, system processes, and profit formula. It highlights the opportunities, such as mobile ordering and robotic delivery, and threats, including financial factors and strategic implications, associated with disruptive technologies. The analysis emphasizes the significance of business models in shaping the future of businesses, underscoring the importance of adapting to market trends and technological advancements for sustainable growth. Desklib offers similar solved assignments for students.

Running head: INNOVATION AND SUSTAINABLE BUSINESS
INNOVATION AND SUSTAINABLE BUSINESS
Name of the student
Name of the University
Author Note

1
INNOVATION AND SUSTAINABLE BUSINESS
Introduction
There is a significance to build a strong management and base of the organization in a
market with the involvement of the efficient managers for the organizational development.
Business models are sustainable in nature to the business and with time disruption in innovation
causes the business model to be used necessarily. The essay will highlight a small literature
review of the business model with the presence of opportunities and the challenges that needs to
be evaluated. The essay will show the disruption caused in the Domino’s Pizza restaurant of
Australia (Mail Online, 2018). There is a business model reviewed in the essay framed by
Osterwalder and Pigneur. The business model was created to grab the customer value and create
the same. The business perspective is also showed in the essay including value proposition,
capabilities and resources, system of processes and profit formula. It will also show the
significance of the business model in future of the business.
Literature review
The business model is a basic concept that is created in a business to create value for the
customers and in turn to grab value for the customers. The product or service delivered by the
organization is the way a company delivers its value to the customers. The organization that
follow a competitive business model gains the maximum competition in the market from its
rival. There is severe need of the business model and change in it due to the upcoming pace of
the technological innovation in business (De Jong & van Dijk, 2015). A business model states
the process or methods that should be owned by the organization or the business to generate
profit and maximize it. It considers the expenses incurred or the decisions related to business and
its types of products or service.

2
INNOVATION AND SUSTAINABLE BUSINESS
The business considers strategies related to marketing, future projections of the expenses
and the revenue and its existing competitors. Many a times, several businesses fails with such
basic decision making which results into market failure in the industry. There are several types of
business models that are considered by different business.
While on the other part, the term disruption is a focus of the essay where it states that it
means the concept of the model becomes outdated. in simple words, the disruption is using the
existing innovation and enhancing it with much of the effort of the organization. The innovation
is associated with the products and services that is created by the organization to earn value from
the customers. It creates a unique point of selling the brand either by its service or by creating a
product. These includes smart connected products that increase competition among the market
(Porter & Heppelmann, 2014).
Opportunities and threats
The business model with adding disruptive advancement in the technology of the
organization simply makes the opportunities widen up and improve and grow more. Disruptive
technology provides the organization with efficiency in its operations and performance of the
business. To ensure some of the opportunities for the organization can be considered as:
 The Domino’s made it easy for the customers to order and keep track over their orders
with their mobile. It results into grabbing the attention of the customers and creating
value among them.
 The newly launched robot for the purpose of delivery named as Domino’s Robotic unit is
an attention seeker for the customers and world’s first delivery vehicle.

3
INNOVATION AND SUSTAINABLE BUSINESS
 The planning of the delivery to the customer of Domino’s through a remote controlled
copter is way more innovative and exciting for the customers. Some or the other it widens
the opportunity for the company to look over and utilize disruptive technology in the
innovation.
 These interesting ways to make the delivery to the customers are promoted in terms to
serve them more efficiently and in a safer way.
The opportunities are the safer side after the implication of disruptive innovation.
However, along with the opportunities there comes various threats as well to the organization
such as:
 The first significant challenge that stands with the advancement in the technology for
Domino’s was financial factor. The high technology was being used by the company to
respond to its customers in an interesting way but investments were high.
 Smart products such as smart watches for fast order placing facility, GPS trackers and
delivery robots and copters would require a huge capital to indulge and earn competitive
advantage.
 The strategic implications are another such challenge that is faced by the organization in
while implementing its new technology in its operations.
 Another such challenge would be to replace its most of the employees with the new
technology. For example, delivery boys would be replaced with delivery copters.

4
INNOVATION AND SUSTAINABLE BUSINESS
Business Model Canvas
Business model Canvas is also known as the model of Osterwalder and Pigneur
(Christensen, Raynor & McDonald, 2016). It is an helpful tool that helps the organization to
understand the gathered knowledge about the business and the structure of the company.
Key partners
 Customers
 Suppliers of raw
materials
 Innovation Lab
Key activities
 Identification of the
market
 Creativity
 Innovation
 Validation
 Manufacturing
 Sales
 Marketing strategies
 Customer service
Value proposition
 Innovation
 Technology
 Engaging
people with
fast foods.
Customer
relationship
Take away
and home
delivery with
the help of
Mobile apps
and webistes.
Customer
segment
 Kids
 Parents
 Familie
s
 Business
partners
Key resources
 Manufacturing unit
 Employees
 Official websites
 Patents
Channels
 Retail
stores
 Websit
e
 Mobile
applica
tion
 E-
comme
rce
store
Cost structure
 Raw materials
 Manufacturing
 Product development
 Salaries
 Partnerships
Revenue structure
 Sales
 Collaborations
 Partnerships
 Service charges

5
INNOVATION AND SUSTAINABLE BUSINESS
Perspectives of the model
There are different aspects of the business model canvas. A business model enhances the
capabilities and resources of the organization. The first level of the business that the organization
has to understand according to the market trends and the needs of the customers are the essential
aspect of the business model that helps to generate revenues and value (Mellor, Hao & Zhang,
2014). The current position and the demand of the organization will let to determine the
strategies to develop their resources to align with their productivity. Therefore, it is necessary to
recognize the upcoming perspective of the Business Model Canvas for the improvement of the
company.
System Processes is another important factor that relies upon the organization’s Business
Model Canvas. This factor defines the proper operating and manufacturing process of the
business for its proper development system. This helps the company to determine its gaps that
are lacking in the long run to achieve its success.
Based on the objective of the organization it c neb seen that the planning of the financial
growth is important as it asserts the expenses and the revenues that are to be adjusted to take out
the final result. Shareholders are the important part of the company to ensure its growth and sales
on the global basis.
Significance of the business model
It is not possible to estimate or predict the future happenings and the holdings regarding
business. Emerging importance of business models are possibly to concentrate on the various
groups. Business models have two or more markets simultaneously with respect to their nature
and each of the business operating uses different kind of business model (Joyce & Paquin, 2016).

6
INNOVATION AND SUSTAINABLE BUSINESS
With time and trend the importance on the segment of pursuing excellence is being focused with
the continuous development of innovation and rapid international growth. Market creation by a
business model often requires a long time to develop the efficiency in the performance. It is also
known that to build a new business model it would require additional amount of capital. The
business model provides with a complete understanding of the all the factors in the form of a
blueprint that helps the organization to create value with their product or service. From
technology to demography, everything matters and counts significantly and for this purpose the
appraisal of value proposition, value creation and capturing the value makes up the essence to
thrive into new opportunities (Tongur & Engwall, 2014). The business model creates an
understanding of the potential of the business model in the coming future. In addition, business
model helps to learn many things in different stages of its operations.
Conclusion
From the above discourse, it can be concluded that there is crucial need of a right
business model for each organization according to its market position and demand. At the same
time, it had been seen that the Domino’s Pizza entails a business model which shows that it uses
its high innovative lab creations to win the customers mind and increase its sales revenue and
plan the strategic implementation programs. A detailed analysis of the Business canvas model is
also showed with respect to the Domino’s Pizza organization. It had been observed that the
company operates with several smart connected products such as GPS trackers to track the
delivery of the orders in the customer’s mobile phone. To make easier ordering messaging is also
established then to make delivery efficient delivery robots and copters are also entitled. The
above essay will also show the significance of the business model to influence the sustainable
future market of the organization.

7
INNOVATION AND SUSTAINABLE BUSINESS
References
Christensen, C. M., Raynor, M. E., & McDonald, R. (2016). What is disruptive Innovation. The
Encyclopedia of Human-Computer Interaction, 2.
De Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model
innovation. McKinsey Quarterly, 3, 66-75. Retrieved on 02.04.2018.
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.
Mail Online. (2018). Dominos claims 'disruptive technologies' is luring more customers. Mail
Online. Retrieved 22 April 2018, from http://www.dailymail.co.uk/news/article-
3742586/Dominos-claims-disruptive-technologies-luring-customers-fast-food-
chains.html
Mellor, S., Hao, L., & Zhang, D. (2014). Additive manufacturing: A framework for
implementation. International Journal of Production Economics, 149, 194-201.
Retrieved on 02.04.2018.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming
competition. Harvard Business Review, 92(11), 64-88.
Tongur, S., & Engwall, M. (2014). The business model dilemma of technology shifts.
Technovation, 34(9), 525-535.