Domino's Pizza: Smart Technology & Sustainable Business Development

This report examines Domino's Pizza's business model, focusing on how disruptive technologies like smart connected products impact its operations. It defines business models and disruption, using eBay's virtual reality store as an example. The report highlights Domino's introduction of zero-click ordering and DRU Assist, an AI virtual assistant. It discusses the advantages of smart connected products, such as customized user experiences and optimized operations, while also addressing disadvantages like limited customer reach and security concerns. The analysis uses the Osterwalder and Pigneur framework, emphasizing value proposition and system of processes. The report concludes that while smart connected devices offer a competitive edge, their imitability may limit long-term sustainability. Desklib provides a platform for students to access this and many other solved assignments.

Innovation and Sustainable Business Development
Domino’s Pizza
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Innovation and Sustainable Business Development
Video Transcript
Hello Everyone, the objective of this video is to understand the business model for
Domino’s Pizza and how disruptive technology like smart connected products impact its
business model.
The video will have following contents: what is business model and disruptive
innovation. What are the threats and opportunities for smart connect products used by Domino’s
Australia. Then using Osterwalder and Pigneur frame work for business model, video will
describe how these smart connect products impact all business elements. However the main
focus would be on: Business model’s component of value proposition and system of processes.
Hope this video will be useful to you.
What is a business model?
A business model is the rationale for how business creates, delivers and captures value in
different contexts. The next part of video will focus on disruption and its example
What is disruption?
Disruption is problem or disturbance that disturbs process, activity or event. For example
virtual reality store by eBay, where shoppers can download the app on their mobile phones,
attach it with pair of shopticles and then start shopping in 3D. In this disruptive environment,
established business models are less durable. For example online courses impact business
schools.
Coming over to Dominos’ Pizza, which is one of the biggest pizza chains. The products
which were earlier composed of mechanical and electrical parts now have sensors, data storage,

Innovation and Sustainable Business Development
software, microprocessor and connectivity. This is called smart connected product. Dominos has
also introduced zero clicks ordering system where customer will open the app, log in and within
10 seconds their favourite order is placed. Dominos also offers DRU Assist which is an
artificially intelligent virtual assistant for the customers to interact while placing the order. It has
used voice recognition technologies and machine learning.
The advantage of smart build connected products includes that it helps in customizing
user’s experience. It helps in optimizing operations of the company by enhancing product
performance, predicts repair and service, autonomous product operation.
The disadvantages of smart connected products are: Domino’s would mainly target the
young generation who are comfortable with using technology. So it may not provide value
proposition to all the customers. It needs additional processes like network security, information
encryption and sensor security. The channel partners need to come at the same pace. These
products are easily imitable.
So these smart connected devices which are outpacing technology may provide
competitive advantage for short period of time. But they may not provide sustainable competitive
advantage to the companies.
Thanks for watching this video.