Innovation Management Plan: Domino's Pizza Drone Delivery Project

This report provides a comprehensive analysis of Domino's Pizza's innovation management plan, specifically focusing on their proposed drone delivery system. The report begins with an executive summary highlighting the importance of innovation in the competitive business environment and the potential benefits of the drone delivery concept. It then delves into the introduction, emphasizing the company's history of innovation, including online ordering, live tracking, and heatwave technology. The core of the report examines the innovation, outlining the benefits of drone delivery, such as time-saving, premium services, and increased publicity. It explores the design of the drone delivery system, including the drone's capabilities and integration with existing technology. The report also addresses fast integration strategies, cost considerations, resource requirements, and the need for cross-functional management across various departments, including technology, finance, marketing, and HR. The conclusion summarizes the key findings and emphasizes the potential of the drone delivery system to enhance Domino's Pizza's corporate governance and customer service. The report is structured to provide a clear and concise overview of the proposed innovation and its implications for the company's future.

Running head: INNOVATIONS MANAGEMENT
Innovations Management
Name of the Student
Name of the University
Author notes:

1INNOVATIONS MANAGEMENT
Executive summary
It can be said that innovation is the key to success, sustainability and survival in the
competitive business environment. The companies that have been able to innovate in the
market have been subject to a high degree of success. Domino’s Pizza have been
incorporating innovation in their operation and has proposed an idea behind the creation an
idea that is characterised by delivery of pizza by the help of drones. The purpose of the paper
is to critically evaluate the benefits that the idea would have if brought into the market. The
design or the prototype, the resources requirements, costs associated and the time frame and
cross functional management required to effectively pitch the idea incorporating innovation
to in the market that the company is operating in.

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Table of Contents
Introduction................................................................................................................................3
Innovation..................................................................................................................................4
Design........................................................................................................................................7
Fast Integration.......................................................................................................................8
Cross functional management................................................................................................9
Conclusion..................................................................................................................................9
REFERENCES.........................................................................................................................11

3INNOVATIONS MANAGEMENT
Introduction
Innovation is the key to success in the modern business environment that is constantly
subject to change. The businesses who are able to adapt with advancement of time, are able to
gain acceptance from the consumer community in the market that they are operating in
(Ojasalo and Ojasalo 2015). Innovation is the use of ideas or technology that separates one
company from the others (Norman and Verganti 2014). It is the base on which the companies
in the modern business environment gain acceptance from the consumer community. There
are many companies that are carrying out innovation, regardless of the industry that they are
operating in. Domino’s Pizza is one of such companies who have been incorporating
innovation in their operations (Kahn 2018). Innovation is embedded deep into the heart of
operations of Domino’s. They are one of the first companies who commercialised live
tracking of the delivery, online ordering capabilities and they developed the ability to deliver
their pizza at every possible location. Hence, apart from the variations in the flavours of the
pizza that is loved by people across ages, it is the constant adaptation and innovation that is
the key reason for acceptance and appreciation that the company has been on the receiving
end of. It is one the main sources of competitive advantage for the company.
Apart from the latter, Domino’s has incorporated many other types of innovation.
Other hot topics of innovation of from the part of the company included the Domino’s
heatwave which is was designed by the company to keep the pizzas at oven temperature even
when they reached the doorstep of the customer, self-serving Domino’s delivery cars that was
named the Domino’s delivery expert. The cars that carried about 80 pizza arrived at the
parking spots from were the customers would take the pizzas. The latter was one the
receiving end of great deal of success as it combined both innovation and delivery along with
the fact that it was not dependent on delivery person’s who could be new to a location.

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Domino’s. Another noticeable innovation from the part of the company was when the
company installed one hundred fifty thousand hotspots in delivery locations. With the help of
the hotspots the company delivered convenience and flexibility to the consumer community.
The latter could now order pizza from any location, parks, beaches or anywhere outdoor
without the need of providing physical delivery locations. The aim of the company was to
provide comfort and convenience to the consumers.
Innovation
The aim of the company is to carry out the operations of the business with integrity.
The aim of the company is to carry out activities and operations’ in the organisation that
favour the organisation as a whole. The company realises importance in the integrity of
Corporate Governance (Phx.corporate-ir.net 2019). The company is committed to satiate the
needs of its diverse groups of stakeholder and thus attempts are constantly being made by the
company in terms of satisfying the existing stakeholders and attracting new stakeholders in
the form of business partners, investors and most importantly customers.
As a result of the commitment of the creative division of the company and the
company as a whole towards the welfare of the stakeholders, an innovative idea is being
proposed to the company. It is the aim of the company to provide convenience to the
customers who choose Domino’s over its competitors. Thus, it is the motive of the company
to provide convenience to the consumers and serve them as fast as possible. It has been the
prime objective of the company to serve the customers with hot piping pan worthy pizza and
they have been able to do so with the fast delivery systems that the company has been
incorporating over the years. Hence, the creations and innovations department of the
company have been researching methods to deliver the products directly to the consumers
(Bhosale and Deo 2018). As a result, the motives of the company, the company propounded

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an idea of delivering pizza’s through drones. Drones have been carrying camera for many
years now. Furthermore, the drones are capable of carrying high amount of weights. This will
help the company cater to the needs of the consumers faster. Moreover, it will be sight to
reckon when people will see drones carrying the pizza. Thus, perfect implementation of the
idea will help Domino’s serve its customer effectively and faster.
As mentioned earlier, it is the aim of the company to provide convenience to the
consumers who choose Domino’s over the competitors. Accordingly, the idea that has been
generated by the company will help the company in carrying out the same. Traditional
delivery personnel at dominos are fast, adept and good at their jobs. They are one of the key
stakeholders of the company and the revenue that is generated by the company depends on
the efficiency of the delivery personnel. However, it must be recognised that they are human
and ride on delivery bikes that can get caught in road jams and obstacles. The delivery of
pizza that has been suggested to take place with the help of drones can benefit the operations
of the company in the following ways;
i. Save time: By using the drones the delivery will be speeded up considerably. The aim
of the company bis to deliver the pizzas to the consumers at fastest possible speeds
and in best possible condition, thus, delivery through drones will help in increasing
the efficacy of the company in terms of serving the customers faster (Yeo, Goh and
Rezaei 2017). Unlike traditional delivery methods that are characterised by
commutation of the delivery agents through road which might come across obstacles,
same is not deemed to be experienced by the delivery that are supposed to take place
using drones as the medium of delivery will be air. The company has ben advertising
pizza delivery in 30 minutes or get the pizza for free. This service will introduce
delivery in 15 minutes or get the pizza for free which will supposedly generate a great
deal of interest from the customer community.

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ii. Premium services: Delivery that will take place with the help of drones will be
incorporated as a form of premium service were, the customers will have the privilege
of having their pizza flown to them in a short span of time. The prices that would be
charged for the faster delivery would be just $3. Thus, the customers would not have
to spend a great amount of cash for opting for the premium services that they will be
subject to.
iii. Publicity: Even though the company needs no second introduction, it can be said that
the company will be able to increase the levels of awareness of the company in areas
that were not possible before. Furthermore, the drones flying to reach the destination
will help in attracting the attention of the people below, which is supposed to generate
interests from the part of the people who witness the same. The company can
communicate their marketing information to the consumers and showcase the
innovation from their part that is likely to generate a buzz that will lead to inflow of
revenue.

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Design
The innovative design from the part of the company will be responsible for the
implementation of the plan that has been propounded. The design that will be implemented
by the company will include a drone that will have an attachment to Domino’s pizza
container that will contain 5 pizzas. According to the order number, the pizza will be ejected
from the container that will then be collected by the consumers at the nearest to them. The
technology that will be developed will have advanced sensors that will help it in detecting the
distance from obstacles. The point of exchange of the pizza will be triggered by the GPS of
the smartphone of the user.
Figure: Drone Pizza Delivery Concept
It will up to the company to ensure that the automated drones have the ability to reach
the locations that they are supposed to reach in the time promised by the company. The
reliance on GPS is one the verge of rise (Fridman et al. 2016). Thus, the innovation, will
implement the use of GPS that would have to be turned on from the mobile of the users who
wish to enjoy hot and delicious Domino’s Pizza at speeds like never before.

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Fast Integration
Time Food Prep: 5 min
+
Delivery: 10 min
Remarks
The services are promised at
fast at fast rates. Hence, the
order will be prioritised and
prepared at fast rates after
which the drones are sent off
for delivery.
Cost Charge of the Pizza and
sides
+
Premium price of $3.
(Cost of drones: 1000 per
piece at wholesale prices,
further reduction possible
with collaborations)
The drone delivery services
will take place with
additional $3dollar charge
for premium services apart
from the price of the pizza.
Price per drone at wholesale
prices would be around
$1000 each which can be
further reduced with the help
of collaborative
partnerships.
Resources Drone + Container + GPS +
proximity sensors.
The drone will be the prime
resource along with the
container for offering the
pizza along with GPS for
tracking and Proximity for
judging the distance.

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Prototypes similar to the idea which will be similar to the ones trialled in New Zealand.
Dominos, attempted to deliver pizza through drones with the help of a partnership with
Flirtey. Back then there were unavailability of drones that can be fly across greater distances,
at good speeds and carry heavier loads. The drones developed at sphere drones are capable of
doing the same (Spheredrones.com.au 2019).
Cross functional management
The idea that has been propounded by the company is a ground that the company
would need to carry out with the help of all the functional departments within the
organisation (Chang 2016). The aim of the company is to provide the best possible services to
the consumer community. It can be said that it is the assimilation of all the functional
departments in an organisation that leads to achievement and maintenance of smooth nature
of operations (Aime et al. 2014). Same applies for the case of the idea that has been
proposed. The technology and innovation department would monitor the operations of the
drone, the finance department would monitor the financial resources required for the
operations of the campaign and the drones. The marketing department would be responsible
for communicating the idea and the new facility that is being provided to the consumers of
Australia. Finally, the HR department will be responsible for hiring and recruitment of the
personnel who would fulfil the above-mentioned roles.
Conclusion
On a concluding note, it can be said that the innovative idea that has been
implemented by the company can lead the company towards the direction of achievement of
corporate governance. By carrying out the plan effectively, they company will be able to
contribute to the ultimate goal that is providing convenient services to the customers at the

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fastest rates possible. The method will help the company in serving the customers faster
while increasing their chances at generation of revenue and would possibly help in creation of
a buzz in the market that would be favourable for the operations of the company. However,
similar processes can be adopted by other companies in the fast food industry and that will
affect the operations of Domino’s.

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REFERENCES
Aime, F., Humphrey, S., DeRue, D.S. and Paul, J.B., 2014. The riddle of heterarchy: Power
transitions in cross-functional teams. Academy of Management Journal, 57(2), pp.327-352.
Bhosale, P. and Deo, S., 2018. An examination of the inventory management system at
Dominos.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Fridman, L., Weber, S., Greenstadt, R. and Kam, M., 2016. Active authentication on mobile
devices via stylometry, application usage, web browsing, and GPS location. IEEE Systems
Journal, 11(2), pp.513-521.
Kahn, K.B., 2018. Understanding innovation. Business Horizons, 61(3), pp.453-460.
Norman, D.A. and Verganti, R., 2014. Incremental and radical innovation: Design research
vs. technology and meaning change. Design issues, 30(1), pp.78-96.
Ojasalo, K. and Ojasalo, J., 2015. Adapting business model thinking to service logic: an
empirical study on developing a service design tool. The Nordic School, 309.
Phx.corporate-ir.net, 2019. Domino's Pizza - Investors - Corporate Governance. [online]
Phx.corporate-ir.net. Available at: http://phx.corporate-ir.net/phoenix.zhtml?
c=135383&p=irol-govhighlights [Accessed 23 May 2019].
Spheredrones.com.au, 2019. Drones for Sale in Australia | Buy Drone with Camera Online.
[online] Sphere. Available at: https://shop.spheredrones.com.au/?
gclid=CjwKCAjwiZnnBRBQEiwAcWKfYqDoeQw0vC-nP8upfXe-