Innovation and Business Development Report: Domino's, Pick Ingredients

This report examines the innovation and business development strategy for Domino's Pizza, focusing on the introduction of a mobile application that allows customers to 'Pick their Ingredients'. The report analyzes the benefits of this innovation, including increased customer satisfaction and the ability to cater to health-conscious consumers. It also identifies potential challenges such as competition and the need for effective digital marketing. The report includes a business model evaluation, SWOT analysis, and project options analysis, providing a comprehensive overview of the proposed mobile app strategy. The report also highlights the strategic responses Domino's should consider, such as addressing weaknesses and capitalizing on opportunities. This report, contributed by a student, is available on Desklib, a platform that provides AI-powered study tools for students.

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

1INNOVATION AND BUSINESS DEVELOPMENT
Table of Contents
Introduction................................................................................................................................2
Activity 2....................................................................................................................................2
Identification of Innovation....................................................................................................2
Activity 3....................................................................................................................................3
Activity 4....................................................................................................................................4
Activity 5....................................................................................................................................6
The Problem the Innovation can solve...................................................................................6
Benefits of the Innovation......................................................................................................7
Strategic Response or Plan.....................................................................................................7
Project Options Analysis........................................................................................................8
Delivery of Recommended Solutions..................................................................................15
Conclusion................................................................................................................................15
References................................................................................................................................16

2INNOVATION AND BUSINESS DEVELOPMENT
Introduction
Innovation and business development can be referred to as an immensely important
aspect, which every organization needs to consider. Companies are required to mitigate the
major issues in the businesses by taking the innovative approaches into consideration. These
innovative approaches are highly important for the overall development of the business in the
markets. In the words of Johnson (2016), innovation highly assists in developing the entire
market and this in turn, provides competitive advantages to the business itself. The report
throws light on the innovation and development model, which Domino’s Pizza Company can
adopt, in order to provide the best services to its target customers. The developed product,
which has been kept into focus, is the creation of mobile applications that will help the
customers choose their favorite item and select the ingredients which they want in their
foods, just by sitting at their homes. Mobile application ordering system is nothing new but in
this ‘Pick your Ingredients’ innovation strategy, the customers will be able to select the
ingredients they want to be in their food items, as per their health choices.
Activity 2
Identification of Innovation
It is immensely crucial for each organization to maintain the sustainability of the
business. If a business is not sustainable, it will not be able to gain credibility or trust within
their community. Thus, the innovation should be made by keeping into account the
sustainability of the business. The idea that is generated by Domino’s Pizza Company will
surely enable the business to maintain its sustainability. The idea of introducing mobile
applications order for food can surely assist the company in grabbing the attention of the
most number of customers. Moreover, now a day, individuals are becoming extremely health

3INNOVATION AND BUSINESS DEVELOPMENT
conscious and therefore, keeping this into consideration, Domino’s Pizza Company can
implement the strategy of ‘Pick your Ingredients’. The way in which the customers, order
their food from Domino’s can be changed, if this innovation is introduced (Dominos.co.in,
2018).
The uniqueness of the mobile application food ordering system can be utilized by the
customers and order their favorite items from any part of the region. They can choose their
favorite foods or beverages without waiting or standing in the queue for hours. Moreover,
they can pick their own ingredients, depending on their healthy choices. This will help the
consumers in identifying their favorite items, which is suitable for them (Tukker et al., 2017).
Therefore, Domino’s Pizza Company has emphasized their focus upon the customers’
satisfaction level and developed this mobile application ‘Pick your Ingredients’ system,
which can be utilized by the customers anytime, anywhere.
The new idea generated by the Domino’s Pizza Company can assist in their
continuous development. The basis of innovative strategy is the customers’ needs and in a
manner in which these constraints can get solved. One of the major constraints is that the
mobile applications can only be downloaded in smartphones. Therefore, those who do not
have a mobile phone, with high specifications have to visit the physical stores in order to grab
their orders. There is a method of ordering foods via calling, but it takes much time. Thus, for
instant delivery of foods and beverages, the customers may only have to rely on the fast food
ordering mobile application (Wirtz et al., 2016). Hence, this can be considered as an external
factor, which might affect the business. Domino’s Pizza needs to undertake some measures in
order to continue with their product development procedure.

4INNOVATION AND BUSINESS DEVELOPMENT
Activity 3
The innovation identified is the introduction of ‘Pick your Ingredients’ mobile food
delivery systems for the target customers. It will benefit them to a huge extent as the
customers can order healthy food anytime and anywhere, without waiting. In today’s fast
food industry, the connected information technologies have found its right place. Moreover,
our society is becoming extremely health conscious these days and thus, the strategy would
be the perfect one for the company. The Domino’s Pizza Company needs to undertake the
mobile food application ‘Pick your Ingredients’ services into consideration, which will also
improve their procedures of management. This will also assist in gaining a feedback
regarding their food quality and customer care services, as the customers will also be able to
rate the application, as per their choice (França et al., 2017).
In addition to this, if this application is launched by the company, it will enable them
in gaining an understanding regarding customer satisfaction, monitoring as well as food
safety. Moreover, the customers will be able to give their valuable feedback over the
application itself, regarding the services they will receive (Jolink & Niesten, 2015). This will
help the company in gaining an overview of the customers’ satisfaction level and thus,
improve those on the basis of their demands or desires. The Domino’s Company has always
thought about the convenience of their customers. It has been the first pizza company to offer
home delivery services in Australia (Charles Jr, Schmidheiny & Watts, 2017). They have
worked all through its way to offer value added services to its target customers, with the
usage of innovative technology.
However, the company can take the phone application method for healthy food
ordering services into consideration. It will benefit the company to a large extent. Moreover,
with the phone application, the customers can also track their food and get an estimation of
how much time it will take to deliver the order (Elg et al., 2015). In addition to this,

5INNOVATION AND BUSINESS DEVELOPMENT
Domino’s is committed to be at the forefront of innovation in the information technologies.
The way information technology is evolving and the direction in which it is moving shows
that they are ready to come up with other innovative ideas taking the innovative technology
into consideration (Souto, 2015). Therefore, mobile application ‘Pick your Ingredients’
ordering system would not be a bad idea for the company.
Activity 4
Evaluation of the business models;
Key Partners
The partners of the
organization would
be different
advertisers,
investors, marketers,
engineering and
software companies,
manufacturers and
other sponsors.
Key Activities
The company will be
conducting a research
for the development of
their services. This
particular application
will be targeted
towards the
smartphone users. The
consumer services can
be developed by
identifying the needs
or demands of the
customers. The
sources of revenue are
the profit generated
from the services.
Value Proposition
The product will help
the customers to order
their favourite items
anytime and
anywhere. Introducing
a new menu for the
online orders.
Moreover, the
company can adopt
competitive pricing
strategies. In addition
to this, it will also
increase consumer
loyalty of the brand
itself, since the launch
of the application.
Furthermore, broader
range of promotional
activities must be done
in order to gain the
most number of
consumers’ attention.
Customer
Relationships
The interaction with
the target customers
will be done in a
direct manner
through the help of
the application. In
addition to this,
personalization and
identification of the
customers,
segmenting them on
the basis of their
choices for
enhancing their
satisfaction level.
.
Customer Segments
The application will be
catering to the needs as
well as demands of
different consumers who
hate waiting for food.
Individuals belonging to
the age group of 20-60
will also be targeted for
the promotion of this
product. The main targets
would be the households
and loyal customers of
Domino’s.
.
Key Resources
The use of latest and
innovative
technologies will help
the company in
developing more
Channels
Usage of B2B
businesses and social
media platforms. The
use of print,
electronic and online
Investments required
The company will be
promoting its product
everywhere in the region.
Therefore, significant
investments will be done

6INNOVATION AND BUSINESS DEVELOPMENT
mobile applications
and more profits can
be generated, in this
manner. Moreover, the
company needs to
ensure that the
technology is available
in the market. In
addition to this, the
company’s brand
image is its key
resource.
media will also be
done in order to grab
the attention of the
most number of
smartphone users. In
addition to this,
promotional
activities must also
be carried out in the
company’s official
websites, social
networking sites like
Facebook, Instagram
and Twitter.
for paid publicity.
Cost Structure
Purchasing the software.
Research and development.
Employees’ salaries and compensation.
Innovation programs.
Design and manufacturing.
Infrastructure and technology.
Facilities, distribution and marketing.
Revenue Streams
Contracts and orders.
Service fees and equipment sales.
Promotion of the application.
Contribution from target customers.
Licensing.
Activity 5
The Problem the Innovation can solve
The innovation can bring in lot of changes for the Domino’s Pizza Company. The
major challenges that the company may face in adopting the online order application for its
target customers are finding the right items to sell, attracting the target customers, generating
targeted traffic and others (Angelidou & Psaltoglou, 2017). Firstly, the company needs to
introduce a new healthier menu exclusively for the online orders. Moreover, the company
should decide on maximum distance, the food can be delivered. In addition to this, delivering

7INNOVATION AND BUSINESS DEVELOPMENT
beverages can prove to be a challenge for the company and thus, the company needs to take
these factors into consideration and take necessary steps (Clauss, 2017). The quality of the
food or beverages should never be compromised. Secondly, the company should also identify
the right customers, who are healthy conscious, tech savvy and frequently order food online.
Thirdly, the company should also remember that the digital marketing channels are evolving
on a daily basis. The company should effectively leverage the Search Engine Optimization,
email, display advertisements, mobile applications and online shopping engines in order to
help drive the qualified traffic into the online application (Halme & Korpela, 2014).
Benefits of the Innovation
The company can gain several benefits from this innovation and one of the major
benefits is that the customers can order their food anytime, which will enhance their level of
satisfaction. Moreover, this will improve the business ideas for the upcoming future. Now a
day, individuals are becoming tech-savvy and health conscious. They prefer ordering food
over preparing it or waiting in the queue for it (Schaltegger, Lüdeke-Freund & Hansen,
2016). The company will get highly benefitted if it undertakes this strategy; however, the
quality of the food and beverages should be taken under consideration (Alvedalen &
Boschma, 2017). At the same time, the abilities of the company can also be identified and
analyzed, which can develop itself into the markets. The customers’ demands can be fulfilled
by strengthening their current capabilities as well as ensuring the consistency of the
workforce (Clark et al., 2016). In addition to this, the company will also be able to measure
the customers’ loyalty.
Strategic Response or Plan
The strategic responses that the Domino’s Company is required to formulate are to
identify the features, which cannot be implemented within the mobile application services. A
SWOT analysis is being provided for further responses;

8INNOVATION AND BUSINESS DEVELOPMENT
Strengths
 This will assist the company by
enhancing their satisfaction level.
 Smart and innovative technologies.
 This will assist the company in
generating revenues.
Weaknesses
 Financial factor will come into play.
 High marketing and promotional
strategies.
 Hiring new employees for this
segment may add up to the additional
costs or expenses for the company.
Opportunities
 There are opportunities of gaining
huge profitability.
 Customers love home delivery
services.
 Proper understanding of the customer
demands or desires can help the
company reach heights.
Threats
 Existing competitors who have
already dominated the market.
 Lack of abilities of convincing the
older section of the communities, who
are not so technologically sound.
(Table: SWOT Analysis
Source: Created by Author)
Project Options Analysis
The financial analysis is done on the basis of the new plan being introduced. The
company can open a new office for managing this department and therefore, the financial
plan is being done on the basis of that.
Summary Statement

9INNOVATION AND BUSINESS DEVELOPMENT
Sources of Capital
Owners' and Other Investments
$
6,027,500
Bank Loans
5,
000
Other Loans
90,
000
Total Source of Funds
$
6,122,500
Startup Expenses
Bldgs / Real Estate
$
35,500
Leasehold Improvements
7,
750
Capital Equipment
36,
000
Location / Admin Expenses
24,
500
Opening Inventory

10INNOVATION AND BUSINESS DEVELOPMENT
-
Advertising / Promo Expenses
18,
000
Other Expenses
50,
000
Total Startup Expenses
$
12,416,750
Startup Expenses
Buildings / Real Estate
Purchase
$
15,000
Construction 18,000
Remodeling 500
Other 2,000

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Total Buildings and R / E
$
35,500
Leasehold Improvements
Item 1
$
3,000
Item 2
$
2,000
Item 3
$
1,500
Item 4
$
1,250
Total L / H Improvements
$
7,750
Capital Equipment List
Furniture
$
1,500
Equipment
$
12,000
Fixtures $