Innovation and Sustainable Business Development for Dominos Pizza

This report provides a comprehensive analysis of innovation and sustainable business development strategies for Dominos Pizza in Australia, with a specific focus on the potential implementation of drone delivery systems. The report begins by defining the problem, which centers around enhancing customer satisfaction and gaining a competitive advantage in the market. It explores the benefits of drone delivery, including improved efficiency and reduced delivery times, and considers the importance of these benefits to the government. The report then delves into strategic options, recommending specific approaches to overcome challenges such as technical and financial support. It further analyzes project options, assessing stakeholder impacts, including social, environmental, and economic factors, and providing a financial and risk comparison. The report concludes by evaluating the deliverability of the recommended solution, emphasizing its commercial, financial, and management aspects, and highlighting the potential for Dominos Pizza to enhance its operations and customer satisfaction through innovative delivery methods. The report is structured in five parts, addressing the problem, benefits, strategic response, project options analysis, and deliverability of the recommended solution. Appendices are also included with relevant additional information.

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Innovation and Sustainable Business Development
Name of the Student
Name of the University
Author note

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Table of Contents
Part 1: Problem...........................................................................................................................3
1.1 Background of the problem..............................................................................................3
1.2 Definition of the problem.................................................................................................3
1.3 Evidence of the problem...................................................................................................4
1.4 Timing considerations......................................................................................................4
1.5 Consideration of the broader context...............................................................................5
Part 2: Benefits...........................................................................................................................5
2.1 Benefits to be delivered....................................................................................................5
2.2 Importance of benefits to the government........................................................................5
2.3 Evidence of benefit delivery.............................................................................................6
2.4 Interdependence................................................................................................................6
Part 3: Strategic response...........................................................................................................6
3.1 Method and criteria...........................................................................................................6
3.2 Strategic options analysis.................................................................................................6
3.3 Recommended strategic options.......................................................................................7
Part 4 Project options analysis...................................................................................................7
4.1 Project options considered................................................................................................7
4.2 Stakeholder identification and consultation.....................................................................7
4.3 Social impacts...................................................................................................................8
4.4 Environmental impacts.....................................................................................................8

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
4.5 Economic impacts............................................................................................................8
4.6 Overall evaluations of socio-economic and environmental impacts................................8
4.7 Financial analysis.............................................................................................................9
4.8 Risk Comparison..............................................................................................................9
4.9 Integrated analysis and options ranking.........................................................................10
Part 5: Deliverability of recommended solution......................................................................11
5.1 Details of recommended solution...................................................................................11
5.2 Commercial and financial...............................................................................................11
5.3. Management..................................................................................................................11
5.4 Delivery..........................................................................................................................12
Bibliography.............................................................................................................................13
Appendices...............................................................................................................................16
Appendix A..........................................................................................................................16
Appendix B...........................................................................................................................17
Appendix C...........................................................................................................................18

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Part 1: Problem
1.1 Background of the problem
Dominos Pizza is one of the largest pizza chain restaurants in the world and is popular
in every country. In Australia, the company is the largest pizza-selling restaurant and holds
more than 1900 stores in the country (Dominos.com.au, 2018). The biggest achievement of
the company was attained in 2005, a year in which Domino’s Pizza was listed publicly in the
market. Therefore, it is necessary that the company assist the customers in terms of gaining
competitive advantage in the market. Hence, the adoption of innovative technologies can help
Dominos Pizza to continue with its dominance in the market. The adoption of drone system
for the delivery of the pizza can help Dominos Pizza to increase the satisfaction of the
customers. The company can ensure that the drones reach the intended target with the food
product and help in increasing the profitability of the company. However, the problems with
the drone are that it requires excessive financial support from the investors and technical
support so that it can implement its business in the market.
1.2 Definition of the problem
As customer satisfaction is the key to success in business, it is necessary that every
organisation undertake innovative tactics. In the case of Dominos Pizza, the innovative tactics
applied by the company includes adopting a drone system for the delivery of the products.
The idea can help Dominos Pizza to reach the customers in an effective manner and ensure
that the satisfaction of the customers in terms of delivery of services is attained. However, the
problem that may be attained is gaining the technical support and financial support from the
investors. Dominos Pizza is one of the biggest pizza chains in the world and in Australia.
Therefore, the related problem can be solved with effective use of techniques to meet the
needs of the customers. Other problem that may be faced by the company is the support from

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
the Government. It is necessary that the application of the drone get proper support from the
Government (Johnson, 2016). This can help in maintaining the legality of the business and
ensure that the drone can be implemented for future purpose of the organisation as well.
1.3 Evidence of the problem
Due to innovative ideas being implemented in the organisations, it is necessary to
understand the materialistic problems that are faced within the departments. The evidence of
the problems related to the application of the drone is that the challenges of the management
concerns identifying the proper technical expertise related to the drone. This includes gaining
proper innovative ideas for the application of the drone (Newman, Wachter & White, 2018).
The management of Dominos Pizza need to ensure that ideas collected from various sources
such as introducing benchmark can help in identifying the problems related to the production
of the drone system of delivering pizza.
1.4 Timing considerations
To implement innovative ideas in the market, it is necessary that the managers of
every business organisations find a proper time to implement the innovative tactics. As
observed by Grobbelaar, Gwynne-Evans and Brent (2016) it is necessary that the innovative
ideas are created in a manner that can have a positive impact on the organisations. Therefore,
gaining proper time for the development of the project is necessary for every organisation. In
the case of Dominos Pizza, the organisation needs to take the best interest of the customers
and of the people into account. This can help it performing the designs in an effective manner
so that it can benefit the customers. Hence, it can be said that the time considerations need to
take into account factors such as popularity of the drone system in the market and the future
possibilities it may have for attaining longevity.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
1.5 Consideration of the broader context
Various business organisations can assist Dominos Pizza so that they can be
transparent as well as realise the mediator in the MIT. The manager of Dominos Pizza can
launch the drone system so that new innovative ways of delivering pizza can be generated
and a platform can be launched for the effective promotion of the idea. The workforce related
with Dominos Pizza can be materialised so that the interest of the company can be taken into
account.
Part 2: Benefits
2.1 Benefits to be delivered
The benefits that can be delivered by the introduction of the drone system are that
deliverymen do not have to be stuck in traffic and customer satisfaction can be attained
proficiently. The technical prowess of the company can improve and Dominos Pizza can
continue to be the leading pizza delivery service in the country. Thereby, a competitive edge
can be attained over the rivals.
2.2 Importance of benefits to the government
The drone system can provide ideas to the Government to implement it in the sector.
The industries can have significant changes and due to this, the economic condition of the
country can improve. A major boost in the economy of the country can be gained as the drone
system can be used in every business sector for various purposes. For example, the drone
system can be used for monitoring the city or monitoring work of the employees in the
manufacturing sector.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
2.3 Evidence of benefit delivery
The benefit of the application of the drone is that it does not have to be stuck in traffic
and can be used to using a remote control. In the case of shortage of delivery staff members,
technical people in the organisation can use the drone to provide effective service to the
customers. The launching of the drone can help Dominos Pizza to influence the customers
and promote a new trend in the technical aspect of the market.
2.4 Interdependence
The interdependence of the application of the drone system is that it can help in
improving the financial condition of the company. Dominos Pizza can rely on the investors
so that they can gain the required resources necessary for the development of the drone
system in an effective manner. This can help the company to remain creative.
Part 3: Strategic response
3.1 Method and criteria
Dominos Pizza need to gather new ideas that can be implemented to improve the
drone. For example, a speaker within the device can help the customer interact with the
company while the delivery is made. This can help Dominos Pizza to remain competitive in
the business environment.
3.2 Strategic options analysis
 Emphasis need to be provided to hire employees with the skills required to be creative
and at the same time remain professional at the work place
 Dominos Pizza need to maintain the rules and regulations of the Federal Government
of Australia so that every rule related to the management of the organisations can be
maintained

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
 The leaders and managers of Dominos Pizza need to check the ideas that are being
implemented by the employees in the organisation
3.3 Recommended strategic options
 The Government of Australia can provide Dominos Pizza with the necessary aid
based on legal or financial so that the company can maintain its authority in the
market
 It is the duty of the directors of Dominos Pizza to intervene during any time of the
delivery process. Information need to be gathered and implemented so that innovative
delivery methods can be adopted
Part 4 Project options analysis
4.1 Project options considered
 It is important for the leaders and managers of Dominos Pizza to remain involved in
the research and development of the drone. At the same time, involvement of the
stakeholders is also required.
 Abiding by the rules and regulations of the Government of Australia so that legality of
the process can be maintained
 For a successful project it is necessary to have a proper financial as well as human
resource strength so that creativity can be imposed
4.2 Stakeholder identification and consultation
The stakeholders of Dominos Pizza include the customers and investors. The
innovation of the drone requires proper financial support from the investors so that it can be
developed and implemented directly for the profitability of the organisations. The support

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
provided by the customers of the company can also benefit in the advancement of the
company.
4.3 Social impacts
The adoption of the drone system can help in enhancing the effectiveness of Dominos
Pizza. The effective analysis of the social events along with the employees can help the
company to gain a significant recognition in the business market. It can help Dominos Pizza
to improve its profitability in the business and ensure that the economy of Australia can also
be benefitted. The economy of the country can gain direct benefit from the social
responsibilities such as providing employment to the technically experienced people.
4.4 Environmental impacts
 The drone service need to be pollution free so that the environment can be kept safe
 The manufactures of the drone can use eco-friendly fuels and equipments for the
manufacturing of the innovative product
4.5 Economic impacts
 The adoption of the drone system of pizza delivery can help in improving the
economic condition of the country.
 Profitability of the company can improve which can be beneficial for the popularity of
the company
4.6 Overall evaluations of socio-economic and environmental impacts
After analysing, the facts provided in the early stage of the discussion it can be said
that the application of the drone system for delivering pizza can help in improving the
business of Dominos Pizza as well as improve the technical expertise in the country
significantly.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
4.7 Financial analysis
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 200000 200000 200000 200000 125000
Benefit 2 150000 150000 150000 150000 150000
Benefit 3 85500 85500 85500 85500 85500
Total Benefits (mid-year) $435,500 $435,500 $435,500 $435,500 $360,500
Present Value of Benefits (mid-yr) $419,060 $388,019 $359,276 $332,663 $254,975
Present Value of Benefits $1,753,994
Cost 1 -$10,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$18,000 -$18,000 -$18,000 -$18,000 -$18,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Total Capital Costs $0
Total Whole of Life Costs -$235,000
Present Value of Costs (mid-year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs -$194,357
Net Cash Flows $392,500 $387,500 $387,500 $387,500 $312,500
Net Present Value (by year) $377,683 $345,252 $319,678 $295,998 $221,026
Cumulative NPV $377,683 $722,935 $1,042,613 $1,338,611 $1,559,637
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.419$ 0.388$ 0.359$ 0.333$ 0.255$
Present Value of Costs ($million) 0.041-$ 0.043-$ 0.040-$ 0.037-$ 0.034-$
Cumulative Net Present Value ($million) 0.378$ 0.723$ 1.043$ 1.339$ 1.560$
4.8 Risk Comparison
Risk Management
Financial risk The financial risk involved can be making a
proper budget and taking care of the
expenses. The financial manager is
responsible for overlooking this department
Threat from competitors Analyse strategies of competitors and change

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
in accordance with the requirement of the
market
Table: Risk management
(Source: Created by author)
4.9 Integrated analysis and options ranking
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 200000 200000 200000 200000 125000
Benefit 2 150000 150000 150000 150000 150000
Benefit 3 85500 85500 85500 85500 85500
Total Benefits (mid-year) $435,500 $435,500 $435,500 $435,500 $360,500
Present Value of Benefits (mid-yr) $419,060 $388,019 $359,276 $332,663 $254,975
Present Value of Benefits $1,753,994
Cost 1 -$10,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$18,000 -$18,000 -$18,000 -$18,000 -$18,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Total Capital Costs $0
Total Whole of Life Costs -$235,000
Present Value of Costs (mid-year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs -$194,357
Net Cash Flows $392,500 $387,500 $387,500 $387,500 $312,500
Net Present Value (by year) $377,683 $345,252 $319,678 $295,998 $221,026
Cumulative NPV $377,683 $722,935 $1,042,613 $1,338,611 $1,559,637
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.419$ 0.388$ 0.359$ 0.333$ 0.255$
Present Value of Costs ($million) 0.041-$ 0.043-$ 0.040-$ 0.037-$ 0.034-$
Cumulative Net Present Value ($million) 0.378$ 0.723$ 1.043$ 1.339$ 1.560$

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Part 5: Deliverability of recommended solution
5.1 Details of recommended solution
The adoption of the drone system of delivery can bring about huge changes in the
business of Dominos. The company can increase its fan base and ensure that the people trust
the company in delivering the food on time. It can help in simplifying the challenges that are
faced by the deliverymen such as traffic or unfavourable weather. Therefore, the innovative
idea can be beneficial for improving the operations of the organisation.
5.2 Commercial and financial
 The management involved with Dominos Pizza can improve the services with the
help of the drone. Every customer ordering pizza from home can get the required
satisfaction so that customised aspects can be incorporated and a 24-hour service can
be provided to every customer.
 At the same time, numerous strategies such as marketing segmentation, technical
advancement and improving the resources of the organisation can be attained so that
the target customers can be reached by using the marketing platform.
5.3. Management
 The board of directors of Dominos Pizza need to ensure that the operations of the
organisation remain intact. This can provide the company with an opportunity to
improve its delivery services and provide delivery of products.
 The management can promote the use of drone so that the customers can use the
information provided regarding the drone. A test run can be conducted in nearby areas
so that the managers can identify the changes required in the innovative process.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
5.4 Delivery
 Every department of the organisation need to have strict performance measurement
tools so that the results of application of the application of the drone can be tested.
 To ensure that the application of the drone system is implemented properly it is
necessary that Dominos Pizza abide by the rules set out by the Federal Government of
Australia. The rules related to providing services and using technical expertise need to
be followed.
 The managers need to formulate an organised framework that can help the project
undertaken by the company to gain proper exposure.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendices
Appendix A
1 2 3 4 5
-$2
$0
$2 Cost Benefit Analysis: Option 1
Present Value of Benefits ($million)
Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Todays Dollars ($ millions)

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix B
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 200000 200000 200000 200000 125000
Benefit 2 150000 150000 150000 150000 150000
Benefit 3 85500 85500 85500 85500 85500
Total Benefits (mid-year) $435,500 $435,500 $435,500 $435,500 $360,500
Present Value of Benefits (mid-yr) $419,060 $388,019 $359,276 $332,663 $254,975
Present Value of Benefits $1,753,994
Cost 1 -$10,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$18,000 -$18,000 -$18,000 -$18,000 -$18,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Total Capital Costs $0
Total Whole of Life Costs -$235,000
Present Value of Costs (mid-year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs -$194,357
Net Cash Flows $392,500 $387,500 $387,500 $387,500 $312,500
Net Present Value (by year) $377,683 $345,252 $319,678 $295,998 $221,026
Cumulative NPV $377,683 $722,935 $1,042,613 $1,338,611 $1,559,637
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.419$ 0.388$ 0.359$ 0.333$ 0.255$
Present Value of Costs ($million) 0.041-$ 0.043-$ 0.040-$ 0.037-$ 0.034-$
Cumulative Net Present Value ($million) 0.378$ 0.723$ 1.043$ 1.339$ 1.560$

18
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix C
Investment title:
Agency:
Y/N
Is the need clearly established (e.g. investment concept brief)?
Are the links to government policy(ies) and contributions explicit?
Is there a clear statement of the service benefits and project scope
and are future implications noted?
Are cost estimates provided for capital and operational phases?
Have cost and risk estimators signed off on the adequacy of their
work?
Is the project budget including the base cost estimate, risk
assessment, base risk allocation and contingency adequate?
Do cost and benefit estimates and analyses show value for money?
Are the project deliverables clearly stated?
Is a benefit management or evaluation plan included?
Are risk management processes in place and assumptions stated?
Does the proposal assess the project schedule and readiness
(including market appetite)?
Are governance structures identified?
Are stakeholder interfaces detailed?
Are regulatory requirements identified?
Is the project High Value/High Risk?
Have Gateway reviews been undertaken? Gate 1
Gate 2
This model checklist is designed for the project proponent’s endorsement.
Prepared by: ……………………………………………..…… Date:
…………………
Approved by: ……………………………………………..…… Date:
…………………
……………………………………………...
…………………………………………………….
(Name of approving officer or delegate) (Title)
Secretary: ……………………………………………..…… Date: …………………