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Identification of Innovation

Discuss about the Investigation of Social Innovation Initiatives.

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.

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 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 (, 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.

Evaluation of the Business Models

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.

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, 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.

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 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.


Usage of B2B businesses and social media platforms. The use of print, electronic and online 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.

Investments required

The company will be promoting its product everywhere in the region. Therefore, significant investments will be done 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.


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 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).

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.

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;Strengths

·         This will assist the company by enhancing their satisfaction level.

·         Smart and innovative technologies.

·         This will assist the company in generating revenues.


·         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.


·         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.


·         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)

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

Sources of Capital

Owners' and Other Investments

 $   6,027,500

Bank Loans


Other Loans


Total Source of Funds

 $   6,122,500

Startup Expenses

Bldgs / Real Estate

 $         35,500

Leasehold Improvements


Capital Equipment


Location / Admin Expenses


Opening Inventory


Advertising / Promo Expenses


Other Expenses


Total Startup Expenses

 $ 12,416,750

Startup Expenses

Buildings / Real Estate


 $                       15,000







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


 $                         1,500


 $                       12,000


 $                       20,000


 $                         2,500


 $                                  -

Total Capital Equipment

 $                       36,000

Location and Admin Expenses


 $                                  -

Utility Deposits


Legal and Accounting Fees


Prepaid Insurance


Pre-opening Salaries




Total Location and Admin Expenses

 $                       24,500

Opening Inventory

Category 1

 $                         6,500

Category 2

 $                         6,500

Category 3

 $                         1,500

Category 4

 $                         1,500

Category 5

 $                         6,500

Total Inventory

 $                       22,500

Advertising and Promotional Expenses


 $                         6,500


 $                         6,500


 $                         2,500

Travel & Entertainment

 $                         2,500

Other / Additional categories


Total Adv and Promo expenses

 $                       18,000

Payroll and payroll taxes

Expense 1

 $                       25,000

Expense 2


Total Payroll and payroll taxes

 $                       50,000

(Table: Budget Plan

Source: Created by Author)

The innovation will benefit the business to a huge extent. Moreover, proper deliverability of the services is required to be done by taking help from social networking sites. In addition to this, proper promotional strategies should be undertaken in order to inform the customers regarding the company’s new step. In this manner, the company will attain customer satisfaction level and thus, increasing the brand value.


To conclude, Domino’s Pizza Company can get highly benefitted by introducing the innovation within their organizational strategies. The report highlights the strengths, weaknesses, opportunities and threats of the innovation that is being introduced. The innovation procedure will help Domino’s in satisfying their target customers, ensuring that they get appropriate exposure on implementing the technological changes within the company. Moreover, it will assist in enhancing or improving the production of the companies and increases their satisfaction level. The changes within the company and their adoption of the mobile application of picking the ingredients will benefit Domino’s in solving any problem related to their services.


Alvedalen, J., & Boschma, R. (2017). A critical review of entrepreneurial ecosystems research: towards a future research agenda. European Planning Studies, 25(6), 887-903.

Angelidou, M., & Psaltoglou, A. (2017). An empirical investigation of social innovation initiatives for sustainable urban development. Sustainable cities and society, 33, 113-125.

Charles Jr, O. H., Schmidheiny, S., & Watts, P. (2017). Walking the talk: The business case for sustainable development. Routledge.

Clark, W. C., van Kerkhoff, L., Lebel, L., & Gallopin, G. C. (2016). Crafting usable knowledge for sustainable development. Proceedings of the National Academy of Sciences, 113(17), 4570-4578.

Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D management, 47(3), 385-403. (2018). Retrieved from

Elg, M., Ellström, P. E., Klofsten, M., & Tillmar, M. (Eds.). (2015). Sustainable development in organizations: studies on innovative practices. Edward Elgar Publishing.

França, C. L., Broman, G., Robèrt, K. H., Basile, G., & Trygg, L. (2017). An approach to business model innovation and design for strategic sustainable development. Journal of Cleaner Production, 140, 155-166.

Halme, M., & Korpela, M. (2014). Responsible innovation toward sustainable development in small and medium?sized enterprises: a resource perspective. Business Strategy and the Environment, 23(8), 547-566.

Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.

Jolink, A., & Niesten, E. (2015). Sustainable development and business models of entrepreneurs in the organic food industry. Business Strategy and the Environment, 24(6), 386-401.

Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business models for sustainability: A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation. Organization & Environment, 29(3), 264-289.

Souto, J. E. (2015). Business model innovation and business concept innovation as the context of incremental innovation and radical innovation. Tourism management, 51, 142-155.

Tukker, A., Charter, M., Vezzoli, C., Stø, E., & Andersen, M. M. (Eds.). (2017). System innovation for sustainability 1: Perspectives on radical changes to sustainable consumption and production. Routledge.

Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, development and future research perspectives. Long Range Planning, 49(1), 36-54.

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