The Significance Of Business Model And Disruptive Technology For Organizational Development

Understanding the Business Model

Discuss about the Business Model and Disruption Caused In The Domino’s Pizza Restaurant Of Australia.

There is a significance to build a strong management and base of the organization in a market with the involvement of the efficient managers for the organizational development. Business models are sustainable in nature to the business and with time disruption in innovation causes the business model to be used necessarily. The essay will highlight a small literature review of the business model with the presence of opportunities and the challenges that needs to be evaluated. The essay will show the disruption caused in the Domino’s Pizza restaurant of Australia (Mail Online, 2018). There is a business model reviewed in the essay framed by Osterwalder and Pigneur. The business model was created to grab the customer value and create the same. The business perspective is also showed in the essay including value proposition, capabilities and resources, system of processes and profit formula. It will also show the significance of the business model in future of the business.

The business model is a basic concept that is created in a business to create value for the customers and in turn to grab value for the customers. The product or service delivered by the organization is the way a company delivers its value to the customers. The organization that follow a competitive business model gains the maximum competition in the market from its rival. There is severe need of the business model and change in it due to the upcoming pace of the technological innovation in business (De Jong & van Dijk, 2015). A business model states the process or methods that should be owned by the organization or the business to generate profit and maximize it. It considers the expenses incurred or the decisions related to business and its types of products or service.

The business considers strategies related to marketing, future projections of the expenses and the revenue and its existing competitors. Many a times, several businesses fails with such basic decision making which results into market failure in the industry. There are several types of business models that are considered by different business.

While on the other part, the term disruption is a focus of the essay where it states that it means the concept of the model becomes outdated. in simple words, the disruption is using the existing innovation and enhancing it with much of the effort of the organization. The innovation is associated with the products and services that is created by the organization to earn value from the customers. It creates a unique point of selling the brand either by its service or by creating a product. These includes smart connected products that increase competition among the market (Porter & Heppelmann, 2014).

The business model with adding disruptive advancement in the technology of the organization simply makes the opportunities widen up and improve and grow more. Disruptive technology provides the organization with efficiency in its operations and performance of the business. To ensure some of the opportunities for the organization can be considered as:

• The Domino’s made it easy for the customers to order and keep track over their orders with their mobile. It results into grabbing the attention of the customers and creating value among them.
• The newly launched robot for the purpose of delivery named as Domino’s Robotic unit is an attention seeker for the customers and world’s first delivery vehicle.
• The planning of the delivery to the customer of Domino’s through a remote controlled copter is way more innovative and exciting for the customers. Some or the other it widens the opportunity for the company to look over and utilize disruptive technology in the innovation.
• These interesting ways to make the delivery to the customers are promoted in terms to serve them more efficiently and in a safer way.

Disruptive Technology and its Impact on the Business Model

The opportunities are the safer side after the implication of disruptive innovation. However, along with the opportunities there comes various threats as well to the organization such as:

• The first significant challenge that stands with the advancement in the technology for Domino’s was financial factor. The high technology was being used by the company to respond to its customers in an interesting way but investments were high.
• Smart products such as smart watches for fast order placing facility, GPS trackers and delivery robots and copters would require a huge capital to indulge and earn competitive advantage.
• The strategic implications are another such challenge that is faced by the organization in while implementing its new technology in its operations.
• Another such challenge would be to replace its most of the employees with the new technology. For example, delivery boys would be replaced with delivery copters.

Business model Canvas is also known as the model of Osterwalder and Pigneur (Christensen, Raynor  & McDonald, 2016). It is an helpful tool that helps the organization to understand the gathered knowledge about the business and the structure of the company.

There are different aspects of the business model canvas. A business model enhances the capabilities and resources of the organization. The first level of the business that the organization has to understand according to the market trends and the needs of the customers are the essential aspect of the business model that helps to generate revenues and value (Mellor, Hao  & Zhang, 2014). The current position and the demand of the organization will let to determine the strategies to develop their resources to align with their productivity. Therefore, it is necessary to recognize the upcoming perspective of the Business Model Canvas for the improvement of the company.

System Processes is another important factor that relies upon the organization’s Business Model Canvas. This factor defines the proper operating and manufacturing process of the business for its proper development system. This helps the company to determine its gaps that are lacking in the long run to achieve its success.

Based on the objective of the organization it c neb seen that the planning of the financial growth is important as it asserts the expenses and the revenues that are to be adjusted to take out the final result. Shareholders are the important part of the company to ensure its growth and sales on the global basis.

It is not possible to estimate or predict the future happenings and the holdings regarding business. Emerging importance of business models are possibly to concentrate on the various groups. Business models have two or more markets simultaneously with respect to their nature and each of the business operating uses different kind of business model (Joyce & Paquin, 2016). With time and trend the importance on the segment of pursuing excellence is being focused with the continuous development of innovation and rapid international growth. Market creation by a business model often requires a long time to develop the efficiency in the performance. It is also known that to build a new business model it would require additional amount of capital. The business model provides with a complete understanding of the all the factors in the form of a blueprint that helps the organization to create value with their product or service. From technology to demography, everything matters and counts significantly and for this purpose the appraisal of value proposition, value creation and capturing the value makes up the essence to thrive into new opportunities (Tongur & Engwall, 2014). The business model creates an understanding of the potential of the business model in the coming future. In addition, business model helps to learn many things in different stages of its operations.

Conclusion

From the above discourse, it can be concluded that there is crucial need of a right business model for each organization according to its market position and demand. At the same time, it had been seen that the Domino’s Pizza entails a business model which shows that it uses its high innovative lab creations to win the customers mind and increase its sales revenue and plan the strategic implementation programs. A detailed analysis of the Business canvas model is also showed with respect to the Domino’s Pizza organization.  It had been observed that the company operates with several smart connected products such as GPS trackers to track the delivery of the orders in the customer’s mobile phone. To make easier ordering messaging is also established then to make delivery efficient delivery robots and copters are also entitled. The above essay will also show the significance of the business model to influence the sustainable future market of the organization.

References

Christensen, C. M., Raynor, M. E., & McDonald, R. (2016). What is disruptive Innovation. The Encyclopedia of Human-Computer Interaction, 2.

De Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model innovation. McKinsey Quarterly, 3, 66-75. Retrieved on 02.04.2018.

Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.

Mail Online. (2018). Dominos claims ‘disruptive technologies’ is luring more customers. Mail Online. Retrieved 22 April 2018, from https://www.dailymail.co.uk/news/article-3742586/Dominos-claims-disruptive-technologies-luring-customers-fast-food-chains.html

Mellor, S., Hao, L., & Zhang, D. (2014). Additive manufacturing: A framework for implementation. International Journal of Production Economics, 149, 194-201. Retrieved on 02.04.2018.

Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64-88.

Tongur, S., & Engwall, M. (2014). The business model dilemma of technology shifts. Technovation, 34(9), 525-535.