Responsible Innovation Toward Sustainable Development Enterprises

Overview of Burger Urge

Discuss about the Responsible Innovation toward Sustainable Development Enterprises.

There are many organisations promising to keep up sustainable development towards achieving the business growth. The organisations in today’s world are following the growth that makes the businesses sustainable in long-run.  As stated by Dawes & Nency-Thiel (2014), businesses in common way not meet the sustainability challenges and the organisations must innovate the services and products to survive in the industry. The organisations need innovation to implement new organisational method to undertake the business practice, external relations and workplace organisation. This report focuses on the innovation idea of Burger Urge to increase the sale of the organisation in long-run. The innovation that Burger Urge can take is drone delivery of the products so that the customers can get the delivery faster. In this paper, the concept of the innovation, benefits and recommended solutions is given.  

Burger Urge started its journey in the year 1920 in a building on Brunswick Street in New Farm. The restaurant of Burger Urge was established in the year 2007 in Fortitude Valley in Queensland. Burger Urge has been making delicious burgers for the customers and the organisation uses only fresh, premium, gluten-free raw materials to make the burgers sourced from the local Australian farmers. Burger Urge also sells alcoholic beverage, soft drinks, chips, salads, wings, fries and hamburgers (Burgerurge.com.au, 2018). At present, Burger Urge has more than 27 restaurants in Australia. In the Australian market, Burger Urge has its competitors and they need to revamp its marketing to reach maximum numbers of customers. The competitors of Burger Urge are MOS Burger, Burger Project, Ribs & Burgers and Burger Theory.

Burger Urge has large competition in the market and to overshadow the competitors in the Australian fast food industry; the organisation needs innovation that would help it to have long-term sustainable business development. Technological innovation helps the firm to have higher profit for long-time and technological innovation increases the productivity (King & Baatartogtokh, 2015). Technological innovation reduces the dependability of the human capital and most importantly, the organisation can get the job done in shorter time. Burger Urge can take the support of drone-based food packet delivery network to serve the nearby places of the restaurants. This drone-based delivery can promise to reduce the waiting time for hungry customers by flying the orders directly to the place of the customers’ residents. In order to make this dream come true for Burger Urge; the organisation need to make partnership with Software Maker Company. Burger Urge will be making partnership with Skymax Australia to start the drone-based delivery in Australia. Drone is basically unmanned aerial vehicle and the drones will be used to transport the food packets and Burger Urge is expecting to reduce the food packets delivery to the customers by 20 minutes at least.

Identification of the innovation

Fast food restaurant companies always want to deliver the products faster to the customers and it helps the companies to have more customers. Customers’ satisfaction increases when the customers get the products fast and the customers will be loyal to the company (Batra & Keller, 2016). Burger Urge will be the first company to use the drone-based food delivery for the customers. In Australia, Air-Traffic Controller actively monitors all activities of aircrafts and drones. Burger Urge needs to take permission from Controlled Airspace as drones will be flying above the 120 meters from the ground. Burger Urge will have separate unit in each of the restaurant in order to run the drone and monitor the drone.  Burger Urge always wants to embrace innovation and the management can believe that new delivery method helps to grow the business. First of all, drone-based food delivery will be charged extra from the customers as the customers will get the food on before time. Therefore, Burger Urge will make differentiation in the market as no other companies are using drones in Australia to deliver the products; therefore, this strategy will give competitive advantage to the company.  

Key Partners Advertisers Green markets Waste Management Investors Drone controller	Key Activities Develop customer relationship Monitoring drone Build brand Organic waste control Website development	Value Propositions Drone delivery Delicious burgers More than 26 restaurants in Australia Reduce cost of waste management Good website	Customer Relationships Build brand Through social media E-mail service Telephonic contact Third party app
Key resources Brand value Financing Contact in the industry	Channels Direct restaurant selling Website Third party app Drone delivery	Consumer segments Young customers  Customers all across Australia
Cost structure Website and app development Salaries of the employees Drone activities Marketing and PR	Revenue Streams Selling of the burgers Membership in the restaurants Upfront fee and end-to-end process

Burger Urge has been facing tremendous competition in the Australian market. Burger Urge has more than 26 outlets in Australia; however, it offers takeaway services for the customers who order through online and by phone calls. Burger Urge has its staffs to deliver the products on time to the customers. Burger Urge wants to deliver the burgers, hamburgers, fries and alcoholic beverages to the customers who call at the restaurants and order through online. The process of drone-based delivery will be simple as UAV flies to the customers’ space above the designated delivery zone (Martín-de Castro, 2015). The drones will lower the payload with the help of winches. The drones will be light in weight and they will be capable of providing deliveries in the radius of 12 kilometres. The staffs of the Burger Urge take the address from the customers and deliver the products within 30 minutes to the customers. Drone-based delivery will make the whole process at least in less than 20 minutes of the desired time. The restaurant of Burger Urge will be happy as the trip to the customers’ house of the staffs will take 30 minutes to reach and the aerial service can solve this within 10 minutes.

Drone-based delivery will solve the problem of delays due to the heavy traffic on the road. Most importantly, Burger Urge’s delivery persons take other orders at the same time and this process makes the delivery a little late also. The delivery persons can get late for the traffic as Australian roads are busy in the normal office and peak hours. Drone-delivery can solve the issue where drones fly over the traffic (Kleinknech, 2016). Sometimes, customers refuse to take the products from delivery persons and sometimes do not acknowledge the orders. In this case, if the customers select ‘fast delivery’ option; the customers have to pay for the products before they take the product at hand as there will be no ‘cash on delivery’ service through the drone.

Evaluating business model

In addition, the delivery persons of the food products sometimes face the infuriated customers. Drone-delivery will solve this issue also as customers cannot be rude and get infuriated when a drone will deliver the food packets on time (Kogan et al., 2017). Delivery persons fail un-optimised the routes as there will no such options to change the track when they deliver the products. However, drone-based delivery can be optimised the speed if the customers want the food delivery sooner. The customers need to provide the exact address along with payment must be made before to access the drone-service.

 Burger Urge will be benefitted from the drone delivery services as the waiting time of the customers to get the products will be reduced to one-third. Burger Urge will get a high competitive advantage through the drone-based product delivery. The drone will be used as a delivery vehicle by Burger Urge and the organisation will keep a unit to control the delivery drones.

Drone delivery will be better for the environment as the drones do not harm the nature. Drones are single, battery-powered; whereas, the delivery persons use the cars or the motorcycles that emit large noise and smoke harmful to the environment (Osterwalder & Pigneur, 2013). Drones will not make the roads more crowded as the whole process will be done aerial.

A recent survey stated that if the customers get the products before the time; the customers will be loyal to the restaurant. Moreover, the customers can order more next time if their needs get fulfilled (Colvin et al., 2014). The customers can suggest other customers take the food delivery from Burger Urge as they can get the delivery done within a stipulated time. 

Delivery drones permit human counterparts to focus on other significant delivery procedures. Delivery of the drones gets faster as the controllers of the drones must be accurate to locate the programme and location. In addition, as stated by Hong, Kuby & Murray (2017), drones can promote safety as drones can prevent accidents as drones go aerial and there will be no such physical delivering of the commodity to the customers. Therefore, delivery personnel will no longer be needed who can expose to the accidents.

• Burger Urge will use strategic intelligence before they start discussing with the Skymax for controlling the drone services and make the software for drone-based product delivery.
• Burger Urge will formulate the strategy of how the organisation will use drone-based delivery. In this scenario, Burger Urge management will discuss this with Skymax to know about drone-delivery and the budget of this.
• Burger Urge will make strategic master project planning and at this stage; the organisation will develop the implementation of the drone-based service. Burger Urge will fill the capability gap and complexity will be reduced at this stage.
• Burger Urge will modify some of the planning and projects will be amended based on the needs of the restaurant. Burger Urge will discuss this with state governments about drone delivery.
• Strategy monitoring will be done by the CEO and a team to examine the review that must be still and robust for the organisation.

SWOT analysis

Strengths More than 26 restaurants across Australia Strong product line Sell alcoholic beverage Local suppliers	Weaknesses Less capital Branding Unstable employee line
Opportunities Market expansion Market penetration Health conscious eatables	Threats Competition in the market Changing consumers’ eating habits Raw material prices

Table 1: SWOT analysis of Burger Urge

Burger Urge’s drone-based delivery analysis can be done through financial analysis of the innovation process. Burger Urge needs to consider the development of the innovative process and its application in the first three years of its production and delivery in the restaurant industry.

Development case document

Figure 1: Cost Benefit Analysis

Burger Urge will adopt the drone-based delivery services to the customers; however, Burger Urge will not offer a full range of the products through drone-delivery. The customers who live within the radius of 11 kilometres will get the drone-based delivery and there will be a range; the customers need to give the order more than the range provided by Burger Urge. Skymax will start the drone-delivery in trial basis in the first week and the success rate of the delivery will ensure the further expansion of the drone-based delivery in Australia. Burger Urge will offer drone delivery from morning to evening and they are planning to extend the dimension with distance.

 Burger Urge will start a campaign to understand the feedback from the customers and their reviews based on the drone-delivery. Deliverability of the campaign and products need to be done with the help of social media (Tukker et al., 2017). The deliverability will be done through emails to start the campaign into subscribers’ inboxes. Deliverability will help Burger Urge to get the recommendations about the needed change of the drone delivery. Burger Urge can sort the target customers and the target customers will be given the opportunity to get the drone-delivery at first.

Conclusions

It has been observed that large multinational e-commerce companies are using the drone delivery to reach the customers on time and this delivery saves the time of the customers. Burger Urge is relatively small organisations to start the drone-based delivery. However, this innovation will provide the benefit of having a large customer base and having loyal customers. The organisation can save time to deliver the products and this innovation will provide revenue in coming years as it can create competitive advantage.

Reference List

Batra, R., & Keller, K. L. (2016). Integrating Marketing Communications: New findings, new lessons, and new ideas. Journal of Marketing, 80(6), 122-145.

Broman, G. I., & Robèrt, K. H. (2017). A framework for strategic sustainable development. Journal of Cleaner Production, 140, 17-31.

Burger Urge. Australian Burgers. Retrieved from: https://burgerurge.com.au/about/ [28^th May 2018]

Colvin, J., Blackmore, C., Chimbuya, S., Collins, K., Dent, M., Goss, J., … & Seddaiu, G. (2014). In search of systemic innovation for sustainable development: A design praxis emerging from a decade of social learning inquiry. Research Policy, 43(4), 760-771.

Dawes, J., & Nenycz-Thiel, M. (2014). Comparing retailer purchase patterns and brand metrics for in-store and online grocery purchasing. Journal of Marketing Management, 30(3-4), 364-382.

Goffin, K., & Mitchell, R. (2016). Innovation Management: Effective Strategy and Implementation. Palgrave Macmillan.

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.

Holden, E., Linnerud, K., & Banister, D. (2017). The imperatives of sustainable development. Sustainable Development, 25(3), 213-226.

Hong, I., Kuby, M., & Murray, A. (2017). A deviation flow refuelling location model for continuous space: a commercial drone delivery system for urban areas. In Advances in Geocomputation,  8(3), 125-132.

King, A. A., & Baatartogtokh, B. (2015). How useful is the theory of disruptive innovation?. MIT Sloan Management Review, 57(1), 77.

Kleinknecht, A. (2016). Innovation patterns in crisis and prosperity: Schumpeter’s long cycle reconsidered. Berlin: Springer.

Kogan, L., Papanikolaou, D., Seru, A., & Stoffman, N. (2017). Technological innovation, resource allocation, and growth. The Quarterly Journal of Economics, 132(2), 665-712.

Le Blanc, D. (2015). Towards integration at last? The sustainable development goals as a network of targets. Sustainable Development, 23(3), 176-187.

Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic perspective. MIS quarterly, 39(1).

Martín-de Castro, G. (2015). Knowledge management and innovation in knowledge-based and high-tech industrial markets: The role of openness and absorptive capacity. Industrial Marketing Management, 47, 143-146.

Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital innovation management: Reinventing innovation management research in a digital world. Mis Quarterly, 41(1), 34-45.

Newman, C. L., Wachter, K., & White, A. (2018). Bricks or clicks? Understanding consumer usage of retail mobile apps. Journal of Services Marketing, 32(2), 211-222.

Osterwalder, A., & Pigneur, Y. (2013). Designing business models and similar strategic objects: the contribution of IS. Journal of the Association for information systems, 14(5), 237.

Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming companies. Harvard Business Review, 93(10), 96-16.

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

Yan, W., Xiong, Y., Chu, J., Li, G., & Xiong, Z. (2018). Clicks versus Bricks: The role of durability in marketing channel strategy of durable goods manufacturers. European Journal of Operational Research, 265(3), 909-918.