Digital Innovation- A Conceptual Framework.

Digital innovation consists of incorporating digital into products, business models and operations. It also involves the change of the socioeconomic climate of a company.

Hoe (2017) declared that the digital revolution requires human abilities related to customer wants and needs. This creates new channels of digital market offerings.

Definition

Digital innovation is the implementation of digital tools and tactics for new products, services, and business models. It includes the use of data analytics, machine learning algorithms, and predictive modeling for better business processes and customer service. It also means a culture of experimentation and change.

Digital innovation gives companies a competitive edge in the market by developing different products and services, creating better customer experiences, and creating unexploited markets. Digital innovation can also keep organisations ahead of the curve by keeping up with the trends and responding quickly to industry developments.

For a digital innovation strategy, clear goals and roadblocks need to be laid out. These might include anti-change, lack of resources and data security issues. Furthermore, a vision of digital innovation needs to be conceived and measured, achievable, relevant and time-bound (SMART) objectives are devised. This will make the digital innovation program in line with overall business goals and strategy.

Characteristics

Digital innovation is a tactical activity in which new technologies are applied to enhance the business, customer experience and produce new products. It encompasses process steps like strategy, procurement, design and development of digital services.

Digital innovation methodology allows companies to be more agile, efficient and adaptable in the dynamic business world. It also helps them to take advantage of fresh revenue streams and reconfigure business models.

At the planning stage, companies create digital products through conducting market studies and tech research. Then they scale these insights to what they can do and what they need. They then go in search of funds to make the innovations. They could procure the most advanced technology, make partnerships or recruit specialists of a certain type.

Attributes

Digital innovation consists of the use of digital technologies to develop new products, services and business models. It’s aimed at improving customer experience, operational efficiency, and gaining market share.

New Business Models: Digital innovation is often about building new business models that disrupt the business model of the current industry. Such as platform businesses such as Uber and Airbnb, subscription-based businesses such as Netflix, and dtc e-commerce platforms.

Personalized Marketing, Customer Experiences, and Easy to use Interfaces Digital technologies enhance customer experience by using digital channels, personal marketing and graphical user interfaces. This will make customers happy, loyal, and the brand better.

Boost Partner and Supplier Engagement: The partner and supplier engagement can be boosted by digital technologies for improved communication, collaboration, and transparency. You can do this by utilizing digital features like chatbots, predictive analysis, customer portals etc.

Impact

The world has been transformed by digital innovation, which transforms the way businesses work and offer customers value. It is a critical business process that can drive new business processes, better customer experience and new revenue streams.

It develops disruptive products and services through cutting edge digital technologies. Airbnb, for instance, allows homeowners to let their property to tourists and it disrupts the hospitality industry; Upwork connects freelancers with clients and completely alters how people work and find work.

Digital innovation also enables companies to be competitive, fast and responsive. It allows them to cope up with risk and capitalize in a fast-changing world of business. It also makes them better able to sustainably grow and win long term. Because they become more customer-focused, more productive, better at data analysis and internal operations. Digital innovations are also an advantage to companies as they can stay ahead of their competitors and have a dominant position in the market.