Definition: Digital Innovation
My definition of digital innovation is the application of digital tools and digital infrastructure to the challenge of offering customers enhanced or unique value (e.g., better combination of variables such as benefits, costs, convenience, etc.).
My particular premise (not unique) is that there is a world of opportunity at this moment in time due to a deep transformation in society and business taking place as organizations and people learn how to take advantage of the new digital tools (e.g., mobile networks, social networks, etc.). Organizations can certainly find competitive advantage from a number of sources (usually, working in unison). As these organizations (and people) begin to add in digital innovation to the mix, their options will increase.
For organizations, the challenge has more to do with organizational culture and business model innovation better enabled by digital tools, than anything else. In other words, its more of a “people problem” and a “paradigm shift” than a technological one. For instance, MIT Sloan economist and digital-business expert Erik Brynjolfsson argues that competitive advantage depends on innovation and that the biggest driver of innovation today is Information Technology.
For more information (or to contribute to the definition), refer to my Wikipedia crowd-sourced article on Digital Innovation.
