ANALYZING AND ENHANCED DIGITAL PRODUCT AND SERVICE INNOVATION: THE DIGITAL INNOVATION STRATEGY

ABSTRACT

In this article, we provide a managerial framework to help firms in this effort. The framework includes the following five key areas: talents, improvisation, digital evolution scanning, value proposition, and user experience. Its purpose is to support ongoing improvements in the management of digital innovation. We also provide a diagnostic tool that companies can use to begin implementing the framework. Finally, we share our thoughts about the managerial implications of the framework going forward in a rapidly changing digital innovation environment.

АННОТАЦИЯ

В этой статье мы представляем управленческую структуру, которая поддерживает фирмы в этом начинании. Структура, направленная на поддержку постоянных улучшений в управлении цифровыми инновациями, охватывает пять ключевых областей: пользовательский опыт, ценностное предложение, сканирование цифровой эволюции, навыки и импровизация. Мы также представляем диагностический инструмент, который можно использовать, когда компании начинают процесс внедрения системы. Наконец, мы завершаем своими мыслями об управленческих последствиях этой структуры для продвижения вперед в быстро меняющейся среде цифровых инноваций.

Keywords: digital innovation, strategy, value, proposition, user experience, improvisation.

Ключевые слова: цифровые инновации, стратегия, ценность, предложение, пользовательский опыт, импровизация.

Introduction

The use of digital technology has grown in significance as businesses strive to meet their objectives. Recent studies have brought attention to the challenges associated with assessing the return on investments made in digital technology. A first wave of IT applications made it possible for businesses to simplify internal processes and foster process innovation in the 1990s. Digital technology has more recently penetrated businesses' product and service offerings, going beyond internal boundaries. It makes sense that managers are highly interested in managing the innovation of digital products and services, considering the pivotal role that digital technology has played in the drastic reorganization of several industries. In response to this interest, we offer a framework that encourages and monitors businesses' efforts in digital innovation [4].

Putting the methodology this article presents into practice requires making well-informed decisions that span three domains: the company's digital environment, organizational characteristics, and product offerings [1]. The framework helps businesses to efficiently manage their portfolio of digital products and services throughout time by providing composite measures for every area. It should be highlighted that while putting the framework into practice allows businesses to take advantage of a wider range of benefits related to digital innovation, doing so does need planning and preparation. The process needs enough time, and as it entails changes across the entire business, there may be unforeseen repercussions along the way. We offer a diagnostic tool that enables organizational members to rate their current operations in order to assist with the first step of the implementation process. This makes it possible for the company to begin assessing and monitoring its efforts in digital innovation. When the framework is put into practice, businesses become more prepared for digital innovation and are able to take advantage of it by continuously modifying their processes [9].

Methods

Innovation problems are extremely complex in the context of digital technology. We've seen the serious consequences that befell companies that neglected to handle them. Thus, the question that needs to be answered is: How can digital innovation be managed? Alternatively put, is it even manageable?

Although these well-established strategy models for managing technological innovation are helpful, newer research uses digital devices as study subjects, including digital cameras. Nevertheless, the distinctive and special qualities of digital technology frequently take a backseat. Thus, there are two issues with the current body of research on digital technology and organizations:

Technological innovation research frequently takes a macro-level view of the topic it studies, leading to high-level summaries of strategic suggestions. We focus on the crucial issues that must be resolved when overseeing digital innovation processes as they develop in real-world settings in order to close this gap [1].

Digital innovation presents a unique set of opportunities and challenges for both established players and up-and-coming players. The quick speed of digital innovation processes is one important component of this complexity. In the end, the flexibility of digital technologies- their ease of reconfiguration- is what allows for this quick speed. The swift speed of digital innovation processes poses a significant challenge for corporations designing "hybrid" or "smart" products, which integrate digital elements with conventional products. One instance is the difficult obstacles a large automaker had to overcome to integrate GPS systems while distinct analog and digital innovation processes developed concurrently and at drastically different rates [2].

Results

Measuring the user experience in digital innovation includes evaluating the visual aspects of digital goods and services in addition to usability problems. Users are influenced by look and beauty, thus these elements must be properly used to elicit a favorable emotional response from the user. One may argue that Apple's market domination is a result of the consistently beautiful hardware and software produced under the direction of chief designer Jonathan Ive, which elevated the user experience above that of rivals like Microsoft and PC makers [5].

Unlike conventional product licensing schemes, digital innovation enterprises have to deal with channel owner commissions. For instance, the commissions on sales for the Apple Store and Google ^* Play are both 30%, but the commissions for e-commerce storefront services differ. Consequently, businesses must think about how to negotiate the channel owners' commission. The second crucial area for businesses looking to achieve successful digital innovation management is value proposition, which deals with how value is created and captured in each digital product and service.

Digital technology is by its very nature "recombinant" or "combinatorial" in nature. This is the configuration of code and hardware circuits to allow for novel interactions. Put differently, digital technology appears to develop spontaneously, beginning with a few basic hardware and software elements that, when merged in multiple iterations over time, become increasingly complex and integrated systems [6].

To do this, businesses must monitor and assess the development of digital technology and related consumer trends. This is accomplished by obtaining information about which new hardware devices- including PCs, smartphones, and tablets- as well as their component parts- memory, CPUs, and chips- are headed for the market. While the former can make it possible to integrate digital features into conventional analog items, mobile devices' growing processing power is constantly making it possible to use one device for resource-demanding services and content like video games, movies, and sophisticated editing. Businesses must anticipate that this transformation will continue and evaluate how it affects their operations [9].

An organizational culture that embraces improvisation and, consequently, mistakes across the whole company is necessary for digital innovation. Therefore, the last important area that businesses looking to attain sustainable digital innovation management need to evaluate is improvisation [2].

Conclusion

Our methodology illustrates how a variety of factors affect businesses' abilities to innovate digitally. Political laws and regulations, for example, have always played a significant role in the invention process; this is also true of digital innovation. However, because of the special qualities of digital technology, our framework concentrated on the new critical areas that needed to be given priority. The framework's exclusion of internal process innovation made possible by digital technology is another drawback. We advocate for greater research on the relationship between and potential integration of digital process and product innovation in businesses, even though it is outside the purview of this paper.

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