The economic conditions are dynamic in nature therefore it is important to keep the track of the digitization and innovation that is happening across the organization. To keep a track of the consumer buying behavior and the influence of innovation on the customer it is critical that the same is tracked by the management (Lavie, 2006). There are definitive challenges and opportunities that emerge on account of digital innovation. The two main challenges in front of the management are as follows:
Digital convergence means the combinations of various networks and devices for a common objective. The possibilities of digital convergence are huge as new families can be created and the organization can digitize the product so that new service options can be developed. The challenge is to identify the combinations. The challenges of the organization are to use the factors in a structured manner. For example: In case of Global Positioning System, the combination is of cameras, smart phones, are combined with the city maps. This can be useful for an automobile manufacturer, and even a logistics company. Economic viability of using these products should also be taken into consideration.
It is the process of being directly involved in the product innovations for digitization in new manner. Fostering new modes of innovation is required by the management. The lower Generativity can increase the iteration costs by quite a margin. It is important therefore that the innovation cycles are fast otherwise it could be slowing down the explorations and creation of knowledge.
Lavie, D. (2006). Capability reconfiguration: An analysis of incumbent responses to technological change. Academy of Management Review.
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