Digital Innovation: Creating Competitive Advantages

Abstract

The diffusion of innovations during the fourth industrial revolution reshaped economic systems and caused structural changes in different economic sectors. These innovations have become the basis of the new digital infrastructure of society. Digital technology is used to manage integrated product whole-life cycles and enhance efficient, reliable, and sustainable business operations. Intelligent production processes and supply chains can be used to optimize entire end-to-end workflows and create business competitive advantages. Artificial intelligence, internet of things, machine learning, blockchain, big data and other digital technologies have been used to create business agility and resilience and further transform societal behavior.Digitalization creates new ways for companies to create business added value. Modernizing business enterprises by combining digital technologies, physical resources, and the creativity of individuals, is an essential step in innovative business transformation that may constitute a competitive advantage. Companies need to transform their business processes and enhance the satisfaction of their customers by using digital technologies that connect people, systems, and products or render their services more effective and efficient. Digital technologies create new ways for companies to integrate customers’ requirements into product development or service delivery across entire process chains. Digital technologies are becoming increasingly important due to strong market competition. Many studies have shown that there is a strong correlation between business growth and the use of digital technologies to create innovative business models. Technological innovations create new products, processes, and services that generate more added value for companies.