Business Innovation in Digital Economies Essay Example | Topics and Well Written Essays - 2000 words

Business Innovation in Digital Economies - Essay Example This paper mainly focuses on Apple Inc. The Apple Inc. company took the market by a storm and seems to be enjoying a cutting edge of the competitive market in digital service and product market. Reliance on goods in order to understand the economy seems to be getting harder as the industrial economy ceases. Researchers noted that service provisions implemented the distribution mechanisms obtained from goods. They also noted that service creates a basis for the proliferation of economic transactions. This paper defines economic service broadly as â€Å"the utilization of unique knowledge and skills in the business practices, processes and outputs in order to create value for the customers (Eaton 2011, pg59). The dominance of information technology highly contributes towards the emergence of the service-dominant rationality. As Vargo and Lusch (2004, pg51) discuss, primacy of service and its recognition as the fundamental factors for economic can be attributed to two reasons. These primary reasons include; the ability to separate information and service from tangible goods and the increasing specialization in business. These two reasons dwell on the creation of information technology which speeds up specialization in creation of knowledge which consequently led to the reduction of harmonization and communication costs. In addition, the digitization of informational products and the integration of software capabilities into goods created the term digital innovation. This innovation contributes to the slackening of solid goods with service since its inception. Digital networks characterize the best dynamic and exhilarating field of inventions in our modern economy. Companies like Google, Apple, Nokia-Microsoft and HP/Palm are all chasing numerous procedures of innovation approaches in imperative to the worth of their products. These companies frequently undertake these operations by fetching external developers as well as maximizing the technology’s reproductive