Question

How do digital infrastructures lead to business model innovation? In your answer identify the particular characteristics of digital infrastructures, digital markets and digital goods and services that foster such innovation. Illustrate your answer with well-chosen examples of innovative digital business models that have emerged.

Answer 1

The invention of computers and internet have brought unbelievably significant transformation in the world in almost every field of our lives. From communication to transport, use of technology has made life considerably easier for a common person.

Digital infrastructures are a web of devices, applications, softwares, and vaious other use of latest high technology programs to make it easier, efficient and more productive for businesses to operate. Digital infrastructures by use of innovative technology reduce the need of human interference with the work. Innovative technologies perform the tasks that were till now perfomed by people at a much faster speed.

The main characteristics of digital infrastructure are:-

( I ) Faster and more reliant.

( II ) Use of latest technology such as internet of things, robotics etc.

( III ) Cost effective.

An excellent eample of digital markets are ecommerce sites where people place orders for goods and services of all kinds with the use of their smartphones or computers. Many services such as consulting doctors, reading books etc., that were earlier provided in physical presence of the consumers, have now become accessible with the use of smartphones and internet.