Combinatorial digital innovation is a strategy that involves combining, clustering, and complementing digital capabilities. This approach is crucial for businesses to thrive in the digital era. The first fundamental of this strategy is combining, which refers to the integration of digital capabilities to create new value. This could mean combining AI with data analytics or IoT with blockchain. The second fundamental is clustering, where businesses group digital capabilities to create a digital ecosystem. For instance, companies might cluster social media, mobile, analytics, and cloud (SMAC) capabilities. The final fundamental is complementing, where businesses enhance digital capabilities with non-digital assets, like human skills or physical infrastructure. This could involve complementing AI capabilities with human intelligence or combining digital marketing with physical stores. Overall, combinatorial digital innovation provides a framework for businesses to maximise the value of their digital capabilities. It’s a strategy that encourages creativity, experimentation, and collaboration.

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