Digital technology is changing every aspect of our lives. Digital innovation is an effort to re-imagine familiar products and services using unique capabilities of digital technology. Developed by Youngjin Yoo, PhD, and Kalle Lyytinen, PhD, professors in the Department of Design & Innovation, digital innovation focuses on creating radically different user experiences and new business models that were not previously possible. Unlike previous IT innovations that aimed at improving the performance of organizations in existing forms, digital innovation often aims at designing new forms that previously did not exist. Digital innovation is in the nexus of design, strategy, marketing, and technology. The organizing logic of digital innovations are often at odds with that of industrial organizations, demanding organizations to transform its structure and culture and acquire new capabilities.