Digitization of production factors, including the knowledge for knowledge workers and consumers, opens almost infinite potential to connect persons, systems, processes, enterprises, products, and services. This digital connection has ushered in computerized manufacturing, global supply chain integration, the Internet, e-commerce/business, P2P social media, and many emerging services innovation. Digital connection brings about increasingly large scale systems and applications, which present sweeping challenges to many academic disciplines. We provide an analysis for digital connection from the perspective of new services innovation. New results proposed include a formulation of new micro-economic production functions and a model for achieving economy of scale through the sharing of extended cyber-infrastructure.
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