I was asked to write a weekly column for Electronic Times, a daily newspaper specialized on information technology and IT industry. The title of the column is “Unbounded Innovation” and I will be focusing on various issues related to digital innovation and its consequences. This week, using the evolution of e-book as an example, I discussed three different stages of digital innovation. The first stage is a material digitalization where firms introduce new products by integrating digital components into a product that was previously non-digital. In the second stage, firms begin to develop new business models by developing an architecture of information that are derivatives from the use of digitalized products. In the third stage, firms create novel products and services by creating new combinations of existing digitalized products and digital data stream.