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The advent of cloud computing and big data has radically altered the important role of innovation as a strategy for responding to the rapidly changing nature of an increasingly interconnected online world. This situation has necessitated revisions in the strategic concepts associated with sustaining long term performance by exploiting new technologies. Understanding of these new strategic approaches is provided by examining how the online world is being exploited by organisations in sectors of a modern economy such retailing, service firms, healthcare and the public sector in terms of creating new forms of competitive advantage within both pure play and terrestrial environments as a consequence of the advent of mobile technology and online social networks.