The paper focus is on the role, importance and characteristics of digital innovation for first generation entrepreneurs. The paper also discusses about challenges and opportunities for digital innovation. The paper also shows radical change and development is beyond imagination in a way that digital innovation is the most important source of competitive advantage. The study through some light on one of the major player in toy industry, Mattel, Inc, toy manufacturers needs to transform: The Business is no longer only manufacturing or making a product, doing ATL & BTL activities, and making it available in stores.

Keywords: First Generation Entrepreneurs, Digital Innovation, Mattel Inc, ATL & BTL Activities.