Final answer:
Apple Inc.'s iPod is a business example that illustrates the use of information systems for creating new products and services.
Step-by-step explanation:
The business example that illustrates the use of information systems for creating new products and services is Apple Inc.'s iPod.
The iPod was a groundbreaking product that transformed the music industry by introducing a portable MP3 player with a user-friendly interface and innovative features such as the click wheel. Through information systems and digital technology, Apple was able to create a new product category and revolutionize how people listen to and interact with music. Other options given in the question, such as Wal-Mart's RetailLink system, the Mandarin Oriental hotel's customer-preference tracking system, and Verizon's web-based digital dashboard, might involve the use of information systems, but they do not necessarily focus on creating new products or services as extensively as Apple's iPod.