Incremental innovation, what does it mean in the business world?
Posted: Sun Jan 19, 2025 6:26 am
Innovation is an essential element for entrepreneurs. After all, it is necessary to find efficient strategies to retain customers and, more than that, to keep your product or service competitive.
However, there are several forms of innovation, for example, radical, disruptive and open. But the best of all is that incremental innovation is simpler and cheaper compared to other forms.
In this article, you will learn how to implement incremental innovation in your company, with practical examples and knowing the benefits. Enjoy reading!
What is incremental innovation?
Incremental innovation is innovation based on gradual and conti conclusion of paytm database nuous improvements to products, processes or services . Therefore, it is not about creating something from scratch, quite the opposite. It refers to making small improvements or modifications to something that already exists.
Therefore, it ends up being simpler and cheaper. However, you need to be careful and be aware that the impact is gradual. As it is an evolutionary process, it happens based on customer feedback and the optimization of certain aspects, such as efficiency, quality, cost or functionality.
Another positive point is that incremental innovation, when compared to other forms of innovation (radical, disruptive or open), is safer and less risky. In the next topic, we will explain what the other innovation models are.
Difference between disruptive, radical and open innovation
Although incremental innovation is one of the safest and most economical forms, it is not the only one. There are also disruptive, radical and open innovations, all conceptualized by the Austrian economist Joseph Schumpeter. Find out more!
Radical innovation
Radical innovation, unlike incremental innovation, involves the creation of a completely new and revolutionary product or service . It is something that can disrupt the status quo.
This is a challenging mission. It means a significant change to the current technology or market. Furthermore, it may be uncertain in terms of public acceptance.
A good example of radical innovation is smartphones, which are not only used for phone conversations. Nowadays, they take photos, record videos and allow you to watch TV.
Disruptive innovation
Disruptive innovation is the introduction of a specific product, service or technology that, initially, meets the needs of a niche market .
It has a high chance of challenging and replacing existing products or services, even if it is initially seen as less capable.
Open innovation​
Open innovation is a business management model . The goal is to provide disruptive development in the company, decentralizing the innovative mindset.
Innovation can arise with the formation of external partnerships, whether with people or organizations, that bring new knowledge.
It is even assumed that a company alone does not have all the knowledge in the world. By joining forces, it is possible to develop solutions, follow trends or reinvent itself.
Benefits for companies
Now that you know the subject, discover the benefits of incremental innovation.
Competitive advantage
Constant improvements allow companies to keep their offerings relevant and within market parameters . Therefore, it is possible to expect them to be more competitive in the face of such fierce competition.
Customer loyalty
Incremental innovation is also an effective way to ensure customer loyalty, with many improvements resulting from customer feedback.
The first step is to adopt active listening, knowing how to hear what the customer has to say , whether positive or negative. Then, be attentive to their needs and desires to continue providing the best possible experience.
Less risks
Of all the innovation concepts, incremental innovation is undoubtedly the one that offers the least risk. After all, it involves improving something that already exists.
This means that most of the negative and positive characteristics of the product or service are already mapped .
Largest source of revenue
The truth is that a product or service that has already been tested ends up being more relevant to the consumer. That's why many choose to purchase updates instead of investing in something new.
Thus, with consumer preference, the company will have a more secure source of income and, over time, can invest in new resources and research to bet on radical or disruptive innovations.
Successful examples of implementing incremental innovation
Because it represents a more continuous version of changes, incremental innovation is one of the most used by companies of different sizes and segments. Check out some success stories!
Apple
Apple is one of the companies that constantly invests in the evolution of its products, from cell phones to computers.
With each new version, Apple improves its devices. Customers enjoy a remarkable and functional experience, becoming fans of the brand.
Instagram
If you are an Instagram user, you certainly follow its constant updates. When a competitor makes a new launch, Instagram incorporates it and, thus, gains the public's preference.
At first, it was just a space to share photos. Today, it works as a channel for news and instant content.
Google
Another company that often engages in incremental innovation is Google. Users recognize its ongoing product improvements.
However, there are several forms of innovation, for example, radical, disruptive and open. But the best of all is that incremental innovation is simpler and cheaper compared to other forms.
In this article, you will learn how to implement incremental innovation in your company, with practical examples and knowing the benefits. Enjoy reading!
What is incremental innovation?
Incremental innovation is innovation based on gradual and conti conclusion of paytm database nuous improvements to products, processes or services . Therefore, it is not about creating something from scratch, quite the opposite. It refers to making small improvements or modifications to something that already exists.
Therefore, it ends up being simpler and cheaper. However, you need to be careful and be aware that the impact is gradual. As it is an evolutionary process, it happens based on customer feedback and the optimization of certain aspects, such as efficiency, quality, cost or functionality.
Another positive point is that incremental innovation, when compared to other forms of innovation (radical, disruptive or open), is safer and less risky. In the next topic, we will explain what the other innovation models are.
Difference between disruptive, radical and open innovation
Although incremental innovation is one of the safest and most economical forms, it is not the only one. There are also disruptive, radical and open innovations, all conceptualized by the Austrian economist Joseph Schumpeter. Find out more!
Radical innovation
Radical innovation, unlike incremental innovation, involves the creation of a completely new and revolutionary product or service . It is something that can disrupt the status quo.
This is a challenging mission. It means a significant change to the current technology or market. Furthermore, it may be uncertain in terms of public acceptance.
A good example of radical innovation is smartphones, which are not only used for phone conversations. Nowadays, they take photos, record videos and allow you to watch TV.
Disruptive innovation
Disruptive innovation is the introduction of a specific product, service or technology that, initially, meets the needs of a niche market .
It has a high chance of challenging and replacing existing products or services, even if it is initially seen as less capable.
Open innovation​
Open innovation is a business management model . The goal is to provide disruptive development in the company, decentralizing the innovative mindset.
Innovation can arise with the formation of external partnerships, whether with people or organizations, that bring new knowledge.
It is even assumed that a company alone does not have all the knowledge in the world. By joining forces, it is possible to develop solutions, follow trends or reinvent itself.
Benefits for companies
Now that you know the subject, discover the benefits of incremental innovation.
Competitive advantage
Constant improvements allow companies to keep their offerings relevant and within market parameters . Therefore, it is possible to expect them to be more competitive in the face of such fierce competition.
Customer loyalty
Incremental innovation is also an effective way to ensure customer loyalty, with many improvements resulting from customer feedback.
The first step is to adopt active listening, knowing how to hear what the customer has to say , whether positive or negative. Then, be attentive to their needs and desires to continue providing the best possible experience.
Less risks
Of all the innovation concepts, incremental innovation is undoubtedly the one that offers the least risk. After all, it involves improving something that already exists.
This means that most of the negative and positive characteristics of the product or service are already mapped .
Largest source of revenue
The truth is that a product or service that has already been tested ends up being more relevant to the consumer. That's why many choose to purchase updates instead of investing in something new.
Thus, with consumer preference, the company will have a more secure source of income and, over time, can invest in new resources and research to bet on radical or disruptive innovations.
Successful examples of implementing incremental innovation
Because it represents a more continuous version of changes, incremental innovation is one of the most used by companies of different sizes and segments. Check out some success stories!
Apple
Apple is one of the companies that constantly invests in the evolution of its products, from cell phones to computers.
With each new version, Apple improves its devices. Customers enjoy a remarkable and functional experience, becoming fans of the brand.
If you are an Instagram user, you certainly follow its constant updates. When a competitor makes a new launch, Instagram incorporates it and, thus, gains the public's preference.
At first, it was just a space to share photos. Today, it works as a channel for news and instant content.
Another company that often engages in incremental innovation is Google. Users recognize its ongoing product improvements.