Significance of Incremental Innovation in Modern Industries

0Running head: CREATIVITY AND BUSINESS WEALTH
Creativity and Business Wealth

1CREATIVITY AND BUSINESS WEALTH
Table of Contents
Significance of Incremental Innovation in Modern Industries..................................................2
Innovation Process.................................................................................................................2
Difference between Radical and Incremental Innovation......................................................3
Technology Industry..............................................................................................................4
Role of Incremental Innovation.............................................................................................4
Innovation Failures.................................................................................................................5
References..................................................................................................................................7

2CREATIVITY AND BUSINESS WEALTH
Significance of Incremental Innovation in Modern Industries
Innovation is defined as the process of transforming new concepts and ideas in working
models to improve the existing service, product or procedure. Currently, the role of
innovation in industries has grown extensively, and companies invest in new innovations to
gain a competitive advantage over their competitors (Kline and Rosenberg, 2010). Many
people have the opinion that innovation is defined as the radical breakthroughs, big leap
forwards or ‘eureka’ moments which completely changes existing process, products or
services. But, many experts argue that innovation does not only mean radical breakthroughs,
instead, small innovative changes in existing products which improve their usability also
assist corporations in gaining competitive advantage.
The importance of incremental innovation has grown substantially between organisations and
modern companies are giving more significance to incremental innovations rather than
disruptive innovations. This essay will evaluate software industry to understand the role of
incremental innovation in between modern businesses. Further, the essay will analyse
‘Google Incorporation’ to understand the importance of incremental innovation in the
business development and how corporations can use it to sustain their future growth. William
Miller defines business innovation as the process of creating new wealth and value to existing
product or facility in order to increase the economic prospects of stakeholders (Drucker,
2014).
Innovation Process
Organisations and entrepreneurs implement the process of innovation to gain competitive
advantage or add value to their business. An effective process of innovation requires a
thorough analysis of service, product or process because adequate understanding leads to new
innovations (Teece, 2008). Bessant and Tidd (2011) provided that innovation can assist in
change of four different dimensions which include process, product, position, and paradigm.
Product innovation in technology industry means creating a new device or gadget that change
the use of existing product or obsolete them, like the innovation of smartphones obsolete
feature phone and reduces their sales drastically.
Process innovation is referred to changing the method of producing or manufacturing existing
products (Becker and Egger, 2013). For example, large smartphone companies such as Apple,
Google or HTC uses advance robots to build small microchips that cannot be produce by