Incremental Innovation: Strategies, Examples, and Business Impact

This report delves into the concept of incremental innovation, contrasting it with disruptive innovation and highlighting its significance for business growth. It defines incremental innovation as a series of small enhancements to existing products, services, or processes, emphasizing its role in meeting evolving consumer demands and improving efficiency. The report outlines the five stages of innovation: idea generation, screening, experimentation, commercialization, and diffusion. It provides examples of companies adapting to market trends through incremental changes, such as those in the fashion industry. The report analyzes the differences between incremental, disruptive, and radical innovation, emphasizing the practical advantages of incremental innovation, particularly for companies operating globally. It discusses the challenges of disruptive innovation and the importance of considering consumer preferences and investor perspectives. The report concludes by emphasizing the role of incremental innovation in boosting revenue, enhancing productivity, and maintaining a competitive edge in the market. It also highlights the importance of supply chain efficiency in delivering innovative products quickly to meet consumer desires.

CREATIVE BUSINESS
WEALTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation is about big leaps forward, ‘eureka’ moments and radical breakthroughs – or is it
using examples, make a case for the importance of incremental innovation..............................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Generation of new ideas for executing advancements is called innovation. To run an
organization effectively and efficiently with a purpose of meeting the needs and demands of the
consumers, almost all sort of organizations is required to implement some innovative strategy. It
is a highly appreciated method to meet out the prevalent requirements of the customers that often
keeps on changing (Dees, 2017). The present report has focused on examples of company
manufacturing cloths to meet out the current fashion and trends that are predominating in the
market. By framing innovative strategies, advancements can be brought by the organization to
become more productive and enhance the reputation as well. Concentrating on the different types
of innovation strategies have been described with procedures of innovation with detailed
examples.
MAIN BODY
Innovation is about big leaps forward, ‘eureka’ moments and radical breakthroughs – or is it
using examples, make a case for the importance of incremental innovation
Innovation is defined as the generation of new ideas and thoughts to improve products
and services that are provided to the consumers. Incremental innovation can be defined as
improvements that are made by the organization, either by upgrading or modifying the existing
products. Another way is to make changes in their methods, services, processes, to meet out the
changes and become more efficient and productive. There exist five stages of innovation that are
performed to meet out the effectiveness and boost up the productivity as well as profits of the
company. Incremental innovation is basically a series of small enhancements that are done on the
existing products and services of the enterprise.
It is with a primary focus on idea generation and mobilization to improve the existing
goods and services of the entities. In this, concentration is made on existing ideas by which new
ideas are framed. At the time of generation of ideas, new ideas are created to meet the objectives
of an establishment (Hornbeck and Keniston, 2017). Management provides time and resources to
employees for the purpose of innovation which are successfully explored. In the second stage of
process, instead of screening all ideas, with the help of advocacy in screening, evaluation is made
about the potential ideas by measuring their effectiveness and issues that may arise due to
implementation of those ideas. Here, discussion and arguments that are made upon ideas and
information help the companies a lot. By experimenting the ideas in third stage, current capacity

of organization can be defined and decision is made regarding the implementation of ideas at the
right time and in proper methods, by reducing any kind of hindrances. And the process of
experimentation remains continuous, as, information and ideas are gathered throughout
functioning and operations.
By next moving to the fourth stage which is called as commercialization. In order to
perform the process of commercialization, ideas are made for the purpose of appealing the
consumer. This involves the innovation made by company in terms of communication and
exploration of enhancements. This stage helps the organization to shift from the stage of
persuasion to development. Commercialization allows consumers or public who are located
globally and locally to gather relevant knowledge about the creativity made in order to meet their
trends and preferences. Finally, two sides of the same coin are presented by meeting all the
process of innovation in fifth stage which is called diffusion and implementation. Ideas that are
framed and evaluated to meet the nuances in earlier stage are implemented in the last stage by
creating awareness and opportunities to grow at a large scale, in the future. In the process of
innovation, differences between innovations are critically detailed to know performances and
type of innovation process that could be effective. While innovating products and services in a
company’s adopting the method of incremental innovation, analyzing the best method of
innovation is the dilemma that is faced at the time of planning for innovation.
Disruptive innovation focuses on new products or services that enter at the low end of
market and gradually moves up in market either by displacing the existing products or by
establishing new products and services. Moving to radical innovation, it can be stated as, a kind
of invention that destroys or substitutes an existing business model. For example: without
knowing the tastes and preferences of consumers outside and within territories, companies
cannot perform better in terms of getting productive (McLuhan, 2015). For the successful
operations and functioning of services, priority given to consumers by focusing on efficiency and
productivity. Radical and disruptive innovation have impact on the market, either on economic
activities or firms, that is mostly being considered by the firms and they shifted towards process
innovation. Implementing new process and technology is huge hindrance which is faced by the
companies at the time of opting disruptive innovation. This type of innovation strategy helps the
businesses in eliminating competition. Competition can be made effectively in disruptive

innovation if market remains upper comparing to higher margin or either it considers the lower
margin or gets exit from the economy.
Incremental innovation is considered by organization which focuses on the existing
products and services as well as the methods of performing importantly and focuses are made on
enhancing and upgrading the existing products and services (Aronoff and Ward, 2016). It is with
a special context of those companies that not only in local markets but focuses on operating at a
global level. This necessitates them to distribute the products and services in accordance to the
tastes, preferences and needs of consumers. Concentrating on various needs as outside territories,
the needs and tastes change with the change in culture, tradition and fashion. To meet this
effectively, companies needs to focus on efficient productivity and functioning at various level in
different stages of performances. In addition to this, producing goods by the firms is primarily
considered as per the needs of consumers to meet out their expectations. Being successful in
those expectations, strategy of innovation is implemented by the companies by considering the
approach of incremental innovation. By performing this, they made enhancement and
improvements in their existing products and services.
By considering the type of innovation in the past, dilemma faced by innovators in
disruptive innovation as the process elaborated about the drawbacks that can be faced by the
organizations. In this method of innovation, concentration has to be made on the views and
thoughts of consumers and investors as they are considered as mainstream (Piperopoulos, 2016).
Company consider consumers as an important part and where the innovation is also done in
accordance to the current trend, fashion and needs of the consumers. As, most of the entities
finds radical innovation a bit complex process due to its lengthy and risky procedures, for the
smaller firms or new markets, it plays a prominent role. But, in case the companies are operating
globally, then implementation of radical innovation is tough.
Apart from the processes and their differences, huge concentration is made on eureka
moments which explains about the experiences of human beings that are considered by most of
the companies opting to invent something new. This was basically to perform specific type of
innovation by opting a procedural approach in their undertaken procedures and functioning. The
dominant form of innovation that is mostly opted by the businesses is known as incremental
innovation. As within this period, rate of technology gets changed in incremental innovation
from various sectors from time to time. These changes can be made easily in different countries

which bring advancements. Also, the rate of technology and nature of innovation varies from
each other in several boundaries, which are preferred by the enterprises as they find it easy to
implement and adapt as per the changes that are required as per the current trends.
A higher concentration is made towards the changes and modifications that are to be
executed to meet the requirements of consumers at large scale with a special consideration of
those who are located regionally and globally. It is well understood by the organization that
innovations are prominent for smooth functioning and operations of business. For the long run of
company, they get associated with innovation by understanding the different processes of
innovation (Modic and Damij, 2016). The improvement that are to be made according to the
changes and preferences of consumer needs, which gets adapted and vary from individual to
individual. These needs are considered at large by concentrating on the processes that are to be
taken place in terms of meeting innovations. Apart from eureka moments which is experiences of
human being, another context is considered at large and is termed as radical breakthrough, which
is effectively needed for the organizations.
Strategies of innovation that are opted is by involving the management and assessing the
need of bringing innovation in various terms. Two context are highly focused by the organization
which is eureka moments and radical break through. Breakthrough are made by meeting the
strategy in terms of science, innovation, evaluation and imagination etc. These are highly
appreciated in terms of meeting the efficiency by promoting inventive products and services by
the company. Rare use of breakthrough innovation is made by organizations as it demands
introduction of new technology (Frenzel and Beverungen, 2015). As in case of implementation
of Breakthrough innovation, company might be in need of surplus capital, techniques and
technology and methodology to relaunch. Though, most of the large scale companies are
successfully situated at a global level, it is not in state of mind to relaunch the premises as per the
requirements of breakthrough kind of innovation. From example, if businesses concentrate on
this type of innovation, most of its stores that are located outside territories needs to be replaced
with the new ones and the techniques, technology and methodology will completely get changed.
With the help of incremental innovation, effective products and services are made available
to the public by meeting their needs and demands effectively. The productivity and efficiency are
also boosted by it. By concentrating on the supply chain, new innovation is made available in the
market within seven to eight days of innovation across the world to meet the desires of

consumers. In this report, a huge concentration on the processing of companies adopting the
process of incremental innovation to perform confidently by boosting the revenue and profits has
been found. By elaborating about the opted method of innovation which is incremental
innovation, huge creativity is made by transforming the products and services and rendering to
the consumers by meeting the nuances. To detail about effectiveness with the help of an example
and considering disruptive innovation by the firms, this innovation or creativity is neglected due
to the very minute differentiation.
There are also changes of lower growth in disruptive innovation and quality time is
consumed to solve the problem of margin. Also by meeting the curve of margin, it starts
threatening the investors regarding the maintenance of efficiency and productivity in the main
market, as the problem of quality gets slower in main market which symbolizes negative terms.
In other words, it can be called as straight forward kind, which is not good for market where
businesses exist at large (Gielnik and et.al., 2014). Comparing the incremental innovation with
disruptive innovation, channels of supply plays an important role in main market. This is
considered to be a prominent execution by the businesses to meet out the required demand and
supply and fulfilling the needs of consumers, investors as well as other involved stakeholders.
To avoid the state of confusion in the future regarding the modification and implementation
of proceedings, huge concentration is made on incremental changes, techniques, technologies
and risks that can be faced in the future. To avoid hindrances and barriers, with the help of
discussions, and feedback from the consumers and making advancements in strategy, the role of
innovation is implemented at large (Stead and Stead, 2015). It is by majorly focusing on all the
types of needs and barriers that are demand by the methods of innovation. At last,
implementation is made by meeting advancements and comparing the outcomes with that to the
past experiences. Overall, by framing effective strategy of incremental innovation, several
number of companies have succeeded globally by meeting the existing fashion trends (Flew,
2014).
CONCLUSION
Businesses deals with the fashions and trends in clothing’s effectively by meeting the
actual needs of consumers and are mostly known to adopt a procedural approach to produce
inventive results. For this, they have made an effective use of incremental innovation by focusing
globally and meeting the demands of distinct people in different market areas. The chain of

supply is also maintained smoothly for their operational and functioning processes. In this report,
by highlighting various methods of innovation, a detailed aspect of incremental innovation, opted
by firms has been summarised (Radical and incremental innovation, 2013). This has led to
several favourable findings of incremental innovation that has also assisted the businesses in
acquiring effective outcomes in terms of inventing something new. Difference between the
innovations and process innovation that are been performed by the companies has been detailed
as well.

REFERENCES
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<https://www.innovationpolicyplatform.org/content/radical-and-incremental-innovation>