What is meant by incremental innovation?

When you hear the word innovation, it’s often the most ground breaking ideas that spring to mind. But in actual fact, the majority of innovation (around 70%) is incremental innovation.

Incremental innovation involves making small scale improvements to add or sustain value to existing products, services and processes. This can be simple as adding a new feature to an existing product or it can be more complex, for example developing a line extension. One of its key elements is that it harnesses existing technology and an existing business model so it’s often easier to execute than breakthrough or radical innovation. (For the difference between the three different types of innovation, check out our last blog post).

Despite being the most common type, incremental innovation often doesn’t get the recognition it deserves. We’re profiling 4 great examples of incremental innovation from Gillette, Coca-Cola, Cadbury and Sainsbury’s.

Gillette

You might not think of Gillette as one of the great innovation leaders but in actual fact, the brand is a great example of a company that has used incremental innovation to stay ahead of the competition. Gillette razors started life with a single blade but their product has evolved, adding different features and more blades as the company has sought to better meet customer needs.

Coca-cola

Another great example comes from Coca-Cola. The brand’s line extensions such as Cherry Coke, Coke with Lime and more recently Coca-Cola Life have enabled a 130 year old brand to stay relevant, tap into emerging trends and bring something new to its customers over the years.

Cadbury

Like Coca-Cola, Cadbury has innovated through introducing line extensions. As well as developing new flavours, the brand has also created new formats. Take Wispa as an example: the popular chocolate bar is now available as a hot chocolate and a snacking bag. By using an incremental approach to innovation, Cadbury has been able to open up additional sources of revenue.

Sainsbury’s

Incremental innovation doesn’t just apply to products, it affects services too. Sainsbury’s has evolved its delivery service so that online shoppers can receive their goods more quickly. Just the other week, the supermarket giant announced that it was trialling same-day delivery – a move that will help the brand to meet rising customer needs.

Incremental innovation is a succession of very small upgrades or improvements that a company makes to its products. The company makes the small improvements at regular intervals.

The term may also apply to services, methods, or processes. Innovative companies carry out many small improvements over time to maintain brand loyalty. They may also do it to hold onto market share. In other words, they want consumers either to buy their new upgrades or keep their existing products.

Customers are more likely to hold onto an existing product if there is an interesting software upgrade, for example.

Incremental innovation is a strategy that helps companies maintain or improve their competitive position over time.

Incremental innovation is common among high technology companies. In the hi-tech consumer market, people are always keen on new products features.

Furthermore, consumer technology makers are always introducing new features to existing products.

Therefore, any company that fails to introduce small improvements at regular intervals will lose out significantly.

TechTarget says the following regarding the term:

“Incremental innovation is a series of small improvements or upgrades made to a company’s existing products, services, processes or methods.”

Innovation means thinking up and creating new ways of doing and making things. It also includes creating new products. It is a crucial part of many successful businesses.

Incremental innovation vs. other types

This type of innovation is often a better investment than other innovation types. In today’s rapidly changing marketplace, many managers underrate the benefits of a series of small improvements or upgrades.

In this context, the term ‘marketplace’ means the same as the abstract meaning of ‘market.’

According to Decision Innovation, overall innovation failure rates are extremely high, i.e., 70% to 98%.

Incremental changes to existing products have a much lower failure rate.

Regarding incremental and other innovation types, Decision Innovation writes:

“Contending with this level of failure makes incremental changes look attractive when considering the risk associated with innovation investments.”

Incremental innovation – existing products

Incremental innovation focuses on existing products. The aim is to improve an existing product’s efficiency, features, productivity, or competitive differentiation.

Competitive differentiation is a positioning tactic a company undertakes to set its product apart from competing products.

Companies use this type of innovation to help maintain market share and position. They may also use it to improve the product’s market position.

It has become a common tactic among consumer technology producers. Smartphone and other consumer technology makers compete fiercely to improve devices with new features.

Video – incremental innovation

This Innovative Medicines Canada video explains what incremental innovation is. It focuses on life-saving medicines.

What is incremental innovation and examples?

Why is innovation incremental?

What is incremental example?

What is an example of incremental change?