Convenience



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Fundamentals-of-Management-8th-Edition-Ricky-Griffin-978-1285849041

210
Part 3:
Organizing
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Incremental_Innovations_Radical_innovations'>Radical Versus Incremental Innovations
Radical innovations
are new products, services,
or technologies developed by an organization that
completely replace the existing products, services,
or technologies in an industry.
28
Incremental
innovations
are new products, services, or pro-
cesses that modify existing ones. Firms that
implement radical innovations fundamentally
shift the nature of competition and the interac-
tion of firms within their environments. Firms
that implement incremental innovations alter,
but do not fundamentally change, competitive
interaction in an industry.
Over the last several years, organizations
have introduced many radical innovations.
For example, compact disc (CD) technology
replaced long-playing vinyl records in the
recording industry and now digital download-
ing is replacing CDs, DVDs have replaced
videocassettes but are now being supplanted by
Blu-ray DVDs and online downloading, and
high-definition television is replacing regular
television technology. Whereas radical innova-
tions like these tend to be very visible and public,
incremental
innovations
actually
are
more
numerous. For instance, each new generation of
the iPhone and the iPad represents relatively
minor changes over previous versions.

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