Managing Innovation Types

A successful organization should not limit itself to either incremental or radical innovation...

Understanding the difference between different types of innovation is important in learning how to mange it. Incremental innovation requires you to mobilize large numbers of people to make small improvement. The process is relatively low risk and high frequency, and forms part of the mainstream activity in most organizations. Radical innovation is much riskier and often takes specialized knowledge. It tends to be managed by dedicated teams, often outside the mainstream of the organization's work flow.

The development of most products tends to consist of long periods of incremental change punctuated with occasional radical breakthroughs. For example, the 20th century innovation of the standard filament light bulb to create smaller more reliable, and more efficient versions of the original design. Now, however, light-emitting diodes (LEDs) promise a radical replacement in the form of a long-lasting and energy-efficient alternative. A successful organization should not limit itself to either incremental or radical innovation, but be prepared to engage in both, and mange them under the same roof.

ACTION POINT: Use incremental and radical innovation to build a successful organization.