The Value of Disruptive Innovation vs. the Value of Incremental Innovation

Most startups aim to disrupt their markets by offering novel or more suitable products at lower prices, which is known as disruptive innovation. However, as competition grows, companies require incremental innovation to stay relevant. Incremental innovation improves existing products and makes upgrades, a common approach for companies in various industries. Disruptive innovation, on the other hand, creates new markets and has been defined as a process whereby a smaller company with fewer resources successfully challenges established incumbent businesses. Companies like Netflix, Skype, and Pandora are examples of successful disruptors. While both forms of innovation are essential, incremental innovation is more common while disruptive innovation offers the potential for profound impact.