CypherCrescent
Module 4•Unit 2 of 6•11 min

Degrees: Incremental to Transformative

Beyond its form, innovation varies in degree - how big a leap it represents. The same form (say, a product) can be a minor refinement or a world-changing breakthrough. Understanding the degrees helps a business balance its portfolio between safe, near-term bets and bold, transformative ones.

Incremental

Small, continuous improvements to what exists. Low risk, near-certain return, modest impact. The bread and butter of staying competitive.

Breakthrough (radical)

A significant leap that meaningfully changes the offering or its performance. Higher risk, higher reward, opens new possibilities.

Transformative

A change so profound it reshapes markets, behaviours, or entire industries. Highest risk and uncertainty, but potentially defines a new era. Rare, and rarely comes from incumbents.

Degree Risk / reward Example
IncrementalLow / modestA better phone camera each year
BreakthroughHigher / higherThe first touchscreen smartphone
TransformativeHighest / era-definingThe smartphone reshaping daily life
A healthy business does not choose one degree - it balances a portfolio. Mostly incremental to fund and defend the present, with a deliberate share of breakthrough and transformative bets to secure the future. Too much incremental and you stagnate; too much transformative and you gamble the company. (Module 9 covers this as the Three Horizons.)
Quick poll

Where does your organisation's innovation effort mostly sit?

Pick the answer that fits you best - there's no wrong choice.

Discuss

Is your innovation portfolio balanced across the degrees, or clustered in the safe incremental zone? What would a bolder bet look like?

Try this at work this week
Tag your current initiatives as incremental, breakthrough, or transformative and tally them. If the transformative column is empty, ask what one bet you could make there - and what it would take to protect it.

Sources

  1. Global Innovation Institute (GInI), Foundations of Innovation body of knowledge.
  2. Norman, D. & Verganti, R., "Incremental and Radical Innovation", 2014.
  3. Davila, Epstein & Shelton, Making Innovation Work, 2006.