Level Two is Incremental Innovation: Medium-sized improvements that benefit both your customers and your company. This can keep you slightly ahead of the competition, or if you are behind, help you catch up a bit. But, if a rogue wave of innovation hits your industry, you’re sunk.
Level Three is Breakthrough Innovation: This is not based on novelty. As I define it, “breakthrough” results in step-change in both customer value and a company’s financial performance.
Level Four is Disruptive Innovation: It is game-change in an industry or a field such as education or health care. It is often created by providing the same or much better value to customers at a massively lower cost and price.
There is no question that disruptive innovation can change the rules of an entire industry, and rapidly create new winners and losers. U
Level Five is Eruptive Innovation: It doesn’t just change an industry. It creates change so big and broad that it affects the world, the planet, society at large.These do not just change industries; they change humanity.
The most troublesome area is disruptive innovation, because its value isn’t always immediately apparent.