In our previous article we discussed what incremental innovation is. Because examples often inspire and help you gain new insights and ideas, we handpicked some great incremental innovation examples. Discover our Toyota, Coca-Cola, Apple incremental innovation example in this article and get inspired.
Before we dive into our incremental innovation examples, I would first like to briefly consider the definition of incremental innovation.
Our definition of incremental innovation is: making small, continuous improvements to existing products, services, processes, or methods.
We handpicked the following inspiring incremental innovation examples for you:
Our first incremental innovation example is the continuous improvement practices at Toyota. Since its introduction, Toyota has followed an incremental innovation strategy to enhance its manufacturing processes:
Efficiency enhancements: Toyota continually seeks to reduce waste and optimize resource utilization through small, incremental changes suggested by employees at all levels.
Quality improvements: By making incremental adjustments to production techniques, Toyota ensures that the quality of its vehicles consistently improves, minimizing defects and enhancing customer satisfaction.
Process innovations: TPS promotes a culture of kaizen, where even minor improvements in workflows and procedures contribute to significant productivity gains over time.
Employee empowerment: By involving frontline workers in the innovation process, Toyota fosters a sense of ownership and continuous improvement, leading to a more engaged and motivated workforce.
Another notable incremental innovation example is seen in the product line extensions by Coca-Cola. Over the years, Coca-Cola has followed an incremental innovation strategy to diversify its product offerings while maintaining its core brand:
Flavor variations: Coca-Cola has introduced various flavor variants such as Cherry Coke, Vanilla Coke, and Coca-Cola Zero Sugar. These incremental additions cater to different taste preferences and dietary needs.
Packaging innovations: The company has made incremental improvements in packaging, such as introducing smaller can sizes, recyclable materials, and special edition designs, enhancing consumer appeal and environmental sustainability.
Health-conscious options: Responding to consumer demand for healthier options, Coca-Cola has incrementally expanded its product line to include beverages with reduced sugar and added vitamins and minerals.
Marketing adjustments: Coca-Cola continually tweaks its marketing strategies, incorporating incremental changes based on consumer feedback and market trends to keep its brand fresh and relevant.
A notable example of incremental innovation is seen in the development of Netflix’s streaming service. Since its transition from a DVD rental service, Netflix has consistently employed an incremental innovation strategy to enhance its platform:
Content personalization: Netflix continually improves its recommendation algorithms to provide users with personalized content suggestions based on their viewing habits, enhancing user engagement.
Streaming quality: Over time, Netflix has incrementally upgraded its streaming technology to support higher video resolutions, including HD, 4K, and HDR, providing a better viewing experience.
User interface improvements: Regular updates to the Netflix interface have made it more intuitive and user-friendly, with features like auto-play, enhanced search functionality, and customizable profiles.
Content library expansion: Netflix incrementally expands its content library with a mix of licensed and original content, catering to a diverse audience and keeping the platform fresh and appealing.
Another great incremental innovation example is Apple. Apple has followed an incremental innovation approach with its iPhone cameras, gradually improving the technology over time:
Camera quality enhancements: With each new iPhone model, Apple introduces minor improvements in camera resolution, lens quality, and software processing, delivering better photo and video quality without dramatic overhauls.
Feature refinement: By adding small, incremental features like Night Mode and enhanced image stabilization, Apple enhances the user experience without overcomplicating the device.
Software updates: Regular software updates allow existing iPhones to benefit from new photo-editing tools and image processing improvements, ensuring users get more value from their current devices.
Customer satisfaction: These steady, small improvements help Apple retain customer loyalty by continuously offering better quality, rather than overwhelming users with drastic, unfamiliar changes.
Our following incremental innovation example is Tesla. Tesla uses incremental innovation to improve its vehicles through over-the-air software updates:
Performance improvements: Tesla cars receive regular software updates that make incremental improvements to acceleration, battery life, and overall driving performance.
Feature upgrades: Small updates introduce new features, such as enhanced autopilot functionalities and in-car entertainment options, without requiring hardware changes.
User interface refinements: Tesla’s touch-screen interface is regularly updated with small, user-friendly improvements, making it more intuitive over time.
Enhanced safety: Tesla’s continuous updates add incremental safety features, ensuring the vehicles become safer with each new software release.
Google has used incremental innovation to continually improve its search algorithm, delivering better search results over time:
Algorithm adjustments: Google makes frequent, small updates to its search algorithm to refine the relevance and accuracy of search results without users noticing drastic changes.
User experience improvements: By gradually improving the speed, mobile-friendliness, and user interface, Google has made its search engine easier and more convenient to use.
Feature enhancements: Google introduces minor features like predictive search and enhanced snippets, which improve the search experience without changing its basic structure.
Continuous testing: Google’s incremental innovations come from A/B testing, allowing the company to implement only the most effective changes to enhance user satisfaction.
Amazon has incrementally improved its warehouse operations through automation, resulting in faster and more efficient order fulfillment:
Robot integration: Over time, Amazon has introduced robots in small steps to assist with sorting and transporting goods, reducing the workload on human employees.
Process refinement: By incrementally optimizing the layout of its warehouses, Amazon has shortened the time it takes to locate and package items for delivery.
Energy efficiency: Amazon has made gradual improvements in energy usage within its warehouses, making the process more sustainable while keeping operational costs low.
Scalable solutions: These small changes have allowed Amazon to scale its operations without major disruptions, ensuring continued growth and efficiency.
Our last incremental innovation example is Starbucks. Starbucks has embraced incremental innovation by continually improving its mobile app for a better customer experience:
Order customization: Over time, Starbucks has added small features that allow users to more easily customize their orders, making the app more convenient without overwhelming the user.
Loyalty program upgrades: Starbucks makes incremental improvements to its loyalty program by adding new rewards, easier point tracking, and integration with other services, enhancing customer engagement.
User interface improvements: The app’s interface has undergone gradual refinements, such as smoother navigation and easier payment options, making it more user-friendly over time.
Speed and performance: By optimizing the app’s speed and reducing load times, Starbucks ensures a seamless ordering experience without drastic changes to the app’s core functions.
I hope you liked our handpicked incremental innovation examples. Are you ready gor more innovation inspiration? Read the book Business Model Hacking. It is a practical and powerful approach to developing new business models. It contains many examples of game changers who owe their success to the choices in their business model. Also it covered several inspiring case studies. What are you waiting for!
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