Market needs play a big role in how technology changes. There are two main types of innovations: incremental and radical.

Incremental Innovations

• What It Is: These are small improvements made to products or technologies that we already have.
• Numbers: A study by the Boston Consulting Group found that about 70% of changes made by well-established companies are incremental. They mainly focus on making things work better or making them easier and more enjoyable for users.
• Why It Matters: These small changes can meet about 80% of what people want because they fit well with what consumers already like.

Radical Innovations

• What It Is: These are big breakthroughs that create new markets or shake up existing ones.
• Numbers: Only 2-10% of changes are considered radical, but they can help companies gain more than 25% share in brand new areas.
• Why It Matters: Radical innovations can lead to completely new needs. A great example is the smartphone. It changed how we communicate and use technology.

To sum it up, incremental innovations help meet current market needs, while radical innovations change the market in a big way.