Change takes one of two broad forms: It is either incremental vs. radical or incremental vs. discontinuous. Incremental change is continual improvement that takes place within the already existing technology cycle. Companies innovate by lowering costs and improving performance of existing products and services.

Discontinuous or disruptive change is a significant breakthrough in technology that leads to design competition and a new technology cycle making the old technology obsolete. Disruptive technology requires the disruptive companies to make radical changes or go out of business.