The difference between iteration and true innovation

Let’s get one thing straight: not every shiny new product or feature is an innovation. Sometimes, it’s just a tweak—a slightly better version of what already exists. And that’s fine!

Iteration has its place. But if you want to change the game, disrupt the market, or create something truly remarkable, you need to understand the difference between iteration and true innovation. Here’s what I’ve learned about this distinction over the years.

Define the Problem You’re Solving

Iteration is about improving what already exists.

True innovation, on the other hand, starts by redefining the problem itself.

Take the iPhone as an example. Before it existed, phones were just for calling, texting, and maybe playing Snake. Apple didn’t just iterate on the flip phone—they reimagined what a phone could be.

If you’re not challenging the status quo, you’re probably iterating, not innovating.

Understand the Risk-Reward Ratio

Iteration is safe. It’s about making incremental improvements that are likely to succeed.

True innovation is risky. It often involves betting on an unproven idea, technology, or market.

When I joined Apple in the early days, we weren’t just iterating on existing computers. We were betting on a vision of personal computing that most people thought was crazy. True innovation requires the courage to take risks that iteration avoids.

Focus on Creating New Value

Iteration often focuses on making something faster, cheaper, or more efficient.

True innovation creates entirely new value.

Canva didn’t just make graphic design software easier to use—it democratized design, making it accessible to people who had never touched Photoshop. That’s the difference between improving a tool and creating a movement.

If your work doesn’t open up new possibilities, it’s probably iteration.

Recognize the Role of Timing

Timing plays a huge role in whether something is an iteration or an innovation.

Iteration often happens when a market is mature, and customers are looking for refinements.

Innovation, on the other hand, often creates a market where none existed before.

Think about Tesla. They didn’t just iterate on gas-powered cars—they redefined what a car could be, at a time when the world was ready for electric vehicles. Timing isn’t everything, but it’s close.

Accept That Innovation Is Messy

Iteration is predictable. You know what you’re improving, and you have a clear path forward.

Innovation is messy. It’s full of false starts, dead ends, and moments of doubt.

But that’s also what makes it exciting. When you’re innovating, you’re not just building a product—you’re building the future. And that’s worth the mess.

Know When to Iterate and When to Innovate

Here’s the kicker: you need both. Iteration keeps you competitive in the short term, while innovation positions you for long-term success. The trick is knowing when to focus on each.

If you’re in a crowded market, iteration might be your best bet. But if you want to leapfrog the competition, you need to innovate.

The key is to balance the two, so you’re not just keeping up—you’re leading.

Iteration and innovation are both valuable, but they’re not the same. Iteration makes things better. Innovation makes things different. And if you want to be truly remarkable, you need to know when to iterate, when to innovate, and how to do both well.

So, what’s it going to be? Are you improving the game, or are you changing it? The choice is yours.

Mahalo!

Guy