Innovations are traditionally classified into only two groups, radical innovation and incremental innovation. However, Henderson and Clark believe that these two groups provide little information about minor innovations that have a large impact on the industry. Therefore, they propose a concept called architectural innovation, to classify innovations that change the way a product's components relate to each other while maintaining the same fundamental design concept. It is essential that companies recognize the importance of architectural innovation in order to remain competitive, as failure to distinguish this innovation will result in a loss of market share, as the example of Kasper and Canon shows. Henderson and Clark proposed that once a dominant company design has been determined, architectural knowledge of that product is instilled into the organization's information processing procedures. Companies will tend to focus on improving components rather than the connections between them. In the event of architectural innovation from their competitor, the firm...