The basic configuration stays the same, but one or more key components are changed.

• A. Incremental
• B. Radical
• C. Modular innovation
• D. Disruptive

Answer: (C)

When a product keeps its overall configuration but substitutes or upgrades one or more of its components, you’re looking at modular innovation. The architecture or blueprint of how the system is put together stays the same, but the modules themselves are changed, added, or improved. That fits the description perfectly: the basic configuration remains, yet key components are altered, enabling new features or performance without redesigning the whole system.

This differs from incremental improvements, which involve small tweaks to existing components without changing their fundamental role. It’s not a radical shift, which would require a redesign of the overall architecture or how parts interact. And it isn’t primarily about changing the market approach or business model, which is what disruptive innovation often emphasizes.