Innovation vs. Iteration: The Two Tribes of Software Development
- Winston Ng
- Aug 14
- 3 min read

In the world of software, not all teams are created equal. You have the brilliant engineers who maintain and enhance a flagship product—fine-tuning performance, squashing bugs, and adding features to an established user base. Then you have the trailblazers, the explorers charting a course into the unknown.
At Hatch, we live in that second world. Our partners often come to us with a big, hairy, audacious idea—a "Zero to One" project that has never been built before. And we've learned that the team you build for this kind of work is fundamentally different from a team working on an established product.
So, why can't a great product team just build a new, innovative product? It comes down to a shift in mindset, skills, and even culture.
The Iteration Team: Master Builders of a Known World
Think of a team iterating on an established product as the master builders of a modern city. They are experts at efficiency, stability, and scale. Their day-to-day work is about optimization:
Skill Set: Deep specialization. You have a backend engineer who knows the API like the back of their hand, a front-end expert who understands every quirk of the UI, and a QA specialist who can break anything. They are masters of their specific domains.
Mindset: Focused on predictability. They operate within a well-defined framework and a clear roadmap. Success is measured by hitting release dates, reducing bugs, and incrementally improving key metrics.
Process: Structured and deliberate. The process is a well-oiled machine, often involving detailed sprints, robust testing, and a clear chain of command for new features.
Their world is one of refinement. They're adding new floors to a skyscraper, ensuring the plumbing works perfectly, and keeping the lights on for thousands of residents. This is critical work, but it’s not built for the chaos of the unknown.
The Innovation Team: Explorers in a New Frontier
Now, think of an innovation team as the crew of the first expedition to a new continent. Their job isn’t to build a city; it’s to find a suitable place to build one. Everything is an experiment, and failure is just a data point.
Skill Set: T-shaped generalists. Instead of deep specialization, every member needs to be a "T-shaped" player: deep expertise in one area, but with a broad knowledge base across the entire stack. A front-end dev might need to get their hands dirty with a database schema, and a PM might need to write some test scripts.
Mindset: Comfort with ambiguity. The roadmap is a rough sketch, not a detailed plan. The team must be comfortable with constant change, pivoting when a hypothesis proves wrong, and embracing the fact that they're building something that might not work at first. The goal isn't just to build, but to learn.
Process: Nimble and lean. The process is about speed and validation. Think two-week sprints focused on building a Minimum Viable Product (MVP) to test a core assumption. There's less focus on perfect code and more on rapid prototyping and user feedback.
The most important trait for an innovation team is resourcefulness. When you're building something from scratch, you don't have the luxury of established best practices. You have to invent them as you go.
The Takeaway for Leaders
So, when a company wants to launch a bold new idea, simply reassigning a product team to the project isn't enough. You need to build a team with a different DNA. It requires:
Recruiting for Curiosity: Look for individuals who are not just skilled, but genuinely curious and excited by the challenge of the unknown.
Embracing a Different Culture: Foster a culture that rewards experimentation and learning, not just perfection and predictability. Celebrate failed experiments for what they teach you.
Leadership That Protects: The innovation team needs to be shielded from the pressures of the core business. They need the freedom to fail fast and iterate without the scrutiny of a traditional product lifecycle.
Building a software team for innovation is about assembling a crew of pioneers, not just skilled builders. It's about finding people who are excited by a blank page and are ready to sketch out the future, one bold idea at a time. At Hatch, this isn't just a philosophy—it's how we build. And it's why we're so good at helping companies turn their Zero into a One.



