You can update a component to a newer version of that component. The newer component might reflect a product revision, a change to a file, or a directory that has new files added to it.
If you need to update a simple component, you only need to run the direct run install procedure. The install procedure will overwrite the old component version with the new version.
If you need to update a composite component (a component that references more than one simple component) and the set of referenced components are the same in each component version, you can run the direct run install procedure. The install procedure will overwrite each of the old simple components with the new versions.
If you need to update a composite component and the new version of the component contains a different set of referenced components, you will need to uninstall the old component version and install the new version. By uninstalling the old version, you prevent components that are no longer used or updated from cluttering your work space.