Innovation—the word brings up images of scientists in lab coats and entrepreneurs with revolutionary inventions. Although these scenarios are an important part of the picture, being innovative today should be seen in a much broader context.
Innovation is really about responding to change in a creative way. It's about generating new ideas, conducting R&D, improving processes or revamping products and services. At another level, it's also about a mindset in your business: One where your staff, whether in the executive offices or on the shop floor, are always focused on continuous improvement and constantly thinking outside of the box.
It helps to look at examples where other entrepreneurs have made or are making their mark. Innovation can be a larger-scale venture where a new product or service, such as Google, has changed fundamentally how we do business. Or it could be a low-cost internal initiative such as improving a process in your business that can lead to dramatic savings in overhead costs.