Kevin states an interesting case on Innovation, based on his recent read of this article.

I'm with him on the Wal- Mart and logistics example. It ties nicely to the corollary of Starbucks being in the 'real estate' business and innovating the hell out of how corporations seek out and secure facilities. This is not new, however, McDonalds did this first. (check out Built for Growth: Expanding Your Business Around the Corner or Across the Globe if you're interested in more about Starbucks)

In my view, a company's policy on innovation starts with leadership. If the leader is steadfast in their belief on innovation then so is the company. For example, I worked for a company that was solid in its stance on being a 'fast -follower' and we focused all of our energies in that area, and were sell served as a result.

Innovation is also one of those few areas where I feel too much customer focus can be detrimental. Not that you shouldn't innovate with the customer in mind, but if your idea of getting innovative is to hold focus groups to see what your customers want, you'll be madly dissatisfied with the outcomes. As an aggregate body, customers have no immagination.

Although, if the company has no imagination, then perhaps your only hope is to seek ideas and innovation through customer feedback. GM is a good case in point, which Ben draws out nicely in this post.