re: 4 Ways CIOs Can Unleash Digital Disruption
I think one of the keys to creating a culture where innovation comes more naturally is to teach the difference between iteration and innovation. Much more often than not, when I hear people talk about innovating, they're actually talking about iteration - the next step in a design, taking the old design (product, process, etc.) and improving upon it to meet new challenges.
The idea behind innovation, that I've seen work successfully, is to scrap what you know about the existing processes and pre-existing ideas while focusing on what the issue is that needs a solution. From there, consider what the issue is going to look like in 5-10 years and build a solution that solves the existing issues and can get the job done further down the timeline.
I see innovation as a more strategic process while iteration falls under the heading of tactical or even operational.