It's a buzz word in marketing.

In strategy, there are 2 types of innovation

Incremental and Disruptive

Both types give organizations increased power over territory.

People are the blood of an organization. Ethics and people determine culture which determines goals.

Innovation is the strategic foothold for keeping an organization alive as it travels into the future.

EDIT: I want to add that all organizations (even non-business) need innovation. Civilizations, Empires, Protests, Support groups, Religious groups, etc... This is due to environments constantly changing. This is what Strategic Planners help with.

It's a buzzword in marketing, and it's a buzzword in corporate strategy. Or "soundbite", if you wish. It's not as if the latter was a hard science.

> Incremental and Disruptive

I'm guessing you're taking this from a particular philosophy, perhaps a particular known book. Even if the word makes sense in there, it's not necessarily how other people are using it.

For comparison, if you look at the first paragraph of Wikipedia's article on innovation, you'll find so much wiggle room in there that you could call every business "innovative".

Here's a book to introduce you to the domain "The Psychology of Innovation in Organizations"