Innovation is one of the most overused words in business today, yet one of the least understood. It is often equated with technology, with shiny new products, or with radical disruption. But at its heart, innovation is about value. It is the ability to respond to change and opportunity in ways that create something new—something that solves, serves or surprises.

So what is innovation really, and why do we need it now more than ever?

Why we need innovation

Innovation is not invention. It is not always big or dramatic. Sometimes, it is a small shift that unlocks a new direction. In leadership teams, it might mean changing how decisions are made, removing unnecessary hierarchy or creating space for dissenting voices. In operations, it might mean adapting a process that no longer serves a changed market. In customer experience, it might be simplifying rather than adding.

We need innovation to stay relevant. The pace of change in every industry—from finance to retail, healthcare to education—means that what worked yesterday may not work tomorrow. Innovation is not a luxury, it is a condition of survival.

But relevance is not just about speed. It is about alignment. Are we still solving the right problem? Are we serving the right people in the right way? Innovation is about being willing to ask these questions—and act on the answers.

The double-edged history of innovation

It is easy to view innovation as an unqualified good. After all, it has cured diseases, connected continents, transformed education and put the sum of human knowledge in our pockets.

But it has also widened inequalities, accelerated environmental damage and created complex ethical dilemmas. The history of innovation is the history of consequences—some intended, many not.

The printing press disrupted power. The industrial revolution reshaped labour. The internet redrew borders. Social media has transformed communication, for better and worse. And now, generative AI is beginning to redefine not just what we can do, but what it means to be human.

In leadership, this demands humility. We must recognise that every innovation is both solution and disruption. Our role is not only to drive change, but to steward its impact.

innovation in an AI-powered world

The arrival of generative AI changes the landscape yet again. For the first time, innovation is no longer solely human-led. Machines can now iterate, optimise and even originate. That means the challenge for leaders is no longer just what to build—but why, and how.

AI will reward those who are willing to ask better questions, not just produce faster answers. It will favour those who can think systemically, ethically and courageously. In this new era, innovation is not about having the latest tool, but about creating the conditions for better thinking.

And sometimes, the most radical innovation is not to move faster, but to pause. To choose quality over quantity. To stop and ask, “What does value look like now?” Because in a world of exponential possibility, discernment becomes a competitive advantage.

When not innovating is the right choice

There is one final thought. Not every situation calls for innovation. Sometimes, stability is more valuable than novelty. Sometimes, the best leaders are the ones who resist the urge to change for change’s sake.

Knowing when not to innovate—when to protect, preserve or simply perfect—requires just as much judgement as knowing when to leap.

Innovation is always situational. It is not a strategy in itself, but a response. A great leap forward, or a quiet step to the side.

In the end, the most effective leaders will not be those who innovate the most, but those who innovate with purpose.