On her blog, The Story of Telling, Bernadette Jiwa address where great innovation comes from:

Great innovation, and thus products and services people care about, lies at the intersection of the customer’s latent desire and your solution. Innovation then is not always about giving people a slightly better version of what they’ve got, or have demonstrated that they need, even if that is what you’re equipped to deliver and how you profit today. Sometimes it’s about rewriting the future for a customer who doesn’t know what will matter to him in five years time, in a market that doesn’t yet exist.

More from Jiwa in her book Difference: The one-page method for reimagining your business and reinventing your marketing.