I have been to a few conferences and heard a panel on innovation in which one of the speakers (whom I will not name) talked about focus and repeated the phrase "don't innovate in the backoffice, keep it to your product"
I don't think that this is a good idea. Innovation is an ideal which leads to better overall performance. Creative thinking is not something that is limited just to your product and boundaries for innovation are not a good thing.
I think that good companies should innovate in many areas. A short list would be: transportation, employment terms and compensation, IT, working with the community and many more. Some of the best companies you know are well known for innovating outside their product (google's 20% is a good example).
To sum it up, don't limit yourself. Innovate everywhere.
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