In his blog on customer strategy, Curtis Bingham has a great post warning companies about the folly of always looking for the "sexy" customer. I'd like to build on that with a note about innovation: companies can miss many opportunities by focusing on what is hot and exciting, while missing what can be done with "mundane" innovations that deliver on unmet needs in simple, low-tech ways.
Innovation doesn't have to involve the latest high-tech tools to deliver value. In fact, sexy tech can easily become failed tech. Look for innovation across your supply chain, in packaging, in your relationships with suppliers, etc. Blockbuster innovation can be simple and low-tech. Look at the rise of private brands in the retail market. Simple, low-cost, but huge advances have occurred behind the scenes to make these concepts work.