Innovation, especially when implemented systematically in a structured innovation process of a company, strongly supports one of the principal business objectives, which is to gain a long-term competitive advantage and realize profit for the company. There can be no economic development without innovation and entrepreneurship. Innovativeness is the most valuable resource of every company; therefore, it is hugely important to encourage creative thinking, as innovation has a direct impact on the increase in the company’s productivity and competitiveness. Innovation implies a new product or service, but it can also mean a new technology, a new manufacturing process and or even a new model of management. In my paper, I look at innovation as a purpose, and present the sources of innovation, as well as what should and should not be done when implementing an innovative idea in a company. Just like with any other system, the implementation of Customer Relationship Management has numerous advantages and some disadvantages, which are also mentioned in the paper. Customer Relationship Management is a corporate business strategy designed to reduce costs, increase company profitability, and improve customer satisfaction, loyalty and engagement. CRM consolidates data from all data sources both within the organisation and outside of it, in order to deliver a real-time, comprehensive view of each customer. This allows the company to streamline decision-making and ensures its market competitiveness. The fourth chapter describes the innovation process of the HEP Elektra d.o.o. company and the impact of innovation on the company’s business operations.