If you have not read the book on Blue Ocean Strategy, I would highly recommend it. No matter what industry you are in or how competitive your market is, it should make you think about innovation. Most companies I have worked with find it difficult to integrate innovation into their management cycle, and therefore innovation is done in an ad hoc manner.
While a Blue Ocean (Red Oceans are competitive markets where everyone has spilled blood) market play may not be for everyone, you can think of new ways to measure the business, process improvements, compensation plans, marketing tactics, etc if you create a more formal manner for innovation.
Additionally, you might find a great deal of value of reassessing the competitive landscape. It never hurts to discuss how would a new competitor attack the market. All great businesses find themselves under threat from unseen ideas – this may just give you a more proactive manner to see the ideas coming.
PureStone Partners LLC 
I enjoyed Blue Ocean Strategy but I’m not convinced that their style of innovation works for all companies. Some may prefer a “Beyond the Core” strategy. For a somewhat humorous take on the two, see http://alignment.wordpress.com/2008/01/10/beyond-the-blue-core-ocean/
Jonathan,
I will pick up the book – thanks for the recommendation. As to Blue Ocean, I agree with you that Blue Ocean is not for everyone, but I think there is a great deal we can learn from the concept. We typically do a poor job of thinking about innovation, or at least how to put innovation into action within an organization. We need to integrate innovation into a management cycle to make sure we are consistently looking for new ways to improve the business – no matter internal or external.
Thanks,
Michael