All organisations are now facing one of the largest upheavals in business practice since the ‘great depression’. Information technology organisations, who frequently lead the development of change based around ICT, are being asked to develop new products and services that add significant value for customers and to radically change their internal processes so that they are more cost effective. Innovation is process of creating positive change to any organisation and that adds value to customers—internal and external. Innovation is now widely accepted at the only sustainable engine of renewed growth for organisations. Organisations that do not embrace innovation and learn to apply its principles will simply stagnate or be obliterated by competition. ICT organisations that can learn to apply innovation effectively will become key strategic assets in driving costs down and also in adding new dimensions to product and service development. This article presents an approach to applying innovation in any ICT based organisation, be it a service department within a larger organisation or a commercial business that generates ICT solutions for clients. The process of innovation in ICT based organisations is similar to innovation in any organisation and requires an in-depth understanding and practice of developing innovation goals, the management of innovative actions or projects, the empowerment of human capital or teams and the continuous monitoring of innovation performance. This article presents a methodology for applying innovation and a case study of how innovation related knowledge can be managed in any ICT organisation.