Abstract
Nowadays, many organisations launch initiatives with lofty aims to develop themselves into “learning organisations” and “innovative organisations”. This article reviews the literature on the concepts of “learning organisation” and “innovative organisation” and argues that the innovative organisation can be developed from the foundation of the learning organisation. The five disciplines of learning organisation are fundamental to effective innovation. The spirit of innovation is an exercise in personal mastery. Thinking out of the box is an exercise in challenging mental models. To develop a truly innovative organisation, people should share the same vision for innovation. They should work closely and find synergy in teams because a team is more powerful than the sum of the individuals. Systems thinking allows the organisation to innovate in the areas where the highest payoff can be reaped and develop the platform to sustain innovation.