Throughout a person's life, certain changes in every segment of life follow. The organization as a whole aim to achieve certain defined goals. The organization as such will not be able to meet all its goals if it does not introduce certain changes or innovations in its business. Change and innovation, although it seems so, are not related terms and there is a difference between them. Every innovation means that a certain change must occur but not every change means innovation. Change, as a concept, has a wider scope than innovation. Changes and innovations need to be implemented at a good time, because like everything else that affects an organization, they can have good and bad consequences. This final paper aims to define what changes and innovations are and how they can affect the company's operations. Special attention of this paper is focused on encouraging change and innovation in organizations. The main drivers of change and innovation in organizations are the employees of the organization themselves. At a time when change and innovation are an integral part of every organization’s business, the question arises of how to be an innovative organization in a way that will make the organization different from the others. The goal of innovation and change in organizations is to introduce certain changes in the business of the organization and thus make the organization more competitive in the market, to attract new customers or users, and finally external associates of the organization.