The article substantiates the importance and necessity of system innovation management in order to ensure its competitiveness and sustainable development as well as to enhance the satisfaction of current and future stakeholders of the organization. The article examines the types of innovation activity, methodological foundations of innovation management, as well as the relationship between innovation management and quality management. It makes a comparison between operational and innovation activities. The article also emphasizes the importance of developing and implementing a balanced strategy of the organization on the basis of both incremental improvements and innovations. In the authors’ opinion, the implementation of the PDCA cycle of continuous improvement contributes to the integration of the innovation management system with other management systems of the organization.
Keywords: improvement strategy, innovation, innovation activity, innovation management system, PDCA cycle of continuous improvement, quality management system