The greatest opportunities for innovation occur within the middle of an organization. Why in the middle? This is the space where leadership meets the people on the front lines of the company and the customer.
The connection points on the inside of the business are where the greatest opportunities exist to improve the performance of the business: logistics and financial systems, product development and delivery, marketing, etc.
If the company leadership is the outside of a car; and the tires are where the company touches the customer; then the engine and the multiple systems under the hood and around the car are where the opportunities exist to get more performance out of the car.
Everyday innovation involves keeping a close eye on all of the systems under the hood, while being mindful of the the car's aerodynamics and how it relates to the external environment.
Here's a great video that I discovered that provides a brief introduction to the concept of everyday innovation and how it can be used within an organization.