Present day business environment is very dynamic in nature which keeps on changing frequently with the changing market conditions at domestic and international level. Organisations existing in the present day business environment have sufficiently understood this fact and perform their market analysis and research activities to identify the changes. It is very essential for present day organisations to get adapted to the changes and maintain their business operations. To attain the level of flexibility required for adapting to the changes organisations develop innovative approaches to modify their business structure and systems as per the changes. This report discusses the theories of innovation and its real application in present day organisations. Irrespective of industry type every organisation is required to identify the changes and resist them. This report has considered the construction industry and its performance in the international market. BAM Construct UK Ltd. is one of the leading construction companies in UK and is a part of the European construction enterprise. The study has considered the company BAM Construct UK Ltd. as its sample organisation for analyzing the innovative practices performed within present day organisations. The study emphasizes various innovative approaches which are practiced in the sample organisation and also provides with suggestions on improving their innovation practices in regards to their product development activities. Organisations come up with innovative products which are developed as per the changing demands of the customers’.