This document discusses integrating process improvement and transformational innovation. [1] It notes that organizations face challenges innovating due to tight budgets but need flexibility in solutions. [2] Innovations can impact internal processes, products/services, or business models/markets differently. [3] Any innovation diffuses through communication over time within a social system. Organizations must transform themselves to appear reliable to mainstream markets and innovate internally before pursuing new products or markets. The document provides recommendations for innovating on a tight budget like focusing on internal processes or leveraging university speakers.