As the business environment becomes more global and competitive, organizations need to pay more managerial attention to systematically encouraging business innovation. Singapore-based YCH Group, a leader in end-to-end supply chain solutions in the Asia-Pacific region, has addressed the issue of stimulating business innovation. This article describes its experiences and offers three lessons for encouraging IT-based innovation. The first lesson is to foster an innovation mindset, which YCH has done by creating an IT-centric innovation mindset and by balancing strategic and operational issues. The second is to build partnerships, which YCH has achieved by developing an outward-facing IT organization, by leveraging cross-learning from alliances, and by leveraging IT to capitalize on opportunities to grow with customers. The third lesson is to mitigate risks and uncertainty, which YCH has done by instilling a flexible risk ethic, by focusing on customer value when assessing its innovation projects, and by paying attention to protecting intellectual property.