The ongoing introduction of new information technology and the wide range of opportunities it provides to individuals and organizations makes information system innovation a prominent theme for practitioners and researchers. However, within IS research the focus has been predominantly on the adoption and diffusion of information technology, as opposed to the discovery and development of new ideas for how information systems can enable or drive business innovation. To address this gap, this paper conducted a literature review into business innovation (and related notions of organizational and administrative innovation) as it has been studied within the IS discipline. The contribution of this paper is that it presents ten important factors which influence organizations to be innovative with their business with information systems, which we propose are particular relevant for the conceptualization and generation of IS innovation. This review can provide guidance for decision makers of organizations that use information technology.