Innovation is one of the most overused words of the past decade. Every company wants to be innovative and boasts of it’s “innovations.” But few companies truly innovate – i.e., create a concept that is new and shifts the paradigm from “what is” to “what will be.”

I’ve been fortunate in my career to work with a number of bona fide innovation driven companies – International Dispensing Corporation, Eastman Chemical, Protica Nutritional Research and Eyenavision to name just a few. And in each case, success came from a mindset that considered current market data but placed bets on how consumer patterns would shift in the future – looking where consumers are now, but predicting where they would be going 5-10 years down the road.

It was this forward-thinking mindset that led the the creation of Coca Cola’s newest soda fountain, the Freestyle. It’s fantastic.

The soda fountain market is relatively small, accounting for around 25% of the larger soft drink market, but Coke dominates the market with 70% market share.

The new Coke Freestyle has 125 different flavors of soft drinks, flavored waters, sports drinks and lemonades and sends usage data, such as what flavors are most popular at what times of the day, to Coca-Cola HQ in Atlanta. Even more interesting, consumer research has indicated that 20% of people who used the new machine say they would switch restaurants or convenience stores just to use the new machine.

According to AdAge, results at Firehouse Subs, one of Coke’s test partners, have been quite impressive.

“Earlier this year, the chain opted to install Freestyle in 25 Jacksonville, Fla., locations, turn on marketing support — in the form of billboards, 60-second radio spots, social media and events — and watch what happened. The stores saw a double-digit increase in traffic and overall sales, as well as an increase in people buying a drink and sandwich, rather than just a sandwich. Those stores also saw increased numbers of families with kids coming in, as well as more people choosing to dine in the restaurants.

Says the company’s CEO, “Even without the benefit of advertising, it hasn’t been unusual for restaurants to [see overall sales] rise 20% to 30% when they put the machine in. When word gets out, there’s a great curiosity factor, and it really doesn’t seem to recede.”

And, of course, social media and mobile apps are on the way.

Innovation requires big thinking – and a big time and energy investment to pull it off. But innovation is the only way to get ahead. In a market that gets more crowded by the day, it’s go big or go home. And Coke goes big.