Management is the cornerstone for the enterprise development, and innovation is the driving force behind the enterprise progress, and also the decisive factor for modern enterprises to achieve leapfrog development and steady growth of profit. In the increasingly fierce market competition, the business managers must pay attention to the enterprise management innovation, penetrate innovation into all aspects of enterprise management, and use innovation theory as a guide to continuously enhance the efficiency of enterprise management, survival in the change, and develop in the innovation. This paper explores the necessity of innovation management and the present developmental situation and the existing problems of domestic enterprises, and gives suggestions for those problems. In addition, this paper also uses the case of a diesel engine factory in Shandong to study the enterprise management innovation.