In order to gain profit, sustain business, adapt to competitive environment and to create more customers, an enterprise has to make continuous reform and innovation. To have successful innovation, the enterprise needs to meet customers’ needs and expectation by getting into the depth of customers’ potential domains, the enterprise can better understand their pain, frustration and charge, and be more able to provide right products or services to release their pain, frustration and charge as to create values. Based on “Habitual Domains Theory” and “Competence Set Analysis”, this research explores how an enterprise can think through the “charge structure” of itself, suppliers, distributors and customers as to effectively form win-win strategy, transform competence sets, innovate business operation and achieve its management goal. “Innovation Dynamics” is used as a basic framework for a case study on acer Inc., on its “2nd reforming project” during the period from 2000 to 2009. We show that acer’s new business operation models were, explicitly or implicitly, based on deep consideration of the charge structures of all participants in the supply chain. This practice enables it to provide good products and services in timely pattern to meet customers’ expectation, which make its brand name visible with positive impact within short period of time. In 2009, its annual revenue was 573.98 billion NT dollars and its market share of ranked number 2 in both global desktop PC and notebook markets. The case study strongly shows that Innovation Dynamics provides a cyclical and systematic framework for enterprises to effectively transform competence sets, develop and produce new products/services, release pain and frustration for the targeted customers, create and release charge, create value and distribute values, etc. Innovation Dynamics can be used by enterprises to examine the key management problems and solutions in the dynamic processes of innovation and reforming for continued business success.