From aviation. A graph of Altitude (y) versus Airspeed (x) of an airplane tends to form an enclosed shape kind of like a cartoon speech bubble. This is the 'envelope'.

When test pilots (like ChuckYeager) went on their flights, they often tried to push the limits of the aircraft to see if they could 'push' (i.e. expand the known region of) the envelope.

Sometimes they crashed and burned, but sometimes they broke the sound barrier.
----
In theory, this sounds exciting and reasonable for companies to do.

In practice, I've seen this kind of attitude lead to BigDesignUpFront.  The personality style is to always debate solutions in terms of academic, impossible situations instead of just DoTheSimplestThingThatCouldPossiblyWork.

The focus ends up being on all this great gee-whiz technology instead of the business, where it belongs.  I can see IT helping the business "push the envelope" (insofar as it provides more value to the customer, more wealth to the shareholders, stronger partnerships with partners, employees, etc. - not just for some kind of business school kudos).

-- JeffMantei

----

But PushingTheEnvelope is what enables a company to expand into new areas.  I'm not saying that a company necessarily expands into the space created by the push, mind you.  Often the EffectOfThePush causes a SideEffect that some intrapaneur capitalizes upon to develop a new product or new outlook.

How does a person SafelyPush the Envelope?

-- JeffChapman