The latest analysis of which companies are making the most of their innovation resources to drive growth. Now in its 12th year the Innovation Leaders research has become a benchmark for many companies as it assesses how over 2000 organisations across 25 sectors innovate and identifies the leaders. Used a stimulus to learn new insights and refine strategic options, this research is widely shared online and via books. Having also proven the linkages between innovation leadership and financial performance for over a decade, the analysis is now also of increasing interest to the financial investor community.
3. For
the
past
ten
years
we
have
analysed
the
innovaBon
performance
of
over
1500
firms
and
profiled
the
leaders
Eight
key
areas
are
examined
as
input
into
the
annual
assessments:
1. OrganisaBonal
culture
and
supporBng
structure
2. Strategic
focus
on
innovaBon
and
its
role
in
driving
corporate
growth
3. Number
of
major
new
product
launches
and
relaBve
success
raBos
4. Growth
in
revenues,
profits
and
market
capitalisaBon
5. Average
margin
per
product
or
customer
6. Investment
in
innovaBon-‐related
acBviBes
such
as
R&D
and
markeBng
7. Brand
value
and
human
capital
growth
8. Peer
review
from
within
the
sector
WWW.INNOVATIONLEADERS.ORG
4. At
the
core
of
the
analysis,
for
each
sector
we
look
at
a
raBo
of
innovaBon
impact
to
the
resources
being
deployed
InnovaBon
Input
InnovaBon
Output
Company
CapabiliBes
Each
algorithm
is
based
on:
InnovaBon
Output
InnovaBon
Input
Together this provides what we believe to be the most accurate assessment of current innovation impact
WWW.INNOVATIONLEADERS.ORG
5. Ten
years
ago,
the
capabiliBes
that
made
a
difference
in
innovaBon
were
clearly
idenBfiable
and
a
focus
for
all
The
tradi*onal
areas
for
a0en*on
have
been:
1. Clear
strategic
focus
on
building
and
exploiBng
core
competences
2. Using
mulB-‐funcBonal
teams
to
drive
innovaBon
across
the
organisaBon
3. AdopBng
stage-‐gate
processes
to
manage
new
product
development
4. Engaging
the
voice
of
the
customer
and
new
sources
of
consumer
insight
These are now hygiene factors – everyone uses similar approaches so they make no real difference
WWW.INNOVATIONLEADERS.ORG
6. In
recent
years,
InnovaBon
Leaders
have
variously
been
developing
new
capabiliBes
to
shi
performance
up
a
gear
Recent
areas
of
focus
include:
• Open
InnovaBon
especially
around
external
sourcing
of
innovaBon
• Strategic
collaboraBon
between
companies
across
sector
boundaries
• Engaging
customers
in
the
heart
of
the
innovaBon
process
• Using
longer
term
foresight
to
be]er
inform
on
emerging
opportuniBes
These will also become commodities so organisations are looking at the new leaders for inspiration
WWW.INNOVATIONLEADERS.ORG
7. We
assess
25
sectors
and
cover
a
wide
range
of
businesses
so
we
can
highlight
the
successes
in
different
industries
Aerospace
IT
Services
Airlines
LogisBcs
AutomoBve
Media
and
Entertainment
Chemicals
Medical
Devices
Consumer
Electronics
Office
Equipment
Energy
PharmaceuBcals
Fashion
Retail
Retail
Banking
Food
and
Drink
Soware
General
Retail
Sports
Goods
Household
Goods
Telecom
Equipment
Hotels
and
Leisure
Telecom
Operators
Insurance
Toys
and
Games
IT
Hardware
WWW.INNOVATIONLEADERS.ORG
8. Throughout
the
past
decade,
the
InnovaBon
Leaders
have
consistently
out-‐performed
peers
and
major
share
indexes
Start
Yr
End
Yr
FTSE
100
2yr
NASDAQ
2
yr
IL
Poreolio
2yr
Change
2001
2003
-‐15%
-‐1%
0%
2002
2004
+26%
+60%
+68%
2003
2005
+26%
+12%
+65%
2004
2006
+29%
+11%
+39%
2005
2007
+15%
+21%
+58%
2006
2008
-‐32%
-‐37%
-‐20%
2007
2009
-‐16%
-‐15%
-‐16%
2008
2010
+40%
+73%
+130%
2009
2011
+3%
+15%
+33%
Average
+8.4%
+15.7%
+39.5%
This tracks the share performance of companies over the 2 years after Innovation Leaders analysis
WWW.INNOVATIONLEADERS.ORG
10. Across
the
25
sectors
the
current
innovaBon
leaders
are
clear
and
show
how
innovaBon
pracBce
is
evolving
WWW.INNOVATIONLEADERS.ORG
11. Amazon
is
very
much
a
technology-‐focused
company
using
and
sharing
capabiliBes
well
beyond
its
core
retail
business
WWW.INNOVATIONLEADERS.ORG
12. Apple
conBnues
to
use
its
design,
brand
and
user
interface
prowess
to
(re)invent
and
grow
new
categories
WWW.INNOVATIONLEADERS.ORG
13. ARM
is
the
hidden
ingredient
in
many
mobile
devices
and
earns
growing
revenues
from
technology
licensing
deals
WWW.INNOVATIONLEADERS.ORG
14. BASF
is
growing
well
through
simultaneously
creaBng
new
technology
plaeorms
and
reducing
environmental
impact
WWW.INNOVATIONLEADERS.ORG
15. BharB
Airtel’s
unique
business
model
is
allowing
for
rapid
expansion
with
none
of
the
usual
telecom
barriers
to
scale
WWW.INNOVATIONLEADERS.ORG
16. BMW
is
enhancing
the
travel
experience
for
drivers
and
passengers
while
also
launching
a
series
of
new
plaeorms
WWW.INNOVATIONLEADERS.ORG
17. Canon’s
focus
on
building
on
its
four
core
technology
plaeorms
maintains
its
leadership
in
Office
Products
WWW.INNOVATIONLEADERS.ORG
18. In
a
challenging
environment,
Chevron
is
shiing
from
oil
to
gas
and
acBvely
promoBng
cleaner
energy
technologies
WWW.INNOVATIONLEADERS.ORG
19. Google
conBnues
to
innovate
disrupBvely
across
the
board
with
notable
impact
in
mobile,
imaging
and
corporate
apps
WWW.INNOVATIONLEADERS.ORG
20. Humana
is
improving
its
customers’
health
and
wellness
through
innovaBve
partnerships
with
other
companies
WWW.INNOVATIONLEADERS.ORG
21. IBM
has
delivered
a
decade
of
growth
aer
reinvenBng
its
business
while
maintained
world-‐leading
R&D
investment
WWW.INNOVATIONLEADERS.ORG
22. ICICI’s
growth
is
being
driven
by
delivering
compeBBve
retail
products
across
a
highly
efficient
network
WWW.INNOVATIONLEADERS.ORG
23. Inditex
and
its
Zara
brand
is
opening
10
new
stores
a
week
as
the
supply-‐chain-‐driven
customer
experience
wins
out
WWW.INNOVATIONLEADERS.ORG
24. LEGO
set
the
standard
in
fan-‐based
innovaBon
and
is
now
pushing
the
envelope
of
acBviBes
into
a]racBve
markets
WWW.INNOVATIONLEADERS.ORG
25. With
new
lounges,
new
seats,
new
routes
and
new
planes,
Europe’s
largest
airline
is
flying
ahead
of
the
compeBBon
WWW.INNOVATIONLEADERS.ORG
26. Medtronic
conBnues
to
lead
in
partnership-‐driven
innovaBon
to
address
a
wider
range
of
chronic
diseases
WWW.INNOVATIONLEADERS.ORG
27. Microso
conBnues
its
highly
profitable
business
by
invesBng
heavily
in
research
across
many
opportunity
areas
WWW.INNOVATIONLEADERS.ORG
28. Having
reposiBoned
its
poreolio,
Nestle
is
focused
on
innovaBon
across
its
brands
and
emerging
market
growth
WWW.INNOVATIONLEADERS.ORG
29. Nike
has
regained
leadership
in
sportswear
through
technical
performance
and
driving
the
sustainability
agenda
WWW.INNOVATIONLEADERS.ORG
30. Qualcomm
is
developing
key
wireless
technologies
for
the
next
generaBon
of
global
telecom
networks
WWW.INNOVATIONLEADERS.ORG
31. Recki]
Benckiser’s
13th
year
of
constant
growth
is
driven
by
fast
incremental
innovaBon
and
power-‐brand
expansion
WWW.INNOVATIONLEADERS.ORG
32. The
leader
in
biopharmaceuBcals
and
in-‐vitro
diagnosBcs
developing
targeted
medicines
for
personalized
healthcare
WWW.INNOVATIONLEADERS.ORG
33. Rolls
Royce’s
technology
leadership
coupled
with
its
Total
Care
business
model
makes
it
a
preferred
partner
for
many
WWW.INNOVATIONLEADERS.ORG
34. New
brands
such
as
alo
and
element
have
added
extra
twists
as
Starwood
sets
the
pace
in
the
hotel
/
leisure
space
WWW.INNOVATIONLEADERS.ORG
35. With
over
8.5m
customers
a
day,
UPS
is
growing
its
logisBcs
services
globally
with
a
highly
tuned
process
at
the
core
WWW.INNOVATIONLEADERS.ORG
36. Across
all
25
companies,
we
can
see
the
next
tranche
of
innovaBon
capabiliBes
emerging
onto
the
global
scene
These
include:
• Technology
partnerships
focused
around
shared
growth
plaeorms
• OpBmising
delivery
engines
to
give
consistent
global
consumer
experiences
• ReinvenBng
the
status
quo
and
challenging
exisBng
business
models
• ProacBvely
realigning
product
poreolios
ahead
of
emerging
changes
WWW.INNOVATIONLEADERS.ORG
38. The
InnovaBon
Leaders
analysis
is
used
to
sBmulate
thinking
in
different
companies
in
a
number
of
ways
Follow
us
on
twi]er
#innovatnleaders
To
discuss
the
research:
research@innovaBonleaders.org
To
request
a
keynote
speech:
speeches@innovaBonleaders.org
To
organise
a
workshop:
workshops@innovaBonleaders.org
Or
to
get
in
touch
directly:
Dr
Tim
Jones
Director
of
Research
-‐
InnovaBon
Leaders
Bmjones@innovaBonleaders.org
+44
780
175
5054
WWW.INNOVATIONLEADERS.ORG
39. Lessons
from
the
Leaders
2011/12
Analysis
Summary
18
April
2011
WWW.INNOVATIONLEADERS.ORG