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Innovation leaders analysis summary 2010 11


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Summary of the latest Innovation Leaders analysis highlighting the companies across 25 sectors that are making the most of their innovation activities. Seen as the most thorough analysis of innovation performance being conducted annually. Shows link between innovation and stock price growth

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Innovation leaders analysis summary 2010 11

  1. 1. Lessons  from  the  Leaders   2010/11  Analysis  Summary   16  June  2011  WWW.INNOVATIONLEADERS.ORG
  2. 2. Background  Context  on  the  InnovaBon  Leaders  Analysis  WWW.INNOVATIONLEADERS.ORG
  3. 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. 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 impactWWW.INNOVATIONLEADERS.ORG
  5. 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 differenceWWW.INNOVATIONLEADERS.ORG
  6. 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 inspirationWWW.INNOVATIONLEADERS.ORG
  7. 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   So]ware   General  Retail   Sports  Goods   Household  Goods   Telecom  Equipment   Hotels  and  Leisure   Telecom  Operators   Insurance   Toys  and  Games   IT  Hardware  WWW.INNOVATIONLEADERS.ORG
  8. 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  Porfolio  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%   Average     +9.1%   +15.9%   +40.2%   This tracks the share performance of companies over the 2 years after Innovation Leaders analysisWWW.INNOVATIONLEADERS.ORG
  9. 9. The  2010/11  InnovaBon  Leaders  WWW.INNOVATIONLEADERS.ORG
  10. 10. Across  the  25  sectors  the  current  innovaBon  leaders  are   clear  and  show  how  innovaBon  pracBce  is  evolving  WWW.INNOVATIONLEADERS.ORG
  11. 11. Air  New  Zealand  is  using  product  and  process  innovaBon  to   bring  about  effecBve  change  in  all  classes  of  air  travel  WWW.INNOVATIONLEADERS.ORG
  12. 12. Amazon  is  very  much  a  technology-­‐focused  company  using   and  sharing  capabiliBes  well  beyond  its  core  retail  business  WWW.INNOVATIONLEADERS.ORG
  13. 13. With  the  iPad,  Apple  has  yet  again  used  its  design  and  user   interface  prowess  to  (re)invent  and  grow  another  category  WWW.INNOVATIONLEADERS.ORG
  14. 14. AON  is  gaining  plaudits  for  new  risk  management  plaforms   in  the  insurance  sector  while  also  promoBng  itself  globally  WWW.INNOVATIONLEADERS.ORG
  15. 15. ARM  is  the  hidden  ingredient  in  many  mobile  devices  and   earns  growing  revenues  from  technology  licensing  deals    WWW.INNOVATIONLEADERS.ORG
  16. 16. BASF  is  growing  well  through  simultaneously  creaBng  new   technology  plaforms  and  reducing  environmental  impact  WWW.INNOVATIONLEADERS.ORG
  17. 17. BharB  Aitrel’s  unique  business  model  is  allowing  for  rapid   expansion  with  none  of  the  usual  telecom  barriers  to  scale  WWW.INNOVATIONLEADERS.ORG
  18. 18. BMW  is  enhancing  the  travel  experience  for  drivers  and   passengers  while  also  launching  a  series  of  new  plaforms  WWW.INNOVATIONLEADERS.ORG
  19. 19. Canon’s  focus  on  building  on  its  four  core  technology   plaforms  maintains  its  leadership  in  Office  Products  WWW.INNOVATIONLEADERS.ORG
  20. 20. Across  its  entertainment  plaforms,  Disney  is  delivering  a   sustained  porfolio  of  hits  that  sustained  profitable  growth  WWW.INNOVATIONLEADERS.ORG
  21. 21. Google  conBnues  to  innovate  disrupBvely  across  the  board   with  notable  impact  in  mobile,  imaging  and  corporate  apps  WWW.INNOVATIONLEADERS.ORG
  22. 22. Inditex  and  its  Zara  brand  is  opening  10  new  stores  a  week   as  the  supply-­‐chain-­‐driven  customer  experience  wins  out  WWW.INNOVATIONLEADERS.ORG
  23. 23. In  IT  Services,  Infosys  has  shi]ed  beyond  BPO  and  off-­‐ shoring  to  help  customers  be^er  innovate  with  their  data  WWW.INNOVATIONLEADERS.ORG
  24. 24. Juniper  Networks  is  developing  key  technologies  for  next   generaBon  global  telecom  and  cloud  storage  networks  WWW.INNOVATIONLEADERS.ORG
  25. 25. LEGO  set  the  standard  in  fan-­‐based  innovaBon  and  is  now   pushing  the  envelope  of  acBviBes  into  a^racBve  markets  WWW.INNOVATIONLEADERS.ORG
  26. 26. Having  reposiBoned  its  porfolio,  Nestle  is  focused  on   innovaBon  across  its  brands  and  emerging  market  growth  WWW.INNOVATIONLEADERS.ORG
  27. 27. Nike  has  regained  leadership  in  sportswear  through   technical  performance  and  driving  the  sustainability  agenda  WWW.INNOVATIONLEADERS.ORG
  28. 28. Novo  Nordisk  conBnues  to  innovate  on  drug  delivery  as   well  as  therapies  and  is  very  acBve  in  diabetes  educaBon  WWW.INNOVATIONLEADERS.ORG
  29. 29. Recki^  Benckiser’s  12th  year  of  constant  growth  is  driven  by   fast  incremental  innovaBon  and  power-­‐brand  expansion  WWW.INNOVATIONLEADERS.ORG
  30. 30. Rolls  Royce’s  technology  leadership  coupled  with  its  Total   Care  business  model  makes  it  a  preferred  partner  for  many  WWW.INNOVATIONLEADERS.ORG
  31. 31. Santander’s  global  growth  is  being  driven  by  delivering   compeBBve  retail  products  across  a  highly  efficient  network  WWW.INNOVATIONLEADERS.ORG
  32. 32. In  a  challenging  environment,  Shell’s  shi]  from  oil  to  gas  is   paving  the  way  for  a  more  sustainable  future  energy  mix  WWW.INNOVATIONLEADERS.ORG
  33. 33. In  the  medical  devices  sector,  Stryker  is  delivering  new   innovaBve  soluBons  across  a  number  of  key  arenas  WWW.INNOVATIONLEADERS.ORG
  34. 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. 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. 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  plaforms   •  OpBmising  delivery  engines  to  give  consistent  global  consumer  experiences   •  ReinvenBng  the  status  quo  and  challenging  exisBng  business  models   •  ProacBvely  realigning  product  porfolios  ahead  of  emerging  changes  WWW.INNOVATIONLEADERS.ORG
  37. 37. Further  InformaBon  WWW.INNOVATIONLEADERS.ORG
  38. 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:     To  request  a  keynote  speech:     To  organise  a  workshop:   Or  to  get  in  touch  directly:   Dr  Tim  Jones   Director  of  Research  -­‐  InnovaBon  Leaders       +44  780  175  5054    WWW.INNOVATIONLEADERS.ORG
  39. 39. Lessons  from  the  Leaders   2010/11  Analysis  Summary   16  June  2011  WWW.INNOVATIONLEADERS.ORG