Innovation leaders 2011-2012 analysis summary

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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.

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Innovation leaders 2011-2012 analysis summary

  1. 1. Lessons  from  the  Leaders   2011/12  Analysis  Summary   18  April  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   Soware   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  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 analysisWWW.INNOVATIONLEADERS.ORG
  9. 9. The  2011/12  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. Amazon  is  very  much  a  technology-­‐focused  company  using   and  sharing  capabiliBes  well  beyond  its  core  retail  business  WWW.INNOVATIONLEADERS.ORG
  12. 12. Apple  conBnues  to  use  its  design,  brand  and  user  interface   prowess  to  (re)invent  and  grow  new  categories  WWW.INNOVATIONLEADERS.ORG
  13. 13. ARM  is  the  hidden  ingredient  in  many  mobile  devices  and   earns  growing  revenues  from  technology  licensing  deals    WWW.INNOVATIONLEADERS.ORG
  14. 14. BASF  is  growing  well  through  simultaneously  creaBng  new   technology  plaeorms  and  reducing  environmental  impact  WWW.INNOVATIONLEADERS.ORG
  15. 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. 16. BMW  is  enhancing  the  travel  experience  for  drivers  and   passengers  while  also  launching  a  series  of  new  plaeorms  WWW.INNOVATIONLEADERS.ORG
  17. 17. Canon’s  focus  on  building  on  its  four  core  technology   plaeorms  maintains  its  leadership  in  Office  Products  WWW.INNOVATIONLEADERS.ORG
  18. 18. In  a  challenging  environment,  Chevron  is  shiing  from  oil  to   gas  and  acBvely  promoBng  cleaner  energy  technologies  WWW.INNOVATIONLEADERS.ORG
  19. 19. Google  conBnues  to  innovate  disrupBvely  across  the  board   with  notable  impact  in  mobile,  imaging  and  corporate  apps  WWW.INNOVATIONLEADERS.ORG
  20. 20. Humana  is  improving  its  customers’  health  and  wellness   through  innovaBve  partnerships  with  other  companies  WWW.INNOVATIONLEADERS.ORG
  21. 21. IBM  has  delivered  a  decade  of  growth  aer  reinvenBng  its   business  while  maintained  world-­‐leading  R&D  investment  WWW.INNOVATIONLEADERS.ORG
  22. 22. ICICI’s  growth  is  being  driven  by  delivering  compeBBve   retail  products  across  a  highly  efficient  network    WWW.INNOVATIONLEADERS.ORG
  23. 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. 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. 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. 26. Medtronic  conBnues  to  lead  in  partnership-­‐driven   innovaBon  to  address  a  wider  range  of  chronic  diseases  WWW.INNOVATIONLEADERS.ORG
  27. 27. Microso  conBnues  its  highly  profitable  business  by   invesBng  heavily  in  research  across  many  opportunity  areas  WWW.INNOVATIONLEADERS.ORG
  28. 28. Having  reposiBoned  its  poreolio,  Nestle  is  focused  on   innovaBon  across  its  brands  and  emerging  market  growth  WWW.INNOVATIONLEADERS.ORG
  29. 29. Nike  has  regained  leadership  in  sportswear  through   technical  performance  and  driving  the  sustainability  agenda  WWW.INNOVATIONLEADERS.ORG
  30. 30. Qualcomm  is  developing  key  wireless  technologies  for  the   next  generaBon  of  global  telecom  networks  WWW.INNOVATIONLEADERS.ORG
  31. 31. Recki]  Benckiser’s  13th  year  of  constant  growth  is  driven  by   fast  incremental  innovaBon  and  power-­‐brand  expansion  WWW.INNOVATIONLEADERS.ORG
  32. 32. The  leader  in  biopharmaceuBcals  and  in-­‐vitro  diagnosBcs   developing  targeted  medicines  for  personalized  healthcare  WWW.INNOVATIONLEADERS.ORG
  33. 33. Rolls  Royce’s  technology  leadership  coupled  with  its  Total   Care  business  model  makes  it  a  preferred  partner  for  many  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  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
  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:      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. 39. Lessons  from  the  Leaders   2011/12  Analysis  Summary   18  April  2011  WWW.INNOVATIONLEADERS.ORG

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