The Innovation Index Annual Report - Chapter Two
The Top Innovator - The Innovator of Innovators
The Innovation Index Annual Report – Chapter One reported the total Innovation Activity in 2006 at the Top 20 Innovators. It also correlated the stock performance of the Top 20 Innovators with their Innovation Activity – Total Innovations introduced across New Products, Collaborations and Acquisitions. I will announce The Top Innovator – The Innovator of Innovators in this Chapter Two of The Innovation Index Annual Report. But before I announce the winner, here is some background (or you can scroll down to see the winner):
Whereas Research In Motion (NASDAQ: RIMM) had the best stock performance at 94%, its net Innovation Activity created 87 new innovations. On the other hand, America Movile (NYSE: AMX) had a 56% stock performance gain with only 10 new innovations. IBM (NYSE: IBM) had a stock performance gain of 20%, and produced the highest Innovation Activity with 187 new innovations. Microsoft Corporation (NASDAQ: MSFT) had net Innovation Activity with 159 new innovations, and its stock jumped 16% for the year.
Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world
The table below compares the stock performance gains for each of the Top 20 Innovator along with their net Innovation Activity – Total Innovations introduced during 2006.
Who is the Top Innovator? Is Cisco Systems (NASDAQ: CSCO) the winner with 60% stock gain, and a respectable 72 new innovations? Or is it Apple Inc. (NASDAQ: AAPL) with 18% stock gain and 69 new innovations? Starbucks Corporation (NASDAQ: SBUX) had a solid year as well notching gains of 18% and creating 29 new innovations. Why not one of the perennial innovators: 3M (NYSE: MMM), Proctor & Gamble (P&G) (NYSE: PG) or General Electric (GE) (NYSE: GE) who performed well, acquired many disruptor rivals and complementary technologies, and innovated on a regular basis? How about Hewlett-Packard (NYSE: HPQ) gaining 45% in stock returns, and creating 106 new innovations. And let’s not forget Google (NASDAQ: GOOG) with 11% stock gain, and 75 new innovations.
In order to determine the final winner(s), I used the following criteria on a rank order basis ranking from 1 (highest) through 20 (lowest):
1. Stock Performance
2. Total Innovations
3. X Factor
Stock Performance and Total Innovations – Innovation Activity rank orders were assembled objectively with the information from the table above. This is solely based on established 2006 stock performance, and net innovation output – data that is objectively available through individual Innovator’s traded stock and press releases of announced products, collaborations and acquisitions.
The X Factor though is a holistic measure. In order to arrive at the rankings for the X Factor, I reviewed the latest Patent reports for the top 20 Innovators. For instance, IBM led all Innovators in the U.S. with 3,651 patents in 2006. HP created 2,113 new patents, Intel with 1,962 patents, Microsoft with 1,463 patents, and GE with 1,051 new patents. Besides patents data, I also reviewed game changing innovations such as HP’s acquisition of Mercury Interactive for $4.5 billion and ability to integrate, or IBM’s microchips powering the Nintendo WII video game systems. GE acquired 20 companies in 2006; an example acquisition was $3 billion for Trustreet Properties worth $3 billion by GE Capital. Google acquired YouTube for $1.65 billion and created a market leading position in on demand media. Cisco’s introduction of Cisco TelePresence, a new technology solution that provides brand new in-person experiences between people, places and events whether they are across town or across the world. Intel (NYSE: INTC) answered AMD in the form of Dual Core processors that brought back Intel in the limelight. Another innovation was P&G’s first car wash, Mr. Clean where children can also participate by shooting water guns loaded with suds at the cars as they pass.
Announcing The Top Innovators – The Innovator of Innovators
Rankings of The Top Innovators:
For 2006, the top award goes to two Innovators which have build innovation factories with a pipeline of innovations. These Innovators are fierce competitors, and market innovations that are aimed at taking customers and market share from each other’s business at regular intervals. These Innovators have created pervasive brands, continually exhibit resiliency in the face of competition and environmental pressures, and create systematic processes and rigor to make new innovations happen.
Hewlett-Packard and IBM are the co-winners of The Top Innovator – The Innovator of Innovators award for 2006.
HP had an outstanding 2006 creating over 100 new innovations, gaining 45% in stock value, obtaining over 2,000 new patents, acquiring 7 companies, and taking over the number one position in PC market – while trying to stay focused in the face of pretext scandal which at one time threatened to bring down the CEO and the entire company. However, HP delivered, is back in cool, and is back in business – in large part due to the focus on core businesses, game changing innovations such as industry’s first blade workstation and first global mobile broadband notebooks, and execution based strategy of CEO Mark Hurd.
IBM had a breakthrough 2006, leading all Innovators with 187 new innovations, obtaining over 3,500 new patents, acquiring 14 companies, gaining 20% in stock value, and becoming the high performance supplier for the video game industry. The Big Blue marketed such innovations as Clipped Tag RFID Technology, hybrid supercomputers, virtualization, cell computer, Secure Blue and more. IBM has successfully integrated services, software, microchips, security and communications businesses and is able to continually innovate in each area.
Cisco Systems, Microsoft and Research In Motion round out the top five list of The Top Innovators.
GE, Apple, Google, Starbucks, 3M and P&G combine for positions 6 through 10 on The Top Innovators list.
The table below shows the ranked listing of The Top 20 Innovators for 2006:
Who will be the Top Innovator in 2007? We are sure to keep an eye on key innovations in 2007.
What did we learn from the Top 20 Innovators in 2006? What are the key insights gained from the top 20 Innovators, top Innovations introduced during 2006, lessons learned, 2007 projections, and observations on Disruptors challenging the top 20 Innovators? Chapter Three of The Innovation Index Annual Report will be released on January 17, 2007.
About The Innovation Index
The Innovation Index introduced in December, 2006 is a weighted stock price index of the top 20 Innovators in North America.
The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.
The Normalized Innovation Index has returned 174% over the last five years. This assumes equal investment in each stock of The Innovation Index.
The alphabetical list of the top 20 Innovators of The Innovation Index along with their stock ticker symbols are presented below:
3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movile - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Dell Inc. - (NASDAQ: DELL)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Microsoft Corporation - (NASDAQ: MSFT)
Research In Motion Limited - (NASDAQ: RIMM)
Southwest Airlines Co. - (NYSE: LUV)
Starbucks Corporation - (NASDAQ: SBUX)
Target Corp. - (NYSE: TGT)
The Proctor & Gamble Company - (NYSE: PG)
Wal-Mart Stores, Inc. - (NYSE: WMT)
Yahoo! Inc. - (NASDAQ: YHOO)
The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.
Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world
References:
Reuters Key Developments, Press Releases of Top 20 Innovators
The Innovation Index Annual Report – Chapter One reported the total Innovation Activity in 2006 at the Top 20 Innovators. It also correlated the stock performance of the Top 20 Innovators with their Innovation Activity – Total Innovations introduced across New Products, Collaborations and Acquisitions. I will announce The Top Innovator – The Innovator of Innovators in this Chapter Two of The Innovation Index Annual Report. But before I announce the winner, here is some background (or you can scroll down to see the winner):
Whereas Research In Motion (NASDAQ: RIMM) had the best stock performance at 94%, its net Innovation Activity created 87 new innovations. On the other hand, America Movile (NYSE: AMX) had a 56% stock performance gain with only 10 new innovations. IBM (NYSE: IBM) had a stock performance gain of 20%, and produced the highest Innovation Activity with 187 new innovations. Microsoft Corporation (NASDAQ: MSFT) had net Innovation Activity with 159 new innovations, and its stock jumped 16% for the year.
Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world
The table below compares the stock performance gains for each of the Top 20 Innovator along with their net Innovation Activity – Total Innovations introduced during 2006.
| The Top 20 Innovators | Ticker | Performance | Total Innovations |
| America Movile | AMX | 56% | 10 |
| The Proctor & Gamble Co. | PG | 13% | 21 |
| Wal-Mart Stores, Inc. | WMT | 0% | 25 |
| Target Corp. | TGT | 5% | 27 |
| Starbucks Corporation | SBUX | 18% | 29 |
| Amazon.com, Inc. | AMZN | -16% | 31 |
| Southwest Airlines Co. | LUV | -7% | 40 |
| eBay Inc. | EBAY | -30% | 44 |
| Dell Inc. | DELL | -16% | 53 |
| 3M Company | MMM | 3% | 56 |
| Intel Corporation | INTC | -17% | 64 |
| Apple Inc. | AAPL | 18% | 69 |
| Cisco Systems, Inc. | CSCO | 60% | 72 |
| Google Inc. | GOOG | 11% | 75 |
| Yahoo! Inc. | YHOO | -35% | 77 |
| General Electric Co. | GE | 9% | 79 |
| Research In Motion Limited | RIMM | 94% | 87 |
| Hewlett-Packard Co. | HPQ | 45% | 106 |
| Microsoft Corporation | MSFT | 16% | 159 |
| IBM | IBM | 20% | 187 |
Who is the Top Innovator? Is Cisco Systems (NASDAQ: CSCO) the winner with 60% stock gain, and a respectable 72 new innovations? Or is it Apple Inc. (NASDAQ: AAPL) with 18% stock gain and 69 new innovations? Starbucks Corporation (NASDAQ: SBUX) had a solid year as well notching gains of 18% and creating 29 new innovations. Why not one of the perennial innovators: 3M (NYSE: MMM), Proctor & Gamble (P&G) (NYSE: PG) or General Electric (GE) (NYSE: GE) who performed well, acquired many disruptor rivals and complementary technologies, and innovated on a regular basis? How about Hewlett-Packard (NYSE: HPQ) gaining 45% in stock returns, and creating 106 new innovations. And let’s not forget Google (NASDAQ: GOOG) with 11% stock gain, and 75 new innovations.
In order to determine the final winner(s), I used the following criteria on a rank order basis ranking from 1 (highest) through 20 (lowest):
1. Stock Performance
2. Total Innovations
3. X Factor
Stock Performance and Total Innovations – Innovation Activity rank orders were assembled objectively with the information from the table above. This is solely based on established 2006 stock performance, and net innovation output – data that is objectively available through individual Innovator’s traded stock and press releases of announced products, collaborations and acquisitions.
The X Factor though is a holistic measure. In order to arrive at the rankings for the X Factor, I reviewed the latest Patent reports for the top 20 Innovators. For instance, IBM led all Innovators in the U.S. with 3,651 patents in 2006. HP created 2,113 new patents, Intel with 1,962 patents, Microsoft with 1,463 patents, and GE with 1,051 new patents. Besides patents data, I also reviewed game changing innovations such as HP’s acquisition of Mercury Interactive for $4.5 billion and ability to integrate, or IBM’s microchips powering the Nintendo WII video game systems. GE acquired 20 companies in 2006; an example acquisition was $3 billion for Trustreet Properties worth $3 billion by GE Capital. Google acquired YouTube for $1.65 billion and created a market leading position in on demand media. Cisco’s introduction of Cisco TelePresence, a new technology solution that provides brand new in-person experiences between people, places and events whether they are across town or across the world. Intel (NYSE: INTC) answered AMD in the form of Dual Core processors that brought back Intel in the limelight. Another innovation was P&G’s first car wash, Mr. Clean where children can also participate by shooting water guns loaded with suds at the cars as they pass.
Announcing The Top Innovators – The Innovator of Innovators
Rankings of The Top Innovators:
For 2006, the top award goes to two Innovators which have build innovation factories with a pipeline of innovations. These Innovators are fierce competitors, and market innovations that are aimed at taking customers and market share from each other’s business at regular intervals. These Innovators have created pervasive brands, continually exhibit resiliency in the face of competition and environmental pressures, and create systematic processes and rigor to make new innovations happen.
Hewlett-Packard and IBM are the co-winners of The Top Innovator – The Innovator of Innovators award for 2006.
HP had an outstanding 2006 creating over 100 new innovations, gaining 45% in stock value, obtaining over 2,000 new patents, acquiring 7 companies, and taking over the number one position in PC market – while trying to stay focused in the face of pretext scandal which at one time threatened to bring down the CEO and the entire company. However, HP delivered, is back in cool, and is back in business – in large part due to the focus on core businesses, game changing innovations such as industry’s first blade workstation and first global mobile broadband notebooks, and execution based strategy of CEO Mark Hurd.
IBM had a breakthrough 2006, leading all Innovators with 187 new innovations, obtaining over 3,500 new patents, acquiring 14 companies, gaining 20% in stock value, and becoming the high performance supplier for the video game industry. The Big Blue marketed such innovations as Clipped Tag RFID Technology, hybrid supercomputers, virtualization, cell computer, Secure Blue and more. IBM has successfully integrated services, software, microchips, security and communications businesses and is able to continually innovate in each area.
Cisco Systems, Microsoft and Research In Motion round out the top five list of The Top Innovators.
GE, Apple, Google, Starbucks, 3M and P&G combine for positions 6 through 10 on The Top Innovators list.
The table below shows the ranked listing of The Top 20 Innovators for 2006:
Who will be the Top Innovator in 2007? We are sure to keep an eye on key innovations in 2007.
What did we learn from the Top 20 Innovators in 2006? What are the key insights gained from the top 20 Innovators, top Innovations introduced during 2006, lessons learned, 2007 projections, and observations on Disruptors challenging the top 20 Innovators? Chapter Three of The Innovation Index Annual Report will be released on January 17, 2007.
About The Innovation Index
The Innovation Index introduced in December, 2006 is a weighted stock price index of the top 20 Innovators in North America.
The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.
The Normalized Innovation Index has returned 174% over the last five years. This assumes equal investment in each stock of The Innovation Index.
The alphabetical list of the top 20 Innovators of The Innovation Index along with their stock ticker symbols are presented below:
3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movile - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Dell Inc. - (NASDAQ: DELL)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Microsoft Corporation - (NASDAQ: MSFT)
Research In Motion Limited - (NASDAQ: RIMM)
Southwest Airlines Co. - (NYSE: LUV)
Starbucks Corporation - (NASDAQ: SBUX)
Target Corp. - (NYSE: TGT)
The Proctor & Gamble Company - (NYSE: PG)
Wal-Mart Stores, Inc. - (NYSE: WMT)
Yahoo! Inc. - (NASDAQ: YHOO)
The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.
Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world
References:
Reuters Key Developments, Press Releases of Top 20 Innovators
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