Showing posts with label annual report. Show all posts
Showing posts with label annual report. Show all posts

Wednesday, February 24, 2010

The Innovation Index Strikes Back in 2009

The Innovation Index 2009 Performance of the Top 20 InnovatorsThe Innovation Index had a remarkable showing in 2009, gaining 48.65%, and beating S&P 500, Dow Jones and NASDAQ. 17 of the top 20 innovators were in the green. 3 of the top 20 innovators, including Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG) had over 100% gains. 16 of the top 20 innovators had double-digit gains. eBay (NASDAQ: EBAY) and Research In Motion (NASDAQ: RIMM) gained over 65% each. America Movil (NYSE: AMX), IBM (NYSE: IBM) and Microsoft (NASDAQ: MSFT) gained over 50% each. Only 3 innovators were in the red.

2009 proved that the most innovative companies in USA are not only resilient, but bounce back bigger and faster compared to the general market. The Top 20 innovators performed extremely well, delivering explosive growth in business, profits, innovations, and stock performance.

How will the Innovation Index perform in 2010? Check back in April, 2010 for the quarterly report of the Innovation Index.

Learn about Apple's innovation strategy... How does Apple innovate, and what makes Apple the #1 innovative company in the world? Learn more...

Selected references:
Leading Business Innovation eBook & Resource Kit
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Friday, March 16, 2007

The Innovation Index unchanged, still beats U.S. major indices – Weekly Report 03-14-07

The Innovation Index stayed even last week, and is now unchanged for the year. However, The Innovation Index leads the major U.S. indices. S & P 500 and NASDAQ are each down 2% for the year, while the Dow Jones Index is now down 3% for the year.



The Innovation Index closed at 69.53 on March 14, 2007, practically unchanged from the closing price of 69.31 on December 29, 2006.

In a sign of perhaps better results on the horizon, 4 of the Top 20 Innovators showed positive gains (compared to 4 the previous week), 9 of the Top 20 Innovators dipped in the red (compared to 14 the previous week), and 7 Innovators were unchanged last week (compared to 2).

Weekly Advances

America Movil (NYSE: AMX) was the largest weekly gainer last week at 4%. 3M Company (NYSE: MMM) made a nice comeback with gains of 3%. The massive stock buy back at 3M and new business unit launch is helping 3M; 3M is only down 2% for the year. Apple Inc. (NASDAQ: AAPL) tagged another 3% gain for the week, and is now up 6% for the year. Intel Corporation (NYSE: INTC) made a nice gain of 1% last week. Intel should rally well for the rest of the year.

“Intel announced two energy-efficient 50-watt server processors that represent a 35- to nearly 60-percent decrease in power from Intel's existing 80- and 120-watt quad-core server products. These new processors, requiring just 12.5 watts of power for each of the four cores or processing engines, deliver similar performance yet set a new standard in energy efficiency.” Intel will invest a total US$2.5 billion in a chip plant in China. “The approval comes as China's consumer market continues to develop rapidly, particularly for personal computers and mobile phones, and as Beijing encourages industries and companies to develop and use higher-end technologies.” – Intel press announcements.

“3M Health Care announced the launch of a new Medical Diagnostics business unit that will focus on developing and commercializing rapid diagnostic product solutions for the detection of key infectious pathogens, including methicillin-resistant Staphylococcus aureus (MRSA) and other treatment-resistant microbes. This new business builds on 3M Health Care's leading infection prevention product portfolio by offering hospitals new rapid diagnostic tests to detect the presence of potentially destructive microbes before they spread and possibly infect patients. 3M Medical Diagnostics will provide hospitals with rapid, easy-to-use microbial diagnostic tests that may help improve patient outcomes, reduce costs, reduce the impact of resistant microbes and improve laboratory profitability.” – 3M press announcement.

Weekly Declines

Wal-Mart Stores, Inc. (NYSE: WMT) was the largest decliner last week. Wal-Mart shares dropped 5%, and are now down 1% for the year. Starbucks Corporation (NASDAQ: SBUX) is on a dive, losing another 4% last week. Yahoo! Inc. (NASDAQ: YHOO), Google Inc. (NASDAQ: GOOG) and Target Corp. (NYSE: TGT) were each down 2% last week.

Yearly Leaders and Laggards

Yahoo! Inc. (NASDAQ: YHOO) is leading the top 20 innovators with 17% gain for the year. Research In Motion Limited (NASDAQ: RIMM) and Apple Inc. (NASDAQ: AAPL) are tied at 6% each.

Starbucks Corporation (NASDAQ: SBUX) shares are now down 17% this year. How can Starbucks turnaround this stock performance after posting a solid 18% gain last year? Dell Inc. (NASDAQ: DELL) was unchanged last week, and has managed to stop the downward stock spiral for now. Dell is down 11% for the year. Dell has a tough road ahead as Dell begins the turnaround.

The Innovation Index Annual Report

I posted The Innovation Index Annual Report earlier in the year that included three Chapters:

Chapter One - Total Innovation Activity at the Top 20 Innovators
Chapter Two - The Top Innovator - The Innovator of Innovators
Chapter Three - The Innovation Insights and Roundup

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 an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index as of 2001.

Alphabetical list of the top 20 Innovators of The Innovation Index and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (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.

Disclaimer: I invest in the stocks comprising The Innovation Index.

Tuesday, January 16, 2007

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.


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 InnovatorsTickerPerformanceTotal Innovations
America MovileAMX56%10
The Proctor & Gamble Co.PG13%21
Wal-Mart Stores, Inc.WMT0%25
Target Corp.TGT5%27
Starbucks CorporationSBUX18%29
Amazon.com, Inc.AMZN-16%31
Southwest Airlines Co.LUV-7%40
eBay Inc.EBAY-30%44
Dell Inc.DELL-16%53
3M CompanyMMM3%56
Intel CorporationINTC-17%64
Apple Inc.AAPL18%69
Cisco Systems, Inc.CSCO60%72
Google Inc.GOOG11%75
Yahoo! Inc.YHOO-35%77
General Electric Co.GE9%79
Research In Motion LimitedRIMM94%87
Hewlett-Packard Co.HPQ45%106
Microsoft CorporationMSFT16%159
IBMIBM20%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

Monday, January 15, 2007

The Innovation Index Annual Report - Chapter One

The Top 20 Innovators of The Innovation Index had a remarkable 2006 shaping out over 1,311 new innovations over the year, an average of 67 innovations per Innovator. The Top 20 Innovators created 805 new and enhanced products, 411 strategic collaborations and partnerships, and 95 new acquisitions. It’s safe to say that our Top 20 Innovators were busy in 2006 creating a plethora of new products, collaborations and acquisitions, and solid revenue growth.



The investors rewarded the Top 20 Innovators. Their combined market cap increased by 11% to $2.23 trillion from $2.01 trillion in 2006, an average increase of $11 billion per Innovator. Their combined stock performance gain: 13.2% in 2006, and a five year return of 119% (one stock invested per Innovator).



The normalized stock performance is even more impressive: 17.8% in 2006, and a five year return of 174% ($100 invested in each Innovator).

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


Innovation Leaders

Who led the year in stock performance, market cap growth, new products, collaborations and acquisitions? And who is the top Innovator – the Innovator of Innovators – of 2006? Not a single Innovator led across all categories.

Research In Motion (NASDAQ: RIMM) led all the Innovators with the best stock performance, gaining 94% for the year. America Movile (NYSE: AMX) and Cisco Systems (NASDAQ: CSCO) each gained 56% and 60% respectively in stock performance. Hewlett-Packard (HP) (NYSE: HPQ) had a great year as well, returning 45% for the year.

Cisco Systems led all the Innovators with the highest single year market capitalization gain: 62 billion in increased market cap. Microsoft Corporation (NASDAQ: MSFT) had a solid year in stock performance, gaining 16%, and increasing the market cap by 40 billion. HP went on a tear with 45% increase in stock price, gaining 34 billion in market cap. General Electric (NYSE: GE) also performed nicely, gaining 9% in stock performance, and increasing market cap by 33 billion.

But when it comes to new and enhanced product introductions, no one came close to IBM (NYSE: IBM). IBM introduced a whopping 130 new products in 2006. The next closest Innovators were Microsoft Corporation (NASDAQ: MSFT) and Hewlett-Packard tied with 75 new products each. Apple Inc. (NASDAQ: AAPL) kept up the innovation pipeline with 55 new introductions. The Top 20 Innovators averaged 40 new products per year.

Microsoft eked out Research In Motion in collaborations. The mighty Microsoft had 72 collaborations and partnerships over the year. If you believe this is a huge number, the upstart Research In Motion was extremely busy as well chalking out 70 new collaborations. Intel Corporation (NYSE: INTC) was next with 44 new collaborations, followed closely by IBM with 43 collaborations. The Top 20 Innovators averaged 21 collaborations per year.

GE led all Innovators with 20 new acquisitions. Three other Innovators had double-digit acquisitions: IBM with 14, 3M Company (NYSE: MMM) with 13 and Microsoft with 12. The Top Innovators averaged 6 acquisitions per year. However, many did not believe acquisition to be their top innovative strategy: Apple, Intel, Target Corporation (NYSE: TGT) and Southwest Airlines (NYSE: LUV) did not acquire a single company in 2006.

Who will be crowned the Top Innovator – the Innovator of Innovators – of 2006? Chapter Two of The Innovation Index Annual Report will unveil the The Top Innovator - The Innovator of Innovators - on January 16, 2007.

What did we learn from the Top 20 Innovators? 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 - The Insights 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 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.

The Innovation Index Annual Performance (Average):



An Investment of One Stock in each of Top 20 Innovators.

The Innovation Index Annual Performance (Normalized):



An Investment of $100 in each stock of each Innovator.

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