Google (NASDAQ: GOOG) today introduced new innovation with the Business version of Google Apps - Google Apps Premier Edition in direct competition to Microsoft's Enterprise applications.
Google is one of the top 20 Innovators of The Innovation Index.
Google Apps Premier Edition is available for a yearly subscription of $50 per user account per year.
Google Apps Premier Edition communication and collaboration suite includes the following Top Ten Features:
1. Google Gmail webmail services including Gmail for Blackberry
2. Google Calendar shared calendaring services
3. Google Talk instant messaging and voice-over-ip
4. Start Page branded and customized to company domain (e.g. companyname.googleapp.com)
5. Google Docs & Spreadsheets
6. 24 x 7 Phone support for critical issues - extended business hours support
7. 10 GB storage per user
8. New set of administration and business integration capabilities - Application-level control and APIs for business process adaptation, policies, data migration, user provisioning, single sign-on, and mail gateways
9. 99.9% uptime - SLAs (service level agreements) for monitoring and credits
10. French, Italian, German, Spanish, Chinese, Japanese and Korean language versions (possibly more)
Importantly, Google Apps Premier Edition builds on the success of 100,000 small businesses and universities using the free Google Apps Standard Edition and Google Apps Education Edition introduced in 2006.
Proctor & Gamble (NYSE: PG) and General Electric (NYSE: GE) are also two of the top 20 Innovators of The Innovation Index. Both P&G and GE applauded the new Google Apps Premier Edition.
P&G statement:
"Procter & Gamble Global Business Services (GBS) has enrolled as a charter enterprise customer of Google Apps, a successful consumer product suite now available to enterprises. P&G will work closely with Google in shaping enterprise characteristics and requirements for these popular tools," said Laurie Heltsley, director Procter & Gamble Global Business Services.
GE statement:
"So much of business now relies on people being able to communicate and collaborate effectively," said Gregory Simpson, CTO for General Electric Company. "GE is interested in evaluating Google Apps for the easy access it provides to a suite of web applications, and the way these applications can help people work together. Given its consumer experience, Google has a natural advantage in understanding how people interact together over the web."
Google also has the backing and adoption of smaller yet critical businesses such as San Francisco Bay Pediatrics.
San Francisco Bay Pediatrics:
"When it comes to our email systems, our doctors don’t have the time or the budgets to deal with managing technology or defending against spam," said Andrew Johnson, chief information officer, San Francisco Bay Pediatrics. "With Google Apps Premier Edition we don’t have to worry about downloading the latest spam filters or navigating unwieldy servers. This is where we let Google do what it does best, so we can do what we do best – help our patients."
Finally, Google made a very important announcement which was embedded towards the later paragraphs of the Press Release:
"other early adopters of Google Apps Premier Edition include Salesforce.com and Prudential Preferred Properties in the U.S., as well as Essilor and Mediametrie in France. "
Google is touting Salesforce.com as an early adopter.
Could this be the beginning of an early indicator that Google will go on to buy Salesforce.com?
Does Microsoft Live or Microsoft Business Services division have an answer for Google? Can Google find many distribution and enterprise partners such as Avaya and Postini to support, integrate and service Google Apps Premier Edition in the enterprise? For now, Google is knocking at the enterprise doors, and if Google is able to obtain early adopters such as GE and couple of other larger Fortune 500 corporations, Google will generate the kind of momentum where major enterprise customers will be compelled to take a look at Google Apps Premier Edition and evaluate at the price point of $50 per user account per year.
New Revenue Opportunity
With the introduction of Google Apps Premier Edition, Google has the opportunity to create new market share, and grab market share from Microsoft Office and Email applications. Google Apps Standard and Education Edition has 100,000 business customers today; at an average of 10 users per customer, this translates to 1 million end users potentially using Google Apps today. Google Apps was introduced in 2006. Thus, in about 1 year, Google Apps has an end user population of 1 million potential users. If Google Apps Premier Edition can attract 100,000 new businesses in one year, or 1 million end users, this will translate into new revenue opportunity of $50 million per year. However, knowing Google, and with the tremendous marketing muscle it exerts at Google.com, the goal is possibly much higher: 10 million end users or $500 million in annual revenue. Where will these customers come from? From new market growth and a sizable number from Microsoft. If Google goes on to buy Salesforce.com and introduces Google Apps integrated with Salesforce.com CRM applications, the vision of $500 million in annual revenue is within reach. In five years or less, Google has the potential to create a $1 billion business for Google Apps Premier Edition. Disruptive innovation in motion.
Google versus Microsoft - the enterprise battle heats up!
Showing posts with label innovation blog. Show all posts
Showing posts with label innovation blog. Show all posts
Thursday, February 22, 2007
Friday, February 16, 2007
The Innovation Index up 4% - Weekly Report 02-14-07
Yahoo! Inc. (NASDAQ: YHOO) continues to lead The Top 20 Innovators of The Innovation Index in stock performance, with 20% gain for the year.
The Innovation Index is now up 4% in 2007. S & P 500 was even for the week, and is up 3% in 2007. NASDAQ was even for the week, and is up 3% for the year, whereas the Dow Jones Index was up 1% in one week, and is up 2% in 2007.
The Innovation Index closed at 72.31 on February 14, 2007, up 2.93 points from the closing price of 69.38 on December 29, 2006.
9 of the Top 20 Innovators showed positive gains, 7 of the Top 20 Innovators went down, and 4 Innovators were unchanged.
I released a weekly report of The Top Ten Innovations at the Top 20 Innovators yesterday. I am planning to release this sister report to The Innovation Index weekly report each week.
Weekly Advances
Southwest Airlines (NYSE: LUV) was up 6% in just one week owing to slight increase in fares, and potential return of Southwest to San Francisco in 2007. Southwest was in the red in 2007, but a 6% gain helped Southwest return to the black with a total gain of 5% for the year. America Movile (NYSE: AMX) was up 5% in one week, and is now up 7% for the year. The strong Mexican economy and the stock market are lifting America Movile stock performance. Yahoo! (NASDAQ: YHOO), 3M (NYSE: MMM) and Amazon.com (NASDAQ: AMZN) were each up 3% for the week. Yahoo! is surging owing to the potential upside revenue of Panama, integrated marketing innovation announced last week, and a separate deal announced with LG. 3M is up due to the largest stock buyback in 3M's history: over $7 billion. Amazon.com is performing well in 2007; in particular, Amazon announced that the fourth quarter 2006 jewelry and watch sales increased more than 100 percent year-over-year. It appears that Amazon's new innovations with new stores are helping the topline revenue.
Weekly Declines
There were no significant declines last week. Cisco Systems (NASDAQ: CSCO) and Intel Corporation (NASDAQ: INTC) each shed 2% for the week. Cisco is now unchanged for the year, after posting 60% gain in 2006. Can Cisco repeat 2006 gains? Intel is up 4% in 2007, and is looking to rebound even higher for the rest of 2007.
Yearly Leaders and Laggards
Yahoo! (NASDAQ: YHOO) is leading the top 20 innovators with 20% stock performance gain for the year. eBay Inc. (NASDAQ: EBAY) has already gained 11% in 2007, and Target Corporation (NYSE: TGT) is up 9% for the year. Dell Inc. (NASDAQ: DELL) is down 5% for the year; however, Michael Dell has returned as the CEO, and has recently announced a major leadership reorganization. Expect Dell to begin the turnaround by the second half of 2007. Starbucks Corporation (NASDAQ: SBUX) is also down 6% for the year, after posting a solid 18% gain in 2006. Can Starbucks repeat the 2006 performance with the introduction of new innovations in Coffee vending?
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 is even more impressive, and 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.
Disclaimer: I invest in the stocks comprising The Innovation Index beginning in 2007.
The Innovation Index is now up 4% in 2007. S & P 500 was even for the week, and is up 3% in 2007. NASDAQ was even for the week, and is up 3% for the year, whereas the Dow Jones Index was up 1% in one week, and is up 2% in 2007.
The Innovation Index closed at 72.31 on February 14, 2007, up 2.93 points from the closing price of 69.38 on December 29, 2006.
9 of the Top 20 Innovators showed positive gains, 7 of the Top 20 Innovators went down, and 4 Innovators were unchanged.
I released a weekly report of The Top Ten Innovations at the Top 20 Innovators yesterday. I am planning to release this sister report to The Innovation Index weekly report each week.
Weekly Advances
Southwest Airlines (NYSE: LUV) was up 6% in just one week owing to slight increase in fares, and potential return of Southwest to San Francisco in 2007. Southwest was in the red in 2007, but a 6% gain helped Southwest return to the black with a total gain of 5% for the year. America Movile (NYSE: AMX) was up 5% in one week, and is now up 7% for the year. The strong Mexican economy and the stock market are lifting America Movile stock performance. Yahoo! (NASDAQ: YHOO), 3M (NYSE: MMM) and Amazon.com (NASDAQ: AMZN) were each up 3% for the week. Yahoo! is surging owing to the potential upside revenue of Panama, integrated marketing innovation announced last week, and a separate deal announced with LG. 3M is up due to the largest stock buyback in 3M's history: over $7 billion. Amazon.com is performing well in 2007; in particular, Amazon announced that the fourth quarter 2006 jewelry and watch sales increased more than 100 percent year-over-year. It appears that Amazon's new innovations with new stores are helping the topline revenue.
Weekly Declines
There were no significant declines last week. Cisco Systems (NASDAQ: CSCO) and Intel Corporation (NASDAQ: INTC) each shed 2% for the week. Cisco is now unchanged for the year, after posting 60% gain in 2006. Can Cisco repeat 2006 gains? Intel is up 4% in 2007, and is looking to rebound even higher for the rest of 2007.
Yearly Leaders and Laggards
Yahoo! (NASDAQ: YHOO) is leading the top 20 innovators with 20% stock performance gain for the year. eBay Inc. (NASDAQ: EBAY) has already gained 11% in 2007, and Target Corporation (NYSE: TGT) is up 9% for the year. Dell Inc. (NASDAQ: DELL) is down 5% for the year; however, Michael Dell has returned as the CEO, and has recently announced a major leadership reorganization. Expect Dell to begin the turnaround by the second half of 2007. Starbucks Corporation (NASDAQ: SBUX) is also down 6% for the year, after posting a solid 18% gain in 2006. Can Starbucks repeat the 2006 performance with the introduction of new innovations in Coffee vending?
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 is even more impressive, and 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.
Disclaimer: I invest in the stocks comprising The Innovation Index beginning in 2007.
Thursday, February 15, 2007
Top Ten Innovations for the week ending 02-14-07
Starting this week, I am going to release a weekly report on the Top Ten Innovations introduced by the Top 20 Innovators of The Innovation Index.
The Top Ten Innovations Report will be released weekly, and will include the following:
1. Top Ten Innovations introduced by the Top 20 Innovators during the previous week.
2. Insights gained from the game changing Top Ten Innovations.
3. My opinion of the business impact and lessons learned from the Top Ten Innovations
What are considered the Top Ten Innovations and included in the weekly report?
New revolutionary products, key acquisitions of innovative products and companies, strategic collaborations and partnerships that create or expand new markets and products, defining or brand new business models changing the business and revenue landscape, and business processes driving creativity and innovation.
Introducing the Top Ten Innovations for the week ending 02-14-07
Innovator: 3M (NYSE: MMM)
Innovation: Acquisition of innovative complementary technology
Summary:
3M announced it has acquired Acolyte Biomedica Ltd., a Salisbury, U.K.-based provider of an automated microbial detection platform that aids in the rapid detection, diagnosis, and treatment of infectious diseases.
Acolyte Biomedica helps hospitals control high-risk infections through improved screening and targeted treatment of methicillin-resistant Staphylococcus aureus (MRSA), a type of bacteria that is resistant to certain antibiotics and occurs most frequently in hospital patients who have weakened immune systems.
Insight:
Expanding 3M's core infection prevention business into adjacent markets.
Opinion:
3M is positioning to become the market leader in medical diagnostics area and infection prevention business. This acquisition of innovative technology will create incremental revenue stream and expand the platform to include diagnostic solutions that are more advanced such as molecular diagnostics that will help hospitals to improve the quality of patient care (besides simple, culture-based approaches).
Innovator: Apple Inc. (NASDAQ: AAPL)
Innovation: Strategic partnership and business model creating market expansion
Summary:
Apple Inc.'s iTunes store started selling films from independent movie studio Lions Gate Entertainment Corp. (LGF), including the horror film "Saw," the thriller "Basic Instinct" and "Dirty Dancing - Havana Nights” from $9.99.
Apple will add some 150 film titles to the online store, bringing the iTunes film inventory to more than 400 titles.
Insight:
Creating a viable online business model with movie studios that expands iTunes market.
Opinion:
Apple has once again proved that it can create key business deals with movie studios and offer online movies around the $9.99 price point for consumers. Apple will easily see a growth of 30% for the iTunes movie business with this strategic partnership. If the iTunes movie business takes off in the same realm as the iTunes music, watch out!
Innovator: Alliance of all major music publishers and 23 mobile operators
Innovation: MusicStation, a new cellular music service reaching out to 690 million phone subscribers worldwide.
Summary:
The Alliance would launch a cellular music service called MusicStation, introduced by British mobile music firm Omnifone, in the second quarter of 2007, offering unlimited track downloads at 2.99 euros per week -- 1.99 pounds in Britain -- including data traffic charges. MusicStation works on both second and third generation mobile networks. Consumers will be able to download one track in the background while listening to another. The service also tracks personal music tastes and interests, provides news and marketing offerings and has a community service to find users with similar musical tastes. Operators that will offer the service are based in Australia, Belgium, Czech Republic, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Netherlands, New Zealand, Philippines, Poland, Portugal, Romania, Singapore, South Africa, Spain, Sweden, Turkey and Britain.
Insight:
Game changing, global, collaborative innovation that brings parity and feasibility to mobile music.
Opinion:
If MusicStation takes off, it will be a win-win for music publishers and mobile operators. This innovation can significantly impact Apple’s soon to be launched iPhone and the direct service, and may impact iTunes music download business. Apple’s plan to provide a direct service to consumers through its iPhone (essentially bypassing the mobile operators) will be tested.
Innovator: Google Inc. (NASDAQ: GOOG)
Innovation: Enhanced AdWords, redefined business model
Summary:
Google will offer new flexibility to its advertisers by letting them select which third-party sites would display their ads on AdWords. Google said in March it would begin a "beta" test program giving that choice to advertisers. Google will charge for the ads on a cost-per-click, CPC, basis instead of the cost-per-thousand-impressions, or CPM, basis it presently uses.
Insight:
Targeting of marketing programs at Google content partners with one-stop business model
Opinion:
Google is finally providing a one-stop business model, CPC, for the AdWords program regardless of where and how many times the ads are marketed (on Google or at Google content partners). For advertisers, this means expanded reach of their marketing programs at the content sites relevant to their customer need. For Google content partners, this translates to a clear business model and relationship with Google, and upside through targeted marketing programs. For Google, this potentially leads to increased AdWords business as more advertisers resort to increased, albeit, targeted marketing programs at various Google content partner sites. A potential win-win-win.
Innovator: Challenger: HP (NYSE: HPQ) and Incumbent: Research In Motion (NASDAQ: RIMM)
Innovation: HP iPAQ 500, BlackBerry(R) 8800 smartphones
Summary:
HP introduced the latest HP iPAQ Smartphone that delivers a flexible wireless email experience for business customers through convenient voice control and hands-free operation.
The HP iPAQ 500 series Voice Messenger features voice over Internet protocol (VoIP) capabilities, "push" email and the latest Windows(R) Mobile 6 operating system. With up to six hours of continuous talk time on a fully charged battery, voice commands, hands-free operation, the HP iPAQ Voice Messenger also leads the competition in battery life.
Using a powerful "voice reply" feature, people can reply to email by dictating and sending a voice response, without the need for any typing. Users also can listen to email and text messages, navigate through phone and calendar tasks and speak to start applications.
Research In Motion introduced the BlackBerry 8800 - a feature-rich and finely tuned Smartphone that is both functionally and visually inspiring.
The BlackBerry 8800 is the thinnest BlackBerry handset yet and is designed to satisfy the most demanding mobile professionals. Equipped with a full, highly tactile QWERTY(i) keyboard and RIM's user-friendly trackball navigation system, it also includes built- in GPS (Global Positioning System), multimedia features and a microSD expandable memory slot.
The quad-band GSM/GPRS and EDGE-enabled BlackBerry 8800 offers best-in-class performance with smoothly integrated support for voice and data applications, including phone, email, text messaging, web browser, organizer, multimedia and more. Powering its robust performance is an ultra-thin, high-capacity battery that further extends the uncompromising battery life for which BlackBerry handsets are renowned.
Insight:
New smartphones for first time business professionals, and ones looking to upgrade, potentially expanding the smartphones worldwide market
Opinion:
Can HP create a dent in the Smartphone market that is led by established players including Research In Motion and PALM? HP does have a loyal albeit small following for the iPAQ, and this is the best iPAQ yet with innovative voice features. If the iPAQ 500 does not succeed, HP may have to rethink the Smartphone business altogether. On the other hand, the BlackBerry 8800 is a surefire success. It offers best in class features, performance and quality – the workhorse now even looks sleek. Research In Motion has plans to expand worldwide beyond the 200 operators through BlackBerry Connect, potentially adding a 100 more operators. The BlackBerry 8800 will be a catalyst for expansion.
Innovator: General Electric Co. (GE) (NYSE: GE)
Innovation: Joint Ventures and Strategic Investments in growing energy market, acquisition business model
Summary:
A unit of U.S.-based conglomerate General Electric Co. (GE) Wednesday agreed to buy up to a 22% stake in France-listed wind-farm developer Theolia SA (18481.FR) to boost its exposure to renewable energy in Europe. General Electric's unit, GE Energy Financial Services, will inject EUR20 million into Theolia to help fund the company's aggressive growth plans in Europe, Brazil and India.
123Systems, a promising young company with advanced technology for rechargeable batteries, recently received a timely recharge from a group of investors. GE, in addition to acting as lead investor in A123's latest fund-raising effort, a $40 million series D equity round which closed January 24, is also looking to see where A123Systems' proprietary energy-storage technology can accelerate work already underway at GE on clean energy products. GE's Global Research Center announced in late 2006 the first formal program, a $13MM joint initiative with A123Systems to develop a zero-emissions hybrid fuel cell bus.
Insight:
Continuous innovation at GE through joint ventures and strategic investments in emerging market companies.
Opinion:
GE has sound innovation business processes and is a perennial innovator of products that we admire and use on a daily basis; however, GE does not hold back when it comes to placing bets with key companies in the core growth markets such as renewable and alternative energy. GE has perfected the business model of identifying the companies with innovative technology in the core growth markets, injecting capital including money, products and resources into these companies, enabling these companies to create and further the game changing market innovations, and eventually acquiring these companies. GE is perhaps the master incubator of our times.
Innovator: Intel Corporation (NYSE: INTC)
Innovation: Teraflop processor delivering supercomputer performance
Summary:
Intel Corporation researchers have developed the world's first programmable processor that delivers supercomputer-like performance from a single, 80-core chip not much larger than the size of a finger nail while using less electricity than most of today's home appliances. This is the result of the company's innovative "Tera-scale computing" research aimed at delivering Teraflops -- or trillions of calculations per second --performance for future PCs and servers.
Tera-scale performance, and the ability to move terabytes of data, will play a pivotal role in future computers with ubiquitous access to the Internet by powering new applications for education and collaboration, as well as enabling the rise of high-definition entertainment on PCs, servers and handheld devices. For example, artificial intelligence, instant video communications, photo-realistic games, multimedia data mining and real-time speech recognition - once deemed as science fiction in "Star Trek" shows - could become everyday realities.
Insight:
“Tera-scale computing” for the masses
Opinion:
WOW!! Intel has no equal in the world of high performance microprocessors. I can’t wait for Intel to release the world’s first Teraflop microprocessor that delivers supercomputer-like performance on my PC, and host a live multimedia video conference with my friends and family all over the world, play virtual reality games, and convert my family room into a worldwide communication and entertainment hub. Let the countdown begin…
Innovator: Wal-Mart Stores, Inc. (NYSE: WMT)
Innovation: Checkup – The New Model for basic health care delivery in America
Summary:
CheckUps, the retail-based, non- emergency walk-in medical facility, will open 14 new clinics in leased space inside Wal-Mart Stores in Alabama, Louisiana and Mississippi as part of a Grand Opening series on February 14.
Check-Ups clinics diagnose and treat common ailments such as strep throat, ear and sinus infections, and provide routine pediatric care, blood screenings, and immunizations, along with services such as healthy living counseling. CheckUps nurse practitioners can write and email prescriptions to the patient's preferred pharmacy. Visits typically take under 15 minutes and no appointments are necessary. The clinics will provide a full cholesterol screening in just five minutes using the state-of-the-art Cholestech LDX System made available by Henry Schein, Inc. and Cholestech Corporation.
Insight:
Breaking the mold Innovation beyond retailing into preventative and basic health care.
Opinion:
Checkup and Wal-Mart has the potential to create disruptions in healthcare industry. On the one hand, Checkup provides a low cost option for every day health problems such as cold, cough, sore throat, ear infection, aches and pains, and more; Checkup also provides health screenings and counseling to live healthy and happy lives; finally, Checkup combines with Wal-Mart pharmacies so that a consumer can have a one-stop place for health checkup and medicine – all within thirty minutes or less. The biggest problem with healthcare has been getting a timely appointment with your primary doctor, going to the doctor, waiting for the doctor’s appointment, seeing the doctor, getting a diagnosis, getting a prescription, going to the pharmacy, waiting for the prescription, and finally getting a prescription – total time: 2 to 3 hours on an average. Checkup and Wal-Mart can potentially do all of the above in 1 hour or less for basic healthcare needs. This can be disruptive.
Innovator: Microsoft (NASDAQ: MSFT)
Innovation: Windows Mobile 6, Windows Live and PlayReady products and business model
Summary:
Microsoft launched three new Windows Live products alongside its updated Windows Mobile 6 operating platform, including a localized search engine product, a map application and improved instant messaging services.
Microsoft's Live search application includes localized services that will allow U.S. and U.K. residents to use an Internet browser on their mobile phones to search for restaurants, hotels and retail outlets in their area, and include satellite mapping applications. U.S. users will also be able to receive live traffic updates overlaid on a map on their mobile device. Advertising search facility would provide further advertising revenues for both Microsoft and mobile phone operators.
Microsoft also launched its PlayReady technology, a new multimedia content access technology optimized to meet the needs of mobile operators and handset manufacturers for digital entertainment and commerce. Microsoft PlayReady technology enables a broad spectrum of business models such as subscription, rental, pay-per-view, preview and super-distribution, which can be applied to many digital content types and a wide range of audio and video formats.
The DRM technology - which Telefonica SA (TEF), Verizon Wireless and AT&T Inc.'s (T) mobile unit, formerly known as Cingular Wireless, are all planning to use - protects music, video, games and ringtones from piracy.
Windows Mobile 6, takes its cues from Windows Vista, and introduces the ability to view e-mails in their original HTML Internet format with live Web links from advanced mobile phones, generally referred to as smartphones.
Insight:
Potentially game changing innovations in operating platform, search, DRM and business models.
Opinion:
Microsoft has served notice with the latest introductions of its key mobile applications and business models. Microsoft is challenging Symbian and Nokia, Google, Yahoo!, Apple, the Alliance (above), and everyone else is who is planning to provide operating platform, search, mapping and content technologies for the mobile business. Importantly, Microsoft is positioning well as a neutral operating platform player with applications and business models that taken together make business sense to mobile operators and content owners alike. Can Microsoft become the heavyweight in the mobile software industry? Only time will tell. However, Microsoft has so far dealt a good hand.
Innovator: Yahoo! (NASDAQ: YHOO)
Innovation: Integrated Marketing Innovation
Summary:
Yahoo! Inc. has signed up top corporate advertisers to use its advertising system to run brand ads on mobile phones in 18 countries, marking a major diversification beyond computers. The Internet media company has begun offering its brand advertising to reach mobile phone users across markets in Western Europe, South Asia and the Americas, capitalizing on its prowess in supplying Web advertising to computer users. Yahoo said it has signed up major advertisers including Hilton's Embassy Suites, Infiniti, Intel Corp., Nissan, Pepsi & Co, Procter & Gamble Asia-Pacific and Singapore Airlines as initial advertisers on Yahoo's mobile advertising system.
The company already offers online marketing services to a large majority of the top 100 U.S. advertisers. By expanding onto mobile phones, Yahoo aims to help corporate advertisers run coordinated campaigns that reach both computer and phone audiences, an official said.
Insight:
Leading integrated marketing innovations for online and mobile markets
Opinion:
Yahoo! is leading the battle of marketing services for advertisers who want to run integrated campaigns across online and mobile markets, through computers and wireless phones. Whereas Microsoft is positioning itself as an operating platform with applications for search and mapping and DRM, Yahoo! is leading the game by providing an integrated marketing platform for advertisers who want to run campaigns at either Yahoo!’s many online properties or mobile. Yahoo! Go for Mobile 2.0, Yahoo! Mail that now incorporates instant messaging, and Yahoo! Messenger for mobile further substantiate Yahoo!’s market leading position for mobile phone makers such as LG who is planning to incorporate these applications in the new mobile phones. If Yahoo! is able to pre-load Yahoo! apps on a majority of leading mobile phone makers, Yahoo! will be able to solidify its position in the mobile market. Yahoo!’s integrated marketing innovation will create a small revenue upside in 2007, with greater growth plausible in 2008 and beyond.
References:
The Innovation Index
The Innovation Index Annual Report – Chapter One
The Innovation Index Annual Report – Chapter Two
The Innovation Index Annual Report – Chapter Three
Reuters
Marketwatch
Press releases
Dow Jones Newswires
BusinessWire
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 is even more impressive, and 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.
Disclaimer: I invest in the stocks comprising The Innovation Index, beginning in 2007.
The Top Ten Innovations Report will be released weekly, and will include the following:
1. Top Ten Innovations introduced by the Top 20 Innovators during the previous week.
2. Insights gained from the game changing Top Ten Innovations.
3. My opinion of the business impact and lessons learned from the Top Ten Innovations
What are considered the Top Ten Innovations and included in the weekly report?
New revolutionary products, key acquisitions of innovative products and companies, strategic collaborations and partnerships that create or expand new markets and products, defining or brand new business models changing the business and revenue landscape, and business processes driving creativity and innovation.
Introducing the Top Ten Innovations for the week ending 02-14-07
Innovator: 3M (NYSE: MMM)
Innovation: Acquisition of innovative complementary technology
Summary:
3M announced it has acquired Acolyte Biomedica Ltd., a Salisbury, U.K.-based provider of an automated microbial detection platform that aids in the rapid detection, diagnosis, and treatment of infectious diseases.
Acolyte Biomedica helps hospitals control high-risk infections through improved screening and targeted treatment of methicillin-resistant Staphylococcus aureus (MRSA), a type of bacteria that is resistant to certain antibiotics and occurs most frequently in hospital patients who have weakened immune systems.
Insight:
Expanding 3M's core infection prevention business into adjacent markets.
Opinion:
3M is positioning to become the market leader in medical diagnostics area and infection prevention business. This acquisition of innovative technology will create incremental revenue stream and expand the platform to include diagnostic solutions that are more advanced such as molecular diagnostics that will help hospitals to improve the quality of patient care (besides simple, culture-based approaches).
Innovator: Apple Inc. (NASDAQ: AAPL)
Innovation: Strategic partnership and business model creating market expansion
Summary:
Apple Inc.'s iTunes store started selling films from independent movie studio Lions Gate Entertainment Corp. (LGF), including the horror film "Saw," the thriller "Basic Instinct" and "Dirty Dancing - Havana Nights” from $9.99.
Apple will add some 150 film titles to the online store, bringing the iTunes film inventory to more than 400 titles.
Insight:
Creating a viable online business model with movie studios that expands iTunes market.
Opinion:
Apple has once again proved that it can create key business deals with movie studios and offer online movies around the $9.99 price point for consumers. Apple will easily see a growth of 30% for the iTunes movie business with this strategic partnership. If the iTunes movie business takes off in the same realm as the iTunes music, watch out!
Innovator: Alliance of all major music publishers and 23 mobile operators
Innovation: MusicStation, a new cellular music service reaching out to 690 million phone subscribers worldwide.
Summary:
The Alliance would launch a cellular music service called MusicStation, introduced by British mobile music firm Omnifone, in the second quarter of 2007, offering unlimited track downloads at 2.99 euros per week -- 1.99 pounds in Britain -- including data traffic charges. MusicStation works on both second and third generation mobile networks. Consumers will be able to download one track in the background while listening to another. The service also tracks personal music tastes and interests, provides news and marketing offerings and has a community service to find users with similar musical tastes. Operators that will offer the service are based in Australia, Belgium, Czech Republic, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Netherlands, New Zealand, Philippines, Poland, Portugal, Romania, Singapore, South Africa, Spain, Sweden, Turkey and Britain.
Insight:
Game changing, global, collaborative innovation that brings parity and feasibility to mobile music.
Opinion:
If MusicStation takes off, it will be a win-win for music publishers and mobile operators. This innovation can significantly impact Apple’s soon to be launched iPhone and the direct service, and may impact iTunes music download business. Apple’s plan to provide a direct service to consumers through its iPhone (essentially bypassing the mobile operators) will be tested.
Innovator: Google Inc. (NASDAQ: GOOG)
Innovation: Enhanced AdWords, redefined business model
Summary:
Google will offer new flexibility to its advertisers by letting them select which third-party sites would display their ads on AdWords. Google said in March it would begin a "beta" test program giving that choice to advertisers. Google will charge for the ads on a cost-per-click, CPC, basis instead of the cost-per-thousand-impressions, or CPM, basis it presently uses.
Insight:
Targeting of marketing programs at Google content partners with one-stop business model
Opinion:
Google is finally providing a one-stop business model, CPC, for the AdWords program regardless of where and how many times the ads are marketed (on Google or at Google content partners). For advertisers, this means expanded reach of their marketing programs at the content sites relevant to their customer need. For Google content partners, this translates to a clear business model and relationship with Google, and upside through targeted marketing programs. For Google, this potentially leads to increased AdWords business as more advertisers resort to increased, albeit, targeted marketing programs at various Google content partner sites. A potential win-win-win.
Innovator: Challenger: HP (NYSE: HPQ) and Incumbent: Research In Motion (NASDAQ: RIMM)
Innovation: HP iPAQ 500, BlackBerry(R) 8800 smartphones
Summary:
HP introduced the latest HP iPAQ Smartphone that delivers a flexible wireless email experience for business customers through convenient voice control and hands-free operation.
The HP iPAQ 500 series Voice Messenger features voice over Internet protocol (VoIP) capabilities, "push" email and the latest Windows(R) Mobile 6 operating system. With up to six hours of continuous talk time on a fully charged battery, voice commands, hands-free operation, the HP iPAQ Voice Messenger also leads the competition in battery life.
Using a powerful "voice reply" feature, people can reply to email by dictating and sending a voice response, without the need for any typing. Users also can listen to email and text messages, navigate through phone and calendar tasks and speak to start applications.
Research In Motion introduced the BlackBerry 8800 - a feature-rich and finely tuned Smartphone that is both functionally and visually inspiring.
The BlackBerry 8800 is the thinnest BlackBerry handset yet and is designed to satisfy the most demanding mobile professionals. Equipped with a full, highly tactile QWERTY(i) keyboard and RIM's user-friendly trackball navigation system, it also includes built- in GPS (Global Positioning System), multimedia features and a microSD expandable memory slot.
The quad-band GSM/GPRS and EDGE-enabled BlackBerry 8800 offers best-in-class performance with smoothly integrated support for voice and data applications, including phone, email, text messaging, web browser, organizer, multimedia and more. Powering its robust performance is an ultra-thin, high-capacity battery that further extends the uncompromising battery life for which BlackBerry handsets are renowned.
Insight:
New smartphones for first time business professionals, and ones looking to upgrade, potentially expanding the smartphones worldwide market
Opinion:
Can HP create a dent in the Smartphone market that is led by established players including Research In Motion and PALM? HP does have a loyal albeit small following for the iPAQ, and this is the best iPAQ yet with innovative voice features. If the iPAQ 500 does not succeed, HP may have to rethink the Smartphone business altogether. On the other hand, the BlackBerry 8800 is a surefire success. It offers best in class features, performance and quality – the workhorse now even looks sleek. Research In Motion has plans to expand worldwide beyond the 200 operators through BlackBerry Connect, potentially adding a 100 more operators. The BlackBerry 8800 will be a catalyst for expansion.
Innovator: General Electric Co. (GE) (NYSE: GE)
Innovation: Joint Ventures and Strategic Investments in growing energy market, acquisition business model
Summary:
A unit of U.S.-based conglomerate General Electric Co. (GE) Wednesday agreed to buy up to a 22% stake in France-listed wind-farm developer Theolia SA (18481.FR) to boost its exposure to renewable energy in Europe. General Electric's unit, GE Energy Financial Services, will inject EUR20 million into Theolia to help fund the company's aggressive growth plans in Europe, Brazil and India.
123Systems, a promising young company with advanced technology for rechargeable batteries, recently received a timely recharge from a group of investors. GE, in addition to acting as lead investor in A123's latest fund-raising effort, a $40 million series D equity round which closed January 24, is also looking to see where A123Systems' proprietary energy-storage technology can accelerate work already underway at GE on clean energy products. GE's Global Research Center announced in late 2006 the first formal program, a $13MM joint initiative with A123Systems to develop a zero-emissions hybrid fuel cell bus.
Insight:
Continuous innovation at GE through joint ventures and strategic investments in emerging market companies.
Opinion:
GE has sound innovation business processes and is a perennial innovator of products that we admire and use on a daily basis; however, GE does not hold back when it comes to placing bets with key companies in the core growth markets such as renewable and alternative energy. GE has perfected the business model of identifying the companies with innovative technology in the core growth markets, injecting capital including money, products and resources into these companies, enabling these companies to create and further the game changing market innovations, and eventually acquiring these companies. GE is perhaps the master incubator of our times.
Innovator: Intel Corporation (NYSE: INTC)
Innovation: Teraflop processor delivering supercomputer performance
Summary:
Intel Corporation researchers have developed the world's first programmable processor that delivers supercomputer-like performance from a single, 80-core chip not much larger than the size of a finger nail while using less electricity than most of today's home appliances. This is the result of the company's innovative "Tera-scale computing" research aimed at delivering Teraflops -- or trillions of calculations per second --performance for future PCs and servers.
Tera-scale performance, and the ability to move terabytes of data, will play a pivotal role in future computers with ubiquitous access to the Internet by powering new applications for education and collaboration, as well as enabling the rise of high-definition entertainment on PCs, servers and handheld devices. For example, artificial intelligence, instant video communications, photo-realistic games, multimedia data mining and real-time speech recognition - once deemed as science fiction in "Star Trek" shows - could become everyday realities.
Insight:
“Tera-scale computing” for the masses
Opinion:
WOW!! Intel has no equal in the world of high performance microprocessors. I can’t wait for Intel to release the world’s first Teraflop microprocessor that delivers supercomputer-like performance on my PC, and host a live multimedia video conference with my friends and family all over the world, play virtual reality games, and convert my family room into a worldwide communication and entertainment hub. Let the countdown begin…
Innovator: Wal-Mart Stores, Inc. (NYSE: WMT)
Innovation: Checkup – The New Model for basic health care delivery in America
Summary:
CheckUps, the retail-based, non- emergency walk-in medical facility, will open 14 new clinics in leased space inside Wal-Mart Stores in Alabama, Louisiana and Mississippi as part of a Grand Opening series on February 14.
Check-Ups clinics diagnose and treat common ailments such as strep throat, ear and sinus infections, and provide routine pediatric care, blood screenings, and immunizations, along with services such as healthy living counseling. CheckUps nurse practitioners can write and email prescriptions to the patient's preferred pharmacy. Visits typically take under 15 minutes and no appointments are necessary. The clinics will provide a full cholesterol screening in just five minutes using the state-of-the-art Cholestech LDX System made available by Henry Schein, Inc. and Cholestech Corporation.
Insight:
Breaking the mold Innovation beyond retailing into preventative and basic health care.
Opinion:
Checkup and Wal-Mart has the potential to create disruptions in healthcare industry. On the one hand, Checkup provides a low cost option for every day health problems such as cold, cough, sore throat, ear infection, aches and pains, and more; Checkup also provides health screenings and counseling to live healthy and happy lives; finally, Checkup combines with Wal-Mart pharmacies so that a consumer can have a one-stop place for health checkup and medicine – all within thirty minutes or less. The biggest problem with healthcare has been getting a timely appointment with your primary doctor, going to the doctor, waiting for the doctor’s appointment, seeing the doctor, getting a diagnosis, getting a prescription, going to the pharmacy, waiting for the prescription, and finally getting a prescription – total time: 2 to 3 hours on an average. Checkup and Wal-Mart can potentially do all of the above in 1 hour or less for basic healthcare needs. This can be disruptive.
Innovator: Microsoft (NASDAQ: MSFT)
Innovation: Windows Mobile 6, Windows Live and PlayReady products and business model
Summary:
Microsoft launched three new Windows Live products alongside its updated Windows Mobile 6 operating platform, including a localized search engine product, a map application and improved instant messaging services.
Microsoft's Live search application includes localized services that will allow U.S. and U.K. residents to use an Internet browser on their mobile phones to search for restaurants, hotels and retail outlets in their area, and include satellite mapping applications. U.S. users will also be able to receive live traffic updates overlaid on a map on their mobile device. Advertising search facility would provide further advertising revenues for both Microsoft and mobile phone operators.
Microsoft also launched its PlayReady technology, a new multimedia content access technology optimized to meet the needs of mobile operators and handset manufacturers for digital entertainment and commerce. Microsoft PlayReady technology enables a broad spectrum of business models such as subscription, rental, pay-per-view, preview and super-distribution, which can be applied to many digital content types and a wide range of audio and video formats.
The DRM technology - which Telefonica SA (TEF), Verizon Wireless and AT&T Inc.'s (T) mobile unit, formerly known as Cingular Wireless, are all planning to use - protects music, video, games and ringtones from piracy.
Windows Mobile 6, takes its cues from Windows Vista, and introduces the ability to view e-mails in their original HTML Internet format with live Web links from advanced mobile phones, generally referred to as smartphones.
Insight:
Potentially game changing innovations in operating platform, search, DRM and business models.
Opinion:
Microsoft has served notice with the latest introductions of its key mobile applications and business models. Microsoft is challenging Symbian and Nokia, Google, Yahoo!, Apple, the Alliance (above), and everyone else is who is planning to provide operating platform, search, mapping and content technologies for the mobile business. Importantly, Microsoft is positioning well as a neutral operating platform player with applications and business models that taken together make business sense to mobile operators and content owners alike. Can Microsoft become the heavyweight in the mobile software industry? Only time will tell. However, Microsoft has so far dealt a good hand.
Innovator: Yahoo! (NASDAQ: YHOO)
Innovation: Integrated Marketing Innovation
Summary:
Yahoo! Inc. has signed up top corporate advertisers to use its advertising system to run brand ads on mobile phones in 18 countries, marking a major diversification beyond computers. The Internet media company has begun offering its brand advertising to reach mobile phone users across markets in Western Europe, South Asia and the Americas, capitalizing on its prowess in supplying Web advertising to computer users. Yahoo said it has signed up major advertisers including Hilton's Embassy Suites, Infiniti, Intel Corp., Nissan, Pepsi & Co, Procter & Gamble Asia-Pacific and Singapore Airlines as initial advertisers on Yahoo's mobile advertising system.
The company already offers online marketing services to a large majority of the top 100 U.S. advertisers. By expanding onto mobile phones, Yahoo aims to help corporate advertisers run coordinated campaigns that reach both computer and phone audiences, an official said.
Insight:
Leading integrated marketing innovations for online and mobile markets
Opinion:
Yahoo! is leading the battle of marketing services for advertisers who want to run integrated campaigns across online and mobile markets, through computers and wireless phones. Whereas Microsoft is positioning itself as an operating platform with applications for search and mapping and DRM, Yahoo! is leading the game by providing an integrated marketing platform for advertisers who want to run campaigns at either Yahoo!’s many online properties or mobile. Yahoo! Go for Mobile 2.0, Yahoo! Mail that now incorporates instant messaging, and Yahoo! Messenger for mobile further substantiate Yahoo!’s market leading position for mobile phone makers such as LG who is planning to incorporate these applications in the new mobile phones. If Yahoo! is able to pre-load Yahoo! apps on a majority of leading mobile phone makers, Yahoo! will be able to solidify its position in the mobile market. Yahoo!’s integrated marketing innovation will create a small revenue upside in 2007, with greater growth plausible in 2008 and beyond.
References:
The Innovation Index
The Innovation Index Annual Report – Chapter One
The Innovation Index Annual Report – Chapter Two
The Innovation Index Annual Report – Chapter Three
Reuters
Marketwatch
Press releases
Dow Jones Newswires
BusinessWire
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 is even more impressive, and 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.
Disclaimer: I invest in the stocks comprising The Innovation Index, beginning in 2007.
Sunday, February 4, 2007
How can Dell turnaround Dell, beat HP and become the number one computer company?
Dell Inc. (NASDAQ: DELL) is one of the Top 20 Innovators of The Innovation Index. Dell has seen its market cap go down by about 20% in the last thirteen months, in large part due to average quarterly and annual top-line revenue growth, reduced profits, and losing the number one position as the world’s top supplier of new computers to Hewlett-Packard (HP) (NYSE: HPQ). Michael Dell, the founder, founding CEO and chairman of Dell Inc., took over the CEO roll of Dell again. Dell made Dell the number one computer company in the world. Now, Dell has perhaps the toughest act of his career: Turnaround Dell, beat HP, and make Dell the number one computer company in the world – again!
How can Dell turnaround Dell?
Dell has to go back to basics. What made Dell the number one computer company in the first place? Computers. Dell computers, laptops and servers were considered the best in the industry. And Dell became the household name when it came to buying computers. Dell was the perceived high quality brand. Dell must focus on the core business: Computers. Rather than creating average computers and discounting the computers to gain market share, Dell needs to design a new line of computers that appeal to the masses, business, government and IT.
For example, why can’t Dell design a computer only for school students? A specific computer made for the students in K-12 market, and college students? Not just a computer marketed to the schools – rather a computer that is designed with the need of students in mind from the inside out. This must include educational software, computer design that integrates needs of students (for instance, a scientific calculator on the keyboard), and online services that students are most likely to use. Dell = education computers for students.
Dell has to appeal to the teenager market. Teenagers are the high growth market, and they have money to spend – albeit they spend it on cool music and toys such as iPod. Dell must create a computer that appeals to the teenagers. Dell has to make Dell computers cool again. Dell should take a page out of Apple’s cool design and function. Dell = cool computers for teenagers.
Dell should also think about the market of women shoppers. There are many professional women buying computers, single households led by women who are looking to buy computers for themselves and kids, women in schools and colleges, and women in non-profits and government. What can Dell do to appeal to this largely ignored market? Can Dell create specialized computers that appeal to the needs of women at large? What would that line of computers look like? Dell = appealing computers for women.
When I go online to buy Dell computer, I can only buy one computer at a time or more than one computer of the same type on my own. Why is this so? What if I am looking to buy a laptop for me, a computer for my child, and a computer for my wife? Does Dell provide such a home bundle that I can readily choose. How about a Dell Home Bundle? Dell Home Bundle can include combinations of computers and laptops pre-packaged for various needs of the home, including home networks, wireless, entertainment center, etc. All I have to do is go online at Dell.com and choose Home Bundle. And I am provided various options all at once. Dell = Home Bundle.
Dell must make the business computers and servers the best in the business. Even a small business owner is looking for the very best at a reasonable price. Dell quality must become the standard in the industry. Dell performance must be second to none. Dell service should be topnotch. Dell must equate to the best investment there is when it comes to buying computers for business. First, Dell must make their computers the best there is in terms of quality, performance, service and price; second, Dell must market their computers to the business as the best there is and create this indelible brand perception; finally, Dell must provide a replacement program for old computers at businesses. Dell = Best Business computers.
How can Dell beat HP?
Dell became the number one computer company in the world with the Dell Direct business model. Consumers and small businesses went to Dell.com and easily configured the computer that they were looking for, and purchased it online. Dell promptly made this computer, and shipped it to you within a week. Larger businesses are also able to configure and buy their computers online; they also have the option of a dedicated account manager. The beauty of Dell Direct model was that there were no middle men – no margins, no distribution to worry about, and cutting-edge products. The Dell Direct model made sense during the Internet boom years and when the model was new and not easily imitable by Dell rivals such as HP. However, Direct model cannot be the *only* business model for buying computers.
If HP can sell computers online and also through retail channels, why can’t Dell do the same? Dell has to go retail – not just as an extension of the Dell Direct model, but as a completely new business. Consumers and businesses of today are researching and shopping online, researching online and buying retail, researching retail and buying online, researching retail and buying retail. Dell predominantly provides only one choice. Dell must find ways to open up the retail channel, and create computers specifically for the retail market. Dell can also provide kiosks at retail stores so that customers can simply configure computers at the retailers, and take immediate delivery at the store, buy a computer readily available at the retailer, or have it shipped to their homes or business. When Dell offers customers ready options where they can buy computers both online as well as in retail stores with the same ease as buying online, Dell would begin to grow the overall computer business and retake the lead from HP. This could easily take a year or two before Dell establishes itself as the premier Direct and retail computer brand.
How can Dell become the number one computer company in the world?
Customers outside the U.S. are used to buying computers through distributors, resellers, local companies who assemble computers, retail stores and through a lot of hand holding. The last point is very important: hand holding. Customers need advice on what is the best computer that meets their needs, and want to try out that computer in a store before they purchase it. There is even some negotiation involved. Customers need some help setting it up at their homes or business. The key insight: only a small segment of customers buy computers direct outside the U.S. The majority of the market does not buy direct. If this is the case, Dell must reinvent itself if it were to become a truly global player. Dell cannot sell only through Direct model outside the U.S. at least to emerging countries such as India, China, Russia, and Brazil. Dell should rather leverage the Dell brand and sell through the normal channels that the customers of these countries are acquainted with. HP’s market share grew in large part due to the worldwide shipments outside the U.S. HP has established retail, reseller and distribution channels worldwide. Dell must quickly do the same. And once the Dell brand is established in the country, Dell can then begin to introduce the Direct model. But Dell cannot, must not lead with the Direct model.
Michael Dell is a visionary, innovator and a creative leader, focused on execution and results. He made Dell the number one computer company in the world. Dell is on a mission to turnaround Dell, beat HP and make Dell the number one computer company in the world – again! If I were a betting man, I would definitely bet on Dell. If Dell is indeed successful in making Dell the number one computer company in the world again, Dell will forever be enshrined in the Hall of Fame of Visionary leaders of both 20th and 21st centuries.
References
The Innovation Index
How can Dell turnaround Dell?
Dell has to go back to basics. What made Dell the number one computer company in the first place? Computers. Dell computers, laptops and servers were considered the best in the industry. And Dell became the household name when it came to buying computers. Dell was the perceived high quality brand. Dell must focus on the core business: Computers. Rather than creating average computers and discounting the computers to gain market share, Dell needs to design a new line of computers that appeal to the masses, business, government and IT.
For example, why can’t Dell design a computer only for school students? A specific computer made for the students in K-12 market, and college students? Not just a computer marketed to the schools – rather a computer that is designed with the need of students in mind from the inside out. This must include educational software, computer design that integrates needs of students (for instance, a scientific calculator on the keyboard), and online services that students are most likely to use. Dell = education computers for students.
Dell has to appeal to the teenager market. Teenagers are the high growth market, and they have money to spend – albeit they spend it on cool music and toys such as iPod. Dell must create a computer that appeals to the teenagers. Dell has to make Dell computers cool again. Dell should take a page out of Apple’s cool design and function. Dell = cool computers for teenagers.
Dell should also think about the market of women shoppers. There are many professional women buying computers, single households led by women who are looking to buy computers for themselves and kids, women in schools and colleges, and women in non-profits and government. What can Dell do to appeal to this largely ignored market? Can Dell create specialized computers that appeal to the needs of women at large? What would that line of computers look like? Dell = appealing computers for women.
When I go online to buy Dell computer, I can only buy one computer at a time or more than one computer of the same type on my own. Why is this so? What if I am looking to buy a laptop for me, a computer for my child, and a computer for my wife? Does Dell provide such a home bundle that I can readily choose. How about a Dell Home Bundle? Dell Home Bundle can include combinations of computers and laptops pre-packaged for various needs of the home, including home networks, wireless, entertainment center, etc. All I have to do is go online at Dell.com and choose Home Bundle. And I am provided various options all at once. Dell = Home Bundle.
Dell must make the business computers and servers the best in the business. Even a small business owner is looking for the very best at a reasonable price. Dell quality must become the standard in the industry. Dell performance must be second to none. Dell service should be topnotch. Dell must equate to the best investment there is when it comes to buying computers for business. First, Dell must make their computers the best there is in terms of quality, performance, service and price; second, Dell must market their computers to the business as the best there is and create this indelible brand perception; finally, Dell must provide a replacement program for old computers at businesses. Dell = Best Business computers.
How can Dell beat HP?
Dell became the number one computer company in the world with the Dell Direct business model. Consumers and small businesses went to Dell.com and easily configured the computer that they were looking for, and purchased it online. Dell promptly made this computer, and shipped it to you within a week. Larger businesses are also able to configure and buy their computers online; they also have the option of a dedicated account manager. The beauty of Dell Direct model was that there were no middle men – no margins, no distribution to worry about, and cutting-edge products. The Dell Direct model made sense during the Internet boom years and when the model was new and not easily imitable by Dell rivals such as HP. However, Direct model cannot be the *only* business model for buying computers.
If HP can sell computers online and also through retail channels, why can’t Dell do the same? Dell has to go retail – not just as an extension of the Dell Direct model, but as a completely new business. Consumers and businesses of today are researching and shopping online, researching online and buying retail, researching retail and buying online, researching retail and buying retail. Dell predominantly provides only one choice. Dell must find ways to open up the retail channel, and create computers specifically for the retail market. Dell can also provide kiosks at retail stores so that customers can simply configure computers at the retailers, and take immediate delivery at the store, buy a computer readily available at the retailer, or have it shipped to their homes or business. When Dell offers customers ready options where they can buy computers both online as well as in retail stores with the same ease as buying online, Dell would begin to grow the overall computer business and retake the lead from HP. This could easily take a year or two before Dell establishes itself as the premier Direct and retail computer brand.
How can Dell become the number one computer company in the world?
Customers outside the U.S. are used to buying computers through distributors, resellers, local companies who assemble computers, retail stores and through a lot of hand holding. The last point is very important: hand holding. Customers need advice on what is the best computer that meets their needs, and want to try out that computer in a store before they purchase it. There is even some negotiation involved. Customers need some help setting it up at their homes or business. The key insight: only a small segment of customers buy computers direct outside the U.S. The majority of the market does not buy direct. If this is the case, Dell must reinvent itself if it were to become a truly global player. Dell cannot sell only through Direct model outside the U.S. at least to emerging countries such as India, China, Russia, and Brazil. Dell should rather leverage the Dell brand and sell through the normal channels that the customers of these countries are acquainted with. HP’s market share grew in large part due to the worldwide shipments outside the U.S. HP has established retail, reseller and distribution channels worldwide. Dell must quickly do the same. And once the Dell brand is established in the country, Dell can then begin to introduce the Direct model. But Dell cannot, must not lead with the Direct model.
Michael Dell is a visionary, innovator and a creative leader, focused on execution and results. He made Dell the number one computer company in the world. Dell is on a mission to turnaround Dell, beat HP and make Dell the number one computer company in the world – again! If I were a betting man, I would definitely bet on Dell. If Dell is indeed successful in making Dell the number one computer company in the world again, Dell will forever be enshrined in the Hall of Fame of Visionary leaders of both 20th and 21st centuries.
References
The Innovation Index
Friday, February 2, 2007
The Innovation Index Weekly Report for the week ending 01-31-07
Yahoo! Inc. (NASDAQ: YHOO) continues to lead The Top 20 Innovators in stock performance of The Innovation Index, with 11% gain for the year.
The Innovation Index was flat for the week ending January 31, 2007, and is up 4% in 2007. S & P 500 lost 1% last week. NASDAQ is up 2%, whereas S & P 500 and the Dow Jones Index are each up 1% in 2007. It was another tough week for the Top 20 Innovators – 12 innovators declined last week, only 4 gained some ground, and 4 stayed even.
The Innovation Index closed at 71.86 on January 31, 2007, up 2.48 points from the closing price of 69.38 on December 29, 2006.
Weekly Advances
eBay Inc. (NASDAQ: EBAY) led all Innovators with 8% gain in just one week, and is now up 8% for the year. eBay had a solid quarter, showed strength in the core auction business, and is reaping the benefits of innovations introduced in 2006. eBay is perhaps the dark horse of 2007. Hewlett-Packard (NYSE: HPQ) and IBM - (NYSE: IBM) each gained 2% for the week. Intel Corporation (NYSE: INTC) was up 1% for the week. I posted a story on Intel – The Innovator of the week touting Intel’s recently announced breakthrough innovation. There were no significant gains from other innovators last week.
Weekly Declines
3M Company (NYSE: MMM) dropped 7% last week owing to quarterly results that missed the analyst estimates, and the future outlook that did not really excite the analysts either. 3M is now down 5% for the year. However, this is still early in the year. Look for the seasoned innovator 3M to bounce back before the middle of the year. Microsoft Corporation (NASDAQ: MSFT) hot on the heels of the huge launch of Windows Vista was still down 1% for the week. The investors shrugged off the launch, and are perhaps looking at Microsoft to deliver on the promise of Vista - money, money, money. The key question: how many existing Windows customers will convert to Vista? We will be sure to watch when Microsoft announces next quarter's revenues, in particular existing customers who are moving to Vista.
Yearly Winners
Yahoo! (NASDAQ: YHOO) is leading the top 20 innovators with 11% stock performance gain for the year. Google (NASDAQ: GOOG) is next with 9% gains for the year; however, as I write this weekly report, Google is down in the last couple of days as the investors reacted less favorably to Google's latest quarterly results. eBay and Target Corporation (NYSE: TGT) are both tied with 8% gains for the year. Look who is on the rise again: Hewlett-Packard (NYSE: HPQ) has almost quietly notched gains of 5% for the year already. HP was tied as The Top Innovator of 2006, and had a huge gain of 45% last year. HP is back again with 5% gain in the first month of the year.
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 is even more impressive, and 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.
References:
The Innovation Index
The Innovation Index Annual Report – Chapter One
The Innovation Index Annual Report – Chapter Two
The Innovation Index Annual Report – Chapter Three
Disclaimer: I invest in the stocks comprising The Innovation Index, beginning in 2007.
The Innovation Index was flat for the week ending January 31, 2007, and is up 4% in 2007. S & P 500 lost 1% last week. NASDAQ is up 2%, whereas S & P 500 and the Dow Jones Index are each up 1% in 2007. It was another tough week for the Top 20 Innovators – 12 innovators declined last week, only 4 gained some ground, and 4 stayed even.
The Innovation Index closed at 71.86 on January 31, 2007, up 2.48 points from the closing price of 69.38 on December 29, 2006.
Weekly Advances
eBay Inc. (NASDAQ: EBAY) led all Innovators with 8% gain in just one week, and is now up 8% for the year. eBay had a solid quarter, showed strength in the core auction business, and is reaping the benefits of innovations introduced in 2006. eBay is perhaps the dark horse of 2007. Hewlett-Packard (NYSE: HPQ) and IBM - (NYSE: IBM) each gained 2% for the week. Intel Corporation (NYSE: INTC) was up 1% for the week. I posted a story on Intel – The Innovator of the week touting Intel’s recently announced breakthrough innovation. There were no significant gains from other innovators last week.
Weekly Declines
3M Company (NYSE: MMM) dropped 7% last week owing to quarterly results that missed the analyst estimates, and the future outlook that did not really excite the analysts either. 3M is now down 5% for the year. However, this is still early in the year. Look for the seasoned innovator 3M to bounce back before the middle of the year. Microsoft Corporation (NASDAQ: MSFT) hot on the heels of the huge launch of Windows Vista was still down 1% for the week. The investors shrugged off the launch, and are perhaps looking at Microsoft to deliver on the promise of Vista - money, money, money. The key question: how many existing Windows customers will convert to Vista? We will be sure to watch when Microsoft announces next quarter's revenues, in particular existing customers who are moving to Vista.
Yearly Winners
Yahoo! (NASDAQ: YHOO) is leading the top 20 innovators with 11% stock performance gain for the year. Google (NASDAQ: GOOG) is next with 9% gains for the year; however, as I write this weekly report, Google is down in the last couple of days as the investors reacted less favorably to Google's latest quarterly results. eBay and Target Corporation (NYSE: TGT) are both tied with 8% gains for the year. Look who is on the rise again: Hewlett-Packard (NYSE: HPQ) has almost quietly notched gains of 5% for the year already. HP was tied as The Top Innovator of 2006, and had a huge gain of 45% last year. HP is back again with 5% gain in the first month of the year.
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 is even more impressive, and 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.
References:
The Innovation Index
The Innovation Index Annual Report – Chapter One
The Innovation Index Annual Report – Chapter Two
The Innovation Index Annual Report – Chapter Three
Disclaimer: I invest in the stocks comprising The Innovation Index, beginning in 2007.
Thursday, February 1, 2007
Intel - The Innovator of the week
Intel Corporation (NYSE: INTC) is one of the Top 20 Innovators of The Innovation Index. Intel Corporation is The Innovator of the week. Intel stock is up 4% for the year (through Jan. 31) owing to better revenues and profitability in the latest quarter, and recently announced breakthrough product innovations.
Intel announced game changing, record-setting innovation in transistor technology last week comprising of two new materials used in making transistors: high-k and Metal gates. How big is this innovation? This 45nm technology represents the biggest technological change and creativity in 40 years, extends Moore's Law into the next decade, and increases Intel's lead by more than a year over the rest of the semiconductor industry with working 45nm processors codenamed "Penryn".
Background
According to Moore's law, the number of transistors on a chip roughly doubles every two years - this does not just happen by itself. Intel methodically and rigorously innovates and integrates, "adding more features and computing processing cores, increasing performance, and decreasing manufacturing costs and cost per transistor." Intel creates new technology that shrinks transistors to ever-smaller sizes. However, using current materials, the ability to shrink transistors reached fundamental limits because of increased power and heat issues that develop as feature sizes reach atomic levels. Hence, Intel sought to implement new materials for this killer innovation.
Gordon Moore
Intel co-founder and creative leader Gordon Moore made a comeback and told the world: "The implementation of high-k and metal materials marks the biggest change in transistor technology since the introduction of polysilicon gate MOS transistors in the late 1960s." It should be noted that Moore has not made public statements on behalf of Intel for the past several years, especially as it alludes to transistor technology. For Moore to come out of retirement and essentially state that this is the biggest change since the late 1960s makes this innovation significant.
Disruptive Innovation
"Transistor gate leakage associated with the ever-thinning Silicon Dioxide gate dielectric is recognized by the industry as one of the most formidable technical challenges facing Moore's Law. To solve this critical issue, Intel replaced the silicon dioxide with a thicker hafnium-based high-k material in the gate dielectric, reducing leakage by more than 10 times compared to the silicon dioxide used for more than four decades.
Because the high-k gate dielectric is not compatible with today's silicon gate electrode, the second part of Intel's 45nm transistor material recipe is the development of new metal gate materials. While the specific metals that Intel uses remains secret, the company will use a combination of different metal materials for the transistor gate electrodes."
Key Product Benefits
What are the key product benefits of 45nm technology over today's 65nm technology?
- Approximately twice the transistor density (great for smaller chip sizes or increased transistor counts)
- Approximately 30 percent reduction in transistor-switching power
- Greater than 20 percent improvement in transistor-switching speed or a greater than 5 times reduction in source-drain leakage power
- Greater than 10 times reduction in transistor gate oxide leakage for lower power requirements and increased battery life
- Increased computing performance by up to 20%
Mark Bohr, Intel senior fellow states: "Meanwhile our engineers and designers have achieved a remarkable accomplishment that ensures the leadership of Intel products and innovation. Our implementation of novel high-k and metal gate transistors for our 45nm process technology will help Intel deliver even faster, more energy efficient multi-core products that build upon our successful Intel Core 2 and Xeon family of processors, and extend Moore's Law well into the next decade."
Penryn - The new Intel processors
According to Intel, the new Penryn family of processors will be based on the new process technology and new microarchitecture. The combination of Intel's leading 45nm process technology, high-volume manufacturing capabilities, and leading microarchitecture design enabled Intel to develop its first working 45nm Penryn processors.
Intel announced that there are more than 15 products based on 45nm in development across desktop, mobile, workstation and enterprise segments. With more than 400 million transistors for dual-core processors and more than 800 million for quad-core, the Penryn family of 45nm processors includes new microarchitecture features for greater performance and power management capabilities, as well as higher core speeds and up to 12 megabytes of cache. The Penryn family designs also bring approximately 50 new Intel SSE4 instructions that expand capabilities and performance for media and high-performance computing applications.
Bottomline
Intel become the world's number one microprocessor and semiconductor company decades ago, and has remained in the leadership position in the microprocessor market ever since. However, AMD has been recently disrupting Intel's market share, gaining market share and taking market share away from Intel. Can Intel stall AMD with the new Penryn and 45 nm technology? Can Intel create the new Penryn using efficient manufacturing yield and economical prices? Can Intel regain the market share from AMD and reverse the tide?
Would consumers and businesses crave for the extra power, extra performance, and better efficiencies that Penryn and the new 45 nm technology offers? This would depend heavily on the adoption of new media such as on demand video, audio, multimedia, and the transformation of the Internet and Information from static to dynamic, multimedia, compute intensive applications. As more consumers embrace YouTube, Flickr, Myspace, on demand media, images, animations, home entertainment centers powered by computers and faster processors, better operating systems such as the new Windows Vista, Apple iPod + iTunes and MP3 music and on demand video, Apple iMac computers powered by Intel processors, Dell computers, HP computers, and users all over the world purchasing computers with Intel processors – Intel is sure to benefit. One thing is certain: Intel has created a game changing innovation, and is planning to ship Penryn processors based on this innovation in the second half of 2007.
Intel is The Innovator of the week.
References:
www.intel.com
Intel Press Release
Intel announced game changing, record-setting innovation in transistor technology last week comprising of two new materials used in making transistors: high-k and Metal gates. How big is this innovation? This 45nm technology represents the biggest technological change and creativity in 40 years, extends Moore's Law into the next decade, and increases Intel's lead by more than a year over the rest of the semiconductor industry with working 45nm processors codenamed "Penryn".Background
According to Moore's law, the number of transistors on a chip roughly doubles every two years - this does not just happen by itself. Intel methodically and rigorously innovates and integrates, "adding more features and computing processing cores, increasing performance, and decreasing manufacturing costs and cost per transistor." Intel creates new technology that shrinks transistors to ever-smaller sizes. However, using current materials, the ability to shrink transistors reached fundamental limits because of increased power and heat issues that develop as feature sizes reach atomic levels. Hence, Intel sought to implement new materials for this killer innovation.
Gordon Moore
Intel co-founder and creative leader Gordon Moore made a comeback and told the world: "The implementation of high-k and metal materials marks the biggest change in transistor technology since the introduction of polysilicon gate MOS transistors in the late 1960s." It should be noted that Moore has not made public statements on behalf of Intel for the past several years, especially as it alludes to transistor technology. For Moore to come out of retirement and essentially state that this is the biggest change since the late 1960s makes this innovation significant.
Disruptive Innovation
"Transistor gate leakage associated with the ever-thinning Silicon Dioxide gate dielectric is recognized by the industry as one of the most formidable technical challenges facing Moore's Law. To solve this critical issue, Intel replaced the silicon dioxide with a thicker hafnium-based high-k material in the gate dielectric, reducing leakage by more than 10 times compared to the silicon dioxide used for more than four decades.
Because the high-k gate dielectric is not compatible with today's silicon gate electrode, the second part of Intel's 45nm transistor material recipe is the development of new metal gate materials. While the specific metals that Intel uses remains secret, the company will use a combination of different metal materials for the transistor gate electrodes."
Key Product Benefits
What are the key product benefits of 45nm technology over today's 65nm technology?
- Approximately twice the transistor density (great for smaller chip sizes or increased transistor counts)
- Approximately 30 percent reduction in transistor-switching power
- Greater than 20 percent improvement in transistor-switching speed or a greater than 5 times reduction in source-drain leakage power
- Greater than 10 times reduction in transistor gate oxide leakage for lower power requirements and increased battery life
- Increased computing performance by up to 20%
Mark Bohr, Intel senior fellow states: "Meanwhile our engineers and designers have achieved a remarkable accomplishment that ensures the leadership of Intel products and innovation. Our implementation of novel high-k and metal gate transistors for our 45nm process technology will help Intel deliver even faster, more energy efficient multi-core products that build upon our successful Intel Core 2 and Xeon family of processors, and extend Moore's Law well into the next decade."
Penryn - The new Intel processors
According to Intel, the new Penryn family of processors will be based on the new process technology and new microarchitecture. The combination of Intel's leading 45nm process technology, high-volume manufacturing capabilities, and leading microarchitecture design enabled Intel to develop its first working 45nm Penryn processors.
Intel announced that there are more than 15 products based on 45nm in development across desktop, mobile, workstation and enterprise segments. With more than 400 million transistors for dual-core processors and more than 800 million for quad-core, the Penryn family of 45nm processors includes new microarchitecture features for greater performance and power management capabilities, as well as higher core speeds and up to 12 megabytes of cache. The Penryn family designs also bring approximately 50 new Intel SSE4 instructions that expand capabilities and performance for media and high-performance computing applications.
Bottomline
Intel become the world's number one microprocessor and semiconductor company decades ago, and has remained in the leadership position in the microprocessor market ever since. However, AMD has been recently disrupting Intel's market share, gaining market share and taking market share away from Intel. Can Intel stall AMD with the new Penryn and 45 nm technology? Can Intel create the new Penryn using efficient manufacturing yield and economical prices? Can Intel regain the market share from AMD and reverse the tide?
Would consumers and businesses crave for the extra power, extra performance, and better efficiencies that Penryn and the new 45 nm technology offers? This would depend heavily on the adoption of new media such as on demand video, audio, multimedia, and the transformation of the Internet and Information from static to dynamic, multimedia, compute intensive applications. As more consumers embrace YouTube, Flickr, Myspace, on demand media, images, animations, home entertainment centers powered by computers and faster processors, better operating systems such as the new Windows Vista, Apple iPod + iTunes and MP3 music and on demand video, Apple iMac computers powered by Intel processors, Dell computers, HP computers, and users all over the world purchasing computers with Intel processors – Intel is sure to benefit. One thing is certain: Intel has created a game changing innovation, and is planning to ship Penryn processors based on this innovation in the second half of 2007.
Intel is The Innovator of the week.
References:
www.intel.com
Intel Press Release
Sunday, January 28, 2007
How much Creativity is enough?
How much creativity is enough? Is there an optimal level of creativity for a person to have? Is it possible to be “too creative?” Is it true, or a myth, that creative people can be difficult to manage?
Creativity generates Ideas. Ideas generate Innovations. Innovations generate New Products. New Products make company successful in the long term. A company can never have too much creativity. Creativity can give rise to new products that may fail. However, without creativity, there are no new products. Creativity and Innovation define the future of any business. The day creativity is thought to be enough, the company stops innovating, stops creating great new products, becomes complacent and eventually ceases to exist.
Too much creativity or optimal level of creativity depends on the company, its culture and its individuals. Creativity in a corporate environment needs to be channelled to produce great products. Employing creative individuals in specific business units such as marketing, desktop publishing, web business, advertising or new product development makes business sense. An optimal level of creativity can be achieved within the organization as a whole, where the appropriate guidelines and frameworks are in place for creative individuals and their ideas, and to convert such creativity into viable business solutions. If the individual is employed in a role that requires creativity, there cannot be too much of it – however a defined structure that sets boundaries, such as market needs, financial constraints, resource availability, project checklist and milestones, etc. can drive measurable, sustainable and innovative results. When the business risks grow, a methodical framework or business process needs to be implemented to translate creative ideas into viable business enterprises.
An experienced manager knows how to manage creativity and creative individuals without coming in the way of generating new ideas. Creative individuals have the innate ability to visualize the end product; however, at times this is also coupled with the complexity to execute on a plan to get there. The key is to provide the creative individuals a platform to be creative, and lead their ideas into markets. Surrounding creative individuals with the appropriate infrastructure and resources to convert their ideas into workable solutions can be very rewarding and profitable. On the contrary, leaving them to their own devices can potentially result in chaos, delayed delivery, under delivery on commitments, overspending and incomplete end results.
Creative individuals can tend to be independent, expressive and passionate. Their mindset stems from the cultural differences between highly creative and operational organizational norms. For example, creative individuals thrive on generating ideas, and asking the "what if" questions. Some managers may prefer efficiency to unproven ideas and rhetorical questions. A manager can nurture their entrepreneurial spirit, and yet manage them well in group settings and staff meetings. There is also the possibility of expansive dialogs and debates, especially when a manager rejects an idea or two from a creative individual. This is perhaps the most challenging aspect of managing a creative individual: how to say "No" to certain ideas that may make compelling sense to the individual?
Creativity is paramount to the success of any business. Creativity drives Ideas. Ideas drive Innovations. Innovations drive New Products and Markets. Creativity And Innovation drive business.
If you enjoyed reading this Creativity best practice, I recommend the complete list of Creativity Innovation Best Practices.
References:
eCornell: Leading Through Creativity
Creativity generates Ideas. Ideas generate Innovations. Innovations generate New Products. New Products make company successful in the long term. A company can never have too much creativity. Creativity can give rise to new products that may fail. However, without creativity, there are no new products. Creativity and Innovation define the future of any business. The day creativity is thought to be enough, the company stops innovating, stops creating great new products, becomes complacent and eventually ceases to exist.
Too much creativity or optimal level of creativity depends on the company, its culture and its individuals. Creativity in a corporate environment needs to be channelled to produce great products. Employing creative individuals in specific business units such as marketing, desktop publishing, web business, advertising or new product development makes business sense. An optimal level of creativity can be achieved within the organization as a whole, where the appropriate guidelines and frameworks are in place for creative individuals and their ideas, and to convert such creativity into viable business solutions. If the individual is employed in a role that requires creativity, there cannot be too much of it – however a defined structure that sets boundaries, such as market needs, financial constraints, resource availability, project checklist and milestones, etc. can drive measurable, sustainable and innovative results. When the business risks grow, a methodical framework or business process needs to be implemented to translate creative ideas into viable business enterprises.
An experienced manager knows how to manage creativity and creative individuals without coming in the way of generating new ideas. Creative individuals have the innate ability to visualize the end product; however, at times this is also coupled with the complexity to execute on a plan to get there. The key is to provide the creative individuals a platform to be creative, and lead their ideas into markets. Surrounding creative individuals with the appropriate infrastructure and resources to convert their ideas into workable solutions can be very rewarding and profitable. On the contrary, leaving them to their own devices can potentially result in chaos, delayed delivery, under delivery on commitments, overspending and incomplete end results.
Creative individuals can tend to be independent, expressive and passionate. Their mindset stems from the cultural differences between highly creative and operational organizational norms. For example, creative individuals thrive on generating ideas, and asking the "what if" questions. Some managers may prefer efficiency to unproven ideas and rhetorical questions. A manager can nurture their entrepreneurial spirit, and yet manage them well in group settings and staff meetings. There is also the possibility of expansive dialogs and debates, especially when a manager rejects an idea or two from a creative individual. This is perhaps the most challenging aspect of managing a creative individual: how to say "No" to certain ideas that may make compelling sense to the individual?
Creativity is paramount to the success of any business. Creativity drives Ideas. Ideas drive Innovations. Innovations drive New Products and Markets. Creativity And Innovation drive business.
If you enjoyed reading this Creativity best practice, I recommend the complete list of Creativity Innovation Best Practices.
References:
eCornell: Leading Through Creativity
Wednesday, January 24, 2007
Yahoo!, Google and Target Leading The Innovation Index
The Innovation Index Weekly Report for the Week Ending 01-24-2007
Google (NASDAQ: GOOG), Target (NYSE: TGT) and Yahoo! (NASDAQ: YHOO) are the early 2007 leaders of The Innovation Index notching stock gains of 8%, 8% and 13% respectively. Microsoft (NASDAQ: MSFT) and Wal-Mart Stores (NYSE: WMT) round out the Top Five with stock performance gains of 4% and 5% each. What's remarkable is that both Target and Wal-Mart have already performed better than all of 2006. The big mover of the week was America Movile (NYSE: AMX) gaining 4% last week, and is now up 1% for the year. Apple (NASDAQ: AAPL) led all decliners with a 9% drop in just one week; Apple is still up 2% for the year. It was a tough week for the Top 20 Innovators. 8 of the 20 Innovators declined last week. 8 Innovators stayed even, and only 4 Innovators stayed in the black. Yahoo! leads all Innovators in 2007 in stock performance.
Yahoo! had solid results in its latest quarter. Not only did Yahoo! beat the analyst estimates, Yahoo! also pre-announced Panama, the souped up Search technology that will rival Google and bring in more revenues and profits for Yahoo! in 2007 and beyond. Yahoo! is planning to roll out Panama in first week of February, 2007. Overall, the market seems bullish on Yahoo!'s Panama innovation.
eBay (NASDAQ: EBAY) announced its earnings today beating the analyst estimates; the stock is already up in after market by more than 10%. eBay's 2006 innovations are finally paying off in 2007 in the core auction business. PayPal business is also doing well for eBay. Watch out for eBay's turnaround, and wild ride up in stock performance.
Who is benefiting from these solid results of Yahoo! and eBay? Google of course, gaining 8% for the year. Google is planning to digitize more than a million books from my Alma Matter, The University of Texas at Austin, including their famous Latin American collection. Google also announced new innovations for the Google Earth, SketchUp, Groups, Search Appliance, Mobile and partnerships with Samsung and China Mobile.
Target Stores (NYSE: TGT) is off to a great start in 2007. Target announced a dividend of 12 cents a share, reaffirmed the sales forecasts for January, and is leading the retail boom.
The Innovation Index closed at 72.01, down 1% for the week, up 4% in 2007. NASDAQ is up 2%, whereas S & P 500 and the Dow Jones Index are each up 2% in 2007. The Innovation Index continues to perform well versus the major indices. Would this trend continue for the rest of 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 is even more impressive, and 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 is 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.
Disclaimer: I began investing in the Innovators comprising The Innovation Index starting in 2007.
Google (NASDAQ: GOOG), Target (NYSE: TGT) and Yahoo! (NASDAQ: YHOO) are the early 2007 leaders of The Innovation Index notching stock gains of 8%, 8% and 13% respectively. Microsoft (NASDAQ: MSFT) and Wal-Mart Stores (NYSE: WMT) round out the Top Five with stock performance gains of 4% and 5% each. What's remarkable is that both Target and Wal-Mart have already performed better than all of 2006. The big mover of the week was America Movile (NYSE: AMX) gaining 4% last week, and is now up 1% for the year. Apple (NASDAQ: AAPL) led all decliners with a 9% drop in just one week; Apple is still up 2% for the year. It was a tough week for the Top 20 Innovators. 8 of the 20 Innovators declined last week. 8 Innovators stayed even, and only 4 Innovators stayed in the black. Yahoo! leads all Innovators in 2007 in stock performance.
Yahoo! had solid results in its latest quarter. Not only did Yahoo! beat the analyst estimates, Yahoo! also pre-announced Panama, the souped up Search technology that will rival Google and bring in more revenues and profits for Yahoo! in 2007 and beyond. Yahoo! is planning to roll out Panama in first week of February, 2007. Overall, the market seems bullish on Yahoo!'s Panama innovation.
eBay (NASDAQ: EBAY) announced its earnings today beating the analyst estimates; the stock is already up in after market by more than 10%. eBay's 2006 innovations are finally paying off in 2007 in the core auction business. PayPal business is also doing well for eBay. Watch out for eBay's turnaround, and wild ride up in stock performance.
Who is benefiting from these solid results of Yahoo! and eBay? Google of course, gaining 8% for the year. Google is planning to digitize more than a million books from my Alma Matter, The University of Texas at Austin, including their famous Latin American collection. Google also announced new innovations for the Google Earth, SketchUp, Groups, Search Appliance, Mobile and partnerships with Samsung and China Mobile.
Target Stores (NYSE: TGT) is off to a great start in 2007. Target announced a dividend of 12 cents a share, reaffirmed the sales forecasts for January, and is leading the retail boom.
The Innovation Index closed at 72.01, down 1% for the week, up 4% in 2007. NASDAQ is up 2%, whereas S & P 500 and the Dow Jones Index are each up 2% in 2007. The Innovation Index continues to perform well versus the major indices. Would this trend continue for the rest of 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 is even more impressive, and 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 is 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.
Disclaimer: I began investing in the Innovators comprising The Innovation Index starting in 2007.
Monday, January 22, 2007
Innovation And Stock Performance Correlation
In Chapter Two of the Innovation Index Annual Report, I compared the Stock Performance of The Top 20 Innovators with Total Innovations - Innovation Activity comprising of new products, collaborations and acquisitions for 2006.
I have created the Innovation - Stock Performance Correlation Chart that demonstrates this correlation between the two variables:
I have created the Innovation - Stock Performance Correlation Chart that demonstrates this correlation between the two variables:
What are some insights to be gained from this?
There is a very high probability between Positive Stock Performance and Total Innovations with the magic number of 70.
Eight of the Nine Innovators, or 89%, who had Total Innovations of about 70 or higher exhibited a Positive Stock Performance in 2006 (Apple had 69 innovations). The average Stock Performance gain of these eight Innovators was 34% in 2006. Only Yahoo! exhibited negative stock gains in 2006 out of this group.
On the other hand, there is a good probability between Negative or Even Stock Performance and Total Innovations that are less than 65.
Six of the Eleven Innovators, or 54%, who had Total Innovations less than 65 exhibited a Negative or Even Stock Performance in 2006. Clearly, the correlation between Negative Stock Performance and Total Innovations less than 65 is demonstrably weak.
We will check again in 2007 on whether this correlation holds, the magic Total Innovation number of 70 stays at 70, or new trends emerge.
I am not trying to imply that Stock Performance only depends on Total Innovations. As we know very well, Stock Performance depends heavily on Current Earnings, Future Outlook, Revenue and Earnings Growth besides other environmental factors. However, it is interesting to correlate Stock Performance with Total Innovations, and whether the Innovation Output of an Organization leads to current or future Stock Performance gains.
For instance, are Yahoo!'s 77 Innovations in 2006 helping Yahoo!’s Stock Performance in 2007? Did the pipeline of New Innovations introduced in 2006 is resulting in positive Stock Performance in 2007? What about IBM who had a whopping 187 new Innovations? IBM should clearly do well in 2007. Or would it?
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
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 is even more impressive, and 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.
Friday, January 19, 2007
Yahoo! leads all Innovators - The Innovation Index up 5% in 2007
The Innovation Index gained 1% for the week ending January 17, 2007, and is already up 5% in 2007. The major indices gained 1% each last week. NASDAQ is up 3%, whereas S & P 500 and the Dow Jones Index are each up 1% in 2007.
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
Chapter Three - The Innovation Insights and Roundup
I will be posting an analysis of last week's Innovation Activity at The Top 20 Innovators by early next week.
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 is even more impressive, and 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.
The Innovation Index closed at 72.58 on January 17, 2007, up 3.20 points from the closing price of 69.38 on December 29, 2006.
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
Yahoo! (NASDAQ: YHOO) is leading the top 20 innovators with 14% stock performance gain for the year. Apple Inc. (NASDAQ: AAPL) and Google (NASDAQ: GOOG) are in hot pursuit gaining 12% and 8% each. Target Corporation (NYSE: TGT) gained 4% for the week, and is up 6% in 2007, already beating its 2006 gains of 5%. Only three of the 20 innovators are in red.
I posted The Innovation Index Annual Report comprising three Chapters:
Chapter One - Total Innovation Activity at The Top 20 Innovators
I posted The Innovation Index Annual Report comprising three Chapters:
Chapter One - Total Innovation Activity at The Top 20 Innovators
Chapter Three - The Innovation Insights and Roundup
I will be posting an analysis of last week's Innovation Activity at The Top 20 Innovators by early next week.
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 is even more impressive, and 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.
Thursday, January 18, 2007
The Innovation Insights - The Innovation Index Annual Report - Chapter Three
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. The Top Innovator – The Innovator of Innovators was announced in Chapter Two of The Innovation Index Annual Report.
Chapter Three of The Innovation Index Annual Report summarizes the Five Principles driving successful Innovations, key Innovation Insights gained over 2006, Innovation Trends and further explanation on the Rankings.
My observation and analysis on how the Top 20 Innovators drive Innovation led me to summarize the following five principles for successful innovation:
The Five Principles for Successful Innovation
Successful business innovations that drive growth are guided by the following five principles:
1. Vision to create new products, business models or processes that make a difference and create new markets
2. Systematic processes and rigor that stimulate creativity and learning to execute on the vision
3. Reward and recognition system for teams to take measured risks and experiment
4. Focus on clear and present customer needs, the market facts, and the intangible
5. Growth-oriented leadership that is decisive, inclusive, focused, takes risks, and has market expertise
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
If you enjoyed reading the five principles, I also recommend the complete list of Creativity Innovation Best Practices.
Chapter Three of The Innovation Index Annual Report summarizes the Five Principles driving successful Innovations, key Innovation Insights gained over 2006, Innovation Trends and further explanation on the Rankings.
My observation and analysis on how the Top 20 Innovators drive Innovation led me to summarize the following five principles for successful innovation:
The Five Principles for Successful Innovation
Successful business innovations that drive growth are guided by the following five principles:
1. Vision to create new products, business models or processes that make a difference and create new markets
2. Systematic processes and rigor that stimulate creativity and learning to execute on the vision
3. Reward and recognition system for teams to take measured risks and experiment
4. Focus on clear and present customer needs, the market facts, and the intangible
5. Growth-oriented leadership that is decisive, inclusive, focused, takes risks, and has market expertise
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
If you enjoyed reading the five principles, I also recommend the complete list of Creativity Innovation Best Practices.
Since September 2006, when I began this blog on Creativity And Innovation Driving Business, I have studied and reported on most of the Top 20 Innovators of The Innovation Index and some of their Disruptors. Here is a quick recap, beginning with the first story:
1. Google - Can Ambiguity and Chaos Create Innovation? You bet...
What's amazing is Google continues to innovate using what is described as "spaghetti method of product development (toss against wall, see if sticks)" requiring all Engineers to spend at least 20% of their time on new ideas.
2. Yahoo! - Hackers, Controlled Chaos and Innovation
If Yahoo! is indeed successful in finding "new twists on Yahoo services" through a controlled chaos of an event such as this with all the hackers, it would certainly be a first in their long page of innovations.
3. 3M and Johnson & Johnson - Failures and Stumbles driving Innovation
The failures result at J & J from the fact that the company emphasizes placing bets on many potential opportunities--most opportunities possibly fail, but the ones that do succeed, they succeed big. The bets, or the experimentation, are an essential price to pay for successful Innovation and Long-term growth
4. Wal-Mart - The Green Innovation
Green Innovation is a win-win for the business, the environment and the community. The business creates a better image, saves money and potentially creates new revenues. The environment becomes safer and cleaner. The community benefits with better health and enjoyment from a cleaner environment.
5. Intuit - Creating Innovations in Software Industry
Intuit's Innovation Recipe: Customer Evangelist Culture, Customer-Intuitive Design, Customer-driven Marketing and Product Management, Direct Marketing and Retailing, The Process driving Innovation.
6. Google - Acquisiton of YouTube. $1.65 billion Innovation and counting
YouTube Innovations: First, the vision of Founders to create a Video download service for FREE. Second, the intense focus on providing the best and most comprehensive experience for users interested in uploading, watching and sharing videos. Finally, YouTube created key partnerships with various Music and Broadcast players in the industry.
7. Toyota - Innovation Factory
Toyota's Innovation Principles: 7.1. The Art of Ingenuity. 7.2. The (relentless) Pursuit of Perfection. 7.3. The Rhythm of Fit.
Innovation Traps: 7.1. Swinging For Fences. 7.2. Getting Too Clever 7.3. Solving Problems Frivolously.
8. Apple - iPod - Apple's Best Innovation
iPod, powered by Apple, introduced in 2001 and masterminded by Steve Jobs, combines outstanding design, easy-to-use interface, superb performance, and an experience like no other. Apple assumed the world’s number one innovative company position and held it again in 2006 in large part due to the exponential growth of iPod – aptly called the iPod phenomenon.
9. Microsoft - The Innovator
Is Microsoft launching a new wave of innovation with Windows Vista, Office 2007 and Exchange 2007 and some 30 new products? Or are these merely nice-to-have product enhancements that users were asking for, and were just delayed for the past few years? Who is going to benefit the most from this new wave?
10. General Electric and Proctor & Gamble - Innovations Driving Growth
GE's innovation recipe: 10.1. Focus on key technologies. 10.2. Growth-oriented leadership 10.3. Core Business portfolio.
P&G's innovation recipe: 10.4. Brand mix. 10.4. Global top team. 10.6. New product collaborations.
11. 3M - The Innovation Machine
Five takeaways stimulating Innovation:
11.1. "Give it a try--and quick!"
11.2. "Accept that mistakes will be made."
11.3. "Take small steps."
11.4. "Give people the room they need."
11.5. "Mechanisms - build that ticking clock!"
12. Southwest Airlines - Flying High with Innovations
It is technology innovations such as DING! that bring Southwest that much closer to its customers who leverage the communication and messaging service to buy more tickets, besides new destinations, low fares, new nonstop services, new vacation packages and more
13. Starbucks - Innovations Brewing at Starbucks
Starbucks has become a pervasive coffee brand throughout the world, and the company is cleverly exploiting the Starbucks brand to launch new innovations in complementary and adjacent industries accounting for the solid revenue growth.
I discovered several new Innovation Trends shaping The Top 20 Innovators, and the industry at large:
1. The Innovation Gap
While the Sustainer is Innovating at a different pace and trajectory serving the needs of its profitable and larger customers, and focused on profitable investments, the Disrupter is Innovating at a faster pace and trajectory serving the needs of the broader market, and creating new market share.
2. Can Leadership Create Innovation?
Key Executives believe the following ingredients drive Innovation:
2.1. Marketing 2.2. Size 2.3. Culture 2.4. Technology 2.5. Passion 2.6. Active Participation 2.7. Hard Work 2.8. Internal Development 2.9. Targeted Acquisitions 2.10. Agility
3. Blocking Creativity and Innovation
Key processes that an organization can create to unblock Creativity and drive Innovation:
3.1. Open communication within and between departments, and across all management layers.
3.2. Hiring of people with diverse backgrounds and experience, and avoiding "cloning."
3.3. Encouraging employees to find new ways to do their daily work, and empowering them to make decisions.
3.4. Creating an organization that extends out to customers, suppliers, partners, and environment.
3.5. Stimulating research activities and providing employees some free time to experiment.
3.6. Allowing employees to take measured risks (with small costs), and seizing opportunities.
3.7. Creating processes to evaluate any idea on merit, regardless of where it is coming from.
3.8. Identifying and separating the creative from operational functions in the organization.
3.9. Using group creativity techniques frequently to promote team building and generate new ideas
4. Co-Creation driving Innovation
As Co-Creation demonstrates tangible results, more mainstream businesses will experiment and adopt it - not just technology companies. The best side effect of Co-Creation is it brings you that much closer to your customers and creates a positive business environment.
5. Six Ways to Find Innovation
How can an organization find Innovation? Here are Six Ways to Find Innovation:
5.1. Stand in different places
5.2. Use the lenses of other domains
5.3. Ask powerful questions
5.4. Foster new knowledge
5.5. Create a visual verbal journal
5.6. Change the pace of attention
I introduced The Innovation Index in December 2006 from an epiphany born out of the BusinessWeek article on the world's top innovators. The Innovation Index Report incorporates the following objectives and is released weekly:
1. Report, analyze and project the stock performance of the top 20 Innovators in North America every week, and compare their performance to S&P, NASDAQ and Dow Jones.
2. Compare and contrast best practices, initiatives, new products, successes, strategies, stories, leadership and insights on Creativity and Innovation at the top 20 Innovators.
3. Showcase Disruptors challenging these top Innovators, their disruptive innovation strategy, and their current and potential impact on the Innovators' customer base and market share.
This brings me back to this, the final chapter of The Innovation Index Annual Report: Chapter Three - The Insights.
Why did I not choose Apple and Google as the top two innovators in The Innovation Index Rankings for 2006? Why is Microsoft ahead of them for 2006? Why is Research In Motion also ahead of Apple and Google for 2006? Why are IBM and HP tied for the top rankings? What about Cisco Systems and GE?
The primary reason was Stock Performance in 2006. Apple and Google each gained 18% and 11% in stock performance gains in 2006. Microsoft stock gained 16%. Research In Motion stock gained 94%. IBM stock gained 20%. HP stock gained 45%. Cisco stock was up 60%, and GE stock was up 9%.
The secondary reason was Innovation Activity in 2006. Apple and Google had innovation activity of 69 and 75 total innovations in 2006. Microsoft had innovation activity of 159 total innovations in 2006. Research In Motion had innovation activity of 87 new innovations. IBM led all innovators with 187 innovations in 2006. HP had 106 innovations. Cisco had 72 innovations, and GE had 79 innovations in 2006. One can argue though that press releases touting incremental enhancements and basic collaborations are hardly new innovations. However, it appears though that most innovators are leveraging the media to make every announcement. Perhaps a filter to weed out the run-of-the-mill announcements may be required in 2007.
The final reason was the X Factor. Apple's iPod line of products in 2006 had key expansions from 2005; on the other hand the new iMac came onto its own in 2006 with the new Intel dual core series and support for Windows. The biggest draw for Apple though was the iPod integration partnerships with major airlines and major auto makers. Google's search engine leadership and related innovations were introduced before 2006; Google expanded on Search in 2006. Google Earth became the innovative application for mapping, and the acquisition of YouTube was the clincher. Microsoft introduced the much awaited Vista, Office, Live services, Pay-As-You-Go computing and Mobile. Research In Motion went on a tear with Blackberry Connect and Blackberry business expansion all over the world. New patents introduction were also key. IBM, HP, Intel, Microsoft and GE led all innovators in filing new patents.
A ranking of the top 20 Innovators in North America is inherently controversial. After all, we are talking about the best of the best. And each Innovator in turn is a fierce competitor. I would be sure to read the new edition of BusinessWeek when it announces the annual rankings of the world's top innovators. What I have tried though is to correlate Stock Performance, Innovation Activity and the X Factor. Together, the Top 20 Innovators of The Innovation Index are a barometer of the Innovation Activity in North America.
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.
1. Google - Can Ambiguity and Chaos Create Innovation? You bet...
What's amazing is Google continues to innovate using what is described as "spaghetti method of product development (toss against wall, see if sticks)" requiring all Engineers to spend at least 20% of their time on new ideas.
2. Yahoo! - Hackers, Controlled Chaos and Innovation
If Yahoo! is indeed successful in finding "new twists on Yahoo services" through a controlled chaos of an event such as this with all the hackers, it would certainly be a first in their long page of innovations.
3. 3M and Johnson & Johnson - Failures and Stumbles driving Innovation
The failures result at J & J from the fact that the company emphasizes placing bets on many potential opportunities--most opportunities possibly fail, but the ones that do succeed, they succeed big. The bets, or the experimentation, are an essential price to pay for successful Innovation and Long-term growth
4. Wal-Mart - The Green Innovation
Green Innovation is a win-win for the business, the environment and the community. The business creates a better image, saves money and potentially creates new revenues. The environment becomes safer and cleaner. The community benefits with better health and enjoyment from a cleaner environment.
5. Intuit - Creating Innovations in Software Industry
Intuit's Innovation Recipe: Customer Evangelist Culture, Customer-Intuitive Design, Customer-driven Marketing and Product Management, Direct Marketing and Retailing, The Process driving Innovation.
6. Google - Acquisiton of YouTube. $1.65 billion Innovation and counting
YouTube Innovations: First, the vision of Founders to create a Video download service for FREE. Second, the intense focus on providing the best and most comprehensive experience for users interested in uploading, watching and sharing videos. Finally, YouTube created key partnerships with various Music and Broadcast players in the industry.
7. Toyota - Innovation Factory
Toyota's Innovation Principles: 7.1. The Art of Ingenuity. 7.2. The (relentless) Pursuit of Perfection. 7.3. The Rhythm of Fit.
Innovation Traps: 7.1. Swinging For Fences. 7.2. Getting Too Clever 7.3. Solving Problems Frivolously.
8. Apple - iPod - Apple's Best Innovation
iPod, powered by Apple, introduced in 2001 and masterminded by Steve Jobs, combines outstanding design, easy-to-use interface, superb performance, and an experience like no other. Apple assumed the world’s number one innovative company position and held it again in 2006 in large part due to the exponential growth of iPod – aptly called the iPod phenomenon.
9. Microsoft - The Innovator
Is Microsoft launching a new wave of innovation with Windows Vista, Office 2007 and Exchange 2007 and some 30 new products? Or are these merely nice-to-have product enhancements that users were asking for, and were just delayed for the past few years? Who is going to benefit the most from this new wave?
10. General Electric and Proctor & Gamble - Innovations Driving Growth
GE's innovation recipe: 10.1. Focus on key technologies. 10.2. Growth-oriented leadership 10.3. Core Business portfolio.
P&G's innovation recipe: 10.4. Brand mix. 10.4. Global top team. 10.6. New product collaborations.
11. 3M - The Innovation Machine
Five takeaways stimulating Innovation:
11.1. "Give it a try--and quick!"
11.2. "Accept that mistakes will be made."
11.3. "Take small steps."
11.4. "Give people the room they need."
11.5. "Mechanisms - build that ticking clock!"
12. Southwest Airlines - Flying High with Innovations
It is technology innovations such as DING! that bring Southwest that much closer to its customers who leverage the communication and messaging service to buy more tickets, besides new destinations, low fares, new nonstop services, new vacation packages and more
13. Starbucks - Innovations Brewing at Starbucks
Starbucks has become a pervasive coffee brand throughout the world, and the company is cleverly exploiting the Starbucks brand to launch new innovations in complementary and adjacent industries accounting for the solid revenue growth.
I discovered several new Innovation Trends shaping The Top 20 Innovators, and the industry at large:
1. The Innovation Gap
While the Sustainer is Innovating at a different pace and trajectory serving the needs of its profitable and larger customers, and focused on profitable investments, the Disrupter is Innovating at a faster pace and trajectory serving the needs of the broader market, and creating new market share.
2. Can Leadership Create Innovation?
Key Executives believe the following ingredients drive Innovation:
2.1. Marketing 2.2. Size 2.3. Culture 2.4. Technology 2.5. Passion 2.6. Active Participation 2.7. Hard Work 2.8. Internal Development 2.9. Targeted Acquisitions 2.10. Agility
3. Blocking Creativity and Innovation
Key processes that an organization can create to unblock Creativity and drive Innovation:
3.1. Open communication within and between departments, and across all management layers.
3.2. Hiring of people with diverse backgrounds and experience, and avoiding "cloning."
3.3. Encouraging employees to find new ways to do their daily work, and empowering them to make decisions.
3.4. Creating an organization that extends out to customers, suppliers, partners, and environment.
3.5. Stimulating research activities and providing employees some free time to experiment.
3.6. Allowing employees to take measured risks (with small costs), and seizing opportunities.
3.7. Creating processes to evaluate any idea on merit, regardless of where it is coming from.
3.8. Identifying and separating the creative from operational functions in the organization.
3.9. Using group creativity techniques frequently to promote team building and generate new ideas
4. Co-Creation driving Innovation
As Co-Creation demonstrates tangible results, more mainstream businesses will experiment and adopt it - not just technology companies. The best side effect of Co-Creation is it brings you that much closer to your customers and creates a positive business environment.
5. Six Ways to Find Innovation
How can an organization find Innovation? Here are Six Ways to Find Innovation:
5.1. Stand in different places
5.2. Use the lenses of other domains
5.3. Ask powerful questions
5.4. Foster new knowledge
5.5. Create a visual verbal journal
5.6. Change the pace of attention
I introduced The Innovation Index in December 2006 from an epiphany born out of the BusinessWeek article on the world's top innovators. The Innovation Index Report incorporates the following objectives and is released weekly:
1. Report, analyze and project the stock performance of the top 20 Innovators in North America every week, and compare their performance to S&P, NASDAQ and Dow Jones.
2. Compare and contrast best practices, initiatives, new products, successes, strategies, stories, leadership and insights on Creativity and Innovation at the top 20 Innovators.
3. Showcase Disruptors challenging these top Innovators, their disruptive innovation strategy, and their current and potential impact on the Innovators' customer base and market share.
This brings me back to this, the final chapter of The Innovation Index Annual Report: Chapter Three - The Insights.
Why did I not choose Apple and Google as the top two innovators in The Innovation Index Rankings for 2006? Why is Microsoft ahead of them for 2006? Why is Research In Motion also ahead of Apple and Google for 2006? Why are IBM and HP tied for the top rankings? What about Cisco Systems and GE?
The primary reason was Stock Performance in 2006. Apple and Google each gained 18% and 11% in stock performance gains in 2006. Microsoft stock gained 16%. Research In Motion stock gained 94%. IBM stock gained 20%. HP stock gained 45%. Cisco stock was up 60%, and GE stock was up 9%.
The secondary reason was Innovation Activity in 2006. Apple and Google had innovation activity of 69 and 75 total innovations in 2006. Microsoft had innovation activity of 159 total innovations in 2006. Research In Motion had innovation activity of 87 new innovations. IBM led all innovators with 187 innovations in 2006. HP had 106 innovations. Cisco had 72 innovations, and GE had 79 innovations in 2006. One can argue though that press releases touting incremental enhancements and basic collaborations are hardly new innovations. However, it appears though that most innovators are leveraging the media to make every announcement. Perhaps a filter to weed out the run-of-the-mill announcements may be required in 2007.
The final reason was the X Factor. Apple's iPod line of products in 2006 had key expansions from 2005; on the other hand the new iMac came onto its own in 2006 with the new Intel dual core series and support for Windows. The biggest draw for Apple though was the iPod integration partnerships with major airlines and major auto makers. Google's search engine leadership and related innovations were introduced before 2006; Google expanded on Search in 2006. Google Earth became the innovative application for mapping, and the acquisition of YouTube was the clincher. Microsoft introduced the much awaited Vista, Office, Live services, Pay-As-You-Go computing and Mobile. Research In Motion went on a tear with Blackberry Connect and Blackberry business expansion all over the world. New patents introduction were also key. IBM, HP, Intel, Microsoft and GE led all innovators in filing new patents.
A ranking of the top 20 Innovators in North America is inherently controversial. After all, we are talking about the best of the best. And each Innovator in turn is a fierce competitor. I would be sure to read the new edition of BusinessWeek when it announces the annual rankings of the world's top innovators. What I have tried though is to correlate Stock Performance, Innovation Activity and the X Factor. Together, the Top 20 Innovators of The Innovation Index are a barometer of the Innovation Activity in North America.
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.
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