The Top 50 Innovative Companies in the World - Apple is #1 4th year in a row

Rank	Company	HQ Country	HQ Continent	Revenue Growth 2004-07* (in %)	Margin Growth 2004-07* (in %)	Stock Returns 2004-07** (in %)			Most Known for its Innovative... (% who think so)
1	APPLE	USA	North America	47	69	83			Products (52%)
2	GOOGLE	USA	North America	73	5	53			Customer Experience (26%)
3	TOYOTA MOTOR	Japan	Asia	12	1	15			Processes (36%)
4	GENERAL ELECTRIC	USA	North America	9	1	3			Processes (43%)
5	MICROSOFT	USA	North America	16	8	12			Products (26%)
6	TATA GROUP	India	Asia	Private	Private	Private			Products (58%)
7	NINTENDO	Japan	Asia	37	4	77			Products (63%)
8	PROCTER & GAMBLE	USA	North America	16	4	12			Processes (30%)
9	SONY	Japan	Asia	8	13	17			Products (56%)
10	NOKIA	Finland	Europe	20	2	35			Products (36%)
11	AMAZON.COM	USA	North America	29	-11	28			Customer Experience (33%)
12	IBM	USA	North America	1	11	4			Processes (31%)
13	RESEARCH IN MOTION	Canada	North America	56	-1	51			Products (37%)
14	BMW	Germany	Europe	6	-5	11			Customer Experience (40%)
15	HEWLETT-PACKARD	USA	North America	10	17	35			Processes, Business Models, and Customer Experience (27% each)
16	HONDA MOTOR	Japan	Asia	12	6	14			Products (40%)
17	WALT DISNEY	USA	North America	6	14	7			Customer Experience (63%)
18	GENERAL MOTORS	USA	North America	-2	NA***	-11			Products (55%)
19	RELIANCE INDUSTRIES	India	Asia	31	-7	94			Business Models (31%)
20	BOEING	USA	North America	9	32	21			Products (63%)
21	GOLDMAN SACHS GROUP	USA	North America	30	6	28			Processes and Business Models (33% each)
22	3M	USA	North America	7	5	3			Products (45%)
23	WAL-MART STORES	USA	North America	10	-2	-2			Processes (48%)
24	TARGET	USA	North America	11	3	0			Customer Experience (67%)
25	FACEBOOK	USA	North America	Private	Private	Private			Customer Experience (51%)
26	SAMSUNG ELECTRONICS	South Korea	Asia	2	-14	8			Products (42%)
27	AT&T	USA	North America	43	6	23			Customer Experience (33%)
28	VIRGIN GROUP	Britain	Europe	Private	Private	Private			Customer Experience (47%)
29	AUDI	Germany	Europe	11	11	41			Products (50%)
30	MCDONALD'S	USA	North America	7	-7	25			Customer Experience (42%)
31	DAIMLER	Germany	Europe	-11	37	28			Products (35%)
32	STARBUCKS	USA	North America	23	-2	-13			Customer Experience (60%)
33	EBAY	USA	North America	33	-37	-17			Business Models (28%)
34	VERIZON COMMUNICATIONS	USA	North America	12	0	9			Services (41%)
35	CISCO SYSTEMS	USA	North America	20	-5	12			Products (35%)
36	ING GROEP	Netherlands	Europe	7	4	11			Services (41%)
37	SINGAPORE AIRLINES	Singapore	Asia	9	5	20			Customer Experience (55%)
38	SIEMENS	Germany	Europe	1	21	22			Products (41%)
39	COSTCO WHOLESALE	USA	North America	11	-5	14			Customer Experience (46%)
40	HSBC	Britain	Europe	12	-1	4			Services (39%)
41	BANK OF AMERICA	USA	North America	12	0	0			Customer Experience and Services (23% each)
42	EXXON MOBIL	USA	North America	11	7	25			Processes (50%)
43	NEWS CORP.	USA	North America	4	4	4			Business Models (47%)
44	BP	Britain	Europe	14	-5	11			Processes (42%)
45	NIKE	USA	North America	8	-1	14			Customer Experience (43%)
46	DELL	USA	North America	7	-12	-17			Business Models (37%)
47	VODAFONE GROUP	Britain	Europe	7	-21	15			Business Models (33%)
48	INTEL	USA	North America	4	-10	6			Products (53%)
49	SOUTHWEST AIRLINES	USA	North America	15	9	-9			Customer Experience (50%)
50	AMERICAN EXPRESS	USA	North America	3	1	3			Customer Experience (35%)

2008 Report

BusinessWeek/Boston Consulting Group (BCG) recently announced the world's top 50 innovative companies for 2008.

17 of the Top 20 Innovators of The Innovation Index are included in the top 50 innovative companies of the world by BusinessWeek/BCG. This is a testament to the Innovation Index methodology and the process.

There are many new entrants in 2008. The top five innovators from last year have strengthened their positions further, and remain in the top five slots this year also. Apple is #1 for the fourth time in a row owing to another innovation milestone: Apple iPhone (check our sister blog: http://appleinnovation.blogspot.com ) Google is #2 again owing to the growth of the AdWords and AdSense businesses, and the phenomenal growth of YouTube videos post acquisition (although Google is still trying to find the appropriate business model towards making money from the millions of videos served daily). Toyota Motor remains at #3 in large part due to the dominance of hybrid cars - Toyota has expanded its position further by introducing hybrid cars in all the major car lines besides Prius, General Electric remains at #4 due to the emerging alternative energy innovations, and Microsoft rounds at #5, due to the growth of the XBox and new consumer innovations - can Microsoft retain its number 5 position in 2009?.

Tata Group - India vaults into the Top Ten innovative company list for the first time at #6. Tata was not in the top 50 innovative company list last year. Tata recently boldly acquired Jaguar and Land Rover from Ford. Although the big reason Tata is in the top ten is owing to the introduction of Tata Nano, a $2,500 new car that will revolutionize the car industry. Nintendo, at #7, is the top innovator out of Japan, thanks to the runaway success of Wii. Proctor & Gamble fell one notch to #8, but stayed in the Top Ten innovators list. P&G is a perennial innovator, and figures to be in Top Ten for the foreseeable future owing to hits such as Febreze and Mr. Clean. Another Top Ten innovator went up a notch to #9 - Sony. Sony's Blu-Ray and new product mix is causing a turnaround. Rounding out the Top Ten is Nokia out of Finland. Nokia went up 3 places and surged back in the Top Ten list. Nokia is the heavyweight in wireless, and the new Nokia models are doing rather well.

General Motors is on a comeback with exciting new electric concept cars, and remarkable new vehicles in the Buick, Hummer, Cadillac and Saturn lines. GM is on a rebound, and could have a solid 2008-2009 if it embraces the alternative energy engine technologies for the new cars. BMW, Honda Motor, Audi and Daimler are also in the top 50 innovator list on the strengths of new innovative cars that are customer friendly and in tune with the present environment. Reliance Industries, another Indian innovator, vaults into the Top Twenty list of innovators. Reliance is a household name in India - from wireless to telecommunications, technology to infrastructure - Reliance can be found in virtually every industry in India. There are key companies shining in this year's list out of England including Vodafone, BP, HSBC, and Virgin Group. Overall, 2008 list of innovators is very well-represented globally.

#25 on the list is Facebook - a new innovator who has the sixth highest trafficked website on social networking - who can one day challenge Google and MySpace.com. Although Facebook still has a long way to go.

According to BusinessWeek, "2008 list of the World's Most Innovative Companies adds three financial measures to the mix to determine the rankings. For this year's list, votes cast in the proprietary BusinessWeek-BCG survey received 80% of the overall weighting, stock returns were weighted 10%, while three-year revenue and margin growth each got 5%. While these changes -- only votes from our survey counted in the past -- marked the biggest shift yet in our rankings of the World's Most Innovative Companies, there are some similarities to previous years."

2007 Report

BusinessWeek announced (external link) the top 50 innovative companies of the world, an annual ranking compiled along with Boston Consulting Group. Click here to view the Top 50 rankings. Listed below is the 2007 Top 50 Innovative companies in the world, along with their 2006 ranking comparison.

Apple Inc. (NASDAQ: AAPL) is #1 again, 3rd year in a row. Google Inc. (NASDAQ: GOOG) is #2 again. And climbing up one notch is Toyota at #3. General Electric (NYSE: GE) is #4, up 2 places; Microsoft (NASDAQ: MSFT) held steady at #5, Proctor & Gamble (NYSE: PG) went up 1 spot to #6, 3M (NYSE: MMM) went down 4 notches to #7, Walt Disney Co (NYSE: DIS) zoomed up a whopping 35 places to #8, IBM (NYSE: IBM) went up 1 place to #9, and Sony climbed 3 places to #10.

There are many new innovators in the BusinessWeek top 50. AT&T (NYSE: T), Citigroup (NYSE: C), Verizon (NYSE: VZ), Nintendo (Japan), Volkswagen (Germany), Best Buy (NYSE: BBY), Merck (NYSE: MRK) and News Corporation (NYSE: NWS) are your new companies. Besides, Royal Philips Electronics (Netherlands), Costco Wholesale (NASDAQ: COST), Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), Amgen (NASDAQ: AMGN), McDonald's Corporation (NYSE: MCD), and LG Electronics (South Korea) have vaulted into the top 50 rankings (in 2006, these companies were ranked in the top 100, outside the top 50). This means, a few innovators dropped out of the top 50.



Last year (December 2006), I started The Innovation Index of the top 20 innovators based on 2006 BusinessWeek rankings of North American companies and my own research. I had only included the top 25 publicly traded North American companies in The Innovation Index based on the BusinessWeek rankings so as to evaluate their innovation activity and stock performance on a weekly basis. I am now planning to revise The Innovation Index for 2008 based on this new ranking from BusinessWeek, and am considering including the global publicly traded Innovators - the likes of Toyota, Sony, Nokia, BMW, Samsung, Philips, Infosys (although Infosys was not included in the Top 50 this year), top innovator from China, and more - besides the North American Innovators. This would create the first global Innovation Index for 2008.

How did BusinessWeek come up with the Top 50 Innovative Companies ranking?

According to the BusinessWeek article:
"The BusinessWeek-Boston Consulting Group 2007 list of the World’s Most Innovative Companies is based on a senior management survey about innovation and was distributed electronically to executives worldwide in late 2006. In October, surveys were sent to the 1,500 largest global corporations, determined by market capitalization in U.S. dollars, with instructions to send the survey to their top 10 executives in charge of innovation. The survey was also distributed to senior management members of the BusinessWeek Market Advisory Board, an online panel consisting of BusinessWeek readers, and via the Knowledge@Wharton e-mail newsletter. Survey participation was voluntary and anonymous, and the survey closed in March, 2007. The survey consisted of 20 general questions on innovation and an optional 12 questions focused on innovation metrics.

A total of 2,468 executives answered the survey. Of those indicating their location, 77% were from North America, 12% were from Europe, and 9% were from Asia or the Pacific region. A larger share of North American voters this year may explain some movement in the rankings of some companies on our list."

Compare this to 2006 BusinessWeek rankings, wherein only 1,070 executives answered the survey, although the mix was globally representative - 46% were from North America, 30% from Eurpoe, and 16% from Asia and Pacific.

In 2007, out of the top 50 innovative companies, only 14 were outside North America; in 2006, 20 companies were outside North America. Perhaps this has to do with the executives answering the survey, and their representative global mix.

Regardless, the top 50 innovators in the world are world-class companies creating new innovations through unmatched creativity and driving profitable growth.

Creativity And Innovation in Business Definitive Guide is a 212-page collection of my handpicked 56 Creativity and Innovation best practices, case studies, articles, interviews, and insights on the current state of innovation in business. The Innovation eBook provides real-world examples on how the Top 50 Innovators including Apple, Google, GE, Proctor and Gamble, Yahoo, Toyota, Netflix, BMW, Deloitte, Timex, Frito Lays, Johnson & Johnson, Starbucks, Southwest Airlines, Microsoft, Intel and more innovate and grow their business successfully time and again, especially during trying times. Use this eBook as a guide and relevant resource to find and create game-changing innovations, unblock creativity, and make innovation successful at your business...Learn more

The Innovation Index Reports:
Introducing The Innovation Index Fund - The Innovation Index Fund introduction announcement
Top 50 Innovative Companies in the world - 2007 & 2008 Report on Top 50 Companies and Innovators
The Innovation Index closes 2007 with 66% gain, crushes major U.S. indices - 2007 Annual Report
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

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 returned 66% in 2007, and would have returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
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)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.

Additional Labels:
top 5 innovative companies
innovative companies
top innovative companies
top companies on innovation and creativity
innovation and creativity top 50
creativity and innovation in business
top 10 creative and innovative companies
top 10 innovator
top 100 innovative business
top 10 innovative companies
top 50 innovative companies

Originally published: May 11, 2007
Updated: April 22, 2008, May 21, 2009
*Past performance does not guarantee future returns

IBM, eBay and Intel have investors rejoicing

IBM (NYSE: IBM) and eBay Inc. (NASDAQ: EBAY) reported their first quarterly earnings for 2008 after market close today, and Wall Street which was already in an upbeat mood from Intel's (NASDAQ: INTC) positive earnings report yesterday, rejoiced even further. IBM beat the quarterly earnings, and raised the 2008 guidance. IBM shares were up about 3% in after hours for a total daily gain of about 6%. IBM shares are already up 11.44% in 2008 (without counting after hours activity). eBay shares were also up today on the broad market rally, and are only down 3.22% for the year. eBay posted a solid 22 percent rise in quarterly net profit, topping Wall Street's average estimate, and importantly, cautiously raised its 2008 revenue target. Yesterday, Intel reported quarterly earning that beat the lowered estimates, and raised the second quarterly guidance. This was enough to start the tech rally today, that extended into optimism across the board. Intel shares were up nearly 6% today, and gained more in after hour trading. Intel shares are down 17% for the year though.

IBM, eBay and Intel are three of the Top 20 Innovators of The Innovation Index. Innovation Index Group has a BUY recommendation for these Innovators.

The Innovation Index closed today at 100.51, up 2.05 points.

In Future Earnings Guidance, I had talked about the importance of earnings guidance, and its impact on short term stock price. IBM had provided an upbeat guidance in January, 2008, and hence its stock began to appreciate after the quarterly report (although was down 14% early in the year). IBM has not only erased the entire negative performance, it is up 11.44% for the year.

Excerpts from various company press releases:

IBM (NYSE: IBM) announced first- quarter 2008 diluted earnings of $1.65 per share from continuing operations compared with diluted earnings of $1.21 per share in the first quarter of 2007, an increase of 36 percent as reported. First- quarter income from continuing operations was $2.3 billion compared with $1.8 billion in the first quarter of 2007, an increase of 26 percent. Total revenues for the first quarter of 2008 of $24.5 billion increased 11 percent (4 percent, adjusting for currency) from the first quarter of 2007.

"IBM had a very good quarter, and a good start to 2008. These results reinforce our confidence in IBM's ability to perform well in a dynamic global economy. ....," said Samuel J. Palmisano, IBM chairman, president and chief executive officer.

"IBM is a different company today, with a number of unique advantages: our global reach and scale, our strength in profitable growth segments, strong recurring revenue and profit streams, products and services that create real value for clients, and the discipline and financial strength and flexibility that enables us to adjust our business model as conditions require.

"We feel good about the rest of the year."

eBay Inc. (Nasdaq:EBAY) today reported financial results for its first quarter ended March 31, 2008. The ecommerce company posted first quarter revenue of $2.19 billion, up $424 million from the same period last year. Revenue growth was driven primarily by Marketplaces net transaction revenues, the ongoing expansion at PayPal, Skype and the company's global classifieds business. The company's global footprint helped it benefit from strength in other currencies, relative to the U.S. dollar. The company recorded net income on a GAAP basis of $460 million or $0.34 per diluted share, and non-GAAP net income of $562 million or $0.42 per diluted share.

"This was a very strong financial quarter for the company," said eBay Inc. President and CEO John Donahoe. "The results reflect the strength provided by our diverse portfolio of businesses. Our stability and growth continues to give us the confidence to make innovative changes to our products to keep customers engaged for years to come."

Intel Corporation yesterday announced record first-quarter revenue of $9.7 billion, operating income of $2.1 billion, net income of $1.4 billion and earnings per share (EPS) of 25 cents.

"Our first quarter results demonstrate a strengthening core business and a solid global market environment," said Paul Otellini, Intel president and CEO. "We saw healthy demand for our leading-edge processors and chipsets across all segments. Looking forward, we remain optimistic about our growth opportunities as we continue to reap the benefits of our 45nm technology leadership."

Bottomline:

IBM, eBay and Intel have definitely showed resiliency in current economic conditions; not only have they found a way to grow their business in these conditions, they have also raised their future financial outlook. This speaks volumes. This is what sets true innovators apart. IBM, eBay and Intel are able to sell their products, create new markets and new growth opportunities, and execute. Specifically, Intel has excelled with the 45nm technology leadership and the resulting processor products, eBay with Marketplaces business model innovation, and the ongoing expansion at PayPal, Skype and the company's global classifieds business, IBM with total Global Services revenues growth of 17% and the closed acquisition of Cognos growing the revenues for Information Management software by a significant 27 percent. IBM grew the total software segment revenue by 14% from last year.

IBM, eBay and Intel could quite possibly fuel a BULL market rally, and perhaps put the Bears to rest.

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index has generated a gross average annual return of 40%.

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is a private placement investment partnership organized under the California state regulations.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

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 returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
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)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

Nike Delivers Outstanding 3Q Results - Growth In Innovative Products, Diversified Portfolio, Global Sales and Futures Orders

Nike Inc. (NYSE: NKE) delivered solid third quarter results, beating the high-end analyst expectations on both earnings and revenue. Sales revenue grew 16 percent to $4.5 billion, compared to $3.9 billion for the same period last year; earnings increased 35 percent to 92 cents per share versus 68 cents last year; net income rose 32 percent to $463.8 million compared to $350.8 million last year. Nike shares were up more than 4 percent in after hours.

Nike is one of the Top 20 Innovators of The Innovation Index. Innovation Index Group, Inc. rates Nike a BUY, and has a Q4, 2008 stock price target of $80.

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index.

In the press release, Mark Parker, NIKE, Inc. President and Chief Executive Officer stated: "Our strong third quarter results, driven by sales gains across our diversified portfolio of categories, geographies, and brands, are a clear indication that our strategy is working and that we're on track to achieve our financial goals for this fiscal year and beyond."

Parker continued, "Over the past twelve months we've taken a number of important strategic steps to strengthen the performance and potential of our portfolio of products and brands, steps we believe create stronger platforms for growth and allow us to connect even deeper with consumers. More than ever, the consumer is at the epicenter of everything we do, and delivering the most innovative products and the most exciting consumer experiences is the key to our future growth."

Nike -> Most Innovative Products + Brands -> Most Exciting Consumer Experiences -> Tremendous Future Growth

Nike benefited from the exchange rate in the 3rd quarter that increased the revenue growth by 6 percent.

Future Outlook

The leading indicator on how well Nike will do in the 4th quarter is Futures Orders. Nike is well poised to repeat the revenue and earnings growth based on the future visibility:
The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from March 2008 through July 2008, totaling $6.9 billion, 11 percent higher than such orders reported for the same period last year.

Global Growth

Nike reported 20 percent or higher sales growth in Asia-Pacific, Europe and the Americas region (excluding U.S.) from last year. Global orders of clothing and footwear through July increased 11 percent. China sales were up more than 50 percent as consumers bought shoes and clothing before this summer's Olympic Games. Nike has already reached $1 billion in sales in China, a year ahead of its original target, Parker said in the earnings release. U.S. revenues were up 5 percent compared to last year. The global consumer is buying more diversified Nike products - shoes, apparel, equipment - thereby creating a revenue surge.

Parker concluded, "Our focus on prime growth opportunities extends throughout our portfolio of brands. We are confident that our divestiture decisions are the right ones for Bauer Hockey, Starter, and Nike. Our most recent acquisition, Umbro, is a brand that has tremendous heritage and respect in global football. This acquisition represents an opportunity to create value for shareholders and consumers by applying our product, brand-building and operational capabilities to a business with enormous growth potential around the world." - Innovation through acquisition. Nike is not shy to grow its global brand by acquiring a strong brand and channeling it through Nike's innovative process.

Recent Innovations

Earlier in March, Nike extended its partnership with Apple Inc. (NASDAQ: AAPL), another Top 20 Innovator, to the gym, by announcing Nike + iPod integration with gym equipments. Nike is poised to do well in this undertaking.

Nike also announced the Nike SPARQ Training, the company's "most comprehensive performance training launch ever, combining a relationship with SPARQ, high performance products, online experiences at nike.com, a new association with Velocity Sports Performance Centers, and a multi-media campaign called “My Better.”" The centerpiece of Nike’s efforts is SPARQ which stands for Speed, Power, Agility, Reaction and Quickness

These key innovations across a diversified portfolio of products, global distribution, and global growth will likely propel Nike's revenue and earnings growth through 2010.

Nike is one of the Top 20 Innovators of The Innovation Index. Innovation Index Group, Inc. rates Nike a BUY, and has a Q4, 2008 stock price target of $80.

Related Articles:

Nike (NYSE: NKE) and Apple (NASDAQ: AAPL) working out at a Gym near you
Creativity And Innovation in Business Definitive Guide

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index has generated a gross average annual return of 40%.*

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is a private placement investment partnership organized under the California state regulations.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

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 returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
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)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

iPod - Apple's Best Innovation

Apple Inc. (NASDAQ: AAPL) is the World's Number One Innovative Company, three years in a row according to BusinessWeek's 2007 list of the world's 50 most innovative companies. BusinessWeek proclaims "their creativity goes beyond products to rewiring themselves." BusinessWeek ranks the innovative companies based on the responses received from over 1,000 global executives of the largest global corporations; survey questions include innovation metrics on process, product and business model innovations.

Apple is one of the Top 20 Innovators of The Innovation Index.

According to BusinessWeek, innovation today is “much more than new products.” Innovation is also “reinventing business processes and building entirely new markets that meet untapped customer needs.” The ubiquity of the Internet and globalization of the business expand generation of new ideas. Innovation is then “selecting and executing the right ideas and bringing them to market in record time.”

iPod driving Apple to Number One Innovative Company

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. Just ask the tens of millions of fans walking, driving, jogging, exercising, chatting, playing, humming, relaxing, singing, rocking, screaming, and above all enjoying their daily iPod experience. Imagine if they were to miss their iPod for a day, or even for a few hours. iPod is oxygen – pure and simple – the source of life for these millions of fans. Not to mention iPod has become associated with personal status and symbol that speaks of cool, hip, polished, and different. What began as a new product quickly became a revolution. iPod is by far the best commercial innovation the world has seen in the last few years, and perhaps is the best innovation from Apple dating back through its storied history of innovation firsts. Apple one-upped the iPod design innovation by creating new innovations in business model with the launch of iTunes online service enabled by strategic partnerships with the Music, TV and Movie industry.

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

Buy the latest iPod for lowest prices at Amazon.com

A Glorious History of Innovations

Apple has created great innovations beginning with the first Apple computer in 1976, Graphical User Interface (GUI) along with the popular Macintosh introduced in 1984, the reliable PowerBook introduced in 1991, the PDA named Newton that created a new industry of handhelds in 1993, the new millennium revolution beginning with the iMac in 1998, the new iBook hot on the heels of the iMac in 1999, the iPod that put an oomph in the MP3 players and essentially changed music as we know it in 2001, iTunes software and Music store service that changed the Music industry business model and made it easy for fans to listen and buy music piecemealed in 2003, iPod mini, iPod (U2 Special Edition) and iPod photo in 2004, iPod shuffle, iPod nano, iPod with Video and Mac Mini in 2005, the new iMac with Intel core Duo processors and the new MacBook with Intel processors in 2006.

Five years of iPod Innovations

2006 marks five years of iPod innovations. Apple's Hardware engineering chief Jon Rubinstein assembled a team of engineers to design and build the first iPod in less than a year, and it was unveiled by CEO Steve Jobs on October 23, 2001 as a Mac-compatible product with a 5GB hard drive that put "1,000 songs in your pocket." Since then, Apple has introduced fourteen different models of iPods in various colors, displaying photos, downloading and playing videos, branded and signed by U2, with numerous forms and shapes, different capacities for holding songs, pictures and videos, with connectors, next generation models with better wheels, and more. For instance, the new iPod video introduced in 2005 was the first iPod that could download and playback full-motion video with a larger color screen and better display resolution – an innovative package under $300 for the base model. Or the innovation in the wheel that is akin to the driving wheel on a car – from an original mechanical scroll wheel to the current touch-sensitive click wheel. According to PC Magazine, “In the years since (2001), the iPod's market share has grown tremendously, iPods have shrunk in size, Apple's iTunes Music Store has taken the lion's share of legal digital music downloads, and the iPod accessory market has exploded and taken on a life of its own. All this has made the iPod as synonymous with "MP3 player" as Kleenex is with facial tissues.”

The love for iPod

Why do people love iPod perhaps more than their spouse, boyfriend, girlfriend or children? It has to do with the simple yet elegant design that makes it extremely easy-to-use (Toyota’s Innovation Factory), exceptional sound, video and imagery, and the amazing experience. The flexibility provided by the iTunes software and service that allows you to try and download any music and video with the click of a button from any computer or the Internet to your iPod. And all the available accessories from wireless headsets, remote controls, beautiful skins, acoustic speakers, to connectors that can literally take your iPod music and videos anywhere – inside the room, in the car, in the office, on the plane, even while taking shower. iPod fans can’t live without their iPods literally. And the search is still on for a music fan that has switched from an iPod to another MP3 player. And there is that small sharing thing: hard-core iPod fans don’t like to share their iPods with others. BYOiPod. Bring your own iPod.

iPod’s Topline

In the quarter ending September 2006, Apple sold 8.7 million new iPods, generating $1.5 Billion in sales, a third of Apple’s total quarterly sales. By the end of 2006, there will be over 67 million iPods in the world; Apple is poised to eclipse the 100 million iPods mark in 2007. iPod has revived Apple from the depths in 2001 when annual sales had plummeted to $5.36 Billion and Apple was losing money. Apple’s shares were under $10. Compare this to 2005, when Apple had sales of $13.9 Billion, and profits of over $1 Billion. Apple’s shares have climbed sixteen folds. The Apple machine is kicking into high gear, in large part due to iPod Innovation Revolution. iPod’s halo effect is even evident in the latest quarter when Apple sold more Macs than it has ever sold before: 1.61 million.

In 2007, Apple sold 52.7 million iPods, an increase of over 15% from the 45 million iPods sold in 2006. In the latest quarter ending December 2007, Apple sold 22.1 million iPods representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Can Apple grow iPods sales to over 20% in 2008? What strategy would Apple employ to lure more iPods buyers in 2008?

The next generation iPods

What innovations can be expected from iPod? Can Apple create jazzier, easier, feature-rich iPods?

How about iPods that beam songs and videos to each other, to a computer or even to a TV? Or iPods that deliver Presentations and Live Videos in team meetings. iPods with GPS Navigation system. iPods that combine as cell phones. iPods that can receive satellite radios. What innovations will Apple bring out next? Steve Jobs indicated in the latest quarterly earnings press release that 2007 will be an exciting year full of great new products. The world will be watching.

2008 Fast Forward

Apple Inc. added new models of iPod(R) touch after the success of iPod touch launched in 2007. The new models have "double the memory, doubling the amount of music, photos and videos that customers can carry with them wherever they go."

iPod touch now comes in a 32GB model for $499 or less, joining the 16GB model for $399 or less, and the 8GB model for $299 or less.

iPod touch features Apple's revolutionary Multi-Touch(TM) user interface and pioneering software that allows users to find and enjoy all their music, videos, photos and more with just a touch of their finger. iPod touch models include the ability to automatically find your location using the new Maps application*; create Web Clips for your favorite websites; customize your home screen and watch movies from the new iTunes(R) Movie Rentals. iPod touch features the world's most advanced mobile web browser in the world with Safari(TM) and great mobile applications including Mail, Maps, Stocks, Weather and Notes.

Apple had an outstanding 2007 - the stock price and market cap more than doubled and finished upwards of 130% owing to such game changing innovations including the new iPhone, the new iPod Touch, and the all new Mac OS – Leopard, and on the strengths of the growing iPod and Mac business.

Retail research firm NPD Group says Apple's iPods still maintain a lock on the top spot in U.S. sales of digital music and media players, with as much as 75% of the market.

Nike + iPod

One innovation that Apple created with another Top 20 Innovator of The Innovation Index, NIKE, Inc. (NYSE: NKE) is Nike Plus. Apple calls it the "ultimate synthesis of sport and music: a pair of Nike+ shoes, an iPod nano, and the Nike + iPod Sport Kit."

Nike+ shoes feature a built-in pocket under the insole specially engineered for the Nike + iPod sensor. iPod nano syncs a runner's complete workout data with both iTunes and nikeplus.com. The Nike + iPod Sport Kit allows an athlete's Nike+ shoe to talk to the iPod nano. The sensor uses a sensitive accelerometer to measure the activity, then wirelessly transfers this data to the receiver on your iPod nano.

Nike + iPod receiver fits securely into the Dock connector on the bottom of the iPod nano. Wirelessly connected to the sensor in your Nike+ shoe, it receives up-to-the-second information as you run.

As one runs, iPod nano tells you your time, distance, pace, and calories burned via voice feedback that adjusts music volume as it plays. In addition to progress reports, voice feedback congratulates you when you’ve reached a personal best — your fastest pace, longest distance and time, or most calories burned. Besides the voice feedback, iPod nano plays the workout songs you choose, or have the iPod nano choose it for you based on your workout. You can also choose to play PowerSong.

Nike+ has created a growing new business for Nike, and Nike even touts this in their earnings reports and press. Is Apple planning to make more deals with more athletic companies besides Nike for the iPod? We will find out in 2008.

How can Apple turnaround the iPod sales growth?

(click to maximize)

Apple iPod growth is slowing in recent years.

Learn how can Apple turnaround the iPod sales growth?

Apple iPod - Apple's Best Innovation.

Buy the latest iPod for lowest prices at Amazon.com

Creativity And Innovation in Business Definitive Guide is a 212-page collection of my handpicked 56 Creativity and Innovation best practices, case studies, articles, interviews, and insights on the current state of innovation in business. The eBook provides real-world examples on how the Top Innovators including Apple, Google, GE, Proctor and Gamble, Yahoo, Toyota, Netflix, BMW, Deloitte, Timex, Frito Lays, Johnson & Johnson and more innovate and grow their business successfully time and again, especially during trying times. Use this eBook as a guide to find and create game-changing innovations, unblock creativity, and make innovation successful at your business. This eBook is used by over 300 leading organizations and universities including Pepsi, EDS, HP, Nokia and more.

Download the Creativity And Innovation in Business eBook Now



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

References:
BusinessWeek
PC Magazine
Apple-history.com
Apple.com
Wikipedia

Introducing The Innovation Index Fund - Learn about The Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
The Innovation Index gallops to 56% - Quarterly Report - Q3, 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 returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
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)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.

Apple iPod innovation article originally published October 23, 2006. Updated February 09, 2008, May 08, 2009