Tag Archives: global

Insights – IBM 2010 Global CEO Study

IBM Has recently released its 2010 Global CEO Study. An excellent document that should be read by all, as it summarizes what is on the minds of CEOs around the globe, and, for those organizations that are looking to be more customer-centric (and that has to be every organization) understanding what the customer is thinking about is paramount.

Highlights of the executive summary are below, but I have also developed a PowerPoint summary of the document that I prepared as bedtime reading for all of us.

Today’s complexity is only expected to rise, and more than half of CEOs doubt their ability to manage it. Seventy-nine percent of CEOs anticipate even greater complexity ahead. However, one set of organizations — we call them “Standouts” — has turned increased complexity into financial advantage over the past five years.

Creativity is the most important leadership quality, according to CEOs. Standouts practice and encourage experimentation and innovation throughout their organizations. Creative leaders expect to make deeper business model changes to realize their strategies. To succeed, they take more calculated risks, find new ideas, and keep innovating in how they lead and communicate.

The most successful organizations co-create products and services with customers, and integrate customers into core processes. They are adopting new channels to engage and stay in tune with customers. By drawing more insight from the available data, successful CEOs make customer intimacy their number-one priority.

Better performers manage complexity on behalf of their organizations, customers and partners. They do so by simplifying operations and products, and increasing dexterity to change the way they work, access resources and enter markets around the world. Compared to other CEOs, dexterous leaders expect 20 percent more future revenue to come from new sources.

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Beyond Borders: Booze&Co Global Innovation 1000 Report Released

Booze&Co has released it’s report on global innovation, and it’s certainly interesting. Download it here. Some points worth noting:

  • In 2007, the top 80 U.S. corporate R&D spenders deployed an estimated US$80.1 billion of their $146 billion R&D funds overseas. The top 50 European companies spent $51.4 billion of their $117 billion total outside the continent. In Japan, the top 43 Japanese firms exported $40.4 billion of their total $71.6 billion to other countries
  • Companies that invest wisely in a multinational innovation footprint are gaining far better returns on their R&D investment than companies that exclusively keep their laboratories at home
  • Booze Allen identified the 1,000 public corporations worldwide that spend the most on researching and developing products and services for their marketplaces. Those 1,000 companies spent a total of $492 billion in 2007 on R&D, a 10 percent increase over the prior year, and, once again, they found no statistically significant evidence that higher levels of spending guarantee better results.
  • Between 2004 and 2007, global multinationals increased their total R&D sites by 6 percent, and of those new sites, 83 percent were in China and India. They also increased R&D staff by 22 percent; 91 percent of that increase was in China and India.
  • Cost reduction is not the most important of the several reasons that multinationals are moving their R&D facilities abroad. Furthermore, it is receding in significance.
  • Many companies are heading overseas in search of access to the burgeoning numbers of talented engineers and scientists around the world, and to the ideas that they are generating
  • Global companies are learning quickly that specific countries are gaining specific skills (automotive engineering in India, electronics in China), and they are chasing that talent accordingly
  • As companies sell their products and services in markets around the world, they find it valuable to site R&D closer to those growing markets
  • Overall, their analysis suggests that companies taking a more aggressive posture in globalizing their R&D footprint enjoy stronger sustained financial performance. Of the 184 top spenders that they studied closely, those that deployed more than 60 percent of their R&D outside their home countries tended to perform better, over the past three years, on several performance indicators, including operating margin, total shareholder return, market cap growth, and return on assets. These results
    indicate that for these companies there is a payoff from greater deployment of capabilities and capacity on a global scale, and greater success in serving local market
    needs

Booze&Co’s top innovation 20

top 1000

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