Innovating at the Top

There is no prescription for innovation. This is certainly true, otherwise we should explore why some companies choose not to apply proven formulas for innovative success! But can some conditions increase the probability that a company will produce significant innovations? Are there methods and techniques that could help stimulate innovative performance? Can a company create a fertile ground for innovation?

Research In Motion (RIM) is a leading designer, manufacturer, and marketer of innovative wireless solutions for the global mobile communications market. The BlackBerry line of smart-phones provides mobile access to email, phone, text messages, and the Internet. RIM’s integrated hardware, software, and services support diverse wireless network standards, and enable other developers and manufacturers to offer their customers wireless data connectivity. Founded in 1984 in Waterloo, Canada, the company introduced the BlackBerry in 1999. Today, there are millions of BlackBerry subscribers.

3M is a diversified technology company operating worldwide across six business segments: industrial and transportation; health care; display and graphics; consumer and office; safety, security, and protection services; and electro and communications. Founded in 1902 at the Lake Superior town of Two Harbors, Minnesota, 3M has expanded significantly over the years from its core strengths of abrasives, industrial tapes, adhesives, and film products. A recognized leader in research and development, 3M today produces thousands of innovative products for dozens of diverse markets. 3M’s core strength is applying its more than 40 distinct technology platforms — often in combination — to a wide array of customer needs. 3M currently employs some 75,000 people worldwide and has operations in more than 60 countries.

Unilever is one of the leading global manufacturers of fast moving consumer goods. Formed in 1930 following the merger of two existing companies, Unilever today has a portfolio of about 400 brands in 14 foods, home care and personal care categories, including Lipton, Knorr, Dove, and Omo. In 2006, the company invested about €900 million in R&D, representing 2.3 percent of sales revenue, focused on five R&D laboratories and a network of innovation centers all around the world. Recent novel products range from a Lifebuoy hand washing product in India to reduce the amount of rinse water required, to Becel/Flora pro. activ products which are recognized as the most significant advancement in dietary management of cholesterol in four decades. With its Nutrition Enhancement Programme, Unilever has shown its industry leadership by eliminating almost all trans fats from margarine products.

Toyota is the world’s largest producer of cars and the most profitable automobile manufacturer. Headquartered in Aichi, Japan, and founded as a separate company from the Toyota group in 1937, the company today has more than 500 subsidiaries. In addition to passenger cars, minivans, and trucks, the company produces a wide range of IT-based systems, such as car multimedia systems, on-board intelligent systems, advanced transportation systems, and transportation infrastructure and logistics systems. Toyota markets its vehicles under the Toyota and Lexus brands, as well as through the Scion line of automobiles sold in the United States. In FY2007, Toyota invested 890 billion yen in R&D, representing 3.7 percent of consolidated net revenue. The company has 11 major R&D sites worldwide. Innovation has been a hall-mark of its just-in-time manufacturing process, and more recent innovations include an Advanced Parking Guidance System for automatic parking, a four-speed, electronically controlled automatic transmission offering power and economy, an eight-speed automatic transmission, and Prius, the world’s first mass-produced and best-selling hybrid gas-electric vehicle.

The Bosch Group is a leading global supplier of products and services in automotive and industrial technologies, consumer goods, and building technology. Founded in 1886 in Stuttgart, Germany, the Bosch Group today comprises more than 300 subsidiary and regional companies in some 50 countries. In 2007 the company spent more than €3.6 billion on R&D, representing nearly 8 percent of sales revenue. Bosch has nine global corporate research locations, five of which are based in Germany. Among the host of innovations brought forth by the company over time are its first major success, the high-voltage magneto ignition system with spark plug (1902), and the first diesel injection pump for passenger cars (1927). More recently, they include the ABS antilock braking system (1978), high-pressure diesel injection (1989), and the ESP® electronic stability program (1995).

SAP is the world’s largest provider of business software, delivering products and services that help accelerate business innovation for its customers. Today, more than 46,100 customers in more than 120 countries run SAP applications. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, finan-cial services, healthcare, and the public sector. Founded in 1972 and headquartered in Walldorf, Germany, SAP has lever-aged its prominent position in enterprise resource planning software to expand into related markets, such as supply chain management, customer relationship management (CRM), and business intelligence. SAP currently employs more than 43,800 people in more than 50 countries worldwide. The company has a global network of 13 research and 9 development centers. In 2007, SAP invested €1.46 billion in research, representing 14.3 percent of sales.

Nokia, the world’s largest manufacturer of mobile devices, is at the forefront of the convergence of mobile devices and the Inter-net. Recognizing the rapidly expanding opportunities to offer enhanced capabilities to consumers and enterprises, in January, 2008, Nokia reorganized into three major units, Devices, Services & Software, and Markets, to apply its manufacturing and marketing prowess to delivering new, content-rich services together with devices. The company also supplies equipment and services for fixed and mobile networks through Nokia Siemens Networks. Headquartered in Espoo, Finland, and founded in 1865 as a Finnish wood pulp company, the company entered the telecommunications equipment business in 1960. Nokia has a strong R&D presence in ten countries and in 2007 the company invested €5.6 billion in R&D, representing 11.1 percent of net sales. Among numerous innovations, Nokia introduced the first fully digital local European telephone exchange in 1982, and nine years later, a Nokia phone placed the world’s first GSM call over a Nokia-built Finnish network. Today, Nokia develops new technologies and services to offer mobile access to the Internet.

Genentech ranks among the world’s leading biotechnology companies, developing innovative therapies to address significant unmet medical needs. Launching the biotechnology industry with its founding in 1976, Genentech manufactures and commercializes multiple products for serious or life-threatening medical conditions in the fields of oncology, immunology, disorders of tissue growth and repair, neurobiology and infectious disease. The company currently has more than 100 projects in its pipeline. R&D expenditures were $2.4 billion in 2007, representing 21 percent of revenues. Research activities are conducted at its South San Francisco corporate headquarters. Genentech’s medical and scientific achievements include a history of “firsts” for patients. Among them are:

Launched in 1981 by seven people with the equivalent of $250, In fosys is a leading global Information Technology (IT) consulting and software services company. In fosys designed and implemented the Global Delivery Model which set the foundation for IT services outsourcing from India. Offshore technology services let companies reduce the cost of IT infrastructure and related labor expenses, improve quality and innovation, improve the speed of delivery of technology solutions, and introduce more scheduling flexibility. In fosys’s services today range across business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services, and business process outsourcing. In fosys has R&D centers in six countries. In fiscal 2006, the company spent 102 Rs. Crore (1 Crore equals 10 million) on research and development, representing 1.13 percent of sales revenue.

Predictions are often another way to spell “guess.” Nonetheless, several trends are likely to appear in a CEO’s innovation agenda, as globalization, rapid technology cycles, and intensified competition increase pressures to improve innovative performance.