The World's Most Innovative Companies - VIDEO 4 - MODULE 1

The World's Most Innovative Companies 

SOURCE: https://www.youtube.com/watch?v=uSqaZmImtk8

In our study of entrepreneurship innovation, I want to take a moment to look at some of the world's most innovative companies.

And there are a number of different rankings that come out annually. And in this context, Booz & Company does an annual ranking of the most innovative companies in terms of research and development. 

And you see companies like Apple and Google 3M and Samsung GE and others that have been ranked in a very quantitative version of their percentage of research and development at the company versus their sales, so its a percentage in R&D based on sales, we see other rankings that are a bit more subjective. Fast company, a popular magazine and website in the US does an annual ranking that is judged by variety of criteria that is judged by a variety of criteria that includes the number of new products that are brought to market. The level of differentiation from other competitors in the space, elements of branding and other things they do that really differentiate themselves in the mind of customers. And we see what we would expect, the Apples, the Facebooks, the Googles, the Amazons, Square and Twitter you see here as well. So we a see a lot in the technology space, that emerges as well. We may see some other companies here that we're a little bit less familiar with. We see Universities here, we see bio companies here, we see some retail companies here. So, as you have interest in different areas, it's important to think about what are some companies out there that are doing novel things and doing interesting things, and what can we learn from those companies? As we seek to build or institutionalize some of those innovations within our own companies or concepts? So, Google is certainly one of the hallmark companies here in the US regarding innovation, and you see there's a large innovative culture, that's often talked about with Google. This is their office, this is what it looks like when you go to Google. Now, it's not purely people that are riding mopeds in the hallways and playing pool and eating. There is work that's done, and a lot of work that's done. 

But, it's also in a climate where they try and make it fun to be at work. And you can take breaks and engage with employees and be creative in how you spend your day. 

IDEO, another leading company, known exclusively in the kind of of product design space. You may not have necessarily bought something from IDEO, but you bought products that they have had a role in developing. 

This is what the IDEO work space looks like. 

Not this somewhere from google. A lot of it is geared towards design thinking, a lot of it is geared towards creativity. A lot of it is geared towards have a free flow and an interchange of ideas. A lot of group problem solving. A lot of engagement with customers to really help understand their needs and wants along the way. 

Sony, one of the greatest innovators of all time. Which, while having some struggles in recent years, has a long history of innovation. So, you may not be able to read all of the small font but what I wanted to illustrate here is that they have been consistent innovators, bringing a variety of new product to market for over 70 years. 

They did it early on, in the context of radio technology, 

of being some of the first to build transistor radios in the world being the first fully functioning television in 1960 of being able to do a variety of new solutions of new solutions in a variety of new ways, and inventing product, after product, after product. 

They've done it time and time again in a variety of microelectronic fashions, in television, in radio, in music, in media and computer. 

They've done it more recently, in video game technology by bringing the Playstation to market and other solutions since then as well. 

Playstation 4 is probably there 

most recent hit that you might be familiar with and the subsequent Playstations that continue to come to market they continue to be market leaders. But time and time and time again they have a culture of innovation and a culture of success that's built on global success and being innovative and in being creative in what they're doing. 

So in summary, when we think about the world's most innovative companies, they solve problems in different ways. They solve complex problems in different ways. But at the heart of what many of them do, is that they have a climate that fosters innovation. Where there's an enjoyment and appreciation for new ideas, where there's not an over-controlling of management, where people are encouraged to do new things. Where there's considerable communication with customers, where they generally encourage communication, where they accept change, where failure is okay. Where they do accept that with the risk and challenge of doing new things that there might be failure. That there is a selection of employees based on merit, and that there's promotion based on merit and not age or not experience alone in terms of years, but more given towards what you've accomplished. And that theres sufficient resources that are geared towards the research and the development, now not every company on the list may demonstrate all of these activities at the highest level. But many of them do, and so we want to learn from them and we want to think of them and even if they are a small team. If we're a one-person team, if we're a two or three-person team, I encourage you thinking about trying to institutionalize some of these elements as you think about how you manage your meetings, how you manage your company and how you can develop and foster a culture of innovation.