The world’s most innovative companies

THEY make the products that have changed our lives. And they’ve made billions from it. See who makes the cut as the world’s most innovative companies.

Who are the most innovative companies in the world?

INNOVATION is sometimes dismissed by naysayers as a fuzzy corporate word beloved by tech firms and ambitious start-ups.

But the concept of innovation has been embedded in the DNA of companies for longer than anyone can remember. Innovation is what brought us the light bulb.

So it’s hardly surprising that today’s companies are still encouraging the spirit of innovation among its ranks, hoping to find the next breakthrough product that will net it billions, while improving and revolutionising the lives of consumers.

But according to Boston Consulting Group (BCG), executives feel less confident about innovation than when the corporate consultancy first published its annual Innovation Report in 2005.

The firm writes: “Although innovation remains a top priority, executives are feeling less confident in their innovation capabilities. It’s no longer enough to be good at incremental innovation. Multiple factors are raising the bar and — in the eyes of business leaders — increasing the need for breakthrough innovations. But very few companies are prepared to break through.”

In a survey, BCG found that only 13 per cent of companies have ambitions to deliver radical innovation.

But there are standouts, according to BCG. The firm asked top executives in innovation and technology roles to nominate the companies they thought were the most innovative. BCG then balanced that against the company’s past three years’ performance. Technology companies dominate the top of the list but there are also several automotive firms and consumer brands.

APPLE

Unsurprisingly, Apple was crowned as the most innovative company in the world in 2014. Apple has given the world the iPod, iPhone, iPad and some very well-reviewed computers. It revolutionised the phone, music and computing categories with its breakthrough devices and has inspired a legion of dedicated fanboys across the globe. It remains to be seen how Apple will now push forward contactless payment systems (which is much less prevalent in the US than in Australia) with the introduction of Apple Pay.

Apple Pay could revolutionise payments systems, much like how Apple products have previously changed their categories.

GOOGLE

In second place was Google, a business that has expanded far beyond web searches. With its wide suite of existing products embedded in most people’s daily lives, Google has almost become a byword for the internet itself. But more importantly, in the innovation stakes, Google has invested big money in other technological realms with ventures in artificial intelligence, robotics, self-driving cars and now cancer-searching pills.

Google’s self-driving cars could change how we get around.

SAMSUNG

In the past, Samsung has copped criticism for mimicking Apple in the innovation stakes, the South Korean company has since made great strides forward with its own innovative developments. Many have argued that for a few years now, Apple has actually been following Samsung as the latter leapt ahead with its flagship Galaxy smartphones. Forbes partially credited Samsung’s culture of innovation to its partnership with the Russian Academy of Sciences.

Samsung has been strong in the ‘phablet’ arena.

MICROSOFT

Microsoft has been the dominant force in consumer software for decades. But rather than resting on its laurels, the company has continued to strive in evolving its offering. The firm has previously signalled that it plans to move away from its software focus and expand its reaches to add devices and services to its core business. At TechEd in Europe, Microsoft has just unveiled a suite of products in cloud, mobility and partner solutions.

Bill Gates and Microsoft has been at the forefront of technology for decades.

IBM

IBM may seem like one of those brands that ‘old folks’ use with the Bright Young Things flocking to the likes of Apple, but it’s doing a lot of things behind the scenes. With the rise in Big Data, IBM is ideally positioned to crunch the numbers that will unveil pretty much everything about everyone. The company also has a dedicated research centre in Silicon Valley with a supercomputer.

IBM is not just for old fuddy-duddies.

6. Amazon

7. Tesla Motors

8. Toyota Motors

9. Facebook

10. Sony

11. HP

12. General Electric

13. Intel

14. Cisco Systems

15. Siemens

16. Coca-Cola

17. LG Electronics

18. BMW

19. Ford Motor

20. Dell

21. Volkswagen

22. 3M

23. Lenovo Group

24. Nike

25. Daimler

26. General Motors

27. Shell

28. Audi

29. Philips

30. Softbank

Originally published as The world’s most innovative companies