The World's Most Innovative Companies

Smart ideas for tough times: The 50 companies that make up our annual ranking nurture cultures that value creative people in good times and bad

BusinessWeek, April 17, 2008 — Suddenly, innovation has a bull's-eye on its back. As the recession debate shifts from "what if" to "how long," slashing research and development budgets just got a lot more tempting. That high-risk product in your pipeline? It's about to get much more scrutiny. And the "chief innovation officer" your CEO brought in last year to show his commitment to creativity? He'd better start proving his worth. Outside consultants are starting to pick up on the effects of such belt-tightening. "I'm seeing it in my business," says Jeneanne Rae, president of Alexandria (Va.)-based consulting firm Peer Insight. "There's this sense of which shoe's going to drop next."

Others are seeing two camps emerge. "One is saying times are tough, so it's the most important time... continue reading

It's All About Experience

Companies that try to create holistic experiences by emotionally engaging their consumers are flourishing

BusinessWeek, April 11, 2008 — Advances in manufacturing technology and the global reach of the Internet have leveled the playing field in the product marketplace. It wasn't long ago that time-to-market was two years, then 18 months, and then 12 months. Now, a competitor can knock off your "innovation" in six months or less. Many businesses understand that being "new" or "different" is no longer a differentiator. Countless companies are elbowing their way to the top with designs that are also "feature-rich" or "patent pending." Innovation in product design has lost its meaning and, therefore, its value.

There is still one frontier that remains wide open: experience innovation. This is the only type of business innovation that is not imitable, nor can it be commoditized, because it is... continue reading

Let Computers Compute. It’s the Age of the Right Brain.

New York Times, April 6, 2008 — I’M of two minds. As a matter of fact, so are you. And until recently, corporate America wasn’t doing much to take advantage of one of them. But now that we’re hip-deep in what has been called both the “Creative Economy” and the “Conceptual Age,” no one can afford to ignore the artist within: the right hemisphere of the brain.

Life on the Edge: Learning from Facebook

The social network provides important lessons for executives—and a key forum for innovation and experimentation

BusinessWeek, April 2, 2008 — For most business executives, Facebook remains a remote, somewhat mysterious, online frontier. Many executives harbor strong doubts that Facebook is at all relevant to "real business." After all, isn't it just a bunch of college kids sharing photos of drinking exploits and trying to hook up with each other?

Let's start with the stats. Facebook now brings together 66 million online users. While many of these users are students and recent graduates, users 35 years old and older account for more than half of Facebook's daily visitors and are the network's most rapidly growing demographic. Currently the average Facebook visitor spends about 2.5 hours per month on the site, which was founded in February, 2004, and was valued at $15 billion three years later... continue reading

Recession Can Be a Marketer's Friend†

From Soap Operas to IPods: History Suggests Slumps Spawn Innovation

Advertising Age, March 25, 2008 — The massive bailout of Bear Stearns from the brink of bankruptcy could be the first of many financial rescues needed. Despite double-digit plunges, U.S. housing is still overpriced by historical yardsticks. Retail sales have gone from slow to declining, and the consumer-spending binge that propped up the U.S. economy for years may not return for a long time.

In short, it's a great time to be in marketing.

Chrysler Ready to 'Listen' on New Site†

Automaker to Recruit Online Consumer Advisory Panel

Advertising Age, March 24, 2008 — Chrysler will begin recruiting U.S. residents in the next few weeks to participate in closed, online dialogues to gather insights for the automaker's marketing, product development, vehicle features and engineering.

A Ripe Time for Open Innovation

Recessions present a good opportunity to collaborate with others on finding, developing, and marketing new ideas

BusinessWeek, March 19, 2008 — With the economy softening, it's tempting for companies to turn off the lights and shut the door on innovation efforts until things pick up. But while this might look like a smart move, the impact—lost momentum, team dispersion, and wasted investments—is less than desirable.

It doesn't have to be this way. One of the best options for recessionary times, and, some would argue, even in expansive times, is to join forces with another entity with complementary innovation goals. Open innovation is about connecting with others to find new ideas and, often, to co-develop and co-market them.

At Starbucks, Low Key Vet Plots Course†

Wall Street Journal, March 18, 2008 — For the past two months, Howard Schultz has been the public face of Starbucks Corp.'s effort to turn around its coffee empire.

But the person crafting many of the strategies is a 40-year-old chemical-engineering graduate who was behind the success of Starbucks's Frappuccino line.

Tomorrow , Michelle Gass will sit in one of the front rows at Starbucks's annual shareholders meeting in Seattle while Mr. Schultz stands on stage and unveils fresh details of plans to revive the company. Mr. Schultz is expected to address how Starbucks will reassert its position as the world's coffee authority, reignite what the company calls its emotional attachment with customers and carve out new areas for growth.

Ms. Gass has been Mr. Schultz's right-hand person in... continue reading

Target's inner circle

They're brilliantly creative. They're enviably down-to-earth. They're universally imitated. And they're entering one of the most challenging periods the company has faced in 46 years

FORTUNE, March 18, 2008 — You'd think Robert Ulrich would be warming up for his victory lap right about now. The soon-to-retire CEO of Target Corp. should be easing into a lavish farewell tour filled with teary thank-yous, champagne-soaked sendoffs, and a book of leadership secrets. After all, in his 23 years at Target (almost 14 of them as CEO), Ulrich has transformed a Midwestern discounter into one of the most admired and imitated companies in the world. Target now ranks 33rd on the Fortune 500 - making it bigger than Microsoft, Pfizer, and PepsiCo, and more than double the size of Cisco Systems.

There's just one thing: Though everyone knows Target (TGT, Fortune 500), hardly anyone's even heard of Ulrich.