business

Starbucks, Dell, Intel, Virgin--Big Losers In The World's Most Innovative Companies List.

Digging into the new list of The World’s Most Innovative Companies, the companies that have fallen significantly are as interesting to ponder as those that have risen sharply—or appeared for the first time. Bear in mind that we have evolved the list over the past three years, adding more hard metrics such as revenue growth, profit margin growth and annualized stock return to the survey results (nearly 2,000 top executives from the 2,500 largest global corporations answered this year). But given that caveat, let’s see which corporations fell sharply from 2006 to 2008.

Starbucks: 2006- #9; 2007- #14; 2008- #32

Dell: 2006- #14; 2007- #22; 2008- #46

Virgin 2006- #11; 2007- #18; 2008- #28

Intel 2006- #17; 2007- #19; 2008- #48

Cisco 2006- #28; 2007- #25; 2008- #35

Now, why? Starbucks we know about. It eroded the consumer experience by loading on too many products, forgetting the core coffee

aroma moment and playing to Wall Street. It's trying to change that now.

Dell, we know too. It's brilliantly innovative supply chain operation and model of selling inexpensive PCs to corporations was disupted by the switch to laptops and personal, not corporate, mobile computing. Dell is racing to catch up, hiring great designers from Nike and focussing on individual needs.

Virgin? Too much stretching of the "cool" brand into market spaces that didn't work.

Intel and Cisco? That confuses me. Both are executing well, innovating as they go. I could use some help here. Was it the metrics--revenue growth, margin growth and stock return--that dropped them down on the list? Or was it the opinions of thousands of top glboal managers?

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