|
Forty-eight percent of S&P 500 Companies now report non-financial environmental
and social performance indicators, up 4 percent from 2010.
|
|
|
The primary task for all sustainability executives is helping senior management
develop a sustainability strategy that syncs with their company’s overall goals.
|
|
|
Last year, budgets and teams grew for many sustainability departments, despite the
economic doldrums. Eighty-six percent of large companies now have at least one person focused full time on sustainability.
|
|
|
If banks maintain their existing business models, their average return on equity (ROE) would fall to 7 percent by 2015, from its current level of 11 percent, against a cost of equity projected to be more than 9 percent.
|
|
|
Global R&D spending is forecast to increase 5.2% to $1.4 trillion in 2012, according to Battelle Memorial Institute.
|
|
|
R&D spending in the U.S. is projected to rise 2.1% to $436 billion next year.
|
|
|
Business Intelligence information was surveyed by 37 % of marketers to be an incredibly important and positive factor in business performance in the coming years.
|
|
|
70 percent of the 600 executives polled by BSR in their State of Sustainable Busienss Report stated that a paramount driver of business performance is creating innovative products and business models designed for sustainability.
|
|
|
60% of executives surveyed in the PwC digital economy survey believe that mobile technology will have the greatest positive impact on business over the next 5 years, and will therefore recieve much investment attention.
|
|
|
400 largely unknown midsize cities in emerging markets will generate 40 percent of global growth over the next 15 years.
|
|
|
The CIO should be the principal agent of technology enablement for the end-to-end innovation process, choosing and deploying appropriate technologies.
|
|
|
In mature economies studied by MGI, over the past 15 years the Internet has accounted for 10 percent of GDP growth, which accelerated to 21 percent in the past five years.
|
|
|
If the G8 nations could increase the public sector’s productivity by 1.5 percent annually (in line with what private industry has achieved over the past three decades), they could generate benefits worth $1 trillion a year—equivalent to 1.5 to 2.5 percent of these nations’ combined GDP.
|
|
|
Close to 70 percent of CEOs are investing in IT to reduce costs and become more efficient, while 54 percent are also funneling funds toward growth initiatives.
|
|
|
By 2016, advertisers will spend $77 billion on interactive marketing
|
|
|
80 percent of CEOs believe innovation will drive efficiencies and lead to competitive advantage.
|
|
|
B2B organizations are losing upwards of 10 percent of revenue per year due to their inability to properly align sales and marketing around the right processes and technologies, according to IDC
|
|
|
Only 8% of finance/insurance firm reported a product or process innovation in 2006-2008.
|
|
|
Only 10% of healthcare services firms reported a process innovation from 2006-08.
|
|
|
BPM offers a compelling set of business transformation capabilities and demonstrable ROI, but historically, more than 50% of BPM projects have failed to meet the expectations and desired adoption level.
|
|
|
Only 9% of companies engaged in product innovation in 2006-08. Only 9% of companies engaged in process innovation over the same period.
|
|
|
Emerging markets are expected to outpace developed nations in consumption and production growth, while also becoming increasingly important centers of capital, talent, and innovation. However, in a 2010 global survey of business executives by McKinsey & Company, no more than 40 percent of executives at companies headquartered in developed economies expect a quarter or more of revenues to come from emerging markets over the next five years —and 10 percent expect none.
|
|
|
McKinsey survey respondents at companies headquartered in North America report significantly lower rates of actions to capture emerging-market growth than those from any other region, with fully 20 percent reporting no actions at all taken to capture emerging-market growth.
|
|
|
The emerging world’s share of global GDP increased from 36% in 1980 to 45% in 2008 and looks set to grow to 51% by 2014.
|
|
|
Multinationals expect about 70% of the world’s growth over the next few years to come from emerging markets, with 40% coming from China and India alone.
|
|
|
2009 global consumer surveys by Nielsen show that consumer confidence has rebounded far more rapidly in BRIC markets (Brazil, Russia, India and China) than in the United States and Russia.
|
|
|
For the first time in modern history, the developing world, particularly China, India and Brazil, has displaced the United States in leading the world out of recession.
|
|
|
Aggressive policy stimulus and rising commodity prices aided recovery in Latin America. Brazil’s recovery was assisted by government infrastructure spending and housing construction of low- and middle-income families.
|
|
|
China’s domestic economy is emerging as a major growth engine, and planned reforms of pensions, health care and education are expected to support private consumption in the longer run.
|
|
|
The Chinese government put in place a domestic stimulus package equal to 13 percent of GDP help China to achieve domestic demand-led growth, maintaining its position as the world fastest growing economy in 2009.
|
|
|
The number of companies from Brazil, India, China or Russia on the Financial Times 500 list more than quadrupled from 2006 to 2008, from 15 to 62.
|
|
|
Brazilian top 20 multinationals more than doubled their foreign assets in 2006.
|
|
|
Eighty-three percent of respondents in this year's annual survey of top executives by Bloomberg BusinessWeek and Boston Consulting Group (BCG) said innovation will be a key part of their strategy to benefit from the economic recovery.
|
|
|
72 percent of companies see innovation as a "top three" strategic priority, and 61 percent of respondents are planning to increase the amount they spend on innovation. 26 percent view innovation as their No. 1 priority for 2010.
|
|
|
Only 41% of respondents in the survey said they are planning to increase their innovation investments in rapidly developing economies —down from 45% in 2009.
|
|
|
84 percent of respondents said “they consider innovation important or extremely important for positioning their company to benefit from an economic recovery.”
|
|
|
In China, 95 percent of executives said innovation was the key to economic growth, while 90 percent and 89 percent of respondents in South America and India, respectively, agreed. In the U.S., only 72 percent said innovation was important.
|
|
|
88 percent of executives in China, 82 percent in South America and 73 percent in India said their companies would increase spending in 2010. In the United States and Japan, however, only 48 percent and 34 percent, respectively, said they’re increasing innovation spending in 2010.
|
|
|
In a recent McKinsey survey, nearly 60 percent of respondents say that building organizational capabilities such as lean operations or project or talent management is a top-three priority for their companies. Ninety percent place it among the top ten. Yet only a third of companies actually focus their training programs on building the capability that adds the most value to their companies’ business performance.
|
|
|
Even in the context of the current financial crisis, 29 percent of respondents say their companies have not changed their training budgets; 11 percent have actually increased them.
|
|
|
Sixteen percent of respondents in China and 20 percent in India say capability building is a top priority for their companies—versus 10 percent overall and 8 percent in North America.
|
|
|
The most common reason respondents give for their companies’ focus on the capability identified as most important to business performance is that the skill is a part of their companies’ culture, rather than any competitive reason.
|
|
|
Despite the importance of capability building on the strategic agenda, executives’ responses indicate they’re not very good at executing: only about a quarter think their companies’ training programs are “extremely” or “very effective” in preparing various employee groups to drive business performance or improve the overall performance of their companies.
|
|
|
Only 33 percent of respondents say their training and skill-development programs focus on developing their companies’ most important capability.
|
|
|
Companies also struggle to measure the impact of training on business performance: 50 percent of respondents say their companies keep track of direct feedback, and at best 30 percent use any other kind of metric. In addition, a third of respondents don’t know the return on their companies’ training investment.
|
|
|
More than 45 percent of respondents expect to increase investments in IT in 2010, while about 20 percent see them holding steady
|
|
|
Emerging-market companies are learning how to compete on productivity, not just low cost. In 2009, productivity in China grew by 8.2%.
|
|
|
According to a recent special report in the Economist, the experience of emerging markets suggest that “cost innovation” – redesigning both products and processes from scratch to take out costs – is a much more productive strategy than rounds of cost-cutting.
|
|
|
“Reverse innovation” – also known as “frugal” or “constraint-based innovation” – takes the needs of poor consumers as a starting point and works backwards. Instead of adding more bells and whistles, products are stripped down to their bare essentials.
|
|
|
Frugal innovation also involves squeezing costs so companies can reach more customers and accept thin profit margins to gain volume. Three ways of reducing costs are proving particularly successful:
• Contract out ever more work.
• Use existing technology in imaginative new ways.
• Apply mass-production techniques in new and unexpected areas
|
|
|
According to the Economist, a emerging market management paradigm pushes two familiar ideas beyond their previous limits:
The customer is king.
Economies of scale can produce radical reductions in unite costs
|
|
|
Most emerging countries have a penchant for highly diversified conglomerates that have subsidiaries that take advantage of opportunities as they arrive. This diversification is not only seen in large enterprises, but small and midsize companies as well.
|
|
|
The pursuit of growth is forcing firms to engage in relentless innovation in two of the basic building blocks of corporate management: mergers and acquisitions, and recruitment and retention.
|
|
|
"In today's competitive world, sales performance management is increasingly becoming the key decisive factor in influencing the sales force to impact the business performance," says Mr. Ram Krishna, Senior Corporate Vice President & Head of Enterprise Application Services, HCL Technologies.
|
|
|
Contact center workforce optimization (WFO) can have a significant impact on customer experience and operational efficiency. A Gartner report states that "Increased organizational awareness surrounding the value proposition associated with WFO, combined with an expanding set of viable vendors, is fueling market adoption." Gartner notes, "We estimate that more than 500 contact centers are deploying integrated WFO solutions globally (up from 350 last year) and that revenue from the combined functional domains exceeded $1 billion worldwide in 2008, and is fairing well in the current recession, due to the impact it can have on the customer experience and operational efficiency."
|
|
|
Contact center workforce optimization (WFO) can have a significant impact on customer experience and operational efficiency. A Gartner report states that "Increased organizational awareness surrounding the value proposition associated with WFO, combined with an expanding set of viable vendors, is fueling market adoption." Gartner notes, "We estimate that more than 500 contact centers are deploying integrated WFO solutions globally (up from 350 last year) and that revenue from the combined functional domains exceeded $1 billion worldwide in 2008, and is fairing well in the current recession, due to the impact it can have on the customer experience and operational efficiency."
|
|
|
Ultimately, to support enterprise business process transformation providers will need a range of capabilities. The shift to newer technologies, such as virtualization and SOA, and delivery models such as software as a service (SaaS) and cloud computing means that a strong portfolio of technology skills, professional services along with support for new service delivery models will be key to the long term success for providers in this market.
|
|
|
Most companies lose 45% to 50% of their customers every five years, and winning new customers can be up to 20 times more expensive than retaining existing customers.
|
|
|
According to new data from HP and Coleman Parkes Research, more than 90 percent of senior business decision makers believe business cycles will continue to be unpredictable in the next few years. As a result, 80 percent recognize a need to be far more flexible in their approaches to business and technology, 84 percent believe innovation will be critical to their organization's success, and 71 percent would sanction more technology investments if they could see how those investments met their organization's time-to-market and business opportunity needs.
|
|
|
The traditional BPM methodology has always been about standardizing processes and structuring the steps you take to modify or implement new processes. However, in today's business climate, CIOs need to be more flexible and allow for ad hoc and unstructured process workflow when using BPM.
|
|
|
CIOs should focus more on identifying the key strategic objectives where they can automate or attach BPM technology to add value to the business.
|
|
|
Cloud computing makes cost less of an issue. The cloud is more cost effective for mid-market organizations with tighter budgets and resources. Instead of spending $200,000 to $300,000 on a robust BPM software implementation, a company can pay an average of $30 per person, per month to try BPM technology in the cloud.
|
|
|
A new research bulletin based on assessments of more than 550 major organizations in 20 countries reveals substantial issues in talent management strategies compared to current best practices. Leadership succession planning, performance management, and the ability to adapt and retain staff skills in improving business conditions headed the list of executive concerns.
|
|
|
In addition, the research found that more than 60 per cent of respondents believe their organizations` talent strategies are not yet aligned with business priorities.
R&D spending has not declined quite as much as it did in the downturn of 2001-2002.
|
|
|
Highly successful businesses that implement Six Sigma methods report on average 49% higher profits (compounded annually) and 2% higher Compounded Annual Growth Revenue (CAGR) than their peers.
|
|
|
In today's workplace, it's more about capturing human knowledge and figuring out how to leverage it, in many (but not all) cases by applying it to improve business processes by merging knowledge management and process improvement to create a broader business improvement category.
|
|
|
It is estimated that some 70 percent of newly created jobs in an organization are tacit interactions. It's all about figuring out how to help people collaborate better.
|
|
|
Performance management must not be allowed to become another routine with no clear results to show. Specific results of performance management are reflected in: 1) Increasing revenues and sustained growth supported by high customer satisfaction. 2) Remunerative selling prices in the context of controlled costs. 3) Speedier business processes and committed employees. 4) Effective management of changes that is inevitable in the fast changing environment businesses face.
|
|
|
With 75% of Americans believing that technological innovation is more important than ever in driving U.S. economic success, the significance of developing our innovators of tomorrow is more pronounced than ever.
|
|
|
Sales performance management (SPM) software market is growing at 45 percent annually according to research firm Ventana. An effective SPM system will reduce error rate by about 5-8 percent according to research firm Gartner, reducing costs to the bottom line caused by sales overpayments, and by disputes.
|
|
|
Forecasts for IT organization trends in 2010 include: A focus on technology purchases that focus on optimization of existing server, networking and storage assets, and requiring a 6 to 12 month ROI and investments in technology that can demonstrate quick ROI as well as in upgrades which can support virtualization demands, particularly in networking.
|
|
|
According to a study which surveyed 800 organizations in North American F1000 and MSE spaces, 15% are planning future adoption of IP video conferencing solutions in 2010. The increased use of this technology is meant to offset travel expenses and improve organizational effectiveness.
|
|
|
According to a study which surveyed 800 organizations in North American F1000 and MSE spaces, 30% of respondents indicated they would be slow to adopt cloud computing due to immaturity of technology. Concerns over security followed closely behind, with 25% of respondents indicating this as their number one concern for adoption.
|
|
|
Industry analyst surveys indicate that over 60 percent of CRM systems are used by sales teams, about 40 percent used by marketing, and about a third of the systems are used by customer support.
|
|
|
According to the 2009 IBM Global CIO Study, 83% of respondents identified business intelligence and analytics - the ability to see patterns in vast amounts of data and extract actionable insights - as the way they will enhance their organizations’ competitiveness.
|
|
|
Over the past two years, the Indian market has seen a strong propensity for Business Innovation platforms. According to Gartner, BI platforms, analytic applications and performance management software revenues in India reached $40.5 million in 2008, a 58.6% increase from the 2007 revenues of $25.6 million.
|
|
|
Characteristics of robust BI tools include the ability to efficiently compile data and report key performance indicators in an easy-to-understand visual/graphic "dashboard" that provides visual context of a company's performance.
|
|
|
Morgan Stanley Chief Financial Officer Colm Kelleher said corporate mergers and acquisitions may see a rebound this year as markets improve. “The elements are in place for a resurgent M&A market in 2010,” Kelleher, 52, told investors at a conference in New York sponsored by Bank of America Corp. “Our backlogs are strong.”
|
|
|
In a McKinsey online IT study held through October of 2009 - 55% of non-IT executives say current performance in providing basic IT services is very or extremely effective - up 5% from last year. That said, the level of satisfaction with higher-value activities, such as on-time, on-budget project delivery and proactive engagement from IT, is lower, the percentage holding steady from last year in the 30s.
|
|
|
Deployment of outsourced B2B tele-services has helped leading companies to achieve 7% yearly increase on average in bid-to-win ratio and an average annual revenue per sales rep increase upwards of 11% year-over-year.
|
|
|
According to a new research study published by Aberdeen Group leading companies have been able to achieve 17% average growth in annual corporate revenue, increase in lead conversion rate (pass-through to closers) of 7% on average, and 6% average improvement in win-loss ratio through deployment of inside sales.
|
|
|
The "2009 Innovation Report" released by specialty information firm Thomson Reuters finds that a few firms across 12 industries amped up patent activity in the 41 patent-granting authorities worldwide amid the worst business decline in decades. The computer industry, with more than 226,000 patents worldwide, led the others by far, representing about 29% of all such grants. "Among most active patenting companies in the category were Samsung, Sony/Ericsson, Canon, Toshiba, LG and Seiko Epson," says the report.
|
|
|
The Indian Government plans to increase its expenditure on R&D from 1% of GDP to 2%, said Dr Prithviraj Chavan, Minister for Science & Technology.
Accordint to an ABI Research annual report, ROI timeframe is a critical consideration for most companies considering RFID deployment, and comparing the ROI assumptions reported in 2009 with those from 2008, the survey found that considerably more companies (48% as opposed to 37% in 2008) expect their investment to be recouped within 12 months.
|
|
|
In May 2009, consulting firm Accenture conducted an online survey with executives across a range of industries. 52% relay that their most successful innovation brought to market in the last two years was in the form of a new product or service; 31% say it was through a new business process or model.
|
|
|
Only 47% of senior executives see their companies as more innovative than the competition, and 17% concede that they're even less innovative than peers, according to an Ernst & Young survey of C-suite executives at firms with revenues of $50 million to $5 billion. Among the most frequently cited innovation challenges are lack of appropriate personnel (48%) and "lack of a big idea" (41%).
|
|
|
57% of respondents to a Kellogg School study do not use business cases to evaluate marketing campaigns for funding. And more than half admitted they do not use metrics such as ROI to guide campaign selection.
|
|
|
Almost 50 percent of participants in a Kellogg School study said that, overall, their marketing staff does not have sufficient working knowledge of financial concepts such as return on investment (ROI), net present value (NPV), and customer lifetime value (CLTV).
|
|
|
Leading companies have been able to achieve 9% average annual improvement in (reduction of) the time spent by sales reps searching for relevant company/contact information through deployment of sales intelligence.
|
|
|
Leading companies have been able to achieve 5% average annual improvement in (reduction of) the sales cycle through deployment of sales intelligence.
|
|
|
The study, "Joint Industry EDI/B2B Survey," surveyed 300 information technology (IT) professionals around the world and found that 95 percent of respondents use spreadsheets, or a similar format, for some or all of their B2B transactions. This indicates a significant market opportunity for greater B2B automation across a wide-range of companies and industries.
|
|
|
Customers benefit from better service and efficiency, and sellers derive improved loyalty and, inevitably, more repeat business from established customers. Even in a tough economy, top performers achieved a 91% customer retention rate and increased net client value by 6%, while the vast majority of companies saw a decline in customer spend.
|
|
