Innovative Company

This is something that the Business Week came out last week with a list of 25 top innovative companies. They list Apple as the number 1 innovative company of the world. As I was reading this article I began to think what really makes a company innovative? What do you define as "Innovation"? (See my previous rambling on innovation)

How in the world can you say that Apple is the most innovative company in the world? It is extremely wrong to say one company is the most innovative company of the world. It is similar to what kids say to each other - My Dad is the strongest dad in the whole world ! How can one compare two distinct companies, for example, one that makes computers, music players, and now cell phones (namely Apple) to another company that saves lives by manufacturing cancer fighting drugs (namely Genentech)? You cannot and should not give the title of the Most Innovative Company of the World to either because each catering to different segments.

One key feature that these yard-stick magazines fail to perform is look at the value add that each employee brings to the company which basically means that if I were to draw a huge value-chain analysis chart for every employee of the company I should be able to see distinct addition as a I perform the analysis. That is when I will really be able to say what is the most innovative way and therefore say if that company is the most innovative company within that product segment.

So the next time around, someone tells you that their company featured on the most innovative companies list - are you going to congratulate them or ask them "which segment are you the most innovative in?". Think about it !