Senator Obama was (has recently been) picked to represent the Health, Education, Labor and Pensions committee, along with the Homeland Security and Governmental Affairs committee. He says keeping the American people safe should always be our top priority. He will also work for the Foreign Relations committee, and the Veterans' Affairs committee. Working simultaneously in four different committees is an honor, a measure of respect, and a remarkable feat for any U.S. Senator. (He was also on the cover of Time Magazine hinting of a run for the presidency in 2008.)
Three Innovation Opportunities
Senator Obama is not only focused on promoting economic growth and bringing good paying jobs to Illinois, but also creating substantial innovative opportunities in education, science and technology, and energy for America. In his book, he talks about how "investments in all these three key areas (education, science and technology, and energy) would go a long way in making America more competitive." He agrees that none of these investments will produce immediate results; these investments will actually cost money and resources in the near term. However, he believes that such investments in R & D and education, increasing fuel efficiency of American cars (e.g. Tesla, Toyota, Honda, Ford, and future electric cars by GM), instituting performance pay for public-school teachers, understanding the feasibility of school vouchers and evaluating the viability of hydrogen fuel cells are necessary.
"But while the means we use to accomplish these ends should be subject to vigorous and open debate, the ends themselves shouldn't be in dispute," states Senator Obama in a prose reminiscent of President Abraham Lincoln. He emphasizes that "like those before us, we should be asking ourselves what mix of policies will lead to a dynamic free market and widespread economic security, entrepreneurial innovation and upwards mobility." He even asks us to be guided by President Lincoln's simple maxim: "that we will do collectively, through our government, only those things that we cannot do well or at all individually and privately."
Globalization
Whereas Senator Obama observes that globalization has brought significant benefits to American consumers such as lowered prices on goods including big-screen TVs and winter fruits, increased the purchasing power, kept inflation in check, boosted stock returns, created new markets for U.S. companies overseas, and even reduced poverty in foreign countries; however, globalization has also increased economic instability for millions of ordinary Americans as more U.S. companies have automated, downsized, outsourced, and offshored. Obama believes the effects of globalization create a so-called "winner-take-all" economy where a rising tide doesn't lift all the boats. Knowledge workers such as engineers, lawyers, consultants, doctors, marketers are doing well now; however, blue-collared workers whose skills can be automated, digitized, outsourced or offshored for less are clearly hurting.
Senator Obama asserts that "our greatest asset has been our system of social organization, a system that for generations has encouraged constant innovation, individual initiative, and the efficient allocation of resources." The classic paradox is whether we should consider our free-market system as a given and let it ride naturally - "laissez-faire", or whether our government should take action to open up opportunity, encourage competition, and make the market work better. In the past government has been called upon to build the infrastructure, train the workforce, and lay foundations necessary for economic growth. For President Lincoln, the essence of America was opportunity, the ability of "free labor" to advance in life.
Government Innovations
Senator Obama provides several examples on how our government has provided individuals the tools to adapt and innovate in a climate of constant technological change. From the GI Bill that made college education available to millions, to the creation of public schools, universities and institutions of higher education, formation of National Academy of Sciences, Homestead Act, Hoover Dam, interstate highway system, Tennessee Valley Authority, Darpa, Internet, Human Genome Project, Federal Reserve Bank, Food and Drug Act, Meat Inspection Act, FDR's New Deal, Securities and Exchange Commission, FDIC insurance, tax cuts, Social Security, forty-hour workweek, child labor laws, minimum wage act, National Labor Relations Act, and the Great Society programs including Medicare, Medicaid, Welfare, EPA and Occupational Health and Safety Administration -- countless innovations through out the history led by our great leaders.
Senator Obama makes a fundamental point that "capitalism is not standing still." The unavoidable globalization, competition, and technological revolution stifle our economy and frustrate our people. He makes a strong case for investments that can make America more competitive in the global economy: investments in education, science and technology, and energy independence. He provides examples of schools in Chicago where students only get a few hours of school each day: the number one issue being the school district cannot afford to pay the teachers for one whole day. He talks about workers who have lost their jobs because companies want more profits or can't compete. He discusses the rising gas prices and our dependence on oil to the tune of $800 million dollars every day.
Education Innovations
It is evident that Senator Obama deeply cares about education. He emphasizes innovation and bold reforms in education. He recommends that we should "identify those reforms that have the highest impact on student achievement, fund them adequately, and eliminate those programs that don't produce results." He provides some examples of education reform and suggests that we have many good ideas, but we don't do a great job of executing on them. For instance, challenging and rigorous curriculum with emphasis on math, science and literacy skills; longer hours and more days to give children the time and sustained attention they need to learn; early childhood education for every child, so they're not already behind on their first day of school; meaningful, performance-based assessments that can provide a fuller picture of how a student is doing; and the recruitment and training of transformative principals and more effective teachers. He believes that teachers should be held accountable, and at the same time rewarded for their effectiveness -- even salaries of $100,000 a year based on experience, performance and qualification. Obama also emphasizes need for higher education reform, especially for science, engineering and technology, and management of rising cost of public college tuition that has risen 40 percent over the last five years. Finally, direct help in meeting college expenses in the form of grants, low-interest loans, tax-free educational savings accounts, or full tax deductibility of tuition and fees.
Science And Technology Innovations
Senator Obama has a concrete plan for maintaining our scientific and technological edge that will spearhead future innovations: the plan will cost $42 billion over five years. He recommends that "if we want an innovation economy, one that generates more Googles each year, then we have to invest in our future innovators -- by doubling federal funding of basic research over the next five years, training one hundred thousand more engineers and scientists over the next four years, or providing new research grants to the most outstanding early-career researchers in the country." He believes this is necessary to maintain America's competitive edge. He refers to the Morrill Act signed by President Lincoln that created the system of land grant colleges, institutions of higher learning, and nation's primary research and development laboratories. He asserts that these institutions have inspired and created nation's innovators, and applied research from such institutions has resulted in commercial applications.
Energy Innovations
Finally, Senator Obama calls for energy independence. He believes that if we are to become more competitive, we have to build an energy infrastructure. U.S. demand for oil will jump 40 percent over the next twenty years; further our dependence on foreign oil only serves the interests of volatile regimes. Oil erodes the environment. When U.S. has only 3 percent of the world's oil reserves, and uses 25 percent of the world's oil, alternatives must be sought: create renewable, cleaner energy sources for the twenty-first century. He proposes that "we should end every single tax break the industry currently receives and demand that 1 percent of the revenues from oil companies with over $1 billion in quarterly profits go toward financing alternative energy research and the necessary infrastructure." Obama touts Brazil as a good example where a mix of regulation and direct government investment has developed a highly efficient biofuel industry and 70 percent of new vehicles run on sugar-based ethanol instead of gasoline. Obama believes that regulation when applied with flexibility and sensitivity to market forces can actually spur private sector innovation and investment in the energy sector. Fuel-efficient cars and alternative fuels are the future of the auto industry. Obama proposed legislation called "Health Care for Hybrids" that makes a deal with U.S. automakers: "In exchange for federal assistance in meeting the health-care costs of retired autoworkers, the Big Three would reinvest these savings into developing more fuel-efficient vehicles." Obama thinks that investments in alternative fuel sources will lead to creation of thousands of new jobs.
Uncommon Insights
Senator Obama shares with us insights from Robert Rubin, the former U.S. Treasury secretary under President Bill Clinton, and Warren Buffet. Rubin suggests that "there's no limit to human ingenuity." The insight gained from Rubin is that we can slow globalization, but can't stop it. For instance, when one buys an American good, it could be developed by overseas software programmers and packaged outside our borders. Billionaire Buffet shares an uncommon insight that he will be paying a lower effective tax rate than his receptionist. Not only that, he is paying a lower rate of tax than the average American. Buffet believes that "some of that wealth (rich people) has to be plowed back into education, so that the next generation has a fair chance, and to maintain our infrastructure, and provide some sort of safety net for those who lose out in a market economy." What Buffet is essentially reverberating is a "change in spirit, a willingness to put our common interests and the interests of future generations ahead of short-term expediency."
Bottomline:
Senator Barack Obama is a visionary, a real leader, an innovator who can bridge the nation whole, analytical yet convincing, grounded in history and tradition, and progressive in his prescription for change. He is a creative innovator who believes in a proactive government creating an environment that facilitates reforms in education, science and technology, and energy. He believes that strategic investments in these three key areas will empower America to create a stronger economy that will create countless new opportunities for innovators and workers alike.
References:
Barack Obama: The Audacity of Hope. Thoughts On Reclaiming The American Dream.
Where Investment Meets Innovation
Creativity And Innovation Driving Business - Innovation Index
Sanjay Dalal
Innovation Index Group
Innovation Index Group
Sanjay Dalal
Sanjay Dalal
Sanjay Dalal
Innovation Index Group
Research In Motion and Nike continue torrid growth, show no slowdown
Sanjay Dalal
Sanjay Dalal
Innovation Index Group
Innovation Index gains 12.23% in April and May 2008, beats major U.S. indices
Innovation Index Group
Sanjay Dalal
Innovation Index Group
Sanjay Dalal
Innovation Index Group
RIM Tests New Highs - Launches New BlackBerry Bold Smartphone
Creativity And Innovation Driving Business - Innovation Index
Wed, 03 Sep 2008 14:25:25 +0000
Sep 01, 2008 12:11AM
Sunday August 31, 2008
Dear FIA Members, Guests and Friends:
I am indeed honored to represent my business, Innovation Index Group, today on our national Independence Day celebration. I am the president of Innovation Index Group. I am humbled that FIA gave me this opportunity, and am quite grateful to the FIA executive team, Prakash Pancholi, Amrit Bhandari, Dilip Butani, Mohan Sharma, and members of this key organization.
Today I stand before you very proud of our heritage, of our parent country
I have my parents to thank who gave me the opportunity to come to
Today, in LA County alone, we have tens of thousands of kids who live in foster families. There are more than 600 children currently waiting for an adoptive family. I invite you to contribute your time and money to help these children through the KidSave organization based in
Another organization based in
Today, at the local Jain Center, thousands of Jains are celebrating Pajyushana, and asking for forgiveness and simultaneously forgiving fellow friends and workers. Yesterday, I attended a peaceful event hosted by Swaminarayan mandir and
We now live in the great democracy
We, all of us, are quite blessed by God. Let us take a moment to thank our parents, our family, our friends, our colleagues at work, our partners, our neighbors, our community and our country. We all have a nice house to live, drive good cars, do not have to worry about food, are healthy and do well financially. So, let us make a promise to ourselves today: We must not complain.
Thank you everyone for giving me this opportunity to speak. I am indeed grateful.
God Bless us all!
Sanjay Dalal
President & Managing Director
Innovation Index Group, Inc.
Aug 26, 2008 09:01AM
Beat the Wall Street - Take Control of Your IRA and Invest Profitably
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| Register for this Web Seminar (hurry, space is limited) Do you want to profitably invest in the U.S. stock market and beat the stock markets? Are you tired of losing money on your IRA, paying fees on your IRA account, and have even stopped looking at your monthly statements? Does your IRA provide you adequate choices to better invest your money? What financial strategies are you considering for your longer term investments, especially with your IRA? Innovation Index Group systematically invests in the Innovation Index, a weighted, stock index of The Top 20 Innovators in North America. We have delivered over 60% return since 2007 through systematic investment philosophy. Learn from us about disciplined Financial Strategies, the Innovation Index, and how to profitably invest in the American stock market. Presenters include Kaaren Hall, Business Development Manager Entrust Financial Services, LLC and Sanjay Dalal, President & Managing Director Innovation Index Group, Inc. Date: August 26, 2008 Time: 6 pm Pacific Register for this FREE Web Seminar now (space is limited, valued at $150) | |  | |
Aug 05, 2008 02:57PM
Turn Complaints Into Solutions, Innovations and Success
So you want to complain today about your work, your boss, the economy, the weather, your spouse, your children, the presidency, the country, and on and on. Just ask yourself: What good does the complaint do? Does it actually solve the underlying issue you are grappling with? Or is it helping you vent out at something or somebody? Remember the golden rule: Stop Complaining, Start Living. Or was it: Stop Worrying, Start Living. You get the point.
Jon Gordon has written this amazing little book titled: "The No Complaining Rule" that tells us how to turn every complaint into an opportunity and converting negativity into positive actions. Easier said than done, you may say. However, Jon gives us a plan to make this happen, and leads us into this plan by telling us a real story about Hope, the VP of Human Resources at EZ Tech, who is facing a personal health crisis, is suffering from a separation from her husband, is raising two children who have begun distancing themselves from their "ever complaining" mom, and to top all these, is charged to put together a plan at her workplace to turnaround the company from a product and underlying confidence crisis. When it rains it pours. But Hope not only manages to find the way using the "No Complaining Rule", but also leverages innovative ideas and practical strategies to put her life and work on track.
How does Hope make this happen? You have to read the book to find out.
However, I am able to share with you the following story that Jon shared with us, and the key points of the personal action plan that Jon has provided in the last chapter of the book.
First the story:
Positive Ways to Deal with Negativity
With the mortgage meltdown, floods in the Midwest, $4 a gallon for gas, food prices, the economy, famine, war in
1. Find the Gift - Richard Bach said every problem has a gift for you in its hands. One woman came up to me and said that because of the cost of gas her family is driving less and as a result they are spending more time at home and having dinner together more often. She said this ?negative? situation has been very ?positive? for her family. Another person said he is taking the bus to work instead of driving and as a result he has met a lot of interesting people.
2. Look at the Bright Side - One gentlemen joked that because of the cost of gas he now has a great excuse to not drive and see his negative relatives.
3. Zoom Focus - It doesn?t matter what the pundits say on television. It doesn?t matter what Joe and Sally in your office are doing. It doesn?t matter who is playing office politics. All that matters is what you do every day to grow yourself and your business. Focus on being positive and taking positive action every day. Be like the real estate agent who told me that he doesn?t focus on what the news and newspapers say. He focuses on what he can do every day to be successful. He focuses on marketing his business, taking care of his clients, and building loyal relationships. What things do you need to Zoom Focus on?
4. Focus on the
5. Be a Positive Influence on Others - I received an email from Ruthanne in
?As you are probably aware, we were recently hit with a 500 year flood. My neighborhood was impacted the worst and most of our homes, mine included, are a total loss. People tell me I have been the most positive person they know who was directly impacted by the flood. I don?t have a lot of time today (first day back at work in 2 wks) to tell you all the positive things that have been going on in our city and in my life, but I will be writing an article when this is all over with. I did want to say though that I have not complained throughout all the devastating catastrophe because of the knowledge I learned both from your seminar, books and newsletters.?
Ruthanne could have chosen to wallow in self pity and negativity but instead she chose to deal with her negative situation by being a positive influence on others. Think about how many people she is positively impacting in her community. Now think about the positive influence you can have on people at work, in your community and at home.
Every day simply ask yourself ?How can I be a positive influence where I am, right now??
Stay Positive!
-Jon
Day 1: Monitor your thoughts and words
Day 2: Make a Gratitude List
Day 3: Take a Thank-You Walk
Day 4: Focus on the Good Stuff
Day 5: Start a Success Journal
Day 6: Let Go
Day 7: Breathe (and pray and meditate)
Bottomline:
If every employee at your workplace comes to work energized, positive and relaxed, and does not complain, and always tries to find a solution to a problem - imagine the creativity and innovation that you will be able to unleash through this employee's effort, and the whole team, the department and the entire company. It is that simple, and yet the employee morale, spirit and confidence become huge issues for many companies. Jon shows us the path to success in his latest book "The No Complaining Rule" by turning those complaints into innovative solutions.
Review by Sanjay Dalal, President & Managing Director, Innovation Index Group, Inc.
Author Bio
Jon Gordon is a speaker, consultant, and author of the international bestseller The Energy Bus: 10 Rules to Fuel Your Lift, Work, and Team with Positive Energy, which has inspired readers the world over. He and his books have been featured on CNN and on NBC's Today show, and in Forbes, Fast Company, O: The Oprah Magazine, the Wall Street Journal, and the New York Times. Clients such as the
Aug 01, 2008 11:14PM
Presidential Candidate Barack Obama - Bold Innovations and Opportunities
"If we act boldly, then our economy will be less vulnerable to economic disruption, our trade balance will improve, the pace of U.S. technological innovation will accelerate, and the American worker will be in a stronger position to adapt to the global economy," states Barack Obama, the Democratic U.S. Senator of Illinois and now the Democratic nominee for President, in his (new) book "The Audacity of Hope". Senator Obama lays out a vision for reclaiming the American Dream aided by a government built on our best traditions, representing our everyday lives, uniting our common hopes and dreams, and creating an unbreakable bond.
Jul 29, 2008 02:48PM
Top Innovators Deliver Solid Second Quarter Earnings
The Top Innovators of the Innovation Index are having better to excellent second quarter results in 2008. These top innovators' 2008 second quarterly earnings increased 5% to 43% over 2007 second quarter earnings. This is fantastic growth!! In short, these innovators are growing even in these trying economic conditions. When the going gets tough, the tough gets going.
Their quarterly stock performance did not quite correlate with their quarterly earnings performance though. The stock markets are discounting these solid innovators owing to the general malaise in the
Innovation Index Group believes that these innovators will reward the patient, long-term investors focused on fundamentals of smart investing. Innovation Index Group further believes that these innovators present an attractive buying opportunity at these discounted prices. How successful are some of their new innovations? Check our latest industry article that talks about measuring business innovation success.
| The Top 20 Innovators | Mar 31, 2008 | June 30, 2008 | Quarterly |
| APPLE INC | 143.50 | 167.44 | 17% |
| | 63.69 | 52.75 | -17% |
| AMAZON INC | 71.30 | 73.33 | 3% |
| BEST BUY INC | 41.56 | 39.60 | -5% |
| COSTCO WHSL CORP | 64.97 | 70.14 | 8% |
| CISCO SYS INC | 24.09 | 23.26 | -3% |
| EBAY INC | 29.84 | 27.33 | -8% |
| GENERAL ELECTRIC CO | 37.01 | 26.69 | -28% |
| GOOGLE INC | 440.47 | 526.42 | 20% |
| HEWLETT PACKARD CO | 45.66 | 44.21 | -3% |
| IBM | 115.14 | 118.53 | 3% |
| INTEL CORP | 21.18 | 21.48 | 1% |
| MCDONALDS CORP | 55.77 | 56.22 | 1% |
| 3M CO | 79.15 | 69.59 | -12% |
| MERCK & CO INC | 37.95 | 37.69 | -1% |
| MICROSOFT CORP | 28.38 | 27.51 | -3% |
| NIKE INC | 68.00 | 59.61 | -12% |
| PROCTER & GAMBLE CO | 70.07 | 60.81 | -13% |
| RESEARCH IN MOTION LTD | 112.23 | 116.90 | 4% |
| AT&T INC | 38.30 | 33.69 | -12% |
| | | | |
| S & P 500 | 1,322.70 | 1,280.00 | -3.23% |
| NASDAQ | 2,279.10 | 2,292.98 | 0.61% |
| Dow Jones | 12,262.89 | 11,350.01 | -7.44% |
| © Innovation Index Group, Inc. http://www.InnovationIndexGroup.com | |||
Second Quarter Leaders
Google led all innovators with 20% jump in stock performance in the second quarter ? Google is perhaps the best internet bell weather. Apple had an equally impressive 17% increase thanks in large part due to the growth in Mac business, solid performance of the iPod business, and new revenue growth from the iPhone 3G. There were six other innovators with single digit increases in stock performance. IBM leads all innovators in 2008 with a 10% jump in stock performance.
Second Quarter Laggards
GE led all innovators with 28% drop in quarterly stock performance ? GE?s first quarter earnings miss still reverberates; although GE delivered a good second quarter earnings. America Movil dropped 17%, followed by Proctor & Gamble with 13%. Overall, twelve innovators finished in the red in the second quarter.
Top Innovators Earnings Update
Google Inc.'s (GOOG) fiscal second-quarter profit rose to $1.25 billion, or $3.92 a share, from $925.1 million, or $2.93 a share in the same period a year earlier, an increase of 35%. Google reported revenues of $5.37 billion for the second quarter 2008, representing a 39% increase over second quarter 2007 revenues of $3.87 billion. "Strong international growth as well as sustained traffic increases on Google's web properties propelled us to another strong quarter, despite a more challenging economic environment," said Eric Schmidt, CEO of Google.
IBM Corp. (IBM) reported a second-quarter profit of $2.77 billion, or $1.98 a share, up from $2.26 billion, or $1.55 a share in the same period a year ago, an increase of 23%. Revenue rose to $26.82 billion from last year's sales of $23.8 billion, an increase of 13%. IBM's Chief Executive Sam Palmisano said the company was sticking by its 2008 earnings estimate of $8.75 a share, and its long-term forecast of a profit of $10 to $11 a share for its 2010 fiscal year.
Microsoft Corp. (MSFT) reported fourth-quarter earnings of $4.3 billion, or 46 cents a share, compared to earnings of $3 billion, or 31 cents a share, for the same period last year, an increase of 43%. Quarterly Revenue grew to $15.8 billion from $13.4 billion, an increase of 18%. Chris Liddell, chief financial officer at Microsoft said: "Looking forward, despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008 and expect to deliver another year of double-digit revenue and earnings growth in fiscal year 2009."
eBay Inc. (EBAY) reported second quarter revenue of $2.20 billion, up $361 million from the same period last year, an increase of 20%. Net income was $460 million, or $0.35 per diluted share, and non-GAAP net income was $568 million, or $0.43 per diluted share, an increase of 20%. "This was a strong quarter and we are very pleased with the performance of the portfolio, particularly with the growth generated by PayPal," said eBay Inc. President and CEO John Donahoe. "We're delivering strong results in a tough economic environment."
Intel Corp.'s (INTC) second-quarter profit jumped 25 percent owing to strong sale of laptops. Global PC demand is growing despite the weakness in
The Procter & Gamble Company (PG) confirmed previously announced sales and earnings guidance for the April to June quarter of fiscal year 2007/08. The company continues to expect sales growth for the quarter of 8 percent to 10 percent, organic sales growth in line with previous guidance and diluted earnings per share of $0.76 to $0.78.
GE (GE) second quarter 2008 earnings from continuing operations were $5.4 billion with $.54 per share, which was flat year-over-year from second quarter 2007. Second quarter revenues from continuing operations were $46.9 billion, up 11%. "Led by double-digit segment profit growth in our industrial businesses and a strong relative performance in our financial services businesses, we delivered a solid quarter in a volatile environment," GE Chairman and CEO Jeff Immelt said, "Even with all this uncertainty, we still see growth opportunities ahead."
Apple (AAPL) net income surged 31% over the year-ago period. The company reported net income of $1.07 billion, or $1.19 per share, on sales of $7.5 billion, compared with net income of $818 million, or 92 cents per share, on sales of $5.4 billion for the same period a year ago. Sales surged 39%. Apple already sold over 1 million new iPhones in the first weekend of iPhone 3G launch, and Apple CFO indicated that the current quarter will be the best quarter for iPhone sales in the conference call. Further, Apple CFO also hinted of Apple introducing a major new product in the coming quarter.
America Movil (AMX), the largest cell-phone operator in
Merck (MRK) said profit rose to $1.77 billion, or 82 cents per share, from $1.68 billion, or 77 cents per share, during the prior-year period, an increase of 5%. Sales fell 1 percent to $6.05 billion from $6.11 billion. Merck said it earned 86 cents per share, beating analysts? predictions.
McDonald's (MCD) earned $1.19 billion in the second quarter, including a gain from the sale of its stake in sandwich chain Pret A Manger. A year earlier, McDonald's had a loss of $711.7 million stemming from charges on the sale of its Latin America and
AT&T Inc. (T) said Wednesday second-quarter profit jumped 30% as the phone giant gained a net 1.3 million wireless customers and reduced expenses. In the second quarter, AT&T delivered net income of $3.77 billion, or 63 cents a share. That was up from $2.90 billion, or 47 cents a share, in the 2007 second quarter, an increase of 30%. Total Revenue rose 4.7% to $30.87 billion from $29.48 billion, with a nearly 16% increase in wireless sales countering an 8.3% drop in AT&T's voice-calling business. Profits met Wall Street expectations. AT&T gained 170,000 customers for its new U-Verse fiber-TV service to finish with 549,000 in service -- more than halfway toward its goal of 1 million by year-end. The company hopes its new TV service will keep customers from defecting to cable and lure some old subscribers back. "Scaling U-Verse is a major initiative for us. Penetration is growing nicely," Chief Financial Officer Rick Lindner said in a conference call with analysts.
Amazon.com (AMZN) net sales increased 41% to $4.06 billion in the second quarter, compared with $2.89 billion in second quarter 2007. Operating income increased 86% to $217 million in the second quarter compared with $116 million in second quarter 2007. Worldwide Media sales grew 31% to $2.41 billion in second quarter 2008, compared with $1.83 billion in second quarter 2007. Worldwide Electronics & Other General Merchandise sales grew 58% to $1.53 billion in second quarter 2008, compared with $0.97 billion in second quarter 2007. "Customers continue to take advantage of our low prices, free shipping and Amazon Prime," said Jeff Bezos, founder and CEO of Amazon.com. "Amazon Prime membership costs less than a tank of gas - more and more customers are joining the program and enjoying its benefits."
3M (MMM) second-quarter sales grew to $6.7 billion, an increase of 9.7 percent over second quarter of 2007. Net income was $945 million, or $1.33 per share, versus $917 million, or $1.25 per share in the corresponding period last year. "The strength of 3M's global portfolio was evident in the second quarter," said George W. Buckley, 3M chairman, president and CEO. "3M's three largest businesses, Industrial and Transportation, Health Care and Safety, Security and Protection Services, grew at double-digit rates."
Bottomline:
The Top Innovators are growing in 2008! You read it right! They are definitely doing better than 2007. These innovators are not impacted by the tough
2008 Outlook
Innovation Index Group remains conservatively bullish for Q4, 2008. There are many positives for the second half of 2008 ? the top innovators have already delivered good to strong results so far and traditionally have their best quarters in the second half of the year; the stock markets typically rally in the election year in the fourth quarter, and we believe that the stock markets have bottomed out; finally, all the initiatives led by the Federal Reserve, IRS, and the U.S. Treasury will begin to show net positive effects on the economy and the markets.
About Innovation Index Group:
Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in
Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is an investment management company organized under the
The Innovation Index Reports:
Introducing The Innovation Index - Learn about the Innovation Index
Innovation Index Group BUY Recommendations - 2008 BUY Recommendations and Estimates
Q1 2008 Report - Innovation Index ahead of S&P 500 - Q1, 2008 Report
Learn about The Innovation Index Fund - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
Measuring Business Innovation Success ? How successful is your new innovation?
Future earnings guidance, A leading indicator - Earnings Guidance and Stock Price
Smart Investing In Tough Economic Times - Guide to Prudent, Value Investing
To Sell Or Not To Sell - Long-Term Investing in Turbulent Markets
About The Innovation Index
The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in
The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*
Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:
3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)
The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.
Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results
Source:
Innovators Press Releases
Jul 23, 2008 08:25PM
How Successful Is Your New Innovation? Measuring Business Innovation Success
I launched the Innovation Index in December 2006. The Innovation Index is a weighted stock price index of the Top 20 Innovators in
On this Creativity And Innovation Driving Business and the Innovation Index Blog, I provide the following:
1. Report, analyze and project the weighted stock performance of the Top 20 Innovators in
2. Compare and contrast best practices, initiatives, new products, successes, strategies, stories, leadership and insights on Creativity and Innovation at the Top 20 Innovators.
3. Showcase Disruptors challenging these Top Innovators, their disruptive innovation strategy, and their current and potential impact on the Top 20 Innovators' customer base and market share.
I also published a report on the correlation between the annual stock performance of the Top 20 Innovators of the Innovation Index versus total innovations produced, and provided insights from this relationship.
However, one question remains largely unanswered: What is the universal yardstick, the measurement for the success of a Business Innovation that companies and Innovation Gurus alike can possibly agree with? I have read books and magazines by leading authors and CEOs on innovation, have been fascinated by the innovations that innovative companies have created, have observed some of the successes these innovations have produced for their founders and shareholders, have witnessed a few of the customer "WOW" moments as they have used some of these innovations, and have measured the impact of these innovations on the company's stock performance.
So how does one measure business innovation success? Can it be measured by a qualitative measure that can somehow guage the emotional and psychological impact the innovation produces on the users (the "AaHa" moments), or a quantitative measure corresponding to the total population of end users using the new innovation (and even helping co-create it), or a financial measure in terms of net new revenue generated for the company that can be attributed to the new innovation? An innovation is only successful if the product or service is able to find and attract new customers who adopt and adapt to it, live by it, talk about it, and refer others to it; ultimately, the innovation must result in substantial new business for the company.
What are some examples of successful innovations? iMac, iPod/iTunes by Apple, Music by Amazon.com, PayPal by eBay, All-in-One Printers by HP, Business laptops by Dell, Penryn microprocessors by Intel, Medical Imaging and Jet Engines by GE, Mr. Clean by P&G, Starbucks Coffee Card by Starbucks, High definition television business at Costco and Best Buy, Coffee and Iced Coffee by McDonald's, Apparel business by Nike, Xbox and Xbox 360 by Microsoft, Blackberry Curve by Research In Motion, AdWords by Google, TelePresence by Cisco, Microprocessors powering Nintendo Wii and other game consoles by IBM, Hybrid cars by Toyota, Mini car by BMW, Saturn by GM, and many more.
We have many examples of hyped-up innovations that have failed after launch - Motorola's satellite phone foray aka Project Iridium (although Motorola came back with a bang with Moto Razr cell phone), General Motors' Electric concept car (which is being reborn for a new launch), and Microsoft's MSN Search (which has been reborn into Live Search). One thing is certain: Top Innovators do not stop innovating on account of failed innovations. Rather, failure is part and parcel of their creativity and innovation initiatives, and many a times, failure is a good thing. True Innovators find a way to learn from their failed experiments, and come out stronger. GE CEO Jeff Immelt agrees with P&G CEO A.G. Lafley on the core principles that drive growth and innovation. He states: "It's important to make growth a process...Just like A.G (Lafley), I want a pipeline of innovation. Some projects will fail. But the goal for a company like ours or P&G is using size as an advantage. Most people just assume that big companies are slow and lethargic, and only a small company can grow. But if you get good processes, you can make size an advantage."
Before I present my yardstick for measuring innovation success, I would like to establish a baseline. For instance, I am going to assume that an Innovator must have revenue of at least $500 million. The Innovator must be in existence for at least five years, and the $500 million revenue it generates must be based on products or services that the innovator has created itself. In addition, the Innovator should be showing consistent annual growth in total revenue and net earnings for the previous three years, and deliver at least 15% of total revenue from products introduced within the past five years.
Business Innovation Success Measurement
An Innovation that produces at least 5% of company's total revenue (up to equal margins) within three years after commercial launch, and grows to at least 15% of company's total revenue (with equal or better margins) within eight years of commercial launch is 100% successful. If an Innovation achieves the target revenues within a shorter time, or over-achieves the target revenues within the given time, Innovation success rate is considered greater than 100%. On the other hand, if an Innovation misses the targets of either time or revenue, it would be considered less than 100% successful.
| Company A | At least $500 million annual revenue |
| Innovation ABC Launch | |
| Time | Within 3 years from Launch |
| Innovation Revenue | At least 5% of company annual revenue |
| Innovation Margins | Close to equal margins |
| FIRST MILESTONE REACHED | Innovation ABC 50% Successful |
| CONTINUE / EXPAND | Innovation ABC Funding |
| Time | Within 8 years from Launch |
| Innovation Revenue | At least 15% of company annual revenue |