Future Readiness Indicator

Last updated

The Future Readiness Indicator is an indicator developed by the IMD Center for Future Readiness. [1] [2] [3] It evaluates a company's preparedness for long-term trends. [4] A systematic methodology generates a composite score for each entity, allowing identification of industry leaders and an examination of their respective behaviors and attitudes. It is developed by Howard Yu, and has been covered by Al-Jazeera [5] Bloomberg TV, [6] and CNBC. [7] The Future Readiness Indicator currently covers 182 companies across six different industries. The latest update was released in May 2024.

Contents

History

The Future Readiness Indicator, developed in 2021 (some rankings are backdated to 2010 as analysis only), annually evaluates the adaptability of the largest companies of the world to future challenges. [5] [8]

Methodology

The ranking derives from seven primary, equally-weighted factors: financial indicators, projected growth, business diversification, workforce diversity/ESG, R&D, innovation outcomes, and liquidity/debt status, totaling 33 distinct variables. [9] [10]

The data is publicly accessible from company outlets, news sources, and thematic reports. Factiva, CrunchBase, Espacenet, Sustainalytics, and Google Trends also supplement data collection. [9] [11]

The indicator is calculated by collecting each company's historical data, performing computations for each variable, standardizing criteria data, aggregating variables into main factors, and assigning an overall ranking. [11] Each company is ranked from 1 (best) to n (worst, n=sample size) on a 1-100 scale. [9]

Rankings

Automotive

Company2024 [12] 2023 [13] 2022 [14] 2021 [15] 2020 [13] 2019 [13] 2018 [13] 2017 [13] 2016 [13] 2015 [13] 2014 [13] 2013 [13] 2012 [13] 2011 [13] 2010 [13]
Tesla 1111112351064161110
BYD 225141315161818171817171818
Volkswagen 3336851311975109106
Stellantis 411812
Hyundai 5445512111214151214131515
Ford Motors 657443311222333
General Motors 7911111211443633221
Kia Motors 81816161818181717181516121316
Li Auto 9714
Mercedes-Benz 10898768943481098
Toyota 11102232122111112

Consumer packaged goods

Company2024 [12] 2023 [16]
L'Oréal 13
Coca-Cola 21
Procter & Gamble 32
Nestlé 44
Unilever 57
Diageo 65
Brown–Forman 78
Pernod Ricard 89
Colgate-Palmolive 9
The Estée Lauder Companies 106

Fashion

Company2023 [17] 2022 [18] 2021 [18]
Nike 112
Hermès 243
Kering 335
LVMH 456
Zalando 57
Richemont 668
Lululemon 721
Inditex 81315
Burberry 984
Prada 1010

Financial services

Company2024 [12] 2023 [19] 2022 [20] 2021 [21] 2020 [19] 2019 [19] 2018 [19] 2017 [19] 2016 [19] 2015 [19]
Mastercard 1111111111
Visa 2222222222
DBS Bank 3456665559
JPMorgan Chase 4331312771077
Bank of America 5771214910141213
HSBC 6101422212219201822
UBS 7910151013121185
Coinbase 8
Zurich Insurance 98138896917
Block, Inc. 1066
PayPal 11545444433

Pharmaceutical

Company2023 [22] 2022 [23]
Pfizer 12
AstraZeneca 23
Eli Lilly and Company 37
Novartis 45
Roche 51
Bristol Myers Squibb 64
Novo Nordisk 7
Johnson & Johnson 88
Merck & Co. 99
BioNTech 106

Technology

Company2023 [24] 2022 [25] 2021 [26]
Microsoft 123
Nvidia 236
Meta Platforms 364
Alphabet 411
Apple 559
Salesforce 61010
Adobe, Inc. 71212
AMD 885
Cisco Systems 92215
Amazon 1042

Related Research Articles

<span class="mw-page-title-main">Mercedes-Benz Group</span> German multinational automotive company

The Mercedes-Benz Group AG is a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It is one of the world's leading car manufacturers. Daimler-Benz was formed with the merger of Benz & Cie., the world's oldest car company, and Daimler Motoren Gesellschaft in 1926. The company was renamed DaimlerChrysler upon the acquisition of American automobile manufacturer Chrysler Corporation in 1998, and was again renamed Daimler AG upon divestment of Chrysler in 2007. In 2021, Daimler AG was the second-largest German automaker and the sixth-largest worldwide by production. In February 2022, Daimler was renamed Mercedes-Benz Group as part of a transaction that spun-off its commercial vehicle segment as an independent company, Daimler Truck.

<span class="mw-page-title-main">Automotive industry</span> Organizations involved with motor vehicles

The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. It is one of the world's largest industries by revenue.

<span class="mw-page-title-main">Geely</span> Chinese automotive conglomerate

Zhejiang Geely Holding Group Co., Ltd. (ZGH), commonly known as Geely Holding, is a Chinese multinational conglomerate headquartered in Hangzhou, Zhejiang. The company is privately owned by Chinese entrepreneur Li Shufu, and mainly engaged in the automotive industry.

<span class="mw-page-title-main">International Institute for Management Development</span> Swiss business education school

International Institute for Management Development (IMD) is an independent academic institute with campuses in Lausanne, Switzerland and Singapore. IMD is well known for its MBA program, which is taught in English and consistently ranked among the best in the world.

<span class="mw-page-title-main">Sixt</span> German multinational car rental company

Sixt SE is an international mobility service provider with about 2,000 locations in more than 100 countries. Sixt SE acts as a parent and holding company of the Sixt Group, which is internationally active in the business areas of vehicle rental, car sharing, ride-hailing, and subscription.

BYD Auto Co., Ltd. is the main automotive subsidiary and brand of BYD Company, a publicly listed Chinese multinational manufacturing company. It manufactures passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), collectively known as new energy vehicles (NEVs) in China. It also produces electric buses and trucks.

<span class="mw-page-title-main">Car dealership</span> Business which sells, buys, and trades new and/or used cars, trucks, SUVs, and vans

A car dealership, or car dealer, is a business that sells new or used cars, at the retail level, based on a dealership contract with an automaker or its sales subsidiary. Car dealerships also often sell spare parts and automotive maintenance services.

<span class="mw-page-title-main">Martin Eberhard</span> American engineer and business executive (born 1960)

Martin Eberhard is an American engineer and entrepreneur who co-founded Tesla, Inc. with Marc Tarpenning in 2003, where Eberhard was its original CEO serving until late 2007. In 2015, he was inducted into the University of Illinois Engineering Hall of Fame.

<span class="mw-page-title-main">Automotive industry in China</span>

The automotive industry inmainland China has been the largest in the world measured by automobile unit production since 2008. As of 2024, mainland China is also the world's largest automobile market both in terms of sales and ownership.

<span class="mw-page-title-main">Electric car</span> Car propelled by an electric motor using energy stored in batteries

An electric car or electric vehicle (EV) is a passenger automobile that is propelled by an electric traction motor, using electrical energy as the primary source of propulsion. The term normally refers to a plug-in electric vehicle, typically a battery electric vehicle (BEV), which only uses energy stored in on-board battery packs, but broadly may also include plug-in hybrid electric vehicle (PHEV), range-extended electric vehicle (REEV) and fuel cell electric vehicle (FCEV), which can convert electric power from other fuels via a generator or a fuel cell.

<span class="mw-page-title-main">BYD Company</span> Chinese manufacturing company

BYD Company Limited or BYD is a publicly listed Chinese multinational conglomerate manufacturing company headquartered in Shenzhen, Guangdong, China. It is a vertically integrated company that has several major subsidiaries, including BYD Auto which produces automobiles, BYD Electronics which produces electronic parts and assembly, and FinDreams, a brand name of multiple companies that produces automotive components and electric vehicle batteries.

The World Competitiveness Yearbook is an annual report published by the Swiss-based International Institute for Management Development (IMD) on the competitiveness of nations and has been published since 1989. The yearbook benchmarks the performance of 63 countries based on 340 criteria measuring different facets of competitiveness. It uses two types of data:

<span class="mw-page-title-main">Electric vehicle industry in China</span>

The electric vehicle industry in China is the largest in the world, accounting for around 58% of global production of electric vehicles (EVs) and more than 1.5 million exports in 2023. In 2023, CAAM reported China had sold 9.05 million passenger electric vehicles, consisting 6.26 million BEVs and 2.79 million PHEV. China also dominates the plug-in electric bus and light commercial vehicle market, reaching over 500,000 buses and 247,500 electric commercial vehicles in 2019, and recording new sales of 447,000 commercial EVs in 2023.

<span class="mw-page-title-main">Plug-in electric vehicles in China</span> Market overview

In China, the term new energy vehicle (NEV) is used to designate automobiles that are fully or predominantly powered by electric energy, which include plug-in electric vehicles — battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) — and fuel cell electric vehicles (FCEV). The Chinese Government began implementation of its NEV program in 2009 to foster the development and introduction of new energy vehicles, and electric car buyers are eligible for public subsidies.

From 2014 until 2024, Apple undertook a research and development effort to develop an electric and self-driving car, codenamed "Project Titan". Apple never openly discussed any of its automotive research, but around 5,000 employees were reported to be working on the project as of 2018. In May 2018, Apple reportedly partnered with Volkswagen to produce an autonomous employee shuttle van based on the T6 Transporter commercial vehicle platform. In August 2018, the BBC reported that Apple had 66 road-registered driverless cars, with 111 drivers registered to operate those cars. In 2020, it was believed that Apple was still working on self-driving related hardware, software and service as a potential product, instead of actual Apple-branded cars. In December 2020, Reuters reported that Apple was planning on a possible launch date of 2024, but analyst Ming-Chi Kuo claimed it would not be launched before 2025 and might not be launched until 2028 or later.

<span class="mw-page-title-main">Lucid Motors</span> Electric vehicle company based in Newark, California, United States

Lucid Group, Inc. is an American automotive and technology company that makes electric vehicles and supplies advanced electric vehicle powertrain systems. The company is headquartered in Newark, California. In September 2021, the company began producing the Lucid Air sedan at its factory in Casa Grande, Arizona. The company expects to begin production of its second model, the Lucid Gravity SUV, in late 2024. Lucid also supplies and develops powertrain technology to other automakers, including Aston Martin.

<span class="mw-page-title-main">CATL</span> Chinese battery manufacturer

Contemporary Amperex Technology Co., Limited (CATL) is a Chinese battery manufacturer and technology company founded in 2011 that specializes in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems (BMS). The company is the biggest EV battery manufacturer, with a global market share of around 37% in 2023. The company is headquartered in the city of Ningde in China's Fujian province.

<span class="mw-page-title-main">Howard Yu</span> Hong Kong professor

Howard Yu is a Hong Kong-born academic and author who is the LEGO professor of management and innovation at IMD Business School. He has been the director of the IMD's Center for Future Readiness since 2020. He is also the director of Advanced Management Program (AMP) and Future Readiness Strategy (FRS) open program of IMD.

There are currently about 150 active brands in the Chinese automobile market. Among them are 97 Chinese domestic brands and 43 joint venture (JV) brands. Before 2010, the traditional "Big Four" refers to the four major state-owned car manufacturers, SAIC, FAW, Dongfeng and Changan. Other Chinese car manufacturers, both from public and private sectors, like Geely, BAIC, BYD, Chery, GAC, Great Wall, JAC and Seres emerged as the major players with the expansion of Chinese automotive industry.

References

  1. Cabral, Alvin R. (May 16, 2023). "Tesla ranked top future-proof automotive company". The National.
  2. "Roche et Richemont parmi les compagnies les mieux parées à affronter 2023 selon IMD". L'Agefi .
  3. Montebello, Leah (15 December 2021). "Apple struggles to keep pace with Google and Amazon according to new study on future readiness". City A.M.
  4. Peel, Antonia Garrett. "Four lessons from the world's most 'future-ready' businesses". Management Today .
  5. 1 2 "Tesla most 'future-ready' carmaker, China's BYD rising: Report". Al-Jazeera .
  6. "BYD challenging Tesla's dominance, says IMD's Yu". Bloomberg TV. 2024-03-06. Retrieved 2024-05-28.
  7. "Microsoft a top tech innovator, says IMD". CNBC. 2024-03-06. Retrieved 2024-05-28.
  8. "Chinese carmakers gather steam as innovation thrives, expert says". China Daily .
  9. 1 2 3 "Our Research Methodology - IMD business school for management and leadership courses". www.imd.org.
  10. Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National .
  11. 1 2 Yu, Howard; Shan, Jialu; Boutalikakis, Angelo; Tempel, Lawrence; Balian, Zuriati (March 21, 2022). "What Makes a Company "Future Ready"?" via Harvard Business Review.
  12. 1 2 3 "IMD Future Readiness Indicator - 2024". www.imd.org.
  13. 1 2 3 4 5 6 7 8 9 10 11 12 "IMD Future Readiness Indicator - Automotive 2023". www.imd.org.
  14. "Automotive 2022 - IMD business school for management and leadership courses". www.imd.org.
  15. "Automotive 2021 - IMD business school for management and leadership courses". www.imd.org.
  16. "MD Future Readiness Indicator - Technology 2023". www.imd.org.
  17. "IMD Future Readiness Indicator - Fashion Industry 2023". www.imd.org.
  18. 1 2 "IMD Future Readiness Indicator - Fashion Industry 2022". www.imd.org.
  19. 1 2 3 4 5 6 7 "IMD Future Readiness Indicator - Financial Services 2023". www.imd.org.
  20. "Finance 2022 - IMD business school for management and leadership courses". www.imd.org.
  21. "Financial services 2021 - IMD business school for management and leadership courses". www.imd.org.
  22. "IMD Future Readiness Indicator - Pharma 2023". www.imd.org.
  23. "IMD Future Readiness Indicator - Pharma 2022". www.imd.org.
  24. "IMD Future Readiness Indicator - Technology 2023". www.imd.org.
  25. "IMD Future Readiness Indicator - Technology 2022". www.imd.org.
  26. Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.