Future Readiness Indicator

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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 English [5] Bloomberg TV, [6] and CNBC, [7] as well as other news outlets. [8] [9] [10] The Future Readiness Indicator currently covers 182 companies across six different industries. The latest update was released in December 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] [11]

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. [12] [13]

The data is publicly accessible from company outlets, news sources, and thematic reports. Factiva, CrunchBase, Espacenet, Sustainalytics, and Google Trends also supplement data collection. [12] [14]

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. [14] Each company is ranked from 1 (best) to n (worst, n=sample size) on a 1-100 scale. [12]

Rankings

Automotive

Company2024 [15] 2023 [16] 2022 [17] 2021 [18] 2020 [16] 2019 [16] 2018 [16] 2017 [16] 2016 [16] 2015 [16] 2014 [16] 2013 [16] 2012 [16] 2011 [16] 2010 [16]
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 [15] 2023 [19]
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

Company2024 [20] 2023 [21] 2022 [22] 2021 [22]
Hermès 1243
LVMH 2456
Inditex 381315
Nike 4112
Lululemon 5721
Kering 6335
Richemont 7668
Prada 81010
Zalando 957
Adidas 10141212

Financial services

Company2024 [15] 2023 [23] 2022 [24] 2021 [25] 2020 [23] 2019 [23] 2018 [23] 2017 [23] 2016 [23] 2015 [23]
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

Company2024 [26] 2023 [27] 2022 [28]
Roche 151
Novo Nordisk 2713
Eli Lilly and Company 337
AstraZeneca 423
Novartis 545
Johnson & Johnson 688
Bristol Myers Squibb 764
Merck & Co. 899
Pfizer 912
Gilead Sciences 101414

Technology

Company2024 [29] 2023 [30] 2022 [31] 2021 [32] [33]
Nvidia 1236
Microsoft 2123
Meta Platforms 3364
Alphabet 4411
Apple 5559
Amazon 61042
AMD 7885
Qualcomm 814917
SAP 9192519
Netflix 1012297

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 English .
  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. "Future readiness ranking: "So much unpredictability ahead"". YouTube. 2024-03-06. Retrieved 2024-12-26.
  9. Nguyen, Britney (2024-11-25). "Meta could outdo Google in the AI transformation, professor says". Quartz. Retrieved 2024-12-26.
  10. Peel, Antonia Garrett (2024-11-27). "Three hallmarks of a 'future-ready' business". Management Today. Retrieved 2024-12-26.
  11. "Chinese carmakers gather steam as innovation thrives, expert says". China Daily .
  12. 1 2 3 "Our Research Methodology - IMD business school for management and leadership courses". www.imd.org.
  13. Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National .
  14. 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.
  15. 1 2 3 "IMD Future Readiness Indicator - 2024". www.imd.org.
  16. 1 2 3 4 5 6 7 8 9 10 11 12 "IMD Future Readiness Indicator - Automotive 2023". www.imd.org.
  17. "Automotive 2022 - IMD business school for management and leadership courses". www.imd.org.
  18. "Automotive 2021 - IMD business school for management and leadership courses". www.imd.org.
  19. "MD Future Readiness Indicator - Technology 2023". www.imd.org.
  20. "IMD Future Readiness Indicator - Fashion Industry 2024". www.imd.org.
  21. "IMD Future Readiness Indicator - Fashion Industry 2023". www.imd.org.
  22. 1 2 "IMD Future Readiness Indicator - Fashion Industry 2022". www.imd.org.
  23. 1 2 3 4 5 6 7 "IMD Future Readiness Indicator - Financial Services 2023". www.imd.org.
  24. "Finance 2022 - IMD business school for management and leadership courses". www.imd.org.
  25. "Financial services 2021 - IMD business school for management and leadership courses". www.imd.org.
  26. "IMD Future Readiness Indicator - Pharma 2024". www.imd.org.
  27. "IMD Future Readiness Indicator - Pharma 2023". www.imd.org.
  28. "IMD Future Readiness Indicator - Pharma 2022". www.imd.org.
  29. "IMD Future Readiness Indicator - Technology 2024". www.imd.org.
  30. "IMD Future Readiness Indicator - Technology 2023". www.imd.org.
  31. "IMD Future Readiness Indicator - Technology 2022". www.imd.org.
  32. "IMD Future Readiness Indicator - Technology 2021". www.imd.org.
  33. Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.