BIQ presents the Innovation Index by Vertical
The BIQ Innovation Index (c) tracks and groups innovative corporations by financial performance. We also produce a more traditional index by Vertical using the same base calculations.
For Enterprise Value and or Sales Growth the E-Commerce group (Amazon, Alibaba, E-bay) is still outperforming the bricks and mortars. That is 44% 1 year EV growth and 37% sale growth vs. 11% and 4% for Traditional Commerce.
If you want to know which vertical has the strongest competitive advantage (ROIC), look no further than the consumer facing companies from Telecom Media Technology Consumer with a whopping 35% ROIC.
Telecom Media Technology Business have a respectable numbers across the board. As does Logistics. Which seems to suggest that E-Commerce is driving Logistics growth and not Trad-Commerce.
Financial Services, Air Transport and Car Transport (negative and dragged down by Tesla woes) all have at least one negative innovation metric.
Five Innovation Trends and Drivers
1. A Platform for Everything. The Sharks here all build superior long term success on platforms. If you are a fan of Exponential Organizations. Go Digital. Build a Network. And a wide Moat.
2. SaaS = Something as a Service. Build your revenue growth engine around a Subscription Model, Services, Rentals, Annuity, to get a Enterprise Valuation of 10 x Anual Recurring Revenue. Have you started your Business Transformation with SaaS optimization to save costs? SaaStr reports there are 15,000 SaaS which Gartner states will account for 37% of IT Spend in 2020.
3. “Connect and Compete” was the principal theme of Hanover Messe 2018. Look beyond saturation in handsets and 4G Mobile and start putting IoT and Blockchain as a core differentiator of your business.
4. Smart Robots and 3D Printer. After all the fan-fair of X Marks the Spot, what is your roadmap for Industry 4.0 and Logistics 4.0?
5. Artificial Intelligence and Nano Tech. Want some light summer reading? Pair a NY Times best seller from 2002 with the Financial Times best business book from 2015.
Some of this material was presented for a ANTP Roundtable at Expo Logistics 17 “Ciencia No Ficción en la Cadena de Suministro, nuevas tecnologías para el futuro inmediato“
Hasta la vista baby. I’ll be back