CRM Archive

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BCG – Most Innovative Companies 2023

For the third straight year, the evidence is mounting: companies that both prioritize innovation and make sure that they are ready to act are widening the gap over less capable competitors. The leaders at these firms are consistently delivering new products, entering new
markets, and establishing new revenue streams. The laggards struggle to make headway beyond incremental improvements.

This year, the findings from our global innovation survey dovetail with other new BCG research showing that companies
built for the future share a common set of attributes that enable them to exhibit superior performance, be more resilient to shocks and disruptions, and exploit innovation faster for value-creating growth. In addition to people and technology capabilities (including, importantly, AI), one of these attributes is an innovation-driven culture.

In this year’s Most Innovative Companies report, we examine what innovation-ready leaders (those that are ready to develop product, process, and business model innovations that can deliver sustainable impact) are doing to pull ahead and how innovation is building their resilience to economic uncertainty and fueling their pursuit of lower emissions. In “A Downturn Ups the Stakes in Innovation,” we explore how a potential downturn in 2023 is evoking a much different response than did the 2009 financial crisis, especially among leading firms. In “How Early Winners Are Unlocking AI’s Potential,” we dig into the critical role of artificial intelligence (AI) in innovation as in many other areas of business today.

More: BCG Publications 2023

Innovation has never been more important—and leading innovators are showing why. The top 50 companies in the 2023 Most Innovative Companies report outperform the MSCI World Index on shareholder return by 3.3 percentage points per year.

How Leaders Are Demonstrating the Advantages of Innovation

In this year’s Most Innovative Companies report, we examine what innovation-ready leaders (those that are ready to develop product, process, and business model innovations that can deliver sustainable impact) are doing to pull ahead. We also discuss the importance of innovation in terms of how it helps leaders build their resilience to economic uncertainty.

Download the 2023 Most Innovative Companies report

The Formula for Innovation from Leading Companies

Leaders are consistently delivering new products, entering new markets, and establishing new revenue streams, while laggards struggle to make headway beyond incremental improvements.

Read chapter one

Explore the interactive rankings
Explore the interactive rankings
15-Years-Most-Innovative-Promo.jpg

17 Years of the Most Innovative Companies
BCG started publishing an annual innovation report—with its list of the 50 companies most admired by global innovation executives—in 2005. Explore the changing rankings and the rich history of innovation thought leadership.

A Downturn Ups the Stakes in Innovation

Times have changed. During the 2009 downturn, only 58% of companies planned to increase spending and almost 15% expected to cut innovation investment. Today, a growing number of companies are beginning to recognize the advantages of innovation, with 79% ranking it among their top three priorities (15 points more than in 2009) and 66% planning to increase spending (42% by more than 10%).

Read chapter two

How Early Winners Are Unlocking AI’s Potentials

The question is not whether AI can have an impact, but rather if companies are using AI properly and for use cases with the potential to drive real business value.

Read chapter three

Building Resilience and Advantage Through Innovation

Once again, we see the most innovative companies producing greater shareholder returns and building resilience and advantage through innovation. BCG’s 2023 global survey highlights the advantages of innovation and how leaders are outpacing others by using tools whose importance is climbing fast, such as M&Aportfolio planning, and AI.

Our 2023 survey found a near-record high level of innovation importance: 79% of companies ranked innovation among their top three priorities, up from 75% in 2022, and more than 40% expect to significantly increase spending this year, a jump of 16 percentage points over the last economic downturn in 2009.

But there is also an emerging group of companies that is going much further and putting innovation front and center in their future growth strategies. While all companies on average expect to allocate more money toward incremental innovations close to the core, this small group of innovation-ready companies is allocating fully one-third of spending toward developing breakthrough innovations.

These companies use a wide array of strategic tools to strengthen their innovation platforms and practices and are much more aggressive in their use of M&A, targeting innovative technologies or processes, or acquiring leaders and employees with a demonstrated ability to innovate. They also are more likely to orchestrate or participate in ecosystems, engaging with external partners—and even competitors—on innovations. They drive digital innovation with a clear bias toward new digital products, agile teaming, and improving customer and marketing insights. They leverage the power of innovation in AI, and regularly review the performance of innovation units or vehicles and shift resources toward centers of success. They understand that effective portfolio governance and management, especially with respect to data transparency, are key to driving impact.

Explore 17 years of the 50 most innovative companies

Authors: By Justin ManlyMichael RingelAmy MacDougallWill CornockJohann D. HarnossKonstantinos ApostolatosRamón BaezaRyoji KimuraMichael WardBeth VinerJean-Manuel IzaretWendi BacklerVladimir LukicSylvain Duranton, and Romain de Laubier

 

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Manufacturing activity falls further – EY ITEM Club comments

  • The manufacturing downturn deepened in July, with the sector’s Purchasing Managers’ Index (PMI) heading further into contractionary territory. And with the impact of higher interest rates on household and corporate budgets growing, the EY ITEM Club doesn’t expect a significant uptick in manufacturing activity this year.
  • The S&P Global/CIPS survey also pointed to another fall in input cost inflation in the goods sector, adding to other leading indicators showing growing evidence of disinflation. But given the Bank of England’s focus on inflation in the services sector, this probably won’t have much bearing on its next interest rate decision later this week.

Martin Beck, Chief Economic Advisor to the EY ITEM Club, says: “July’s final S&P Global/CIPS manufacturing survey reported another decline in activity, with the PMI falling to 45.3 from 46.5 in June. The index was dragged down by a significant decline in production, with survey respondents suggesting that mounting uncertainty from rising interest rates had led to a softening in demand both at home and from abroad.

“But the fall in the PMI balance looks to have been exaggerated by some overstocked firms choosing to cut purchases amid improving supply chains, leading to a further fall in supplier delivery times. The PMI is also prone to being affected by sentiment, so the weight of recent bad news about rising mortgage rates may have depressed the outlook of survey respondents and dragged on the PMI.

“Beyond the survey’s disappointing set of backward-looking balances, its forward-looking indicators didn’t offer much positivity either. Respondents reported a large fall in new business, suggesting that manufacturing output is likely to remain weak in the near-term. Goods producers are likely to struggle over the rest of this year as rising borrowing costs and still-high inflation continue to squeeze household and corporate budgets.

“One area where the survey did offer some brighter news was on costs. Input cost inflation fell outright for the third consecutive month as pressures on transport and energy prices eased. But manufacturers appear to be attempting to rebuild margins rather than pass lower costs onto consumers, with factory gate charges remaining flat. Falling cost pressures should be welcomed by the Monetary Policy Committee (MPC), but the committee is unlikely to place much weight on the results of today’s survey. Instead, the MPC’s attention is likely to be focused on the much bigger services sector, where inflation has come down recently, but remains uncomfortably high. Therefore, the EY ITEM Club still expects the MPC to raise Bank Rate by 25bps later this week.”

More: EY

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Arne Vatnøy: The idea behind Norwegian Offshore Wind is that we are industry driven

Norwegian Offshore Wind Cluster –  to maximize opportunities for the Norwegian OWI
 Marek Grzybowski (5) questions to Arne Vatnøy, Communication Manager,  Norwegian Offshore Wind
An exclusive interview to Baltic Journalist Maritime Club  of the Baltic Sea & Space Cluster  (BSSC)

The dynamic between the small startups, SMEs and the large international companies is core of collaboration in the Norwegian Offshore Wind cluster. The organization has several meeting places where are organized B2Bs between the cluster members, and they are also represented in our working groups for different markets and supply chain issues.

The idea behind Norwegian Offshore Wind is that the Norwegian Offshore Wind is industry driven. All the working groups are led be a representative from Cluster  member companies. With the position that Norway has as pioneers withing the floating offshore wind industry, it is natural that the Norway is the host country of the global flagship event for floating wind.

Marek Grzybowski: The Norwegian government’s target is 30 GW by 2040. Multiconsult’s mapping shows much greater potential for the construction of new offshore wind farms along the entire coast. Norwegian Offshore Wind, together with developers Equinor, Source Galileo, Hafslund and Deep Wind Offshore, commissioned the preparation of the report. Is it possible to build 338 GW of offshore wind energy in Norway?

Arne Vatnøy, Norwegian Offshore Wind: This report shows that there are large areas we need to examine further in the process of finding new areas for offshore wind development. The industry supports the government´s ambitious goal of 30 GW by 2040, and we will contribute constructively with input in the process of finding the best suited areas. We see that there is a large potential, especially within floating offshore wind, and the industry will continue to provide new insight that will bring the development forward.

Marek Grzybowski: The report places particular emphasis on cooperation with other maritime industries. What are the industries? How will industries related to the blue economy work together?

Arne Vatnøy, Norwegian Offshore Wind: In Norway, we have a good dialogue with the fishing organizations, and this is vital to succeed with further offshore wind development. When we are going to find new areas for offshore wind we need insight and knowledge that secure coexistence. We work together with different interest groups in the government´s coexistence group, and we are also facilitating debates, discussions, seminars and meeting places with all the industries related to the blue economy. At this year´s Floating Wind Days, coexistence is of course high on the agenda.

Marek Grzybowski: Norwegian Offshore Wind achieved ARENA Pro Cluster status through Norwegian Innovation Clusters in 2021. Norwegian Offshore Wind Cluster members range from small start-ups to international companies. What is the cooperation of these companies in the Cluster? How does the cluster achieve the synergy effect?

Arne Vatnøy, Norwegian Offshore Wind: The dynamic between the small startups, SMEs and the large international companies is core of collaboration in our organization. We have several meeting places where we organize B2Bs between our members, and they are also represented in our working groups for different markets and supply chain issues. All the consortia applying for the Norwegain offshore wind parks are represented in our cluster, and they are working together to influence policy makers and authorities in our Developers Forum.

Marek Grzybowski: There are 17 working groups in the Norwegian Offshore Wind cluster. There is also a steering committee in the cluster. Why was this structure created? What is the role of these Cluster structures in the development of innovation and business?

Arne Vatnøy, Norwegian Offshore Wind: The idea behind Norwegian Offshore Wind is that we are industry driven. All the working groups are led be a representative from our member companies. The steering committee is also put together to represent the diversity in this industry. Their role is to help create the strategy for the cluster and make sure that it is the opinions of the industry that drive our work forward.

Marek Grzybowski: Floating Wind Days 2023 will be held in Haugesund on May 24-25th. What is the mission and main purpose and role of this event? Who will the speakers be?  

Arne Vatnøy, Norwegian Offshore Wind: With the position that Norway has as pioneers withing the floating offshore wind industry, it is natural that we are the host country of the global flagship event for floating wind. We have more than hundred speakers, see the full list and program at www.floatingwinddays.com. This year´s festival is opened by the Prime Minister of Norway.

Marek Grzybowski: Thank you for your answers

 

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Sidsel Norvik, Director, Nor-Shipping: Nor-Shipping it is a world leading arena of the maritime innovations and business

Marek Grzybowski (5) questions to Sidsel Norvik, Director, Nor-Shipping, An exclusive interview to Baltic Journalist Maritime Club  of the Baltic Sea & Space Cluster  (BSSC)

The aftermaths of COVID and the attack on Ukraine has created huge waves of uncertainty and instability all over the world and anyone operating internationally is affected by geopolitical upheavals and the years ahead will focus on zero emissions and climate neutrality. The maritime business is indeed very complex, dynamic and fast evolving, which in turn makes an arena like Nor-Shipping very important. Nor-Shipping is a world leading arena, where cutting edge Norwegian and international companies showcase the innovations that deliver competitive advantage for their customers. Nor-Shipping’s partnership with WISTA is a key contributor in our effort to raise awareness of the challenges and the many great opportunities for women in shipping. Ocean Campus is an important part of the Nor-Shipping. It  is a dedicated island of exhibition booths showcasing some of the world’s leading maritime universities and colleges. Leading Ocean Campus Partner is the World Maritime University (WMU).

Marek Grzybowski: Maritime business today is shipping, ports and logistics, oil and gas production, offshore wind farms, fish and seafood production, it is sea tourism and exploration, it is science and education, it is a large area of ​​creating innovation, it is a specific community of people, business and people who love the oceans, they are partners in business, science and environmental protection. Can you briefly characterize the Nor-Shipping event?

Sidsel Norvik, Director, Nor-Shipping: Nor-Shipping is a world leading arena, where cutting edge Norwegian and international companies showcase the innovations that deliver competitive advantage for their customers. It is the place where the maritime, tech, finance and wider business segments cross paths to learn from one another, forge partnerships, and access new economic value creation.

The 22,000 m2 exhibition space is the beating heart of the week’s activity. This is where delegates and visitors can experience the products, services and companies that will help drive a new age of ocean industry development. Spiced with a lot of topical conferences and a dynamic after work festival, Nor-Shipping provide an invaluable combination of insight, business opportunities and social networking.

Marek Grzybowski: The maritime business is extremely complex, currently developing in close connection with IT, AI, space technologies, VR and IoT. What is the concept of presenting the business sector, science and companies just entering the maritime business in exhibition halls?

Sidsel Norvik, Director, Nor-Shipping: The maritime business is indeed very complex, dynamic and fast evolving, which in turn makes an arena like Nor-Shipping very important. Just by walking the isles, you get to experience the latest innovation and technology from a wide range of maritime segments and countries – all in one place.

You can also attend the Blue Talks, Technical seminars and the Offshore Aquaculture conference for free and you can upgrade your ticket with a small fee to join the 2nd Maritime Hydrogen Conference, the 1st Offshore Wind Conference, the 4th Int. Ship Autonomy and Sustainability Summit and a lot more. The program is vast and easily available to plan your participation.

Marek Grzybowski: Nor-Shipping is an opportunity to present the latest achievements in science and technology. However, the context in which the maritime economy functions cannot be avoided. Russia’s attack on Ukraine clearly affected the conditions for the functioning of the maritime economy. Nor-Shipping has confirmed that Joseph E. Stiglitz, the renowned Nobel laureate in Economics and former Chief Economist at the World Bank, will be a keynote speaker at this year’s Ocean Leadership Conference, taking place in Lillestrøm, Norway, 6 June. The war on land caused significant changes in the operation of maritime business. Do you expect this topic to come up during the 2023 Nor-Shipping Ocean Leadership Conference?

Sidsel Norvik, Director, Nor-Shipping: The aftermaths of COVID and the attack on Ukraine has created huge waves of uncertainty and instability all over the world and anyone operating internationally is affected by geopolitical upheavals and the years ahead will focus on zero emissions and climate neutrality. All in all a challenging landscape to navigate in. This year’s Ocean Leadership Conference will bring together high-profile international leaders, from the ocean industries and beyond, to ask how we can move forward towards collective goals, and individual business ambitions.

Together we will assess if partnerships between maritime players, energy suppliers, financial institutions, authorities and other central stakeholders holds the key to unlocking the energy transition and decarbonisation of shipping. The future will not be defined by individual companies, or isolated breakthroughs, but rather by how we move together for a profitable tomorrow.

Marek Grzybowski: The role of women in the maritime business is growing. WISTA Norway is a partner of Nor-Shipping. WISTA Norway launched ‘40 by 30’ Pledge to allow the maritime company to show that the company actively commit to promoting diversity in the maritime industry. Do you anticipate special businesswoman activity during meetings in 2023?

Sidsel Norvik, Director, Nor-Shipping: To improve conditions for women in shipping and increase number of women across the maritime industry is important. Nor-Shipping’s partnership with WISTA is a key contributor in our effort to raise awareness of the challenges and the many great opportunities for women in shipping.

Nor-Shipping has of course also signed the “40 by 30” pledge and urge others to follow. WISTA Norway is 35 years this year and will celebrate with a Leadership Award ceremony. They will also present “10 women to watch” together with YoungShip and execute their “Waves of change” program, which will be a series of topical session at the Blue Talk stage in Hall E.

Marek Grzybowski: Nor-Shipping launches Ocean Campus in partnership with World Maritime University. This is a new initiative. What is the mission of this event? What other events important for the maritime business will accompany Nor-Shipping 2023?

Sidsel Norvik, Director, Nor-Shipping: Ocean Campus is a dedicated island of exhibition booths showcasing some of the world’s leading maritime universities and colleges. Leading Ocean Campus Partner is the World Maritime University (WMU) and other Campus members include the Norwegian University of Science and Technology (NTNU), BI Norwegian Business School, UiT The University of the Arctic (UArctic), MLA College, Oslo MET, Alba Graduate Business School and SINTEF Ocean.

These universities and colleges represent a solid geographical spread and a wide range of maritime industry competency. Together they will form an Ocean Campus Committee of industry experts to tailor an exciting program for the main Ocean Campus day on Friday 9 June. The mission is to demonstrate how academia is adjusting to the maritime transition and what maritime career opportunities are in store for the next generation. We will stream this event to allow students and next generation shipping employees to get access from wherever they might be.

Marek Grzybowski: Thank you for your answers

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Daniel Garden, CEO, Blue Maritime Cluster: The cluster companies total revenues are estimated to 58 bn NOK in 2023

5 questions to Daniel Garden, CEO, Blue Maritime Cluster.  

An exclusive interview to Baltic Journalist Maritime Club  of the Baltic Sea & Space Cluster  (BSSC)

By: Marek Grzybowski (BSSC)

The Blue Maritime cluster is a National maritime cluster mandated by the Royal Ministry of Trade, Industry and Fisheries to accelerate innovation within the maritime supply chain.  The cluster companies total revenues are estimated to 58 bn NOK in 2023 against 54 bn in 2022. Our export share is 50% on average divided between yards (NOK 2.5 bn), shipping companies (3.3 bn), services (6.7 bn) and equipment suppliers (11.1 bn).

New Blue Deal, launched in june 2021, where we take aim on becoming the first zero emission maritime cluster in the world. Many initiatives around the world are looking at new green alternative fuels and energy to run the ships of tomorrow. We look at the energy sources. Yes they must be low and zero emission. How do we produce them, harvest them and how do we establish an infrastructure for them? Furthermore we look at the energy consumption in the vessels. Not only engines and generators, but the complete consumption of energy that goes into a ship. Where can we save?

Through our work in R&D and competence elevation, we are determined to develop a complete green newbuilding program, a green refit program and a circular value chain for decommissioning – all based on the New Blue Deal directions.

Marek Grzybowski: Please, describe the fields in which the Cluster operates? In which region of Norway are the companies operating in the cluster concentrated?

Daniel Garden, CEO, Blue Maritime Cluster:

The Blue Maritime cluster is a National maritime cluster mandated by the Royal Ministry of Trade, Industry and Fisheries to accelerate innovation within the maritime supply chain. We facilitate R&D projects, pre-studies, competence project and analysis activities in order to provide the participants with market intelligence and knowledge within commerce, technology or methodology. The geografical concentration of this industry is highest in the region between Trondheim and Bergen on the west coast.

Marek Grzybowski: In 2014, due its unique global market position and its important contribution to Norwegian value creation, the cluster was granted the status of a Global Centre of Expertise. What role does Blue Maritime Cluster play in the green transition?

Daniel Garden, CEO, Blue Maritime Cluster:

I would start with mentioning the even more important cluster strategy, New Blue Deal, launched in june 2021, where we take aim on becoming the first zero emission maritime cluster in the world. Many initiatives around the world are looking at new green alternative fuels and energy to run the ships of tomorrow. To us, the ships of tomorrow must also require far less energy to operate in order to accommodate reduced energy concentration or other scarcities accompanied with alternative energy sources. Looking at both these topics simultaneously, we believe we can arrive at the goal faster. Combining this work with the unique position and skills our cluster has within maritime innovation, we believe we will succeed.

Marek Grzybowski: What does the cluster build its competitive advantage on? What tasks related to raising the level of innovation does the cluster focus on? What technologies, solutions and businesses of the future are being developed. What projects are implemented by the cluster?

Daniel Garden, CEO, Blue Maritime Cluster:

We base our projects and competence development around the idea of the full supply chain is constantly challenging the established methods and technologies. By being the first with the latest solutions, we can compete against larger and/or cheaper regions of the world. I believe the entire European cluster would benefit from chasing such a position, actually.

As the whole maritime community of companies, research and universities, risk capital, public bodies and entrepreneurs are all represented in the cluster, we are also able to address the challenges, like zero emission. Our strategy on zero emission starts with the ship operations and looking at how they can become more efficient. The least polluting miles are the ones you never sail.
Then we look at the energy sources. Yes they must be low and zero emission. How do we produce them, harvest them and how do we establish an infrastructure for them? Furthermore we look at the energy consumption in the vessels. Not only engines and generators, but the complete consumption of energy that goes into a ship. Where can we save?
Moving on to smart use of energy, we look at how to develop methods and technologies that will let us use the energy over and over again. It can be heat recovery, regeneration on winches and more.

In an extended view, we will not succeed in net zero before we also look at the building and scrapping processes of the vessels. How can we build emission free? What new supply chains must be established? It is all very exciting work, I must admit.

Marek Grzybowski: The Steering Committee operates in the Cluster. What is its mission, what are its tasks, what is its role in creating development directions, projects and business activities? What are the most important directions for the development of the maritime business for the Møre maritime cluster?

Daniel Garden, CEO, Blue Maritime Cluster:

The Steering Committee is our board that oversees the cluster’s administration and strategic progress. Our development directions are formed on the basis of our strategy where the companies themselves initiate the topics on which to focus on. Our activity is dependent on the companies involving themselves in the projects, spending their time and money on them. So to reach a high level of committment we also need the projects to be relevant to the participants.

Through our work in R&D and competence elevation, we are determined to develop a complete green newbuilding program, a green refit program and a circular value chain for decommissioning – all based on the New Blue Deal directions.

Commercially, the Norwegian market is too small for us, and as export always has been an important part of the cluster’s revenues, developing the export is also an important foundation for our work.

Marek Grzybowski: The high level of the offer of innovative technologies results in a high level of revenues of companies operating in the Cluster in the Møre region. What is the overall revenue for the four main segments in Møre region in 2020-2022? What are the prospects for 2023? What is the share of export revenues? What is the future export potential for the maritime companies in the Møre region? What are Cluster export opportunities and barriers?

Daniel Garden, CEO, Blue Maritime Cluster:

The cluster companies total revenues are estimated to 58 bn NOK in 2023 against 54 bn in 2022. Our export share is 50% on average divided between yards (NOK 2.5 bn), shipping companies (3.3 bn), services (6.7 bn) and equipment suppliers (11.1 bn).

The governent has an ambition for 50% increase of export by 2030. Our cluster will be well prepared to take our share from the segments within ocean based energy, ocean based food and ocean based travel.

Marek Grzybowski: Thank you for your answers