Innovation Matters!

Innovation matters. Big time. And, it makes a great difference to organization performance. I spotted this interesting blog post on Techcrunch, showing some interesting analysis of the mobile handset industry. An analyst from Deutsche Bank, Brian Modoff, pulled off this interesting analysis, showing that despite a small share of handset units and handset revenues, Apple and RIM have done a stellar job of garnering industry operating profits share. Its a disproportionate share!

Here are the charts:

handsets-profits

handsets-unit-share

handsets-revs

Fascinating stuff!

UPDATE: From the GigaOM blog, here’s a fresh post that “exposes Nokia’s Achilles heel”.

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6 thoughts on “Innovation Matters!

  1. super…as a corollary it could be worth comparing the advertising & marketing costs of the companies…going by your observation that innovation is what has got Apple n RIM a disproportionate share of profits,am willing to bet my money on the Nokia’s of the world having a proportionate share of their A& M costs to their handset unit share.
    If true,are they using advertising as an expensive substitute for innovation?

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  2. Pingback: Is advertising an expensive substitute for true innovation? « Ontdekking

  3. I agree, Vishal.
    Nokia certainly hasn’t been able to come up with an innovative product for quite some time now. All they are doing is packaging the same functionality in different shapes of boxes! They are enjoying the brand dividend (which they managed to create over the years, but which is dwindling anyway), whereas companies like Apple are enjoying the design and buzz dividend (which by nature are disproportionate).

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  4. Amazing! Glad I spotted this one. And I like Vnicholas’s thought about comparing marketing spends!

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  5. The term ‘innovation’ when used by the top honchos in the industry garners a lot of attention. But the application of innovation is strangely quite limited.
    We have just written down down our thoughts on the term ‘innovation’ and left a question behind for the readers to ponder on – Are YOU using Innovation to get ahead of competition?

    Source: – http://consultgenie.wordpress.com/2009/07/31/are-you-using-innovation-to-get-ahead-of-your-competition/

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