Future Readiness Indicator

From Wikipedia, the free encyclopedia

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.[5]

History[edit]

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][6]

Methodology[edit]

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.[7][8]

The data is publicly accessible from company outlets, news sources, and thematic reports. Factiva, CrunchBase, Espacenet, Sustainalytics, and Google Trends also supplement data collection.[7][9]

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.[9] Each company is ranked from 1 (best) to n (worst, n=sample size) on a 1-100 scale.[7]

Rankings[edit]

Automotive[edit]

Company 2023[10] 2022[11] 2021[12] 2020[10] 2019[10]
Tesla 1 1 1 1 1
BYD 2 5 - - -
Volkswagen 3 3 - - 5
Hyundai 4 4 5 5 -
Ford Motors 5 - 4 4 3

Consumer Packaged Goods[edit]

Company 2023[13]
Coca-Cola 1
P&G 2
L'Oreal 3
Nestle 4
Diageo 5
The Estée Lauder Companies 6
Unilever 7
Brown–Forman 8
Pernod Ricard 9
Constellation Brands 10

Fashion[edit]

Company 2022[14] 2021[14]
Nike 1 2
Lululemon 2 1
Kering 3 5
Hermès 4 3
LVMH 5 6
Richemont 6 8
Zalando 7 -
Burberry 8 4
VF Corporation 9 11
Prada 10 -

Financial services[edit]

Company 2023[15] 2022[16] 2021[17] 2020[15] 2019[15]
Mastercard 1 1 1 1 1
Visa 2 2 2 2 2
JP Morgan Chase 3 3 - - -
DBS Bank 4 5 - - -
PayPal 5 4 5 4 4

Pharmaceutical[edit]

Company 2022[18]
Roche 1
Pfizer 2
AstraZeneca 3
Bristol Myers Squibb 4
Novartis 5
BioNTech 6
Eli Lilly and Company 7
Johnson & Johnson 8
Merck & Co. 9
Genmab 10

Technology[edit]

Company 2022[19] 2021[20]
Alphabet 1 1
Microsoft 2 3
Nvidia 3 6
Amazon 4 2
Apple 5 9
Meta Platforms 6 4
Twitter, Inc. 7 13
AMD 8 5
Qualcomm 9 17
Salesforce 10 10

References[edit]

  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. ^ a b "Tesla most 'future-ready' carmaker, China's BYD rising: Report". Al-Jazeera.
  6. ^ "Chinese carmakers gather steam as innovation thrives, expert says". China Daily.
  7. ^ a b c "Our Research Methodology - IMD business school for management and leadership courses". www.imd.org.
  8. ^ Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.
  9. ^ a b Yu, Howard; Shan, Jialu; Boutalikakis, Angelo; Tempel, Lawrence; Balian, Zuriati (March 21, 2022). "What Makes a Company "Future Ready"?" – via Harvard Business Review.
  10. ^ a b c "IMD Future Readiness Indicator - Automotive 2023". www.imd.org.
  11. ^ "Automotive 2022 - IMD business school for management and leadership courses". www.imd.org.
  12. ^ "Automotive 2021 - IMD business school for management and leadership courses". www.imd.org.
  13. ^ "MD Future Readiness Indicator - Technology 2023". www.imd.org.
  14. ^ a b "IMD Future Readiness Indicator - Fashion Industry 2022". www.imd.org.
  15. ^ a b c "IMD Future Readiness Indicator - Financial Services 2023". www.imd.org.
  16. ^ "Finance 2022 - IMD business school for management and leadership courses". www.imd.org.
  17. ^ "Financial services 2021 - IMD business school for management and leadership courses". www.imd.org.
  18. ^ "IMD Future Readiness Indicator - Pharma 2022". www.imd.org.
  19. ^ "IMD Future Readiness Indicator - Technology 2022". www.imd.org.
  20. ^ Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.