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
- ^ Cabral, Alvin R. (May 16, 2023). "Tesla ranked top future-proof automotive company". The National.
- ^ "Roche et Richemont parmi les compagnies les mieux parées à affronter 2023 selon IMD". L'Agefi.
- ^ Montebello, Leah (15 December 2021). "Apple struggles to keep pace with Google and Amazon according to new study on future readiness". City A.M.
- ^ Peel, Antonia Garrett. "Four lessons from the world's most 'future-ready' businesses". Management Today.
- ^ a b "Tesla most 'future-ready' carmaker, China's BYD rising: Report". Al-Jazeera.
- ^ "Chinese carmakers gather steam as innovation thrives, expert says". China Daily.
- ^ a b c "Our Research Methodology - IMD business school for management and leadership courses". www.imd.org.
- ^ Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.
- ^ 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.
- ^ a b c "IMD Future Readiness Indicator - Automotive 2023". www.imd.org.
- ^ "Automotive 2022 - IMD business school for management and leadership courses". www.imd.org.
- ^ "Automotive 2021 - IMD business school for management and leadership courses". www.imd.org.
- ^ "MD Future Readiness Indicator - Technology 2023". www.imd.org.
- ^ a b "IMD Future Readiness Indicator - Fashion Industry 2022". www.imd.org.
- ^ a b c "IMD Future Readiness Indicator - Financial Services 2023". www.imd.org.
- ^ "Finance 2022 - IMD business school for management and leadership courses". www.imd.org.
- ^ "Financial services 2021 - IMD business school for management and leadership courses". www.imd.org.
- ^ "IMD Future Readiness Indicator - Pharma 2022". www.imd.org.
- ^ "IMD Future Readiness Indicator - Technology 2022". www.imd.org.
- ^ Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.