Posted on Dec 9, 2013

A Comparison of 9 Companies Embracing Innovation as a Core Value

When it comes to innovation, which companies come to mind? 3M, the company that invented Post-It^®Notes, likely tops that list.

Innovation has been at the heart of 3M’s brand for a very long time. Even their corporate offices in St. Paul, Minnesota are located on Innovation Blvd. Not surprisingly, R&D Magazine gave their 2013 Innovator of the Year award to a 3M scientist.

3M has made innovation a differentiating value. In this context, the value of innovation can be defined as introducing something new; invention; advanced or ahead of the times.

There are a number of other large and successful companies that have also embraced innovation as a core value. This is a value that can easily cross industries. Yet, its meaning can be nuanced to fit the culture and mission of the company.

A Comparison of 9 Companies

Here’s a selection of companies from the 2013 Fortune-500 listing and how they define innovation:

HP (#15) – a huge IT company (now) focused on cloud, security, and big data:

“We are the technology company that invents the useful and the significant.”

UnitedHealth Group (#17) – a huge U.S. health care provider (e.g. insurance and benefit services):

“We learn from experiences of the past and use those insights to invent the future to make the health care environment work and serve everyone more fairly, productively and consistently.”

FedEx (#63) – a well-known provider of transportation and logistics services to businesses worldwide:

“We invent and inspire the services and technologies that improve the way we work and live.”

L-3 Communications (#197) – a major defense contractor to various U.S. government agencies:

“…developing new technologies, new ideas, and new ways of thinking to deliver the best solutions for our customers.”

Air Products (#273) – a major supplier of atmospheric gases:

“…cultivating ideas to deliver improvement and growth.”

KKR (#277) – a global investment firm:

“We constantly strive to be innovative – questioning accepted wisdom, creating new ideas and new approaches, and never resting on our laurels. We are self-starters with a “can-do” approach and a willingness to take prudent risks. We work passionately to retain the entrepreneurial spirit that created our firm and to fight against politics and bureaucracy.”

Ingredion (#386) – a global ingredient provider to the food, beverage, brewing and pharmaceutical industries:

“We are resolute in pursing innovation that creates value for our customers and shareholders.”

FMC Technologies (#417) – a major provider of equipment and services to the oil & gas industry:

“We believe the best is yet to be invented. We encourage purposeful creativity and thoughtful risk taking to create value for all stakeholders.”

Timken (#493) – a global producer of mechanical components (e.g. transmissions and gearboxes) and high-performance steel:

“We contribute to a world in motion by creating energy-efficient, innovative solutions that benefit our customers and the environment.”

Impact of Innovation

Innovation is about risk-taking. It’s about trying something new. Sometimes this means a company introduces something that is a real winner. For others, it can take a long time for a company to produce meaningful results.

For example, on the one hand, KKR experienced incredible growth from 2012 to 2013, jumping from #854 to #277 on the Fortune-500 listing. They are also one of the top companies of revenue per employee (over $10 million per employee!).

On the other hand, HP has experienced significant struggles over the past few years, falling from #10 to #15 on the Fortune-500 listing.

Then there is FedEx, a well-known brand that jumped from #70 to #63 on the Fortune 500 listing. Yet, they produce one of the lowest revenue per employees (only $152,000 per employee), putting them in the same category as Sears and Dollar Tree.

Bottom line: innovation is a value embraced by some very strong and successful companies, including some well-known brands, spanning a wide-variety of industries.