Wednesday, June 4, 2008
Wednesday, April 30, 2008
Result Driven Innovation
Apple is widely viewed as one of, most innovative company in the world. But innovation at Apple comes cheap compared to other tech companies: Of the industry’s 50 most prolific investors in research and development, Apple spends the least as a percentage of revenue.
Apple spent $844 million on R&D in the calendar year 2007, just 3.2% of its revenue over that time. In contrast, Microsoft, which spent the most on R&D of any tech company, spent $7.4 billion, or 12.8% of its revenue, according to numbers compiled by CIO Zone.
In all, the top 50 R&D spenders plowed more than $50 billion into new products and services in 2007, spending an average of 9.7% of revenue on R&D.
The rest of the top 10 is a who’s who of tech companies. After Microsoft came IBM ($6.2 billion), Intel ($5.8 billion), Cisco ($4.7 billion), and H-P ($3.6 billion). Oracle ($2.5 billion), SAP ($2.3 billion), Google ($2.1 billion), Sun ($1.9 billion), and AMD ($1.8 billion) rounded out the top 10.
Google’s total was $890 million, or 74%, more than it spent on R&D last year, according to CIO Zone, making it the biggest mover in terms of dollars spent. Yahoo, which spent $1 billion R&D in 2007, increased its spending 30% from the year before. Other companies that increased R&D spending greatly are VMWare ($286 million, up 93%), Red Hat ($91 million, up 47%), and Salesforce.com ($64 million, up 43%).
Consequently, it is important that how to manage R&D process effectively rather than high budget expenses.Labels: Apple, Innovation, Microsoft, RD