Forbes, recently released its eighth annual list of The World’s 100 Most Innovative Companies.
The list demonstrates creative disruption and how new players come in, innovate and garner the attention of investors.
“Innovation is as hard to define as it is to do successfully but we’ve figured out how to determine who’s winning at it by calculating an ‘Innovator’s Premium’ that gauges which companies are best able to capitalize on investors’ confidence in their creativity and inventiveness,” said Fred Allen, Forbes senior editor, leadership.
“This year, we see that digital transformation is where it’s at. The top three finishers No. 1 ServiceNow, No. 2 Workday, and No. 3 Salesforce all focus on that at the heart of what they do.”
The methodology used to determine the rankings are as following details:
1. The World’s Most Innovative Companies list consists of firms that investors feel are most likely to come up with the next big innovation, as determined by a formula developed by Professors Jeff Dyer of Brigham Young University and Hal Gregersen of MIT.
2. Companies are ranked by their innovation premium: the difference between their market capitalization and the net present value of cash flows from existing businesses (based on a proprietary algorithm from Credit Suisse HOLT).
3. The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth.
4. To be included on the list, firms need seven years of financial data and $10 billion in market cap.
Two of the Southeast Asian companies are listed within the top 30 index, even beat the rest of other international frontlines.
The Top 15 Asia's Most Innovative Companies of 2018, as extracted by Seasia, is as listed below:
