2017 Global Independent Operating Unit (IOU) Most Admired Knowledge Enterprises (MAKE) Report
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1 2017 Global Independent Operating Unit (IOU) Most Admired Knowledge Enterprises (MAKE) Report Teleos, in association with The KNOW Network, established the Global Independent Operating Unit (IOU) Most Admired Knowledge Enterprises (MAKE) research program in It identifies and recognizes individual companies, divisions, business units, agencies and departments, which form part of a larger enterprise, for creating shareholder/stakeholder wealth by transforming new as well as existing enterprise knowledge into superior products/services/solutions. The Global IOU MAKE research is based on the Delphi methodology. This technique uses an expert panel s perceptual knowledge to identify and examine critical issues in the case of the Global IOU MAKE study to identify those organizations which are leaders in the 21st century knowledge economy. Through several iterations a consensus is developed among the panel s experts. It is this consensus of expert opinion which provides the validity to the Delphi and Global IOU MAKE study results. A panel of Fortune Global 500 senior executives and leading knowledge management/intellectual capital/innovation/organizational learning experts selects the Global IOU MAKE Winners. In the Global IOU MAKE study there are three rounds of consensus building. In the first round, members of the expert panel nominate Independent Operating Units (profit, non-profit and public sector) located anywhere in the world. In the second round, each member of the expert panel selects a maximum of three IOU knowledge-driven organizations from the list of nominations. Those organizations selected by at least 5% of the expert panel members are recognized as Global IOU MAKE Finalists. In the third and final round, the Global IOU MAKE Finalists are ranked against each of the eight knowledge performance dimensions which form the MAKE framework and are the visible drivers of value creation: creating an enterprise knowledge-driven culture. developing knowledge workers through senior management leadership. developing and delivering knowledge-based products/services/solutions. maximizing enterprise intellectual capital Global Independent Operating Unit (IOU) Most Admired Knowledge Enterprises Tel: teleos@mac.com Website:
2 creating an environment for collaborative enterprise knowledge sharing. creating a learning organization. delivering value based on stakeholder knowledge. transforming enterprise knowledge into shareholder/stakeholder value. A total of 35 organizations were nominated as 2017 Global IOU Most Admired Knowledge Enterprises (see Appendix 1). Out of this group, 21 organizations were recognized as 2017 Global IOU MAKE Finalists (see Appendix 2). A total of 10 Global IOU MAKE Finalists were recognized as 2017 Global IOU MAKE Winners (based on the total composite scores). The Winners of the 2017 Global IOU MAKE study are (in alphabetical order): Afcons Infrastructure Limited (Shapoorji Pallonji Group) (India) Airbus (Airbus Group) (France) Google (Alphabet) (USA) Korea Water Resources Corporation (Republic of Korea Government) (S. Korea) LG CNS (LG Group) (S. Korea) S.F. Holding Co., Ltd. (Shenzhen Mingde Holdings Co. Ltd.) (China) Samsung SDS (Samsung Group) (S. Korea) Tata Consultancy Services (Tata Group) (India) Tech Mahindra (Mahindra Group) (India) US National Aeronautics & Space Administration (United States Government) (USA) The Global IOU MAKE study is a measure of the rate at which an organization is transforming its tacit and explicit corporate knowledge into new enterprise intellectual capital and increased shareholder value (or in the case of non-profit and public organizations, stakeholder capital). Global IOU MAKE Winners are creating enterprise intellectual capital and shareholder value over two times as fast as their competitors supported by trends in innovation capability, market capitalization, return on assets and revenues, brand value, etc. According to Rory Chase, managing director of Teleos, The 2017 Global IOU MAKE Winners have been recognized as leaders in effectively transforming enterprise knowledge into wealthcreating ideas, products and solutions. Their expanding portfolios of intellectual capital are enabling them to out-perform their competitors during this period of continuing global economic and political uncertainty. 2
3 For the first time, Google has been recognized as the Overall Global (IOU) MAKE Winner. Past Overall Global (IOU) MAKE Winners include: Larsen & Toubro Hydrocarbon IC (2011), Samsung SDS (2010), Singapore Armed Forces ( ) and Tata Consultancy Services (2015, 2016). KEY FINDINGS Business leaders, analysts and investors constantly ask: What are the economic and competitive advantages of pursuing a business strategy based on knowledge leadership? Based on the findings of the 2017 Global IOU MAKE study, the benefits of this approach are tangible and significant. The Return on Revenues (ROR) for the 2017 Global (IOU) MAKE Winners was 12.6% 2.9 times that of the Fortune 500 ROR median. The Return on Assets (ROA) for the 2017 Global (IOU) MAKE Winners was 11.9% 4.9 times that of the Fortune 500 ROA median. Other findings include: The number of public sector departments/agencies pursuing knowledge-driven strategies continues to increase. Many of the world s leading knowledge-based companies have at least one exceptional company/division/unit which acts at the knowledge champion within the enterprise. Asian organizations started implementing enterprise-wide knowledge strategies in the early 2000s. Although initially trailing their Americas and European counterparts by several years in implementing knowledge-driven strategies, now a majority of 2017 Global (IOU) MAKE Finalists are headquartered in Asia. The 2017 Global (IOU) MAKE Winners demonstrate a knowledge strength in transforming enterprise knowledge into shareholder/stakeholder value. The 2017 Global (IOU) MAKE enterprises are struggling to develop knowledge leaders and knowledge workers. Also, many of these organizations are failing to address the rapidly changing digital world of social media and the customization of the customer experience in order to create a competitive edge. 3
4 2017 GLOBAL (IOU) MAKE HALL OF FAME Over the past seven annual studies, only 39 organizations have been recognized as Global IOU MAKE Winners. An even more select group of organizations form the 2017 Global IOU MAKE Hall of Fame. These six organizations have been Global (IOU) MAKE Finalists in each of the past five annual studies: Korea Water Resources Corporation, Samsung SDS, Singapore Armed Forces, Tata Consultancy Services, Tech Mahindra and The Titan Company GLOBAL (IOU) MAKE WINNERS The 2017 Global Independent Operating Unit (IOU) MAKE Winners have been recognized for: Afcons Infrastructure Limited (Shapoorji Pallonji Group) India Afcons Infrastructure is cited in this year s Global (IOU) MAKE study for creating value through customer/stakeholder knowledge. This is the second consecutive year that the Afcons Infrastructure has been recognized as a Global (IOU) MAKE Winner. Airbus (Airbus Group) France Airbus is cited in this year s Global (IOU) MAKE study for creating a learning organization, and transforming enterprise knowledge into shareholder/stakeholder value. This is the first time that Airbus has been recognized as a Global (IOU) MAKE MAKE Winner. Google (Alphabet) United States Overall 2017 Global (IOU) MAKE Winner Google is recognized in the 2017 Global (IOU) MAKE study for creating a knowledge-driven enterprise culture (first place), developing new knowledge-based products, services and solutions; and creating value through customer/stakeholder knowledge (first place). This is the first time that Google has been recognized as a Global (IOU) MAKE Winner. Korea Water Resources Corporation (Republic of Korea Government) S. Korea The 2017 Global (IOU) MAKE panel has recognized the Korea Water Resources Corporation for new knowledge-based products, services and solutions. This is the fifth consecutive year that K-water has been recognized as a Global (IOU) MAKE Winner. 4
5 LG CNS (LG Corporation) S. Korea The LG CNS is cited in this year s Global (IOU) MAKE study for maximizing enterprise intellectual capital. This is the first time that LG CNS has been recognized as a Global (IOU) MAKE Winner. S.F. Holding Co., Ltd. (Shenzhen Mingde Holdings Co. Ltd.) China The 2017 Global (IOU) MAKE panel has recognized S.F. Holding Co., Ltd. for creating an environment for collaborative enterprise-wide knowledge sharing. This is the first time that S.F. Holding Co., Ltd. has been recognized as a Global (IOU) MAKE Winner. Samsung SDS (Samsung Group) S. Korea The 2017 Global (IOU) MAKE panel recognized Samsung SDS for developing knowledge leaders and knowledge workers (first place). This is the 8th consecutive year that Samsung SDS has been a Global (IOU) MAKE Winner, including Overall Global (IOU) MAKE Winner (2010). Tata Consultancy Services (Tata Group) India Tata Consultancy Services is recognized in this year s Global (IOU) MAKE study for creating an enterprise knowledge-driven culture. Tata Consultancy Services is an eight-time Global (IOU) MAKE Winner, including Overall Global (IOU) MAKE Winner (2015, 2016). Tech Mahindra (Mahindra Group) India The 2017 Global (IOU) MAKE panel has recognized the Tech Mahindra for creating a learning organization. This is the second consecutive year that the Tech Mahindra has been recognized as a Global (IOU) MAKE Winner. United States National Aeronautics & Space Administration (United States Government) United States The 2017 Global (IOU) MAKE panel has recognized US NASA for maximizing enterprise intellectual capital (first place); creating an environment for collaborative enterprise-wide knowledge sharing (first place); creating a learning organization (first place); and transforming organizational knowledge into shareholder/stakeholder value (first place). US NASA is a fivetime Global (IOU) MAKE Winner. 5
6 MAKE RESEARCH PROGRAM Teleos, an independent knowledge management and intellectual capital research company, administers the Most Admired Knowledge Enterprises (MAKE) program. The KNOW Network is a Web-based global community of organizations dedicated to networking, benchmarking and sharing best knowledge practices leading to superior business performance. The MAKE research program consists of the annual Global MAKE study the international benchmark for best practice knowledge organizations. In addition, MAKE studies are conducted to identify leading knowledge-driven organizations at the regional/national level, including the Americas, Asia and Europe; and China, Hong Kong, India, Indonesia and Iran. The 2017 MAKE Report is available from Teleos. It contains the MAKE rankings, key findings, best knowledge practices, and profiles of winners. The 2017 Knowledge Intensive Sector Leaders Report ranks global knowledge leaders in over 20 business sectors. To order a copy of the 2017 MAKE Report or 2017 Knowledge Intensive Sector Leaders Report, or for more information on the MAKE research program, contact: Teleos: teleos@mac.com 6
7 Appendix 1: 2017 Global (IOU) MAKE Nominees A total of 35 organizations were nominated in the 2017 Global (Independent Operating Unit) MAKE study (in alphabetical order): Afcons Infrastructure (Shapoorji Pallonji Group) (India) Airbus (Airbus Group) (France) Architectural Services Department (Government of Hong Kong) (Hong Kong SAR, China) Baker Hughes (General Electric) (USA) Beijing Capital Co., Ltd. (Beijing State-owned Assets Supervision and Administration Commission) (China) Beijing Institute of Architectural Design Co., Ltd. (Beijing State-owned Assets Supervision and Administration Commission) (China) Central Bank of Malaysia (Government of Malaysia) (Malaysia) Centre for Development of Advanced Computing (Government of India) (India) CLP Power Hong Kong Ltd. (CLP Holdings) (Hong Kong SAR, China) Correctional Services Department (Government of Hong Kong) (Hong Kong SAR, China) Dubai Electricity & Water (Government of Dubai) (Dubai, UAE) GE Oil & Gas (General Electric (USA) Google (Alphabet) (USA) Korea Water Resources Corporation (Republic of Korea Government) (S. Korea) LG CNS (LG Group) (S. Korea) LinkedIn (Microsoft) (USA) Nalco Champion (Ecolab) (USA) Nalco Water (Ecolab) (USA) Oil India (Government of India) (India) Pertamina (Government of Indonesia) (Indonesia) Public Works Department (Government of Malaysia) (Malaysia) S.F. Holding Co., Ltd. (Shenzhen Mingde Holdings Co. Ltd.) (China) 7
8 Samsung SDS (Samsung Group) (S. Korea) Singapore Armed Forces (Republic of Singapore Government) (Singapore) Singapore Power (Temasek Holdings) (Singapore) Tata Chemicals (Tata Group) (India) Tata Consultancy Services (Tata Group) (India) Tata Steel (Tata Group) (India) Tech Mahindra (Mahindra Group) (India) Telkom Indonesia (Government of Indonesia) (Indonesia) Temasek Holdings (Government of Singapore) (Singapore) The Titan Company (JV Tata Group and Tamil Nadu Industrial Development Corporation) (India) Unilever Indonesia (Unilever) (Indonesia) United States National Aeronautics & Space Administration (United States Government) (USA) United Tractors (Astra International) (Indonesia) 8
9 Appendix 2: 2017 Global (IOU) MAKE Finalists A total of 21 organizations were recognized as 2017 Global (Independent Operating Unit) MAKE Finalists (based on nominations from at least 5% of the Global (IOU) MAKE expert panel). They are listed alphabetically: Afcons Infrastructure (Shapoorji Pallonji Group) (India) Airbus (Airbus Group) (France) Baker Hughes (General Electric) (USA) Beijing Institute of Architectural Design Co., Ltd. (Beijing State-owned Assets Supervision and Administration Commission) (China) CLP Power Hong Kong Ltd. (CLP Holdings) (Hong Kong SAR, China) Google (Alphabet) (USA) Korea Water Resources Corporation (Republic of Korea Government) (S. Korea) LG CNS (LG Group) (S. Korea) Nalco Champion (Ecolab) (USA) Nalco Water (Ecolab) (USA) Pertamina (Government of Indonesia) (Indonesia) S.F. Holding Co., Ltd. (Shenzhen Mingde Holdings Co. Ltd.) (China) Samsung SDS (Samsung Group) (S. Korea) Singapore Armed Forces (Republic of Singapore Government) (Singapore) Singapore Power (Temasek Holdings) (Singapore) Tata Chemicals (Tata Group) (India) Tata Consultancy Services (Tata Group) (India) Tech Mahindra (Mahindra Group) (India) The Titan Company (JV Tata Group and Tamil Nadu Industrial Development Corporation) (India) United States National Aeronautics & Space Administration (United States Government) (USA) 9
10 United Tractors (Astra International) (Indonesia) 10
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