Companies shifting more R&D spending away from physical products to software and services: 2016 Global Innovation 1000 Study
(Thomson Reuters ONE) -
Companies who allocated more of their R&D budgets to software offerings reported
significantly faster revenue growth than others according to PwC's Strategy&
LONDON, Oct. 25, 2016 (GLOBE NEWSWIRE) -- By 2020, companies will have shifted
the majority of their R&D spending away from product-based offerings to software
and service offerings, according to the 2016 Global Innovation 1000
Study from Strategy&, PwC's strategy consulting business. The need to stay
competitive is the top reason why companies cited a shift in their R&D budgets
towards software and services, and for good reason - according to the study,
companies who reported faster revenue growth relative to key competitors
allocated 25 percent more of their R&D budgets to software offerings than
companies who reported slower revenue growth.
* The average allocation of R&D spending for software and services increased
from 54% to 59% between 2010 and 2015 and is expected to grow to 63% by
2020.
* Meanwhile, the average allocation of R&D spending dedicated to product-based
offerings fell to 41 percent (from 46% in 2010), and is expected to fall to
37% by 2020 (an overall decrease of 19% this decade).
* Average allocation of R&D spending on software offerings alone will increase
by 43% by the end of this decade and R&D spending on services will gradually
overtake investment in product-based innovation (39% vs. 37% by 2020).
* Global R&D spending on software offerings has increased by 65% between
2010-2015, from US $86 billion to $142 billion.
"Many of the world's major innovators are in the midst of a transformational
journey mostly driven by changing - and rising - customer expectations,"
says Barry Jaruzelski, innovation and R&D expert for Strategy& and principal
with PwC US. "The shift is also being driven by the supercharged pace of
improvement in what software can do, including the increasing use of embedded
software and sensors in products, the ability to reliably and inexpensively
connect products, customers and manufacturers via the Internet of Things (IoT),
and the availability of cloud-based data storage.
Companies will recruit less mechanical engineers and more data and software
engineers to build their capabilities
To support the development of software and services offerings, fewer companies
will focus their R&D spending on the electrical and mechanical field. By 2020,
the number of companies reporting that electrical engineers are their top
employed engineering specialty will fall by 35 percent and the proportion of
companies who expect that data engineers will represent their largest group of
employed engineers will double from 8% to 16%.
Jaruzelski says, "An increase in software and services, even in more traditional
industries has created a shift towards hiring talent that can develop software
and provide platforms to collect and analyse product-related data. The shift is
already changing the way business schools think about their course offerings,
and will have profound effects both on education and, more generally, on the
future of employment."
Regionally, companies in North America are making the strongest shift to
software offerings-from 15 percent of total R&D spending in 2010 to 24 percent
in 2020. While Asia remains the most product-centric region, with 44 percent of
R&D allocated to product offerings in 2010, only falling to 40 percent in 2020.
The automotive and industrial sectors are making the most aggressive push
towards developing new software offerings.
Among companies that made an acquisition during the past five years, the vast
majority - 71 percent - were made to enhance capabilities in software (33%) or
services (38%).
Strategy&'s annual analysis of the world's 1000 largest R&D spenders also found
the following:
* By 2018, the healthcare sector will surpass computing and electronics to
become the largest R&D spending industry globally (US$165 billion v. US$159
billion), and the software and internet industry will leap ahead of the
automotive sector (US$129 billion v. US$105 billion); Industrials rounds out
the Top 5 R&D industries by spend.
* For the first time in the study's history, the number of Global Innovation
1000 companies headquartered in the US grew, up 9.5% year over year.
* Volkswagen, Samsung, Amazon, Alphabet (Google) and Intel round out the Top
5 R&D Spenders, with Amazon and Google making bold moves up the list (+4 and
+2 positions, respectively).
* Global innovation professionals responding to a 2016 survey have ranked
Apple, Alphabet (Google), and 3M as the three Most Innovative Companies in
the world.
* The 10 Most Innovative Companies continue to outperform the Top 10 R&D
Spenders on key performance metrics, as has been the case for each of the
past seven years.
+------------------------------------------------------------------------------+
|2016 Ranking: The 10 Most Innovative Companies vs. Top 10 R&D spenders |
+----+-----------------+----------+---------+--------------+---------+---------+
| | | | | | | |
+----+-----------------+----------+---------+--------------+---------+---------+
|Rank| 10 Most * | 2016 R&D | R&D | Top 10 R&D |2016 R&D | R&D |
| | Innovative | spend |intensity| Spenders | spend |intensity|
| | Companies | (US$ Bn) | | |(US$ Bn) | |
+----+-----------------+----------+---------+--------------+---------+---------+
|1st | Apple Inc. | 8.1 | 3.5 % |Volkswagen AG | 13.2 | 5.6 % |
+----+-----------------+----------+---------+--------------+---------+---------+
| | | | | Samsung | | |
| | | | |Electronics Co| | |
|2nd | Alphabet Inc. | 12.3 | 16.4 % | Ltd | 12.7 | 7.2 % |
+----+-----------------+----------+---------+--------------+---------+---------+
| | | | | Amazon.com | | |
|3rd | 3M Co. | 1.8 | 5.8 % | Inc. | 12.5 | 11.7 % |
+----+-----------------+----------+---------+--------------+---------+---------+
|4th |Tesla Motors Inc.| 0.7 | 17.7 % |Alphabet Inc. | 12.3 | 16.4 % |
+----+-----------------+----------+---------+--------------+---------+---------+
|5th | Amazon.com Inc. | 12.5 | 11.7 % | Intel Corp | 12.1 | 21.9 % |
+----+-----------------+----------+---------+--------------+---------+---------+
| | Samsung | | | | | |
| | Electronics | | | | | |
|6th | Co Ltd | 12.7 | 7.2 % |Microsoft Corp| 12.0 | 12.9 % |
+----+-----------------+----------+---------+--------------+---------+---------+
| | | | |Roche Holding | | |
|7th | Facebook Inc. | 4.8 | 26.9 % | AG | 10.0 | 19.9 % |
+----+-----------------+----------+---------+--------------+---------+---------+
|8th | Microsoft Corp | 12.0 | 12.9 % | Novartis AG | 9.5 | 19.2 % |
+----+-----------------+----------+---------+--------------+---------+---------+
| | General | | | Johnson & | | |
|9th | Electric Co | 4.2 | 3.7 % | Johnson | 9.0 | 12.9 % |
+----+-----------------+----------+---------+--------------+---------+---------+
| | International | | | | | |
| |Business Machines| | | Toyota Motor | | |
|10th| Corp | 5.2 | 6.4 % | Corp | 8.8 | 3.7 % |
+----+-----------------+----------+---------+--------------+---------+---------+
|*The 10 Most Innovative Companies are named by respondents of a 2016 survey of|
|global innovation experts. |
+------------------------------------------------------------------------------+
To learn more about the 2016 Global Innovation 1000 Study,
visit www.strategyand.pwc.com/innovation1000. A copy of the study findings by
geography and industry are available from the media contact. Additional multi-
media assets including infographics and video are also available.
About the 2016 Global Innovation 1000 Study
As it has in each of the past 11 editions of the Global Innovation 1000, this
year Strategy& identified the 1,000 public companies around the world that spent
the most on R&D during the last fiscal year, as of June 30, 2016. To be
included, companies had to make their R&D spending numbers public. The Global
Innovation 1000 companies collectively account for 40 percent of the entire
world's R&D spending, from all sources, including corporate and government
sources. Strategy& also conducted an online survey of 466 innovation leaders
around the world. The companies participating in the survey represent more than
US$91 billion in R&D spending, or 13.5 percent of this year's total Global
Innovation 1000 R&D spending. For information about the methodology of the
study, please contact the media representative.
About Strategy&
Strategy& is a global team of practical strategists committed to helping you
seize essential advantage. We do that by working alongside you to solve your
toughest problems and helping you capture your greatest opportunities. We bring
100 years of strategy consulting experience and the unrivalled industry and
functional capabilities of the PwC network to the task. We are part of the PwC
network of firms in 157 countries with more than 223,000 people committed to
delivering quality in assurance, tax, and advisory services. To learn more about
PwC's Strategy&, visit www.strategyand.pwc.com.
© 2016 PwC. All rights reserved.
PwC refers to the PwC network and/or one or more of its member firms, each of
which is a separate legal entity. Please see www.pwc.com/structure for further
details.
Kiran Chauhan
Strategy&, PwC's strategy consulting business
T: +1 (416) 890-8695
kiran.chauhan(at)pwc.com
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Source: PWC Network via GlobeNewswire
Datum: 25.10.2016 - 01:01 Uhr
Sprache: Deutsch
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