Future Readiness Indicator

Indicator developed by the IMD Center for Future Readiness

Future Readiness Indicator is an indicator developed by the IMD Center for Future Readiness.[1][2][3] It evaluates a company's preparedness for long-term trends.[4] A systematic methodology generates a composite score for each entity, allowing identification of industry leaders and an examination of their respective behaviors and attitudes. It is developed by Howard Yu.[5]

## History[edit]

The Future Readiness Indicator, developed in 2021 (some rankings are backdated to 2010 as analysis only), annually evaluates the adaptability of the largest companies of the world to future challenges.[5][6]

## Methodology[edit]

The ranking derives from seven primary, equally-weighted factors: financial indicators, projected growth, business diversification, workforce diversity/ESG, R&D, innovation outcomes, and liquidity/debt status, totaling 33 distinct variables.[7][8]

The data is publicly accessible from company outlets, news sources, and thematic reports. Factiva, CrunchBase, Espacenet, Sustainalytics, and Google Trends also supplement data collection.[7][9]

The indicator is calculated by collecting each company's historical data, performing computations for each variable, standardizing criteria data, aggregating variables into main factors, and assigning an overall ranking.[9] Each company is ranked from 1 (best) to n (worst, n=sample size) on a 1-100 scale.[7]

## Rankings[edit]

### Automotive[edit]

Company  | 2023[10] | 2022[11] | 2021[12] | 2020[10] | 2019[10]

|
|
|
|
|

Tesla | 1  | 1  | 1  | 1  | 1
BYD | 2  | 5  | \-  | \-  | \-
Volkswagen | 3  | 3  | \-  | \-  | 5
Hyundai | 4  | 4  | 5  | 5  | \-
Ford Motors | 5  | \-  | 4  | 4  | 3

### Consumer Packaged Goods[edit]

Company  | 2023[13]

|

Coca-Cola | 1
P&G | 2
L'Oreal | 3
Nestle | 4
Diageo | 5
The Estée Lauder Companies | 6
Unilever | 7
Brown–Forman | 8
Pernod Ricard | 9
Constellation Brands | 10

### Fashion[edit]

Company  | 2022[14] | 2021[14]

|
|

Nike | 1  | 2
Lululemon | 2  | 1
Kering | 3  | 5
Hermes | 4  | 3
LVMH | 5  | 6
Richemont | 6  | 8
Zalando | 7  | \-
Burberry | 8  | 4
VF Corporation | 9  | 11
Prada | 10  | \-

### Financial services[edit]

Company  | 2023[15] | 2022[16] | 2021[17] | 2020[15] | 2019[15]

|
|
|
|
|

Mastercard | 1  | 1  | 1  | 1  | 1
Visa | 2  | 2  | 2  | 2  | 2
JP Morgan Chase | 3  | 3  | \-  | \-  | \-
DBS Bank | 4  | 5  | \-  | \-  | \-
Paypal | 5  | 4  | 5  | 4  | 4

### Pharmaceutical[edit]

Company  | 2022[18]

|

Roche | 1
Pfizer | 2
AstraZeneca | 3
Bristol Myers Squibb | 4
Novartis | 5
BioNTech | 6
Eli Lilly and Company | 7
Johnson & Johnson | 8
Merck & Co. | 9
Genmab | 10

### Technology[edit]

Company  | 2022[19] | 2021[20]

|
|

Alphabet | 1  | 1
Microsoft | 2  | 3
Nvidia | 3  | 6
Amazon | 4  | 2
Apple | 5  | 9
Meta Platforms | 6  | 4
Twitter, Inc. | 7  | 13
AMD | 8  | 5
Qualcomm | 9  | 17
Salesforce | 10  | 10

## References[edit]

1. ^ Cabral, Alvin R. (May 16, 2023). "Tesla ranked top future-proof automotive company". The National.
2. ^ "Roche et Richemont parmi les compagnies les mieux parées à affronter 2023 selon IMD". L'Agefi.
3. ^ Montebello, Leah (15 December 2021). "Apple struggles to keep pace with Google and Amazon according to new study on future readiness". City A.M.
4. ^ Peel, Antonia Garrett. "Four lessons from the world's most 'future-ready' businesses". Management Today.
5. ^ a b "Tesla most 'future-ready' carmaker, China's BYD rising: Report". Al-Jazeera.
6. ^ "Chinese carmakers gather steam as innovation thrives, expert says". China Daily.
7. ^ a b c "Our Research Methodology - IMD business school for management and leadership courses". www.imd.org.
8. ^ Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.
9. ^ a b Yu, Howard; Shan, Jialu; Boutalikakis, Angelo; Tempel, Lawrence; Balian, Zuriati (March 21, 2022). "What Makes a Company "Future Ready"?" - via Harvard Business Review.
10. ^ a b c "IMD Future Readiness Indicator - Automotive 2023". www.imd.org.
11. ^ "Automotive 2022 - IMD business school for management and leadership courses". www.imd.org.
12. ^ "Automotive 2021 - IMD business school for management and leadership courses". www.imd.org.
13. ^ "MD Future Readiness Indicator - Technology 2023". www.imd.org.
14. ^ a b "IMD Future Readiness Indicator - Fashion Industry 2022". www.imd.org.
15. ^ a b c "IMD Future Readiness Indicator - Financial Services 2023". www.imd.org.
16. ^ "Finance 2022 - IMD business school for management and leadership courses". www.imd.org.
17. ^ "Financial services 2021 - IMD business school for management and leadership courses". www.imd.org.
18. ^ "IMD Future Readiness Indicator - Pharma 2022". www.imd.org.
19. ^ "IMD Future Readiness Indicator - Technology 2022". www.imd.org.
20. ^ Warner, Kelsey (December 15, 2021). "How future-proof are Apple, Twitter and Spotify? Not very, researchers find". The National.