ATKearney FDI Confidence Index

Key takeaways from the ATKearney FDI Confidence Index 2005:

  • India joins China at the center of the FDI radar screen. It also replaces the US as the 2nd most attractive FDI location.
  • China dwarfs India in FDI, partly because China attracts more capital-intensive functions.
  • Investor enthusiasm for China and India is at an all-time high.
  • FDI prospects dim for Western Europe.
  • Investment confidence soars for Eastern Europe.
  • IT and contact centers remain the highest areas for corporate offshoring.
  • Investors see diminished Macro risks, but growing Micro risks.

EIU/Accenture suvey on innovation and growth strategies

The Economist Intelligence Unit (EIU) just came out with the results of an Accenture-sponsored survey on innovation and growth strategies. Key findings:

What do you think will be the main drivers of profitable growth at your company over the coming three years?

  • Globalisation – allowing their companies to tap new markets and new sources of materials and talent (54%).
  • Demand from the marketplace for constant innovation (49%).

What do you think will be the two biggest drivers of innovation at your company over the coming three years?

  • Technology advances-including convergence, ERM, biotechnology and automated sales tools (21%).
  • Customer demand for better convenience, improved service and more advanced products (19%).

Importantly, few people (6%) believe that management focus or compensation structures are driving innovation at their companies.

Which of the following do you think are significant barriers to innovation at your company?

  • Lack of collaboration within the organisation (43%)
  • Lack of incentives to find innovative solutions (39%)
  • Lack of end-to-end processes for getting an innovation to the marketplace (36%)

But there are differences in perspective among the top-management and middle-management groups, with the latter seeing more barriers to innovation. In particular, non-C-level executives see a greater need for compensation structures that reward innovation and a greater need for end-to-end processes to bring ideas to market. C-level executives express greater confidence in their companies’ abilities in all three stages of growth and innovation.

Does it mean that C-level execs know more because of their macro perspective or does it mean they are not in touch with the ground realities?

EIU / Accenture survey on Integrating Mergers and Acquisitions

The Economist Intelligence Unit (EIU) just published the results of a survey of 600 executives (more than a fourth of them C-level executives or board members) on Integrating Acquisitions. Some of the key findings:

  • Countries that rank highest in projected M&A activity over the next 3 years:
    USA (95%)
    China (72%)
    Brazil (67%)
  • Most successful IT factors in your company’s most recent acquisition:
    Involving IT before closing the deal (29%)
    Establishing infrastructure compatibility (28%)
  • Top challenges for companies in your country making cross-border acquisitions:
    Conducting due diligence (41%)
    Legal and regulatory compliance (45%)
    Integrating local management (42%)
  • Main drivers for companies in your industry to make cross-border acquisitions over the coming five years:
    To guarantee the profitability of the business (54%)
    To meet all targets of the set corporate strategy (49%)

CEO Briefing: Corporate priorities for 2006

The Economist Intelligence Unit (EIU) recently came out with their survey/research findings identifying the management challenges that face the world's corporate leaders. The key findings:

  • Overseas markets will absorb more attention than domestic markets.
  • Local will be as important as global.
  • Global sourcing will improve productivity as well as margins.
  • Top–line growth is a strategic priority.

Globalisation is nothing new but its meaning is constantly evolving. Once associated with low–cost manufacturing overseas, then a wave of foreign direct investment by Western multinationals into unsophisticated emerging markets, it has most recently been exemplified by the offshoring of back–office processes to low–cost locations. To judge by the results of this year's CEO Briefing survey, the terms of globalisation are changing again.

Customers in emerging markets are becoming far more important and far more demanding; offshoring is no longer driven solely by cost; and competition from overseas and domestic rivals is increasing in every market. The distinctions between high–cost mature markets and low–cost developing ones remain acute, of course, but they are less clear–cut than they once were…