We live in an increasingly technological world. A business has to offer something quite innovative to stand out from the crowd these days.
The Australian Financial Review just released its 2018 100 Most Innovative Companies in Australia and New Zealand list, which was judged by an expert panel assembled by the AFR and Inventium.
Businesses were asked to explain their innovation based on the idea, the problem and the impact. They were judged on how unique the idea is, how well it solves the problem and if there is clear evidence that the idea has made an impact.
Here are some of the highlighted businesses:
Groundprobe – The winner uses laser scanning technology and improved its accuracy by over 170 times to make it the most accurate laser in the world. It is used this to monitor underground mines for instability in-case rocks move. This can be used to decide whether to stop or continuing mining if a collapse is imminent. Groundprobe was recently acquired by Orica Ltd (ASX: ORI) for $205 million. Orica came 20th on this years' list.
Xero Limited (ASX: XRO) – The third on the list was ranked as the best service innovation. Not only is the company revolutionising how businesses, bookkeepers and accountants do their accounting but it also has an impressive education system set up to teach users how to use each function of Xero to improve their efficiencies.
MYOB Group Ltd (ASX: MYO) – The eighth on the list offers accountants MYOB Advisor, which is a 'AI' tool used to interpret data and give easy-to-understand descriptions of a business' financial position which can be then customised by accountants. This is important because a lot of businesses rely on their accountant to provide business advice.
GUD Holdings Limited (ASX: GUD) – The diversified business came ninth for its Microlene Farm, which is a box which cleans a farm's water to be clean and avoid contamination which could impact cow health, milk productivity and machinery. This leads to less vet vists, less money on chemicals and better milk.
Some of the other highly ranked innovative companies were Pushpay Holdings Ltd (ASX: PPH) and Netwealth Group Ltd (ASX: NWL).
Foolish takeaway
If you own some of the most innovative businesses in your portfolio then you've got a good chance of beating the market. It's businesses that can completely change the country, or the world, that go on to become titans of the industry over the years.
