2009 Global Most Admired Knowledge

Enterprises (MAKE) Report

Executive Summary

The Global Most Admired Knowledge Enterprises (MAKE) research program was established
by Teleos, in association with The KNOW Network, in 1998 to identify and recognize those
organizations which are creating shareholder/stakeholder wealth by transforming new as well as
existing enterprise knowledge into superior products/services/solutions.

The Global 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
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 MAKE
study results.

A panel of Global Fortune Global 500 senior executives and leading knowledge
management/intellectual capital/innovation/organizational learning experts selects the Global
MAKE Winners. In the Global MAKE study there are three rounds of consensus building. In
the first round, members of the expert panel nominate organizations (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 knowledge-
driven organizations from the list of nominations. Those organizations selected by at least 10%
of the expert panel members are recognized as Global MAKE Finalists. In the third and final
round, the Global 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.
• 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.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
A total of 111 organizations were nominated as 2009 Global Most Admired Knowledge
Enterprises. Out of this group, 44 organizations were recognized as 2009 Global MAKE
Finalists (see Appendix 1). A total of 20 Global MAKE Finalists were recognized as 2009
Global MAKE Winners (based on the total composite scores). The 2009 Global MAKE Winners
are shown in alphabetical order in Table 1.

2009 Global MAKE Winners

Enterprise Sector

Accenture Information & technology services

Apple Computers and electronic consumer products
British Broadcasting Corporation Media and entertainment
Deloitte Touche Tohmatsu Professional services
Ernst & Young Professional services
Fluor Engineering & construction
General Electric Diversified manufacturing and financial services
Google Internet searching services & portals
Hewlett-Packard Computers & office equipment and IT solutions
IBM Computers & office equipment and IT solutions
Infosys Technologies Information & technology services
McKinsey & Company Management consulting
Microsoft Computer software
Nokia Networking communications
PricewaterhouseCoopers Professional services
Samsung Diversified manufacturing
Schlumberger Oil & gas equipment/solutions
Tata Diversified manufacturing
Toyota Motor vehicles
Wipro Technologies Information & technology services

Table 1: 2009 Global MAKE Winners listed in alphabetical order.

A total of 14 organizations repeated as Global MAKE Winners. Apple was recognized as the
overall winner in the 2009 Global MAKE study. This is the first time that Apple has achieved
the first-place ranking.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
Deloitte Touche Tohmatsu is a newcomer to this year’s Global MAKE Winner’s circle. The
British Broadcasting Corporation, General Electric, Hewlett-Packard, Nokia and Wipro
Technologies, former Global MAKE Winners, returned to this year’s list of top companies.

Enterprises failing to repeat as Global MAKE Winners were: APQC, BP, Honda, Royal Dutch
Shell, Unilever and Wikipedia

Table 2 identifies the enterprises which received the largest number of 2009 Global MAKE
nominations from the panel’s senior executives and knowledge management practitioners.
Apple and IBM appear at the top of both groups’ lists of Global Most Admired Knowledge
Enterprises.

Enterprises Receiving the Most

2009 Global MAKE Nominations

Fortune Global 500 CKOs and Leading

Executives KM/IC Experts

Apple Apple
General Electric Fluor
Google IBM
IBM Infosys Technologies
McKinsey & Company Nokia

Table 2: Enterprises receiving the largest number of 2009 Global MAKE

nominations (in alphabetical order).

Senior executives tend to look through the ‘lens’ of high-level strategic issues and how well
organizations are meeting these challenges. This group’s nominations are influenced by strong
leadership and the results of knowledge-driven metrics, such as market capitalization, expanding
intellectual capital assets, customer loyalty and increased shareholder/stakeholder value.

The panel of chief knowledge officers and knowledge management / intellectual capital experts
tend to see things through the ‘lens’ of the development and implementation of enterprise
approaches and strategies leading to knowledge-driven excellence in terms of superior
products/services/solutions.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
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 2009 Global MAKE study, the benefits of this approach are tangible and
significant.

Successfully managing enterprise knowledge yields big dividends. The 2009 Global MAKE
Winners trading on the NYSE/NASDAQ showed a Total Return to Shareholders (TRS) for the
ten-year period 1999-2008 of 9.6% – over four times the average Fortune 500 company median.

Other findings include:

• Enterprises with long-term knowledge-driven strategies are continuing to invest in innovation,

knowledge sharing and collaboration, and human intellectual capital – especially skills and
competencies development – and will emerge from the global recession in stronger positions.

• The global economic downturn is accelerating the consolidation of key business sectors,
including airlines, automotives, computers, consulting, defense, energy, information
technology, Internet, media and pharmaceuticals. By the year 2012, there will be 3-5 global
companies in each of the major business sectors. Those companies with strong knowledge-
driven strategies are most likely to survive and prosper.

• Organizations around the world are facing leadership challenges in developing knowledge
workers. This MAKE knowledge performance dimension had the lowest average Winners’
score. A combination of factors – the retirement of growing numbers of ‘baby boomers’ and
difficulties in recruiting talented new knowledge workers from the small pool of ‘Generation
Y’ individuals – is forcing organizations to devote significant resources to human intellectual
capital management.

• A growing number of organizations are taking on ‘Global’ characteristics – especially

consulting and professional services firms, financial services, energy and media companies.
These ‘Global’ organizations tend to operate as ‘independent’ companies within a Federal
structure and without the traditional corporate head office.

• While the number of European organizations adopting knowledge-driven approaches is

expanding, the number of European-headquartered Global MAKE Finalists and Winners
continues to decline. The top-tier of European companies is falling behind their Asian and
North American competitors at the cutting-edge of the Knowledge Economy.

2009 Global MAKE Hall of Fame

A total of 139 organizations have been named Global MAKE Finalists since the MAKE research

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
program began in 1998. And, of this group, only 51 organizations have been recognized as
Global MAKE Winners. They are concentrated in just 20 business sectors.

An even more select group of organizations form the 2009 Global MAKE Hall of Fame. These
24 organizations have been Global MAKE Finalists in each of the past five studies: Accenture,
BP, Ernst & Young, Fluor, General Electric, Google, Hewlett-Packard, Honda, IBM, Infosys
Technologies, McKinsey & Company, Microsoft, Nokia, Petrobras, POSCO,
PricewaterhouseCoopers, Royal Dutch Shell, Samsung Group, Schlumberger, Siemens, Sony,
Tata Group, Toyota and Wipro Technologies.

2009 Global MAKE Winners

The 2009 Global MAKE Winners (in alphabetical order) are:

Accenture (Global)

Established in 1989, Accenture is a US $21.6 billion (fiscal year ending August 31, 2009) global
management consulting, technology services and outsourcing company. The firm employs over
175,000 people serving clients in more than 120 countries. Accenture’s “high performance
business” strategy builds on its expertise in consulting, technology and outsourcing to help
clients perform at the highest levels so that they can create sustainable value for their customers
and shareholders.

The firm is recognized in the 2009 Global MAKE study for developing and delivering
knowledge-based products/services/solutions, and creating an environment for enterprise-wide
knowledge sharing and collaboration. Accenture is a 12-time Global MAKE Winner.

Apple (United States)

Computers are still an important part of Apple’s business, but for many consumers it is the
company’s entertainment and communications products that have made it a household name.
The company has scored runaway hits with its award-winning digital music players (iPod),
online music store (iTunes) and now the iPhone. Apple has annual sales of US $36.5 billon
(fiscal year ending September 30, 2009) and employs over 35,000 people.

The 2009 Global MAKE panel has recognized Apple for developing knowledge workers through
senior management leadership (1st place), developing knowledge-based products/services (1st
place), maximizing enterprise intellectual capital (1st place), and transforming enterprise
knowledge into shareholder value (1st place). This is the fourth year in a row that Apple has
been recognized as a Global MAKE Winner.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
British Broadcasting Corporation (United Kingdom)

The British Broadcasting Company was founded in 1922, when the British government licensed
the UK’s six major radio manufacturers to form the new organization. In 1927, the Company
was dissolved and the British Broadcasting Corporation was formed under a royal charter. BBC
Television started in November 1936. Today, the BBC produces programs and services on a
variety of platforms, including television, radio and online. The BBC has a commercial arm,
BBC Worldwide, which sells and licenses content and products as well as running services,
including the international news channel BBC World. The BBC’s annual income is US $6.8
billion (fiscal year ending April 5, 2009) and it employs approximately 23,000 people around the
world.

The 2009 Global MAKE panel has recognized the BBC for developing knowledge-based
products/services, and transforming enterprise knowledge into stakeholder value. This is the
second time that the BBC has been recognized as a Global MAKE Winner.

Deloitte Touche Tohmatsu (Global)

“Deloitte” is the brand under which 168,000 staff in independent firms throughout the world
collaborate to provide audit, consulting, financial advisory, risk management and tax services to
clients. These firms are members of Deloitte Touche Tohmatsu (DTT), a Swiss Verein. DTT’s
vision and strategy is to become the standard of excellence in all of the businesses and services
the member firms provide. Deloitte Touche Tohmatsu reported aggregate member firm revenues
of US $26.1 billion for the fiscal year ended May 31, 2009.

The 2009 Global MAKE panel has recognized the Deloitte Touche Tohmatsu for developing
knowledge-based products/services/solutions, and delivering value based on stakeholder
knowledge. This is the first time that Deloitte Touche Tohmatsu has been recognized as a
Global MAKE Winner.

Ernst & Young (Global)

Ernst & Young is a global leader in assurance, tax, transaction and advisory services.
Worldwide, its 144,000 people working in 140 countries are united by shared values and an
unwavering commitment to quality. By drawing on global technical and industry knowledge,
Ernst & Young professionals work to anticipate trends, identify the implications and develop
points of views on relevant issues. In the fiscal year ended 30 June 2009, Ernst & Young
reported income of US $21.4 billion.

Ernst & Young is recognized in the 2009 Global MAKE study for creating an enterprise-wide
environment for collaborative knowledge sharing. Ernst & Young is a 12-time Global MAKE
Winner.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
Fluor (United States)

Fluor is one of the world’s largest publicly owned engineering, procurement, construction and
maintenance services organizations. Fluor’s primary objective is to develop, execute and
maintain projects on schedule, within budget and with excellence. Fluor, with 2008 annual sales
of US $22.3 billion, employs over 40,000 people and maintains a network of offices in more than
25 countries across six continents.

In this year’s Global MAKE study, Fluor has been recognized for its organizational learning.
This is the fourth consecutive year that the company has been recognized as a Global MAKE
Winner.

General Electric (United States)

GE is a diversified manufacturer of transportation equipment; appliances; lighting, electric

distribution and control equipment; nuclear reactors; medical imaging equipment; and plastics.
The company also is one of America’s largest financial services companies, and has media
interests including NBC television. GE’s slogan is “Imagination at Work.” The company has
annual sales of US $182.5 billion (2008), employs over 300,000 people, and serves customers in
more than 100 countries

GE is recognized in the 2009 Global MAKE study for organizational learning. GE is a 10-time
Global MAKE Winner.

Google (United States)

Google’s mission is to organize the world’s information and make it universally accessible and
useful. The company, founded in 1998, operates the most popular, and powerful, Internet search
engine as well as related web-based technologies which enable users to search in many different
languages, for example: stock quotes, maps and news headlines; phonebook listings for every
city in the United States; billions of images; and the world’s largest archive of Usenet messages -
more than 1 billion posts dating back to 1981. The company generates almost all of its revenues
through advertising sales that are targeted by keywords. Google had 2008 revenues of US $21.8
billion and employs over 20,000 people.

Google is recognized in the 2009 Global MAKE study for creating a knowledge-driven
organizational culture (1st place). This is the fifth consecutive year that the company has been
recognized as a Global MAKE Winner.

Hewlett-Packard (United States)

Hewlett-Packard is a technology solutions provider to consumers, businesses and institutions

globally. The company’s offerings span IT infrastructure, global services, business and home

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
computing, and imaging and printing. HP’s 2008 annual sales were US $118.4 billion, the
company employs over 300,000 people and it operates in more than 170 countries.

HP is recognized in the 2009 Global MAKE study for transforming enterprise knowledge into
shareholder value. HP is a nine-time Global MAKE Winner.

IBM (United States)

IBM is a leader in information technology solutions and consulting, and business process
outsourcing. The company also is a leading provider of mainframe computers, servers, storage
systems and peripherals. IBM employs nearly 400,000 people and operates in almost every
country in the world. In 2008, IBM had global sales of US $103.6 billion.

IBM is recognized in the 2009 Global MAKE study for delivering value based on stakeholder
knowledge. IBM is an 11-time Global MAKE Winner, including overall 2004 Global MAKE
Winner.

Infosys Technologies (India)

Infosys Technologies provides consulting and IT services to clients globally. With annual sales
of US $4.7 billion (fiscal year ending March 31, 2009) and employing over 100,000 people
worldwide, the company uses a low-risk Global Delivery Model (GDM) to accelerate schedules
with a high degree of time and cost predictability. During the past several years, Infosys has
made a concerted effort to provide an integrated solution to meet the knowledge needs of the
organization in the four basic dimensions of knowledge management: people, process,
technology and content.

The 2009 Global MAKE panel has recognized Infosys Technologies for developing knowledge
workers through senior management leadership. Infosys Technologies is a six-time Global
MAKE Winner.

McKinsey & Company (Global)

McKinsey & Company, founded in 1926, is perhaps the most knowledge-oriented firm within
the global management consulting industry. McKinsey is not the largest consulting company in
the world (US $6 billion in annual revenues and more than 9,000 consultants – out of a total
workforce of 16,500 – working in 90 offices in more than 50 countries), but it is among the most
profitable and many consider that it has the strongest brand image. McKinsey & Company
spends at least 10% of its annual revenues on managing and sharing knowledge.

In the 2009 Global MAKE study, the firm is recognized for creating an enterprise-wide
environment for collaborative knowledge sharing (1st place), and organizational learning (1st

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
place). McKinsey & Company is a nine-time Global MAKE Winner, including two-time (2007-
2008) overall Global MAKE Winner.

Microsoft (United States)

Microsoft is a leader in software and Internet technologies for personal and business computing.
The company, established in 1975, also is expanding into the Web-based services, mobile
communication and entertainment markets. Headquartered in Redmond, Washington, Microsoft
has annual sales of US $58.4 billion (fiscal year ending June 30, 2009), subsidiary offices in
more than 60 countries, and employs over 90,000 people worldwide. In the 2008 fiscal year,
Microsoft spent US $8.2 billion on R&D.

Microsoft is cited in this year’s Global MAKE study for transforming enterprise knowledge into
shareholder value. Microsoft is a 12-time Global MAKE Winner, including overall 1999 Global
MAKE Winner.

Nokia (Finland)

Nokia, founded in 1865 as a forestry enterprise, is the leading supplier of mobile phones and a
major supplier of mobile, fixed broadband and IP networks. Nokia's strategy is to build trusted
consumer relationships by offering compelling and valued consumer solutions that combine
beautiful devices with context-enriched services. The company has annual sales of US $71.5
billion (2008) and employs over 125,000 people.

Nokia is the world’s leading maker of mobile phones. Nokia is also aiming for the top of the
rapidly growing mobile Internet market. The company’s products are divided primarily between
three divisions: devices (handheld device manufacturing); services and software (consumer
Internet services and products); and markets (supply chains, sales channels, and marketing).
Nokia’s wireless network products business is operated in partnership with Siemens as Nokia
Siemens Networks.

Nokia is cited in this year’s Global MAKE study for its enterprise-wide environment for
collaborative knowledge sharing (1st place), and delivering value based on customer knowledge
(1st place). Nokia is an eight-time Global MAKE Winner.

PricewaterhouseCoopers (Global)

PricewaterhouseCoopers is the world’s leading professional services network providing industry-

focused assurance, tax and advisory services to clients and their stakeholders from 757 cities in
151 countries. More than 163,000 people across the PwC network share their thinking, expertise
and solutions to develop fresh perspectives and practical advice. In the fiscal year ending June
30, 2009, PwC reported global revenues of US $26.2 billion.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
PricewaterhouseCoopers is cited in this year’s Global MAKE study for transforming enterprise
knowledge into stakeholder value. PwC is an eight-time Global MAKE Winner.

Samsung (South Korea)

Samsung is a world leader in electronics, finance, trade and services. Samsung is South Korea’s
largest conglomerate and operates over 325 offices and facilities in more than 50 countries.
Samsung Electronics is the Group’s flagship company. The Group employs 276,000 people
worldwide, with 2008 sales of US $173.4 billion.

The 2009 Global MAKE panel has recognized the Samsung for maximizing its enterprise
intellectual capital, and organizational learning. This is the sixth consecutive year that the
company has been recognized as a Global MAKE Winner.

Schlumberger (France/United States)

Schlumberger, founded in 1926, is a leading global oilfield services provider. The company has
annual revenues of US $27.2 billion (2008), employs 77,000 people, and operates in some 80
countries. Schlumberger has 25 research and engineering facilities worldwide. The company
provides a full range of oil and gas services, including seismic surveys, drilling, wireline
logging, well construction and completion, and project management.

Schlumberger is recognized in the 2009 Global MAKE study for its knowledge-driven enterprise
culture. Schlumberger is a four-time Global MAKE Winner.

Tata (India)

Founded in 1868, the Tata Group pioneered several industries of national importance in India,
such as steel, power, hospitality and airlines. The Tata name has been respected in India for over
140 years for its adherence to strong values and business ethics. Today, the Tata Group is
rapidly growing with annual revenues of US $70.8 billion (fiscal year ending March 31, 2009),
of which 65 per cent is from business outside India.

The Tata Group comprises 114 companies and subsidiaries in seven business sectors:
communications and information technology, engineering, materials, services, energy, consumer
products and chemicals. Tata Group employs over 350,000 people, has operations in more than
85 countries across six continents, and its companies export products and services to 80 nations.

The Tata Group is recognized in the 2009 Global MAKE study for transforming enterprise
knowledge into stakeholder value. The Tata Group is a three-time Global MAKE Winner.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
Toyota (Japan)

Toyota Motor Corporation is the largest global automobile manufacturer by volume (8.3 million
vehicles annually). The company has annual sales of US $203.2 billion (fiscal year ending
March 31 2009) and employs over 315,000 people. The company’s goal is to become the
premier ‘green’ auto manufacturer.

Toyota has created a people-based enterprise culture known as the ‘Toyota Way.’ The company
believes that Toyota consists of people and that developing human abilities by training, coaching
or mentoring is a core responsibility of the company. Toyota also encourages employees to
generate ideas to transform the company and enable it to cope with changes in the wider business
environment. The emphasis is on converting personal tacit knowledge into enterprise knowledge
– all the time stressing human relationships.

This 2009 Global MAKE Winner has been recognized for maximizing its enterprise intellectual
capital (1st place). Toyota is an eight-time Global MAKE Winner, including two-time (2005-
2005) overall Global MAKE Winner.

Wipro Technologies (India)

Wipro Technologies provides comprehensive IT solutions and services, including systems

integration, information systems outsourcing, package implementation, software application
development and maintenance, and research and development services. The company has more
than 40 industry-facing ‘Centers of Excellence’ that create solutions around specific needs of
industries. The IT Services business of Wipro has annual revenues of US $4.3 billion and
employs around 97,000 people globally.

The 2009 Global MAKE panel recognized Wipro Technologies for developing knowledge
workers through senior management leadership. Wipro Technologies is a four-time Global
MAKE Winner.

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
 Appendix 1: 2009 Global MAKE Finalists

A total of 44 organizations were recognized as 2009 Global Most Admired Knowledge

Enterprises (MAKE) Finalists:

Accenture (Global)
Apple (USA)
APQC (USA)
Bechtel (USA)
BP (United Kingdom)
British Broadcasting Corporation (United Kingdom)
ConocoPhillips (USA)
Deloitte Touche Tohmatsu (Global)
Environmental Resources Management (Global)
Ernst & Young (Global)
Fluor (USA)
General Electric (USA)
Google (USA)
Hewlett-Packard (USA)
Honda (Japan)
Honeywell (USA)
IBM (USA)
IKEA (Sweden)
Infosys Technologies (India)
KPMG (Global)
LG (S. Korea)
Mars (USA)
McKinsey & Company (Global)
Microsoft (USA)

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com
MindTree (India)
Nissan Motor (Japan)
Nokia (Finland)
Oracle (USA)
Petrobras (Brazil)
POSCO (S. Korea)
PricewaterhouseCoopers (Global)
Royal Dutch Shell (Netherlands)
Samsung (S. Korea)
SAP (Germany)
Schlumberger (France/USA)
Siemens (Germany)
SK (S. Korea)
SKF (Sweden)
Sony (Japan)
Steelcase (USA)
Tata (India)
Toyota Motor Corporation (Japan)
Unilever (Netherlands/United Kingdom)
Wipro Technologies (India)

2009 Global Most Admired Knowledge Enterprises – Executive Summary

© 1998-2010 Teleos
Tel: +44 1584 878576
E-mail: teleos@mac.com
Website: http://www.knowledgebusiness.com