When it comes to innovation, on-line retailer Amazon beats Alphabet, the parent company of search engine Google, by a mile.
That’s according to a recent Drucker Institute survey, which assigns Amazon an innovation score of 166.3, almost twice Alphabet’s score of 95, helping Amazon occupy the top rank in the 2017 list of the most effective companies—see table 1
Wall Street has taken notice. Amazon’s shares have gained 52.70% YTD and 379.14% over the last five years, compared to 50.73% and 140.30% for Apple, and 34.20% and 205.10% for Alphabet—see table 2.
The findings of the Drucker Institute become more interested when the two companies are compared in another metric: Employee Engagement and Development. Specifically, the survey assigns Amazon an Employee Engagement and Development score of 57.3, almost half Google’s score of 82—see table.
That may come as a surprise to organizational behavior experts who argue that employee development and engagement, which includes among other things free food, is the most important factor in keeping employees happy, creative, and innovative.
Apparently, Google’s high employee engagement isn’t sufficient to help the company beat Amazon.