Computers & Electronics sector lead by Finland's Nokia

March 5, 2002 - Nokia topped charts for the Computers & Electronics sector in a global study released today. The Competitive Fitness of Global Firms ranks top North American and European firms across eight business sectors using a composite rating termed Overall Market Effectiveness Capability (OMEC). The study is conducted at INSEAD business school in France and published by Pearson Education.

About 1,225 executives employed in 55 different countries contributed to the 2002 study. Firm OMEC results range from a low of 46 to a high of 82 - where Nokia rated. Only 86 firms, out of the 326 covered, achieved a rating over the World Class level with enough data points. The eight sectors covered were: Automobiles & Automotive, Computers & Electronics, Consumer Goods, Engineering & Machinery, Finance & Insurance, Pharmaceuticals & Healthcare, Process Industries, and Services.

In terms of OMEC, the Computers & Electronics sector dipped one point in 2002 from 2001. However, this sector beats out all other sectors on OMEC and E-Business - the newest measure of corporate competitive fitness. The sector remains well above the World Class level of 65.

Nokia lead the sector with an OMEC of 82 but other firms also achieved above World Class level in the study. Four of the top 10 firms were from the Computers & Electronics sector.

OMEC is based on 12 capabilities that comprise the fundamental capabilities of a firm and hence, its competitive fitness. Those capabilities are: Mission & Vision, Customer Orientation, Corporate Culture, Organization & Systems, Planning & Intelligence, Human Resources, Technical Resources, Innovation, Market Strategy, Marketing Operations, International, and Performance.

While Nokia is clearly a top performer in this sector, other firms demonstrated specific capabilities in some areas. Microsoft, Nokia and Compaq lead the Innovation capability whereas IBM, Microsoft and SAP lead in Human Resources. Alcatel demonstrated strength in the International capability.

E-Business capability improved 1-point over 2001 to a sector average of 67. The firms in this sector achieved the highest E-Business rating and stand 11-points over the overall average of firms. Oracle leads the sector with a stellar E-Business rating of 89, followed by IBM (87), Microsoft (87), and Compaq (86). E-Business is the newest measure of corporate competitive fitness that even the top global firms are grappling with.

About The Competitive Fitness of Global Firms Report
This report publishes results of an annual study conducted by Professor Jean-Claude Larreche, at INSEAD business school. The study ranks top North American and European firms based on fundamental business capabilities based on a survey of top managers from those firms. The capabilities measured are: Mission & Vision, Customer Orientation, Corporate Culture, Organization & Systems, Planning & Intelligence, Human Resources, Technical Resources, Innovation, Market Strategy, Marketing Operations, International, Performance and E-Business. Out of the 326 firms covered, a total of 86 firms achieved above a World-Class rating for 2002 with BMW, Nokia, and Pfizer ranking as the "best". For more information and results of the study, visit: www.corvaltec.com.