Growth Champions: The Battle for Sustained Innovation Leadership

CHAPTER 11

Rolls-Royce and ARM

Technology partnerships for growth

Rolls-Royce has been successful in changing the business model for engine supply by developing a service case business that delivers more contribution than its core high-tech product business across the whole market. While in the world of semiconductors ARM has become the essential hidden ingredient in every major smartphone as it is rapidly making the business of IP-based revenues very much its own.

Much of the innovation and growth agendas in many sectors is focused on technology access and utilization. Whether talking about new formulations and biotech in the chemicals, food, and pharmaceutical industries, new communication platforms in telecoms, or new electric drive systems in the automotive world, ensuring that you have access to the latest technology developments to incorporate into your products and services is a key strategic issue. While in a few sectors such as banking and travel, the balance of consumer focus to technology focus may shift one way or another, in most arenas today, from fashion to FMCG, technology has as important a role as ever.

Most companies have traditionally supported internal R&D functions, whether they are the large research labs run by the likes of Samsung, IBM, or Pfizer, or smaller initiatives, the rationale of owning your own technology platforms has been a mainstay of many an ...