Top-performing manufacturing companies have successfully combined product innovation and operational excellence practices, leading to higher returns and customer value than seen by their rivals, according to a new study by AMR Research. The report, “Product Innovation and Operations Excellence: Who Has the Discipline To Be the Best?” identifies that AMR’s Supply Chain Top 25, a group of companies spanning various industries, have delivered above-average returns to their shareholders as a result of a combined approach to product innovation and operational excellence initiatives designed to answer their customers’ unmet needs. The companies on AMR’s list, including Apple, Toyota, Lockheed Martin, and Procter & Gamble, have in common a set of characteristics they have enacted as part of an integrated operating strategy embedded with innovation practices, the report finds. These include a thorough understanding of customer needs, active project governance, and a prudent approach to applying technology. The companies had a total return of 17.89%, compared with returns of 6.43% for the Dow Jones Industrial Average and 3.53% for the S&P 500.