Organizational Structure Running A Successful Business
Woodward IP Presentation 9-12-2013
1. Engine Systems
Woodward, Inc
What we do
Technologies that allow engines to run on natural gas
Where we do business?
China, Korea, India, US, Europe
How much China business experience do we have?
Over 8 years with multi-million sales
2. Engine Systems
Why?
Why China?
• Huge market
• Fast growing market
• Market trends fit well to our strategy
Why China customers use our technology?
• Proven pedigree
• Quality focus is valued
• “Western technology” is highly desired and trusted
3. Engine Systems
How do we protect our business in China?
• Market share
• Intellectual Property
• Pricing
4. Engine Systems
It’s all about VALUE
What is our VALUE in the eyes of our customer?
Our product Value is changing “daily”
• Competitors (our competitors)
• Customer profitability (our customers competitors)
Price < = Customers Perceived Value of our “product”
• Demands for lower price
• Customer pulling more scope of product in house
• Customer invest in their own R&D to replace us with their own
solution
• Local China company offers a similar solution
• IP infringement
• Lose customer!
Out of balance situation attracts IP Infringement!
5. Engine Systems
Increase your Value to keep the balance
• Performance of product
• Quality of product
• Ease of Service and Repair
• Helping solve their problems!
6. Engine Systems
My belief: You cannot rely on any legal protection
3 simple truths about protecting your business
1.You are not “entitled” to anything
2.You have to earn the business
3.You have to earn the right to keep the business
7. Engine Systems
Summary
Protect your IP. Protect your business.
• Stay ahead of imitators. INNOVATE. INNOVATE. INNOVATE!
• Superior support (or other complimentary assets)
• Increase complexity (but it not if it reduces the value)
Encrypted software, RFIC
• Price competitively to reduce incentive to imitators / other
threats
Editor's Notes
Protect business to me means – Protect your market share, protect your profits, protect your IP. Strategy is the same for all three. Look for picture of goalie. Or defensive castle or both. Patents/ Lawyers= Castle. Goalie is more of active defender.
If this simple equation gets out of balance, lots of bad things can happen. IP infringement is all about Value and Price. Infringers seek to sell at a lower price than you. Customer will buy at this lower price because they don’t VALUE your total offering. Something is out of balance. Our customers are demanding fair competeitive pricing. IF we don’t help them achieve balance with THEIR customers, they could be enticed to go down some unfavorable paths. Example: Software in China…Average income $5,000. You cant sell consumer software for $200. Invites piracy.
This is our guiding strategy. Keep adding to the performance of product. Keep improving on the quality to be better than any potential copycat Help solve your customers problems so you are invaluable to them and they would not consider infringement alternatives. Teeter-totter?
