The Importance of Intellectual Property (IP) for Businesses, Chambers and other Business Support Organizations in a Knowledge-Driven Economy Dr. Guriqbal Singh Jaiya Director Small and Medium-Sized Enterprises Division World Intellectual Property Organization www.wipo.int/sme
European Commission adopted a Communication on a new industrial property rights strategy for Europe: Brussels, 16 July 2008
Ensuring high-quality industrial property rights in Europe that are accessible to all innovators, including small and medium-sized enterprises (SMEs). To achieve this, the Commission will undertake studies on the quality of the patent system and on the overall functioning of the trademark systems in the EU. This would also include the Community trademark, which the Office for Harmonisation of the Internal Market has been successfully registering for over 10 years. .
Facilitating exploitation by SMEs of industrial property rights. The Communication outlines measures to facilitate access to industrial property rights and dispute resolution procedures, and to improve awareness among SMEs of the management of industrial property as an integral element within an overall business plan.
The Commission - continues to work on an efficient and cost-effective, high quality and legally-secure patent system at European level, including a Community patent and EU-wide patent jurisdiction - will explore how the fee structure for the future Community patent can be designed to facilitate access for SMEs. Pending the adoption of the Community patent, Member States are encouraged within the Community framework for State aid for Research and Development and Innovation - to make use of the provisions to support industrial property rights - explore ways SMEs can make better use of rights within this framework such as reducing patent fees, or tax incentives to promote licensing activity .
explore how mediation and arbitration can further be encouraged and facilitated in the context of ongoing work on an EU-wide patent litigation system.
Member States are
- encouraged within the context of the Lisbon strategy to provide sufficient support for SMEs to enforce their industrial property rights.
The Commission will - assess the IPR Helpdesk in China with a view to providing optimised IPR support services for SMEs in third countries and to assessing the potential for continued and expanded support. Member States are encouraged to - raise awareness of intellectual asset management for all businesses and researchers, including SMEs.
ICC has launched the BASCAP initiative – “Business Action to Stop Counterfeiting and Piracy” Model Intellectual-Property Guidelines for Business
May 08;Enterprise Europe Network Launched in Ireland : A new and extensive European business and technology partnering network for companies. http://www.enterprise-ireland.com/News/Press+Releases/2008/PressMay082008.htm The 5 Chambers ( in Cork, Dublin, Galway, Sligo and Waterford) plus Enterprise Ireland have united with all the major players in the European business and technology partnering community to offer an accessible "one-stop-shop" service to help SMEs, in particular, to access the following services: - Information on European legislation e.g. health & safety, environment and labelling - Finding suitable business partners and identifying market opportunities - Identifying and sourcing proprietary, licensable technologies from international sources - Assisting with intellectual property issues and license agreements - Assistance with licensing out proprietary technology - Helping SMEs access European research funding - Involvement in EU policy making and providing a channel for SMEs to give their feedback to the European Commission.
IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity IdeaPilot 2008 - PILOT 1
IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity 4
Investment for commercialization
What is it all about?
IP-system Supporting SME´s and Employment IdeaPilot 12 Background studies: The Planning situation in SME´s
The know-how of the entrepreneur is a key factor
Development is a simple process:
idea – development – implementation – feed-back
Time is a scarce resource
The planning skills are often small or limited
IP is competing with other means of developing SME-business
Finnish Innovation System Fostering Creativity
IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity 22
IP-system Supporting SME´s and Employment IdeaPilot 23 Finnish Innovation System Fostering Creativity
IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity First steps:
Focus to the target group
Create an approach
Build your network
IP-system Supporting SME´s and Employment IdeaPilot 25 Finnish Innovation System Fostering Creativity --------- ” As part of the effort to strengthen national innovation policy, a national strategy for industrial and intellectual property rights will be drawn up. Attention will be focused on the potential of SMEs and private inventors to use various forms of protection and thereby improve the commercial potential of their products.” --------- Government Programme 2007 :
IP-system Supporting SME´s and Employment IdeaPilot 11 Finnish Innovation System Fostering Creativity Background studies: The Status of Awareness and Usage of the IP-system Trade Secret Trade name Trade Mark Patent Design Right Copyright Utility Model The Usage of the IPR System (most IP-potential companies) Strategic use Planned use Occasional use No use (SME - barometer 2007: 82 % has no IPR´s)
Background studies: Intermediate organisations IP-system Supporting SME´s and Employment IdeaPilot 13 Finnish Innovation System Fostering Creativity R&D networks 4 + 11 Universities, 21 vocational high-schools, 31 SME´s Regional development companies hundreds Jobs and Society 33 outlets Centres of Expertise covers 3 000 companies Technology centres 22 outlets Regional financiers appr. 100 Consultants, experts appr. 100 Start-up´s Regional BSP:s 50 outlets EED-Centres 15 outlets Tekes (National Technology Agency) 15 outlets Foundation for Finnish Inventions, 27+ 9 innovation managers Technology Industries in Finland The Federation of Finnish Enterprises The Confederation of Finnish Industries Chambers of Commerce
IP-system Supporting SME´s and Employment IdeaPilot 17 Usability: The structure of the IP-workbook ip4inno Intellectual property? Fostering company know-how? Employment inventions? Personnel, resources Avoiding redundant R&D? Monitoring technical development? Competitors? Trends? Markets, surveys Immaterial- strategy Evaluating R&D project? Product development Possibilities to protect technology? Production Production methods? Technical solutions? Management Responsibilities? Implementing? Protecting policy? Financing How to convince financier? Risk analysis? Marketing Disclosing business critical information? Standing out in the market? Freedom to operate? Make or Buy? Licencing? Partnerships? How to protect spearhead- technology? Key technology? How to defend infringements?
IP-system Supporting SME´s and Employment IdeaPilot Business advisors, consultants DISSEMINATION Information sessions Training for consultants: Use of Pre-Diagnosis ADVANCED - Programme Network of business advisors Network of consultants, first phase Network of consultants, advanced tools: IP-Score, Imp 3 rove New IP-consultancy concepts available for SMEs
Accessibility: Directly to SME´s, integrated to public service IP-system Supporting SME´s and Employment IdeaPilot 19 Finnish Innovation System Fostering Creativity Discussion with the innovation manager in EED-Centre 1. consulting day ProductStart Consulting process for the SME´s 1 – 3 consulting days ProductStart is a consultancy concept created in cooperation with EED-centres and produced by private business consultants subsidized by EED-Centres 1 – 5 additional consulting days
Accessibility: Directly to SME´s, integrated to public service IP-system Supporting SME´s and Employment IdeaPilot 20 Finnish Innovation System Fostering Creativity Idea for product or service IPR viewpoint Marketing viewpoint Technical viewpoint Financial viewpoint Networking viewpoint Summary, reporting Product Start -state-of-the-art -novelty -competition -protection
Inno Training- Training for Information Specialists (PRH, VTT, TKK, Tietoas.) ip4inno- project (PRH, EU) Activities 2008 - 2007 Inno Info- Patent Information in Product Development and Marketing (PRH, VTT) BA -Training Training for Business Advisors Pre -Diagnosis Training for consultants Inno Consulting- Training for Consultants (PRH, PKT-säät.)
road-show for SMEs
2008 EnterPrise Finland- project IP -Training for SMEs Imp 3 rove- Training for consultants IP-system Supporting SME´s and Employment IdeaPilot 2009 SME Work-Shops Travelling work-shops for SMEs Inno Info II Patent Information Search Interface for Consultants IP-BASE project (PRH, EU) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13)
IP Awareness and Enforcement: Modular Based Actions for SMEs Project co-financed by the European Commission Hubert Rothe, Head of Division, Information Services for the Public, German Patent and Trade Mark Office, Munich WIPO 6 th Annual Forum on IP and SMEs, Cardiff, 10 – 11 September 2008
To significantly raise SMEs’ interest and knowledge about Intellectual Property (IP) issues;
To raise SMEs’ understanding of the need to integrate IP in their innovation strategies and their business planning ;
To improve the protection of SMEs’ IP rights through the increased registration of rights EU-wide and also internationally and increase the use of non-registered protection methods through the effective promotion of these methods;
To improve protection and enforcement by SMEs of their IP rights from infringement whether this originates from within or outside the EU;
To raise SMEs ability to fight counterfeiting and increase knowledge on the methodologies available to detect it
To develop actions to promote awareness on IPR protection to educate the fashion and design industries (textiles, leather, footwear and furniture) on the risks counterfeiting poses and on the existing means and procedures to combat it;
To promote and support the use of IP rights in international research, development and technology transfer activities, providing an IP rights support service to actual and potential beneficiaries of CIP and Research Framework Programme actions , especially high-tech SMEs and Public Research Organisations.
Establishment of a cost-efficient and useful trans-national website including an extranet network of European helpdesks
Development of new IPR enforcement support services
Implementation of at least 2 new sustainable services on IPR and enforcement issues per country according to the needs of the SMEs and to the national IP policy
Stronger and sustainable relations between each NPO and the local intermediaries at national level
Project Structure European Commission DG Enterprise Scientific Coordination Committee (10 consortium members: NPOs of DE, DK, FR, GB, HU, IT and SE, University of Alicante (ES), CRPHT (LU), IEEPI (FR)) Advisory Board (external parties) Administrative Coordination (University of Alicante) Management Board All 26 consortium members
SPANISH PATENT AND TRADEMARK OFFICE IP PLAN TO SUPPORT SMEs
The aim of this Plan is that Spanish SMEs become aware of IP, in order to include it as a tool in the management of the innovation and business processes. AIM
The IP Support Plan consist on implementing a set of measures based on:
Information: the SPTO must offer to SMEs an information of quality tailored to their needs
Visibility: greater knowledge of the SPTO, its activities and services
Cooperation : implementing the actions in collaboration mainly with Regional PATLIB Centres of Autonomous Communities and other national and international institutions involved with SMEs
Simplicity and proximity: the final result of the actions must contribute to a perception of IP as a simple and easy tool
WHAT IS THE IP SUPPORT PLAN FOR SMEs
SMEs account for more than 90% of all Spanish enterprises among them, the SPTO must be a visible and present organism. In addition it is necessary to consider that great companies already have a great knowledge of IPR and make use of them, through national and international systems. The SPTO must direct its efforts to spread the IP system between the SMEs, traditionally nonusers. WHY AN IP SUPPORT PLAN FOR SMEs
Part of Welsh Assembly Government business support team
12 focus on Welsh SMEs; 3 focus on individual innovators (WIN)
IP Accreditation from UK IPO / Coventry University
Help with funding, testing, academic expertise, collaborative partners, basic understanding of IP system, introduction to esp@cenet searching, signposting & funding to access professional help
Newtown St Asaph Bangor Brecon IP Wales Pembroke Carmarthen Newport UK IPO Treforest Cardiff WAG Geography of IP Support 15 IMs - Professionally qualified with industrial experience including 1 chartered patent attorney. Project Manager Ex UK patent examiner UK IPO IP Training for Advisors IP Health Checks Pilot Swansea
National Legal Systems: Diversity (bilateral/regional/ international treaties or agreements)
Adding Value : Meeting or exceeding market needs or expectations
Market research: Consumers’ needs, competing products or substitutes, gaps
Technological innovation as an element of marketing
C ustomer E xpectation D ilemma Time Performance Expectations Continuous Improvement Performance Gap
The challenge of adding value in today’s economy
Raw materials/Inputs: Processing ( Value addition ) = Value added output/component; product; sale; Profit
Value addition: Cheaper, Faster, Better : Functional/technological or aesthetic/non-technological; Rational/Emotional (More for Less)
Price; access/availability; consistency
Individual, Enterprise (legal person), Chains, Networks; consortia; Open Innovation (Industry-Government-Academia)
Ownership vs. access to knowledge
Value Addition, Value Delivery and Value Extraction
Levels of Product Brand Name Quality Level Packaging Design Features Delivery & Credit Installation Warranty After- Sale Service Core Benefit or Service Actual Product Core Product Augmented Product
Cycle Time The elapsed time between the start and end of any customer experience Right First Time Fulfilling or exceeding customer expectations, perfectly Customer experience as viewed through our customers eyes
Innovation is the process and outcome of creating something new, which is also of value.
Innovation involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization (Schumpeter).
New Product Adoption Process is also known as the diffusion process.
Each successive set of consumers behaves differently.
Rate of Adoption is a function of:
relative advantage, compatibility, complexity, availability of trial, observability
Risk Management in New Product Development Why research and analysis before new product development New product development is linked with very limited historical or preliminary data . Hence, risky Risk can be in form of market, technical, or organizational issues. Risk analysis solves the problem through flexible modeling, primary and secondary research. A good strategy is a must for evaluating and dealing with the associated and unavoidable risks. Research conducted to understand customer needs and develop a new product is different from research required to launch a new product. Product development research is focused on needs of customers while launch research focuses on understanding the motivation and attitudes of early adopters. Successful targeting of early adopters builds the fountain for new product success.
New product have a very high failure rates .
Products fail , not because of technical shortcomings, but due to absence of market .
Over 60% of new product fail before entering the market, and out of the remaining 40% that do see the ray of light, 40% fail to yield profit and are withdrawn from the market.
Timely and reliable knowledge about customer preferences is most important. Such data is obtained from business research .
Success Rate of Entirely New Products 3000 raw ideas .03% 300 submitted ideas .3% 125 beginning projects .8% 9 large developments 11% 4 major developments 25% 1.7 launches 60% 1 commercial success Stevens and Burley, RTM May-June 1997
A reminder that most products do not live for ever
A conceptual framework only
Difficult to measure where a product is in its life cycle
The chances for failure are greatest when you know the least about the technology being developed and/or the target market The “Familiarity Matrix” allows mapping of R&D projects based on the extent of knowledge about technologies and markets Edward B. Roberts and Charles A. Berry, “Entering New Businesses: Selecting Strategies for Success” Sloan Management Review , Spring 1985 pp 3-17
Familiarity Matrix: A Guide Place Your Project in One of the Nine Boxes Decreasing knowledge of the technology Decreasing knowledge of the market Increasing risk of failure Familiar New , familiar New , unfamiliar Familiar New, familiar New , unfamiliar
Familiarity Matrix: A Guide Place Your Project in One of the Nine Boxes Decreasing knowledge of the technology Decreasing knowledge of the market Market Penetration Market Extension Market Expansion Product Extension Business Extension Business Expansion New Business Model Business Expansion Product Expansion
Familiarity Matrix: A Guide Place Your Project in One of the Nine Boxes Market Penetration Market Extension Market Expansion Product Extension Business Extension Business Expansion New Business Model Business Expansion Product Expansion Probability of Success New Product with unrelated technology in existing market: 50%
Familiarity Matrix: A Guide Place Your Project in One of the Nine Boxes Market Penetration Market Extension Market Expansion Product Extension Business Extension Business Expansion New Business Model Business Expansion Product Expansion Probability of Success Existing product in a new market: 15%
Familiarity Matrix: A Guide Place Your Project in One of the Nine Boxes Market Penetration Market Extension Market Expansion Product Extension Business Extension Business Expansion New Business Model Business Expansion Product Expansion Probability of Success Improved product in existing market: 75% “ Suicide Square” .03%
Familiarity Matrix: A Guide Place Your Project in One of the Nine Boxes Market Penetration Market Extension Market Expansion Product Extension Business Extension Business Expansion New Business Model Business Expansion Product Expansion Probability of Success New Product in a New Market: 5%
Time Profitability Disruptive Innovation Application Innovation Product Innovation Process Innovation Marketing Innovation Business Model Innovation Structural Innovation Different types of Innovation give greater profitability at different points in the life cycle of a product family Geoffrey A. Moore “Darwin and the Demon: Innovating Within Established Enterprises” HBR July-August 2004 pp.87-92 New product invention, tailoring, and development
Disruptive Innovation – an invention that can displace the present market leader or create an entirely new market
DuPont Diamond Award Winners 2002 Tetra Pak, Inc., Sweden / USA Nestlé Purina PetCare, Italy First Retortable Carton System for Nestlé Dog Food . This represents the first retortable carton packaging system on the market.
Structural Innovation : Capitalizes on disruption and changes in the industry to restructure industry relationships
A company cannot rest on its laurels; many product class winners have fallen victim to their success US Steel (steel) ICI (chemicals) Kodak (photography) Goodyear (tires) Polaroid (instant photography) Zenith (TVs) IBM (PCs) Smith-Corona (typewriters)
Familiarity Matrix: Optimum Strategies for Technological Innovation: Finding others who know more about the markets or the technology Decreasing knowledge of the technology Decreasing knowledge of the market Internal Development, Acquisition, or Joint Venture Joint Venture Internal Development Venture Capital or Educational Acquisition Internal Venture or Acquisition or License Internal project, or Acquisition, or License Venture capital, or Educational Acquisition, or University Relationship Venture Capital or Educational Acquisition Joint Venture, Strategic Alliance or University Relationship
New developments in innovation raises new issues and problems
Greater emphasis on commercializing scientific discoveries , particularly in IT and the bio-sciences
Speed and potential value of scientific progress leads to emphasis on solid and well-designed portfolios of research projects
Universites as active drivers of innovation: Academic entrepreneurship and the entrepreneurial university
Increased search for radical innovation and top-line growth.
Bargaining power of owners of complementary resources depends upon whether complementary resources are generic or specialized .
M anufacturing Distribution Service Complementary technologies Other Other Marketing Finance Core technological know-how
The eleven modes of cooperation agreements: illustration of their anchor points Source: S. Urban, S. Vendemini, CESAG, Strasbourg Ways of... designing s upplying p roducing m arketing d elivering Know-how transfer contract Research contract Common Research Common purchase Subcontracting Engineering contract Patent licence Common production Trademark licence Consortium (common marketing) Distribution agreements
Source: S. Urban, S. Vendemini, CESAG, Strasbourg Cooperations modes and value chain Services
Reciprocal distribution agreements (access to existing distribution networks)
Consortium (common marketing)
Common manufacturing agreements
Implementation of engineering contracts
Access to the specific resources of the country (raw materials, subventions, capital cost, compared advantages)
Link of the chain Coope - r ation modes R&D
Exchanges of existing knowledge
Organisation of a common research
Setting up of a common project (design, engineering)
New Business Models Emerge Then… One Integrated Company Now… Many Distributed Companies Product Development Cycle Product Development Tool Companies Testing Services CRO’s CRM’s
New Regional Model Emerge Then… Manufacturing Research Development Trials/Testing Services Self-contained regional clusters Region A Region E Region B Region F Region D Region C Region G Now… Specialized, networked regions
Strategic Investment is the Foundation of a Successful Commercialization Model
‘ Opening up’ of industrial research process R&D Lab of company X Firm X Developing technological core competences within the company X University-industry cooperation Firm’s own research lab Public-private partnership High-tech SMEs Pre-competitive R&D with competitors Value creation: products, processes etc Worldwide search and evaluation of technology and knowledge New firms, spin-offs Firm X itself Joint ventures Licensing technologies
‘ Open innovation’ Research Campus, with
Technology transfer and support, …
“ Exploring wider range of knowledge areas” Creating more value faster “ More focus and resources for firm’s own competences” Nothing In the past
Addenbrooke’s Hospital Cambridge Biotechnology Northern Venture Managers Cambridge University Pfizer Lorantis Cambridge Antibody Technology Domantis Abbott Eli Lilly Astex Daniolabs Neurodegeneration Consortium Gateway Fund Biotica Babraham Bioincubator Babraham Technix Babraham Bioscience Inst Technologies Ltd Wellcome Trust Wyeth Amgen AstraZeneca Cambridge Crytallographic Data Centre GlaxoSmithKline Gilead Sciences (joint venture) (Cambridge University administered) Institute for Medical Research Challenge Fund Founders came out of Pfizer macrolide templates Vistide out-license Hepsera out-license virtual screening collaboration (Cambridge University) (funding) partnership arthritis collaboration (funding) licensing licensing Genzyme antibodies license validation (funding)
The New Paradigm for Innovation “ Open innovation…assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology.” Henry Chesbrough, Open Innovation: Researching a New Paradigm
“ Few if any companies today can hold all the pieces of their own product technology…they simply must collaborate with others if they want to survive and prosper… IP has become much more of a bridge to collaboration”
Marshall Phelps, Microsoft
Open Innovation – buying in ideas or products to add to your model Revenues Costs Market Revenues Market Revenues Market Revenues Internal Development Internal Development Internal & External Shared Development Sell Divest Spin off License Shorter Product Life Cycle Increasing costs Decreasing costs New Revenue Sources Golden Past Past Present Present Future
‘ Closed innovation single track’ “ Ideas & “ Current Market Place” Research Development Commercialisation Investigations” Based upon ‘Open Innovation: Researching a New Paradigm’ (2006) Henry Chesbrough, Wim Vanhaverbeke & Joel West 1 2 3 4 5
‘ Open innovation three lane highway’ “ Ideas & “ Current Market Place” Research Development Commercialisation Investigations” “ New Market Place” “ Other firm’s Market Place” “ External Ideas & Investigations” licensing “ External Technologies Technology spin-offs Insourcing gate Outsourcing gate Based upon ‘Open Innovation: Researching a New Paradigm’ (2006) Henry Chesbrough, Wim Vanhaverbeke & Joel West 1 2 3 4 5
Task Networks: involve the exchange of specific job-related resources including information, expertise, professional advice, political access, and material resources.
Social Networks: involve relationships characterized by higher levels of closeness and trust than those that are exclusively task-related. They usually consist of people who share a common background or interest. Since people have more leeway in choosing their friends than their co-workers, these networks tend to be less closely determined by formal organizational arrangements and work assignments. Social networks, however, often play a critical role in mobilizing resources, transmitting information, and providing peer coaching.
It is important to cultivate a broad range of network relationships!
Long-term, high reciprocity (Strong) ties: Close bonds and reciprocal relationships ensure reliability under conditions of uncertainty. These include peer alliances that function by exchange of favors, ties of trust and loyalty between superiors and subordinates, and career development ties between mentors and proteges.
Short-term, instrumental ties: Many important ties such as highly circumscribed job-related connections, are often dissolved when the relationship has served its purpose. Some are with individuals the manager may not even like, but must interact with to get things done.
Distant Acquaintances (Weak ties): These types of relationships are important because they function as bridges between the manager and distant social or organizational groups. As a result, they are often sources of unique or novel pieces of information. A networking strategy that does not take these into account leaves a manager open to the risk of developing an inbred network that will not provide information on external opportunities or threats.
From an integrated and closed corporation to dynamic cluster
RA (Raufoss Ammunition Company) 1897
Gradual growth of civil production in light metal
Gradual growth of global customers (automotive)
From national customers to global customer
From closed innovation to open innovation
Challenges for relations and communications
From RA via Industrial Park to a Dynamic Cluster ? RA Phase 1 1896-1997 Raufoss HARA Phase 2 1997-2003 Nammo Fission Phase 3 2004- HARA Nammo Integrated company Reintegration ? Fragmentation Dynamic cluster?
It allows new/innovative ideas to turn into successful ventures in high-tech sectors and/or can unlock the personal potential of disadvantaged people to create jobs for themselves and find a better place in society.
A structured approach to developing and implementing ideas
The foresight to plan a course of action once the idea is implemented and established
Entrepreneurial Success 1. People (Entrepreneur /Entrepreneurial Team) 2. Opportunity (Marriage of Market and Product/Service) 3. Access to Resources (Land. Labor, Capital, Knowledge And the fit amongst these three elements (Business Model)
“ Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value.” Michael E. Porter
Core competences can vary through the time depending on the strategy adapted by the companies and the identification of the core competencies is the first step for a company to decide which business opportunities to pursue.
Incorporate differentiating features that cause buyers to prefer firm’s product over brands of rivals
Find ways to differentiate that create value for buyers and are not easily matched or cheaply copied by rivals
Not spending more to achieve differentiation than the price premium that can be charged
Differentiation Strategies Objective Keys to Success
Where to Find Differentiation Opportunities in the Value Chain
Purchasing and procurement activities
Product R&D and product design activities
Production process / technology-related activities
Manufacturing / production activities
Marketing, sales, and customer service activities
Internally Performed Activities, Costs, & Margins Activities, Costs, & Margins of Suppliers Buyer/User Value Chains Activities, Costs, & Margins of Forward Channel Allies & Strategic Partners
How to Achieve a Differentiation-Based Advantage Approach 1 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 2 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 3 Compete on the basis of superior capabilities Approach 4 Incorporate product features/attributes that lower buyer’s overall costs of using product