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The Importance Of Intellectual Property (Ip) For Businesses

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    • 1. 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
    • 2. SMEs Website
    • 3. IP for Business Series
      • Making a Mark (Trademarks)
      • Looking Good (Designs)
      • Inventing the Future (Patents)
      • Creative Expression (Copyright and Related Rights)
    • 4. Barriers to SME IP Activity
      • IP Challenges for SMEs
      • Cost – Both direct fees and opportunity costs
      • Value for money
      • Complexity
      • Time
      • Need for secrecy
      • Difficulty in enforcing IP rights
      • Still the case, since the mid 1900’s
    • 5. 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.
    • 6. 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 .
    • 7.
      • The Commission will
      • 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.
    • 8. 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.
    • 9. ICC has launched the BASCAP initiative – “Business Action to Stop Counterfeiting and Piracy” Model Intellectual-Property Guidelines for Business
    • 10. 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.
    • 11. IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity IdeaPilot 2008 - PILOT 1
    • 12. IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity 4
      • Brand-building
      • Investment for commercialization
      • Knowledge management
      What is it all about?
    • 13. 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
    • 14. IP-system Supporting SME´s and Employment IdeaPilot Finnish Innovation System Fostering Creativity 22
      • The Strategy for Winning Trust
      • understand SME´s appropriate business processes
      • locate IP-potential companies and decision makers
      • responsible for those prosesses
      • INTEGRATE IP-services to business processes
      • INTEGRATE first-phase delivery to
      • intermediary organizations service processes
    • 15. The critical success factors of the project:
      • home-work concerning the target group
      • create desirability towards IP-system
      • develop it´s usability
      • improve the accessibility of services
      IP-system Supporting SME´s and Employment IdeaPilot 23 Finnish Innovation System Fostering Creativity
    • 16. 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
    • 17. 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 :
    • 18. 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)
    • 19. 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
    • 20. 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?
    • 21. 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
    • 22. 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
    • 23. 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
    • 24. 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)
    • 25. 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
    • 26. Background
      • Network of NPOs in Europe founded in 2005, supported by European Commission, DG Enterprise
        • Creation of the Innovaccess.eu website, based on previous EU projects
        • Presentation of the network by M. Philippe Cadre at the WIPO Forum 2006 in Geneva
      • Termination of the IPR Helpdesk project (coordinated by University of Alicante) at the end of 2007
      • Call “IP Awareness and Enforcement Project (including IPR Helpdesk)“ published by DG Enterprise in April 2007, based on the CIP Programme
      • 19 NPOs, University of Alicante and 6 other institutions filed a common proposal in June 2007
      • EC accepted the proposal in October 2007
      • Project contract concluded with the EC on 31 October 2007
      • Commencement of the project on 1 November 2007
    • 27.
      • Duration: Nov. 2007 - Oct. 2010
      • Budget: 7.9 M€
      • Coordinator: University of Alicante (ES)
      • Partners: 19 NPOs 5 research institutions 1 trade organisation (EURATEX) 1 innovation agency (Luxinno)
      IP Awareness and Enforcement: Modular Based Action for SMEs
    • 28.  
    • 29.
      • 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
      Project objectives
    • 30.
      • 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.
      Project objectives (continued)
    • 31.
      • Module 0 – Horizontal Work Packages
      • WP1. Developing the Knowledge Base (DK)
      • WP2. Developing the IPR Toolbox (IT)
      • WP3. IT Support (UA)
      • WP4. Communications and Marketing (GB)
      • WP5. Cooperation with other actors (SE)
      • WP6. Project Management (UA)
      • Target audience
        • All project partners
        • External partners and stakeholders (WP5)
      Modules and Target Audiences
    • 32. Modules and Target Audiences
      • Module 1
      • WP7. Setting up a user-friendly website for IPR support for European SMEs (FR)
      • WP8. Setting up local Helpdesks for IPR and enforcement support for European SMEs (DE)
      • WP9. Planning local actions for Awareness and Enforcement Services (HU)
      • WP10. IPR Enforcement Support Services (DK)
      • WP11 Delivering awareness and enforcement actions directly to SMEs (CRPHT)
      • WP12 Delivering Awareness and Enforcement Actions for SMEs Support Services (IEEPI)
      • Target audience
        • Innovative and high-tech SMEs
        • SME support services, innovation support actors and networks, e.g. Chambers of Commerce
        • IPR enforcement agencies
    • 33. Modules and Target Audiences
      • Module 2 (University of Alicante)
      • WP13. Sectoral Handbook(s) Production and Dissemination
      • Target audience
        • Enterprises (especially SMEs) of the fashion and design industries (textiles, leather, footwear and furniture) from target countries
        • Sectoral associations
        • Chambers of commerce, regional development agencies, etc.
    • 34. Modules and Target Audiences
      • Module 3 (University of Alicante)
      • WP14. IPR-Helpdesk Website Content Generation and Info-Service
      • WP15. Helpline for participants in EU-funded Research and Innovation projects
      • Target audience
        • Current and potential participants, e.g.
          • SMEs,
          • universities and
          • research organisations,
        • in CIP and RTD Framework Programmes of the European Commission
    • 35. Expected Results
      • 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
    • 36. 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
    • 37. SPANISH PATENT AND TRADEMARK OFFICE IP PLAN TO SUPPORT SMEs
    • 38. 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
    • 39.
      • 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
    • 40. 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
    • 41.
      • SMEs
      • Entrepreneurs
      • Technological Centers and Parks
      • Intermediaries , that optimize and multiply the actions adopted by the SPTO
      TARGET GROUPS OF THE PLAN
    • 42. To carry out the Plan, the SPTO will adopt the following actions: HOW IS THE PLAN CARRIED OUT :
    • 43.
      • Create an internal center specialized on SMEs which will coordinate all the actions
      • Create a SMEs microsite in the SPTO Web
      • Create an external center to support enterprises on trademarks
      • Integrate the electronic trademark application on enterprises networks and on One-Stop-Shop for Entrepreneurs
      ACTIONS: 1
    • 44.
      • Strengthen the collaboration with other institutions related with SMEs
      • Create or improve the following tools:
        • Patents:
          • Subsidies
          • Reduction of public prices (technological information reports)
          • SMEs Patent brochure: adaptation of SMEs WIPO brochure to the Spanish Legislation
          • Program of Visits to companies
      ACTIONS: 2
    • 45.
      • Trademarks
        • Reduction of Trademark searches fee
        • Massive distribution of specific trademark leaflets
        • Launch of the new service: Community Trademarks applications surveillance
        • Trademark Dissemination Programme for SMEs in collaboration with Chambers of Commerce and enterprise associations
      • Industrial Property
        • SPTO Presence on SMEs Forums
        • Periodical workshops
        • Dissemination Seminars (in collaboration with Autonomous Communities and other intermediaries)
      ACTIONS: 3
    • 46. ANNEX INTERMEDIARY ELEMENTS Integrate IP on their dissemination and formation programmes
      • Administrative Bodies related with SMEs
      • Autonomous Communities: Patlib Centres
      Seminars, News in their Bulletins, Links in their webs Search of new clients Integrate TM applications and IP information on One- Stop-Shop for Entrepreneurs
      • Chambers of Commerce, Enterprise associations
      • Foundations rooted in the business world (pharmaceutical, technological innovation, design…)
      • Association of Science and Techonology Parks of Spain, Association of Innovation and technology entities of Spain
      Intermediary elements
    • 47. Targeted SME Support
      • West Midlands IP Forum – Fillip
      • Funded by the RDA – Advantage West Midlands
      • Managed by Coventry University Enterprises Ltd
      • Remit
        • To raise awareness of IP
        • To form a Forum of IP Professionals in the West Midlands to provide businesses with a one stop shop for IP
        • To establish a website for IP Resources
        • Managed Grant Funding for IP related work
    • 48. Achievements
      • In the West Midlands, Fillip has:
      • Engaged with 327 individuals
      • Engaged with 305 businesses
      • Held 12 events
      • Managed a competition to win IP funding; providing £149,500 of funding to small and medium sized businesses
    • 49.
      • Established 1999
      • Funded by The Scottish Government
      • Impartial
      • Non-commercial
      • Confidential
      • FREE
      • Not a funding programme
      • Does NOT do work of Patent Attorneys or other Professionals
    • 50. nnovators ounselling dvisory ervice cotland Invention Innovation
    • 51.
      • Established 1999
      • Funded by The Scottish Government
      • Impartial
      • Non-commercial
      • Confidential
      • FREE
      • Not a funding programme
      • Does NOT do work of Patent Attorneys or other Professionals
    • 52. What is ICASS? “ Service that facilitates , the protection, development and commercialisation of innovative ideas originating in Scotland” Early stage Intervention One to one
    • 53. What does ICASS do?
      • Counselling
      • Talking through ideas
      • Asking basic questions
      • Putting ideas in context
      • Commercialisation issues
      • Advice
      • Intellectual Property
      • Product development
      • Establishing IPR
      • How to Protect IP
      • Investigating originality
      • Confidentiality
      • Licensing
      Business Advice Finance Marketing Signposting
    • 54. IP Support for SMEs & Individuals in Wales
      • Advice
      • Working with UK IPO
      • Financial
    • 55. IP Advice for SMEs & Individuals
      • Innovation Managers (IM)
        • Support for SMEs
        • Established in 1996 with a network of advisers
      • Wales Innovators Network (WIN)
        • Unique support scheme for lone innovators/inventors
        • Established in 2002 with dedicated advisers
        • 2004 number of advisers doubled
        • Award winning
    • 56. Supporting Welsh IP: Background
      • Wales Innovators Network (WIN )
      • Award-winning Welsh Assembly Government Initiative - part of Technology & Innovation team
      • Helping individual innovators to progress their ideas
      • Support with IP, market research, prototyping, testing, manufacture, commercialisation
      • Structured Development Plan
    • 57. Supporting Welsh IP: Background
      • Innovation Manager Team
      • Science / Technology background, several PhD level
      • Sector expertise (e.g. Geoscience, Optoelectronics, Electrochemistry, Composites, Semiconductors…)
      • Private sector experience
      • 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
    • 58. 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 
    • 59. IP Training for Innovation Managers
      • Past
        • 1 day awareness course
        • Patent Searching
      • Current/Future
        • IP Master Class
        • Licensing
        • IP Valuation
    • 60.
      • IP Health Checks
      • Funding Support for IP Professionals
        • Accredited list of providers
        • Patents - €4,400
        • Trade Marks - €2,200
        • Registered Designs - €2,200
        • License Agreements - €3,600
      • IP Commercialisation
      Future IP Services
    • 61. Presentation of CERT-TTT-M WIPI Annual Forum 2008– Cardiff
    • 62. The “European Institute for Enterprise and Intellectual Property”
          • Created in 2004 by the French Ministry of Industry and INPI (French NPO) in order to provide training sessions on the economic and strategic issues of intellectual property (IP).
          • Promote "intellectual property awareness" within companies, focusing on SME / SMI .
          • Develops and organizes training sessions on the offensive aspects of IP and innovation
          • Is implicated in different European projects aiming at the development of IP awareness toward SMEs.
    • 63. CERT-TTT-M…
      • means Certified Transnational Technology Transfer Manager
      • project within the FP6 programme of the EU
      • Based on key assumptions of European IPR experts :
        • Lack of TT skilled people
        • No registered TT profession
        • No TT education / training programme recognised all over Europe
      2
    • 64. CERT-TTT-M…
      • … addresses to the findings of CREST IPR expert group
        • Lack of holistic/integrated TT education programs
        • Lack of trans-national/international attitude of education
        • No sufficient assessment of TT-skills possible (comparable)
        • No clear TT career structure / no accreditation for TT professionals
        • No sufficient benchmarks on education TT programmes in EU-27 (comparable )
      3
    • 65. CERT-TTM…
      • To build up a blue-print education programme that possibly :
        • Professionalizes TT on a trans-national level
        • Covers all phases of the TT process
        • Meets the need for an official recognized course
        • Supports MS policy-makers
        • Standardizes the skill-set of TT profession in Europe
        • Is based on surveys on demand and supply
      4
    • 66. CERT-TTT-M at a glance
      • 11 partners of 7 Member States, 5 PROs, 7 policy makers (also CREST participants)
      • Advisory Panel: IPR/TT relevant organisations
      • Budget: € 1,3 Mio.
      • 6 workpackages
      • Duration: 24 months (2007-2008)
      5
    • 67. CERT-TTT-M Partner
      • 11 Participants from 7 Countries
      • Austria: AWS – MCI
      • Belgium / Flanders: IWT
      • France: IEEPI – MESR
      • Italy: ASTER – ERPDA
      • Latvia: LIDA
      • Netherlands: EZ – RSM
      • Sweden: VINNOVA
      6
    • 68. Spotlight is on knowledge in today’s economy
      • Knowledge, Weightless, Information, Digital or Service Economy
      • Factors of production : Land, Labor, Capital, Intangibles (Knowledge)
      • Knowledge as useful Information (or Service)
      • Information as a “ Public Good ”
      • Information as Property
    • 69. Market-oriented Economy
      • Playing Field: Unfair competition; free riding
      • 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
    • 70. C ustomer E xpectation D ilemma Time Performance Expectations Continuous Improvement Performance Gap
    • 71. 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
    • 72. 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
    • 73. Tangibility Spectrum Tangible Dominant Intangible Dominant Salt Soft Drinks Detergents Automobiles Cosmetics Advertising Agencies Airlines Investment Management Consulting Teaching Fast-food Outlets Fast-food Outlets            
    • 74. 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
    • 75. New Product Development
      • All businesses must do this or eventually die.
        • …use the firm’s resources to meet objectives in an ever changing environment.
      • Acquisition versus Innovation
        • risk versus reward tradeoff
    • 76. The Need for Innovation
      • Commodity businesses compete on price
      • Advantage goes to the low cost producer
        • Perhaps due to lower labor costs, materials costs, or a superior process
      • The only way to avoid commoditization is innovation
        • Products
        • Processes
        • Value-added via integration or services
    • 77. What is Innovation?
      • 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).
    • 78. What is Innovation?
      • Today it is said to involve the capacity to quickly adapt by adopting new innovations (products, processes, strategies, organization, etc)
      • Also, traditionally the focus has been on new products or processes, but recently new business models have come into focus, i.e. the way a firm delivers value and secures profits.
    • 79. What is Innovation?
      • Schumpeter argued that innovation comes about through new combinations made by an entrepreneur, resulting in
        • a new product,
        • a new process,
        • opening of new market,
        • new way of organizing the business
        • new sources of supply
    • 80. Dimensions of Innovation
      • There are several types of innovation
        • Process, product/service, strategy,
      • which can vary in degree of newness:
        • Incremental to radical,
      • and impact:
        • continuous to discontinuous
    • 81. Drivers for Innovation
        • Financial pressures to reduce costs, increase efficiency, do more with less, etc
        • Increased competition
        • Shorter product life cycles
        • Value migration
        • Stricter regulation
        • Industry and community needs for sustainable development
        • Increased demend for accountability
        • Demographic, social and maket changes
        • Rising customer expectations regarding service and quality
        • Changing economy
        • Greater availability of potentially useful technologies coupled with a need to exceed the competition in these technologies
    • 82. New Conditions for Innovation
      • Small start-up entrepreneurs increasingly depend on large firms:
        • as suppliers or customers
        • for venture finance,
        • for exit opportunites,
        • for knowledge (production, markets and R&D)
        • and for opening new markets.
    • 83. New Conditions for Innovation
      • Large firms increasingly depend on small start-ups
        • for NPD,
        • as suppliers of new knowledge (which they cannot develop themselves),
        • or organizational renewal, for experimentation with busienss models,
        • for opening new markets, etc
    • 84. New Product Development
      • Acquisition versus Innovation
      • corporate acquisition
          • buy the company
            • rapid entry, total control
            • invites antitrust attention, threat of divestiture
        • patent acquisition
          • buy the patent
            • avoids antitrust problems
            • does not give total control
    • 85. New Product Development
      • Acquisition versus Innovation (cont.)
        • license the patent
          • … rent it
            • minimum investment, fast introduction, fast income
            • fast competition, lack of control, less reward
        • innovation
          • … develop new products internally
            • maximize long term profit, gain technological leadership
            • no legal problems...
    • 86. New Product Development
      • Why is this so difficult?
        • Shortage of fundamentally new solutions to old problems
        • Fragmented markets due to increased competition,
        • decreased reaction time
        • Increase in social and government constraints
        • Cost
    • 87. New Product Development
      • New Product Adoption Process
        • Innovators
        • Early Adopters
        • Early Majority
        • Late Majority
        • Laggards
        • Area under curve sums horizontally to form first three stages of the product life cycle.
    • 88. New Product Development
      • 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
    • 89. 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 .
    • 90. 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
    • 91. THE PRODUCT LIFE CYCLE
      • 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
    • 92. 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
    • 93. 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
    • 94. 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
    • 95. 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%
    • 96. 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%
    • 97. 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%
    • 98. 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%
    • 99. 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
    • 100. Different Types of Innovation
      • 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.
    • 101. Different Types of Innovation
      • Application Innovation : Takes existing technologies into new markets to serve new purposes
    • 102. Different Types of Innovation
      • Product Innovation : Takes an established product to the next level – reduced cost, improved quality, greater functionality
    • 103. Different Types of Innovation
      • Process Innovation : Makes processes for established products in established markets more effective and more efficient
    • 104. Different Types of Innovation
      • Experiential Innovation : Makes some superficial changes in the product that improve the customer’s experience with the product – adding delight, greater satisfaction, or reassurance
    • 105. Different Types of Innovation
      • Marketing Innovation : Improves the interaction with customers
    • 106. Different Types of Innovation
      • Business Model Innovation : Reframes the role of the company in the value chain or the way in which the company meets customer needs
    • 107. Different Types of Innovation
      • Structural Innovation : Capitalizes on disruption and changes in the industry to restructure industry relationships
    • 108. 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)
    • 109. 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
    • 110. 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
      • University-industry partnerships
      • Increased search for radical innovation and top-line growth.
    • 111. Complementary Resources
      • 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
    • 112. 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
    • 113. Source: S. Urban, S. Vendemini, CESAG, Strasbourg Cooperations modes and value chain Services
      • After sale
      • Lobbying
      • Relations
      Distri-bution
      • Reciprocal distribution agreements (access to existing distribution networks)
      Marke-ting
      • Trademark licence
      • Consortium (common marketing)
      • Joint advertising
      Produc-tion
      • Subcontracting agreements
      • Common manufacturing agreements
      • Implementation of engineering contracts
      • Patent license
      • Production consortium
      Logistic supply
      • Common purchases
      • 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)
    • 114. 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
    • 115. 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
    • 116. Commercialization Model
      • Strategic Investment is the Foundation of a Successful Commercialization Model
    • 117. ‘ 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
      • Venturing
      • ‘ Incubator’
      • 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
    • 118. 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)
    • 119. 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
    • 120. The Key is Collaboration
      • “ 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
    • 121. 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
    • 122. Chesbrough, Sloan Management Review (2003)
    • 123. ‘ 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
    • 124. ‘ 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
    • 125. IP model enabling “Open Innovation”
      • R&D on generic technologies
      • Industry value chains brought together
      • Partners collaborate and contribute ideas
    • 126. A Network View of Innovation
      • Depending on a firm’s strengths, different firms play different roles in open innovation value chain
      • Some firms generate innovations
      • Some integrate the innovations of others
      • Some have a fully integrated model
      • An open innovation system is a networked system
    • 127. From a network IN an organization …. To the network IS the organization Hierarchy Matrix Network
    • 128. TYPES OF NETWORKS
      • 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.
      • Innovation Networks must combine both!
      Thanks to H. Ibarra
    • 129. TYPES OF RELATIONSHIPS
      • 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.
    • 130. Raufoss – Light Metal Industry
      • 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
    • 131. 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?
    • 132. Technology - Aircraft
      • Boeing Co - The first mass jetliner - the 707.
      • 98% made in the US 1950’s - 60’s. 20 th c.
      • The 787 - Dreamliner - 21st c.
      • 70% outsourced to 900 contractors
      • Half made by contractors outside the US - primarily Japan and Italy but also China (rudder).
      • Boeing does the final assembly.
      • Boeing maintains the overall IP – it’s their innovation.
        • Without Open Innovation and strong IP the above process
        • could not happen.
       Boeing Co.
    • 133. Boeing - the platform Co.
    • 134. Some cross-sector ‘platform’ candidate innovation biographies in firms & regions arising from WP3
    • 135. Firm Level Innovation Biographies
    • 136. Strategic Entrepreneurship and Innovation
      • Entrepreneurship is concerned with:
        • The discovery of profitable opportunities
        • The exploitation of profitable opportunities
      • Firms that encourage entrepreneurship are:
        • Risk takers
        • Committed to innovation
        • Proactive in creating opportunities rather than waiting to respond to opportunities created by others
    • 137. Understanding the Process of Innovation Pre-IPO Expansion Start-Up Seed Idea / Concept
      • Bright Idea
      • Experimental
      • Research
      • Business Plan
      • Proof of Concept
      • Legal Entity
      • Founders = Mgt Team
      • Minimal Revenue
      • Slow Growth
      • Support Functions
      • Administration
      • Marketing
      • Revenue Growth
      • High Growth
      • Head Count
      • Multiple Cycles
      • Viable
      • Market acceptance
      • Heading to IPO or M&A
      The Process/Steps of Innovation Time $
    • 138. Expansion Start-Up Seed Idea / Concept
      • Business Plan
      • Prototype/ POC
      • Project Management
      • Business Premises
      • Project Management
      • Management Training
      • Corporate and Secretarial
      • Financial
      • Training
      • PR and Marketing
      • Networking
      • Business Development
      • Recruitment
      • Business Development
      • A & P
      • Market Access
      • International support and Mkt. Access
      • Diversification strategies and support
      • Recruitment
      • Training and Incentives
      The Needs of Each Stage IP Management Needed in all stages Time $
    • 139.
      • Understand the value chain of the business and industry
      • Understand how profits are generated
        • primary product
        • spare parts and related products
        • service and maintenance
      • What are the important features of the IP? How does it add value to the business?
      • What are the important features of the industry other than IP?
        • other important intangible and tangible assets in the value chain
        • competitive structure of the industry
        • customer characteristics and purchasing criteria
        • substitute products or services
      Understanding the business/role of IP Manufacturing Patent Distribution Sales Brand
    • 140. Entrepreneurship 1
      • Entrepreneurship drives innovation , competitiveness, job creation and economic growth .
      • 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.
    • 141. Entrepreneurship 2
      • Entrepreneurship , in small business or large, focuses on "what may be" or "what can be" .
      • One is practicing entrepreneurship by looking for what is needed, what is missing, what is changing, and what consumers will buy during the coming years.
    • 142. Entrepreneurship 3
      • Entrepreneurs have:
        • A passion for what they do
        • The creativity and ability to innovate
        • A sense of independence and self- reliance
        • (Usually) a high level of self confidence
        • A willingness and capability (though not necessarily capacity or preference) for taking risks
    • 143. Entrepreneurship 4
      • Entrepreneurs do not (usually) have:
        • A tolerance for organizational bureaucracies
        • A penchant for following rules
        • A structured approach to developing and implementing ideas
        • The foresight to plan a course of action once the idea is implemented and established
    • 144. 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)
    • 145. Entry Strategies
      • New Business
        • Develop a new product or service
        • Develop a similar product or service
        • Competitive approaches
      • Existing Business
        • Buying a business
        • Franchise
        • Joint venture – customer or supplier
    • 146. “ 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
    • 147. Competitive Advantage
      • An advantage over competitors gained by offering consumers greater value than competitors offer.
    • 148. Competitive Strategies
      • How does an organization improve their competitive performance?
      • Must establish a competitive advantage in 3 areas:
        • Uniqueness : of resources & processes (Bill Gates knowledge of IBM)
        • Value : where products/services warrant a higher-than-average price or exceptionally low
        • Difficult to imitate : when products/services are hard to mimic or duplicate
    • 149.
      • Basic Competitive Strategies: Porter
        • Overall cost leadership
          • Lowest production and distribution costs
        • Differentiation
          • Creating a highly differentiated product line and marketing program
        • Focus
          • Effort is focused on serving a few market segments
      Competitive Strategies
    • 150.
      • Basic Competitive Strategies: Value Disciplines
        • Operational excellence
          • Superior value via price and convenience
        • Customer intimacy
          • Superior value by means of building strong relationships with buyers and satisfying needs
        • Product leadership
          • Superior value via product innovation
      Competitive Strategies
    • 151. CORE COMPETENCES
      • Hammel and Prahalad defined core competence as a central value - creating capability of an organization/enterprise.
    • 152. CORE COMPETENCES
      • Core competences are activities or processes that critically underpin an organisation competitive advantage.
      • They create and sustain the ability to meet the critical success factors of particular customer groups better than providers in ways that are difficult to imitate
    • 153. CORE COMPETENCES
      • Core competences are distinctive capabilities that lead a company to a competitive advantage.
      • Features of an enterprise that cannot be readily reproduced by a competitor.
    • 154. CORE COMPETENCES
      • 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.
    • 155. The Five Generic Competitive Strategies
    • 156. Relative costs and differentiation Relative costs Differentiation High High Low Low Niche Outstanding success Disaster Lowest cost
    • 157. PRICING OBJECTIVES PRICING OBJECTIVES ENVIRONMENTAL ANALYSIS CORPORATE OBJECTIVES PROFIT ORIENTATED VOLUME ORIENTATED COST ORIENTATED COMPETITION ORIENTATED
    • 158. PRICING STRATEGIES
      • Segmented/Differential:
          • random/periodic/second market discounting
      • Exploiting Competitive Position:
          • price signalling/penetration/experience curve/geographic pricing
    • 159. PRICING STRATEGIES
      • Product Line Pricing:
          • image pricing/price bundling/premium pricing/complementary pricing
      • Dynamic Pricing Strategies:
          • multi-tiered price or channel pricing
    • 160. Low-Cost Provider Strategies
      • Make achievement of meaningful lower costs than rivals the theme of firm’s strategy
      • Include features and services in product offering that buyers consider essential
      • Find approaches to achieve a cost advantage in ways difficult for rivals to copy or match
      Keys to Success Low-cost leadership means low overall costs, not just low manufacturing or production costs!
    • 161.
      • 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
    • 162. 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
      • Distribution-related 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
    • 163. 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
    • 164.
      • Unique taste – Dr. Pepper
      • Multiple features – Microsoft Windows and Office
      • Wide selection and one-stop shopping – Home Depot, Amazon.com
      • Superior service -- FedEx, Ritz-Carlton
      • Spare parts availability – Caterpillar
      • Engineering design and performance – Mercedes, BMW
      • Prestige – Rolex
      • Product reliability – Johnson & Johnson
      • Quality manufacture – Michelin, Toyota
      • Technological leadership – 3M Corporation
      • Top-of-line image – Ralph Lauren, Starbucks, Chanel
      Types of Differentiation Themes
    • 165. Sustaining Differentiation: Keys to Competitive Advantage
      • Most appealing approaches to differentiation
        • Those hardest for rivals to match or imitate
        • Those buyers will find most appealing
      • Best choices to gain a longer-lasting, more profitable competitive edge
        • New product innovation
        • Technical superiority
        • Product quality and reliability
        • Comprehensive customer service
        • Unique competitive capabilities
    • 166. Best-Cost Provider Strategies
      • Combine a strategic emphasis on low-cost with a strategic emphasis on differentiation
        • Make an upscale product at a lower cost
        • Give customers more value for the money
      • Deliver superior value by meeting or exceeding buyer expectations on product attributes and beating their price expectations
      • Be the low-cost provider of a product with good-to-excellent product attributes, then use cost advantage to under price comparable brands
      Objectives
    • 167. Focus / Niche Strategies
      • Involve concentrated attention on a narrow piece of the total market
      • Serve niche buyers better than rivals
      • Choose a market niche where buyers have distinctive preferences, special requirements, or unique needs
      • Develop unique capabilities to serve needs of target buyer segment
      Objective Keys to Success
    • 168. Examples of Focus Strategies
      • Animal Planet and History Channel
        • Cable TV
      • Google
        • Internet search engines
      • Porsche
        • Sports cars
      • Cannondale
        • Top-of-the line mountain bikes
      • Enterprise Rent-a-Car
        • Provides rental cars to repair garage customers
      • Bandag
        • Specialist in truck tire recapping
    • 169. Focus / Niche Strategies and Competitive Advantage
      • Achieve lower costs than rivals in serving a well-defined buyer segment –
      • Focused low-cost strategy
      • Offer a product appealing to unique preferences of a well-defined buyer segment – Focused differentiation strategy
      Approach 1 Approach 2 Which hat is unique?
    • 170. An Aspect of Good Management
      • People Management – because IP is generated by people and used by people
      • Knowledge Management – because a lot of knowledge is informal and may or may not crystallise as recognisable category of IP
      • IT Strategic Planning – because a lot of IP is IT-related; some of the more complex IP issues arise in IT context
      • Contract Management – because IP is often created (or improved) in context of a contract (eg, supply contract or joint venture relationship)
      • Asset Management – because IP is an asset, albeit intangible; it has a value
      • Risk Management – because there are risks to an organisation flowing from its actions, or failure to act, in relation to IP (including risk of lost opportunity)
    • 171. Introduction to IP Management 1
      • Legal
      • Technical
      • Business
      • Export
      • Financial
      • Relationships
      • Accounting
      • Tax
      • Insurance
      • Security
      • Automation
      • Personnel
    • 172. Introduction to IP Management 2
      • Trademarks (Brands)
      • Geographical Indications
      • Industrial Designs
      • Patents and Utility Models
      • Copyright and Related Rights
      • Trade Secrets
      • New Varieties of Plants
      • Unfair Competition
    • 173. Bringing it All Together Example No. 1
      • Decades ago, Coca-Cola decided to keep its soft drink formula a secret
      • The formula is only know to a few people within the company
      • Kept in the vault of a bank in Atlanta
      • Those who know the secret formula have signed non-disclosure agreements
      • It is rumored that they are not allowed to travel together
      • If it had patented its formula, the whole world would be making Coca-Cola
    • 174. Bringing it All Together Example No. 2
      • Patent for stud and tube coupling system (the way bricks hold together)
      • But: Today the patents have long expired and the company tries hard to keep out competitors by using designs , trademarks and copyright
    • 175. Bringing it All Together Example No. 3
      • Patent for the fountain pen that could store ink
      • Utility Model for the grip and pipette for injection of ink
      • Industrial Design: smart design with the grip in the shape of an arrow
      • Trademark : provided on the product and the packaging to distinguish it from other pens
      • Source: Japanese Patent Office
    • 176. Bringing it All Together Example No. 4 ® Registered Trade Mark ‘ TM’ Unregistered Registered Design Copyright: Labels & Artwork Patents: Several dozen!
    • 177. Basic Message 1
      • IP adds value at every stage of the value chain from creative/innovative idea to putting a new, better, and cheaper, product/service on the market:
      Literary / artistic creation Invention Financing Product Design Commercialization Marketing Licensing Exporting Patents / Utility Models/Trade secrets Copyright/Related Rights Patents / Utility models Industrial Designs/ Trademarks/GIs Trademarks/ GIs Ind. Designs/Patents/Copyright All IP Rights All IP Rights
    • 178. Basic Message 2
      • IP Strategy should be an integral part of the overall business strategy of an Enterprise
      • The IP strategy of an Enterprise is influenced by its creative/innovative capacity, financial resources, field of technology, competitive environment, etc.
      • BUT : Ignoring the IP system altogether is in itself an IP strategy, which may eventually prove very costly or even fatal