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MIPLM research project - Protection of Digital Business Models by Digital Patents

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MILPM Research Projekt

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MIPLM research project - Protection of Digital Business Models by Digital Patents

  1. 1. PROTECTION OF DIGITAL BUSINESS MODELS BY DIGITAL PATENTS Decomposition and characterization of digital business models and applicability for patent protection on different structural elements Dr. Frederik Golks Corporate Intellectual Property 20/09/2018 CEIPI Strasbourg
  2. 2. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 2 IP in a Knowledge Economy  IP in knowledge economy: IP increasingly important in achieving and defending competitive advantage (owning distinctive intangible parts of value creation)  But: ‘A patent per se is nothing more than a piece of paper. It only becomes valuable if it protects technologies and products that will have success’ – Weibel (Siemens)  IP management allows systematic value enhancement of patents  IP management especially crucial for digital value propositions (unlimited in terms of copying)  digital value propositions fostered by 4th IR  challenge and opportunity  disruptive potential  displace focus of value creation and innovation from engineering to automated regulation of any type of system through collection and analysis of data
  3. 3. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 3 Digitalization – Economic Implications for Industry and Business  4th IR trends require to re-think business models and make new business models possible (cp. BMI)  necessity to differentiate!  rather innovate than invent! future approaches to create innovation and new business require understanding ‘product as a bundle of arguments’ (Utterback) disruptive innovations will eclipse incremental innovations (trying to improve traditional solutions) entire business model important! adaptedfromHPISchoolofDesignThinking
  4. 4. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 4 Digitalization – Economic Implications for Industry and Business example ‘big data’: ‘[…] nobody wants data. What they want are the answers.’ – Hand (Imperial College London)  Need deep understanding of customer, his (hidden) needs and appropriate business models source:Bosch
  5. 5. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 5 Digitalization – Implications for IP Management  traditional sources of competitive advantage vanish (scale purchased, best practice copied, …)  ownership in IP only way to establish defensible position in competitive marketplace  important to find right spots to protect against imitation – conincident with right spots important for market position  Systematic Application of IP to Digital Business Models ‘Is it possible to decompose a digital business model into recurrent elements and to derive approaches to problem solving mechanisms, which allow to subsequently focus on target-oriented candidates for inventions, which are applicable to IP protection?’ Or in short: ‘How to focus on patentable patterns of digital business models?’
  6. 6. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 6 Digital Business Models  ‘a business model describes the substantial mechanism by which a company or organization capitalizes based on an underlying value-added process – how it creates, delivers and captures value for a defined target customer.’  ‘a business model is digital in case digital technologies lead to a fundamental change in a company’s business process and revenue mechanics‘ – Veith adapted from Osterwalder, Pigneur, ‘Business Model Generation’, Wiley (2011)
  7. 7. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 7 Digital Business Models – From Business Models to IP Strategies  business models tool for analyzing requirements of IP strategy  business model and blocking effect have interdependent, complementary correlation  blocking effect make customer’s benefit exclusive and defensible  optimizing blocking effect of patent regarding business model means optimizing value of IP  task of IP different depending on business model  business model: holistic perspective on business including value creation, marketing and financial aspects IP-based Business Model for Differentiation
  8. 8. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 8 Digital Business Models – Peculiarities  ‘hybrid business models’ implementing IoT  interdependence of levels creates value  digital business model patterns necessarily intermingle with ‘classical’ patterns (IoT, I4.0, …)  data-driven business models (purely digital)  relies on data as key resource business implementation becomes decisive and crucial for IP strategy IP strategy should aim at making exclusive the customer benefit at all levels digitalization Fleisch, Weinberger, Wortmann, ‘Business Models and the Internet of Things’, Whitepaper of Bosch Internet of Things and Services Lab (2014) Wurzer, Neidlein, Fischer, ‘Patentstrategien in der Industrie 4.0’, Mitteilungen der deutschen Patentanwälte (2018)
  9. 9. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 9 Decomposition of Digital Business Models into Recurring Logics  business models composed of recurring and recombinant building blocks (cp. BMI):  ‘90 % of all business model innovations are recombinations‘ – Gassmann (University St. Gallen)  aspect of recombination fundamental to digital technologies  incredible simplicity and wealth of recombinations  characterization of 4 recurring logics in digital business models  logics identified in creative technological thinking (empirical) ‒ related to recurring elements in digital business models (economic role):  logics determine relevant activities of companies – how goods and services are manufactured and made available to target markets ‒ related to technological implications accessible to patent protection (technical role) • simulation and attribution logic • networking logic • enabling logic • data and information logic source:Bosch
  10. 10. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 10 Protection of Digital Business Models – Technical Concepts  recombinability runs through to technical aspects  apply methods for methodical problem-solving:  limited set of technical problems / solutions (invention principles) recurring and recombinant  correlate typical solutions for typical systems and typical problems (characteristic in concrete context)  inventive step depending on precise application 8 technical invention principles distinguishable  derive implications for technical solutions by analyzing underlying logics with respect to potential recurring problem-solution-couples  guide for IP design (helps to focus innovation expenditures)
  11. 11. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 11 IP-Design Based on Logics and Empirical Invention Principles  model framework allows identifying most promising candidates for patent protection: (1) analyze digital business model and innovative success scenario with respect to logics and determine major direction of strategic prohibition (2) determine IP strategy in alignment with business strategy (3) determine customer benefit from underlying generic but formative logic(s) (4) formulate desired blocking effects based on customer benefits (5) suppress competitor offers aiming at same customer benefit ‒ identify technical problems essential to achievement of customer benefit (task-based formulation) ‒ summarize elements / features of technical solutions, whose protection is desired from perspective of business model ‒ use invention principles as guide for texturing solution space of technical solutions, which make intended customer benefit realizable ‒ derive inventions applicable to patent protection by synthetic inventing, file approach to deduct and design IP rights in target-oriented manner
  12. 12. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 12 Protection by Digital Patents  patent type:  classification according to structural elements of digital business models to which they relate and for which they create a blocking effect  typified insofar as they are attributed to recurrent objects / economic effects  ‘digital patent’:  patent type which is related to and used to protect digital business models from imitation
  13. 13. Protection of Digital Business Models Master's thesis defense in MIPLM | Corporate Intellectual Property – Dr. Frederik Golks | 2018-09-20 © Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. 13 Summary and Outlook  first understanding of digital patents and their economic role within digital business models  derived first concepts for protecting digital business models  identification of recurring logics as building blocks  identification of recurrent technical concepts / invention principles  assistance for target-oriented IP design  future research may focus on  detailed and alternative concepts of structural decomposition (logics and/or technical concepts)  creation of consistent set of recurring structural elements and invention principles (e.g., via patent information)  validation of empiric concepts (field studies)

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