Wurzer siemens ip conference

© 2017 WURZER & KOLLEGEN, München
An IP-Strategy for exclusive Customer
Benefits and Value Propositions
Current examples from the European industry
Siemens Intellectual
Property Conference 2017
16.05.2017
Prof. Dr. Alexander J. Wurzer

Content
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1. Rising complexity of IP management caused by digitization
2. IP-Management for digital business models
3. Design Thinking and IP-Design

Rising complexity of IP management caused by digitization
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© 2017 WURZER & KOLLEGEN, München- 4 -
Photo: www.idoc.eu

The four stages of Industrial Revolution
First programmable logic
controller (PLC) 1969
4. Industrial revolution
based on cyber-physical
Systems
First production line,
Cincinnati slaughterhouses 1870
uses electronics and IT to
achieve further automation of
manufacturing
First mechanical loom 1784
follows introduction of electrically-
powered mass production based
on the division of labour
follows introduction of water-
and steam-powered mechanical
manufacturing facilities
End of
18th century
Beginning
20th century
Beginning
1970ies
today
Risingcomplexity
Illustration: IFS GmbH & Co. KG based on DFKI 2011
- 5 -

- 6 -
The fourth industrial revolution creates a single global economy supported by
standards, connectedness, innovation and IP.
Burial of Pope John Paul II Speech by Pope Francis

Industry-Dependent Freedom of Choice
when designing an IP Strategy
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IP-Management and Industry 4.0
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The Success of IP is determined within the Market
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 Thermomix is a kitchen machine, which
guides the user step by step by means of
instructions on the display through the
preparation. For this purpose, the device is
connected to a digital recipe chip, on which
recipes are stored for which Vorwerk grants
a guarantee of success.
 To ensure the compliance with the
guarantee of success, the sale of compatible
third party recipe chips must be prevented.
 Design of recognition characteristics, as well
as realization of a proprietary interface and
extensive protection.
Consequence:
High protection from unauthorized imitations
and securing the follow-up business
Customer benefit and IP
Securing the own brand promise and exclusive sales of recipes.
Example: Thermomix recipe chip
„Cookey“

Source: WIPO World Intellectual Property Indicators 2016
Rankings of total (resident and abroad) IP
filing activity by origin, 2015
Total patent filings in China
Origin Patents Marks Designs
China 1 1 1
United States of America 2 2 4
Germany 5 3 3
Republic of Korea 4 7 2
Japan 3 5 7
Source: WIPO IP Statistics Data Center
China is the first patent office to register more than one million patent
applications in a single year.
Digitization and Global Patent Application Propensity

Development of patent applications worldwide 2009 bis 2015
Source: WIPO IP Statistics Data Center

- 12 -
Source: Fraunhofer IAO, IAT Universität Stuttgart (2015): Analyse der Entwicklung von Inustrie 4.0 in China
Granted patents covering
industry 4.0 topics until 2013
Priority applications covering
industry 4.0 topics since 2013
Germany Germany

Content
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The Success of IP is determined within the Market
by exclusive value added in the business model
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Exclusive customer benefit and strong communication position
Example: Schneider Modulo - equipment for spectacle lens production
 Equipment for the
production of free-form
spectacle lenses (lot
size 1)
 No chained individual
machines, but
intelligent connection
to higher-level stand-
alone production
system
 Unique Communication
Proposition (UCP) from
strong IP-position
Achievement of a higher price due to exclusive customer benefits
Example: Vorwerk Thermomix
 Food processor with
cooking function
 Unique selling
proposition in terms of
flexibility, security,
time saving and
guarantee of success
 High price
enforcement € 1.200
 High degree of
uniqueness compared
to Philips, Kenwood
and Taurus
Market share and price enforcement
through horizontal and vertical integration
Example: Rittal Value Chain - FLG
 Rittal’s concept of the
virtual prototype
enables the digital
continuity of
engineering
 Company-wide
automation
 Result: Market share
and premium price
enforcement
Market dominance and price enforcement
by means of an exclusive integrated value chain
 Digitization
revolutionizes the
agricultural
machinery industry
 Claas develops
electronics and
software expertise
and exclusifies its own
integrated solutions
 High price
enforcement
Example: Claas – Digital Farming

Goal of an IP Strategy:
Creating Added Value Positions with the Customer
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Sphere of exclusivity
Willingness
to pay among
markets /
customers
Customer
benefit offered
by the
competition
Competitors can
no longer place
their offer on the
market.
The customer
exclusively uses
your offer.
Strategic prohibition
creates exclusive
market positions for you.
 Based on a distinctive customer benefit
 Long lasting
 Defensible (also legally)
Your offer
Customer benefit

IP Design
in the digital Transformation
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Physical product
Layer 1
Sensor und actuator
Layer 2
Connectivity
Layer 3
Analytics
Layer 4
Digital service
Layer 5
Physical
world
Digital
world
Digital
Global
Physical
Local
Source: Fleisch, E. / Weinberger, M. / Wortmann, F. (2015): Geschäftsmodelle im Internet der Dinge, in: zfbf, Dezember 2015, S. 444 – 464.

The Economic Impact of IP:
Optimizing Innovation Success
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Effective IP strategies focus on customer benefit
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„Waiting for inventions“ IP is designed as a part of the marketing strategy
Patented functions Exklusive customer benefit
Customer
benefit
Customer /
market
Competition

Classic Patent Process:
From Invention to Patent
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PatentingInvention
The classic route:
From invention to patent
„Features“
covered by
protection
Customer
benefit
PREVIOUSLY:
Invention
as input

IP Design Process:
From Desired Exclusivity to Patent
- 20 -
Patenting
Sphere of
exclusiveness
Customer/
market
Sphere of
exclusiveness for
customer benefit
New mindset:
The economic goal defines the need for prohibitive rights
IP Strategy +
synthetic invention
NEW: Exclusive
customer benefit
as input
Proposed
customer
benefit
Innovation

IP-Design includes Market Intelligence
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1. Risk minimization
>> IP <<
2. Suppression of
imitation
>> IP and R&D <<
3. Strategic prohibition
>> Marketing and Product
Management <<
Economic approach: Cost
avoidance
Economic approach:
Increase of market share
Elements of IP Design:
• Integration of market intelligence
• IP design from a customer perspective
• Thinking in exclusivity and prohibition
• Multidisciplinary teams
• IP is more than just patents
Economic approach:
Premium prices
IP R&D
IP
IP PM M

Content
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Design Thinking and IP-Design
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Business
(Marketability)
Customer
(Desirability)
Innovation
Technology
(Feasibility)
Source: HPI School of Design Thinking / Qudosoft

Design Thinking Process
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Understand Observe Ideate Prototype Test
Empathizing Reframing Exploring Realizing
Problem space Solution space
Define
point of
view
Source: HPI School of Design Thinking / Qudosoft

Design Thinking Methods
Scenario Examination
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Tasks in the investigation of usage scenarios:
 Define the usage process to be considered
 Description of the usage contexts
 Demonstrating the emergence of
customer benefit
Goal of the creation of usage scenarios:
 Set the system limits for the user experience to be investigated
 Systematic identification of USPs for which customers have a
willingness to pay
 Compilation of the scenario elements necessary for the provision
of the user experience
Source: Martin, B. / Hanington, B.: Design Methoden, Munich 2013.

Cognitive Walkthrough
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 Tasks in the investigation of usage scenarios:
 Systematic determination and analysis of the
usage processes (if necessary for different
user groups)
 Description of the elements necessary for the
use of the product
 Identification of critical points within the
scope of use
 Goal of the Cognitive Walkthrough:
 Systematic analysis of the course of action carried out by the
customer while using the product / service
 Definition of typical usage patterns
 Originally designed to examine user interfaces to test whether the
given procedures are actually followed by the users

AEIOU-Method
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AEIOU is an organizational framework that allows for collecting, documenting and coding information
according to the categories „Activities“, „Environments“, „Interactions“, „Objects“ and „Users“.
Storyline
(Activities)
Process description of the user experience.
→ Which steps does the user typically follow when using the product?
Environments Embrace the entire space in which activities take place.
→ What is the system, what is the relevant environment? How are the system limits defined?
Interactions Are carried out between persons, persons and things and things and things.
→ What are normal / special interactions?
Objects Are the "building blocks" of the system.
→ What are the system components? What are their roles and their relationships with each
other?
User Users are the people whose individual behaviour, preferences and needs have to
be observed.
→ Which users (groups) are there? What are their roles? Which are their individual needs?

Setting up a Swimlane Illustration
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Tasks in the investigation of usage scenarios:
 Look "from above" on all moving elements
of a story
 Showing the relationships between the
scenario elements
 Structuring the discussion of interdisciplinary
project teams
Objective of the swimlane illustration:
 Visualization of scenarios in which several actors or processes
form the result
 Holistic view of the scenario (no unrelated perspectives)
Source: Martin, B. / Hanington, B.: Design Methoden, Munich 2013.

in IP Design
- 29 -
Storyline (Activities)
Environments
Interactions
Objects
User
Process
step 1
Process
step 2
Process
step 3
Process
step …
Process
step n
Cognitive WalkthroughAEIOU-Method
Swimlane
illustration
Scenario Examination
IP design relies on a combination of different
design thinking methods

IP-Design Process
- 30 -
Supporting the
application draft
Evaluating the
invention environment
Describing the
use case
 Concreting and technicizing the
associated customer benefits
 Identification and description of
promising invention
environments
 Identifying comparable and / or
interfering solutions in patent
literature
 Description of the free solution
space, the technical problem
and the object of the invention
in an inventive sketch
 Transfer of the invention
sketches to the patent attorney
 Comparison of the resulting
application drafts with the
strategy objective(s)
 Decision on patent application

Where you find us...
WURZER & KOLLEGEN GmbH
Thalkirchner Straße 2
80337 München
Tel +49 (0)89 / 74 63 92 - 0
Fax +49 (0)89 / 74 63 92 - 60
E-Mail alexander.wurzer@wurzer-kollegen.de
http:// www.wurzer-kollegen.de
Follow us on: http://ipforbusiness.org/

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