Solution to a case study on IP-strategy development and implementation Content of the MIPLM course 2017 / 18

1. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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© 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
CEIPI MIPLM
Module 6: Case Study Smart Farming (M6-26)

2. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
Page 2 of 14
Strategic Analysis Strategy Objectives Strategy Formulation
Task
Tool
IP
Focus
External
Internal
Output
- Threats / Opportunities
- Industry structure
- Strengths /
weaknesses
- Value proposition
Positioning
Output
- Sources of competitive
advantages
- Strategic direction
Appro-
priation
Impact
Function
Economic effect:
Premium price
Economic effect:
Market share
External
- Five forces analysis
- Industry value chain
Internal
- Value chain analysis
- Business model analysis
External
- Bargaining power through
IP
Internal
- Increasing the strategic
value of resources
- Role of IP in the business
model
- SWOT analysis
- Portfolio analysis
IP alignment to:
1. Market attractiveness
2. Resource strength
IP strategy
Development tool
Creating and
sustaining
competitive
advantages
IP Strategy Development

3. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Ability to Change
Factors requiring the change:
 External influence: digitization of the industry
 As a reaction → new market positioning

4. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
New Market Positioning
Porter’s Generic Strategies – Positioning within an industry
Source of competitive advantage
Low cost Differentiation
Competitivescope
Industry-wide Cost leadership Differentiation
Single segment Focus
Reorientation (Farm Management) leads to new market positioning and new competitors.

5. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Portfolio Analysis
Examination of the dynamics of portfolio development
within certain technological fields (e.g. Farm Management):
 dynamic environment,
 CLAAS as a technology leader,
 the number of applications related to agricultural
machinery worldwide is on the increase,
 relevance of technological fields beyond agricultural
engineering greater for larger companies.

6. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Decision Theory
From the portfolio analysis the decision was derived to build up a new patent position.
Farm management was identified as a target sector.

7. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
IP Design
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 can be applied to reach
the required patent position.
When using this tool, first the need
for IP is determined
and then covered by synthetic
inventions.

8. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Organizational Structure “Farm Management”
R&D Finance Manufacturing Marketing
President
Functional Structure
Divisional Structure
Division 1
President
Manu-
facturing
Marketing
R&D Finance
Division 2
Manu-
facturing
Marketing
R&D Finance
Division n
Farm Management
Manu-
facturing
Marketing
R&D Finance
…
Establishment of a new organizational unit to realize the innovation "Farm Management“.

9. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Institutional Economics - Agency Theory
Agency Theory
 Explanation and design of relationships between contracting individuals with asymmetric
information.
Principal offers a contract and agents fulfill the contract.
Principals can’t control the effort of agents and thus have less information.
Hidden Characteristics
No information on the
characteristics of the agents
or the offered input.
adverse selection
ex ante problem
Hidden Action
Effort of the agent to fulfill
the contract can‘t be
observed by the principal.
moral hazard
ex post problem
Types of asymmetric information:
Hidden Intention
Principal can observe the
effort of the agent but not
his intentions.
hold up
ex post problem
Solution:
Incentivizing to make patents in the new digital field.

10. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
IP Controlling
 Transparency:
IP Controlling delivers information that is relevant for planning, budgeting and control.
 Allocation of resources:
Formulating concrete targets and prioritizing specific (potential) areas of exclusivity will lead to
an IP portfolio structure which is strictly oriented at maximizing benefits. This ensures that the
resources are allocated in a meaningful way.
 Controls:
Formulating concrete targets and controlling the target achievement leads to systematic
integration of IP into the business model and with this to generate maximum benefit.
 Optimization:
The continuous surveillance of IP related costs and benefits their documentation and analysis
allow for the target-oriented design / optimization of the IP portfolio (following indicators of
performance). In addition IP related budgeting can be tied to the benefit expected from IP.
Benefits of IP Controlling
CLAAS:
 Regular review of the portfolio and continuous comparison with the competitors
 By outsourcing the new area, transparency of the results

11. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
IP Controlling
CLAAS invested strongly in the target aimed
generation of patents in the relevant technology
fields and strengthened its position in an highly
competitive IP environment.

12. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Change Management
Need for Change
Evaluate problems and
opportunities, and define
needed changes in
technology, products,
people, and culture
Environment Forces
Monitor global
competition, customers,
competitors, and other
factors
Internal Forces
Consider plans, goals,
company problems, and
needs
Implement Change
Use force-field analysis,
tactics for overcoming
resistance
Change for CLAAS: From machine sales to digital platform

13. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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Case Study: CLAAS
Change Management
Employee
skills
role
Strategy
partnership
market entry
Structures
organizational
structure
process org.
Equipment
resources
technology
Leadership
Promoter
e.g. shareholder
Market
e.g. customer,
competitor
Result
product
services
Return
turnover and profit
customer satisfaction
assets, image

14. © 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
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© 2018 STI-IPM, Munich, Prof. Dr. Alexander J. Wurzer
STEINBEIS-TRANSFER-INSTITUTE
Intellectual Property Management
Director: Prof. Dr. Alexander J. Wurzer
Thalkirchner Str. 2
D - 80337 Munich
Phone: +49 (0)89 / 74 63 92 16
Fax: +49 (0)89 / 72 44 909 61
E-Mail: alexander.wurzer@sti-ipm.de
Internet: www.sti-ipm.de