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  Presenta)on	
  at	
  the	
  8th	
  Workshop	
  of	
  the	
  “IIPCC	
  HK	
  Chapter	
  IP	
  Workshop	
  Series:	
  	
  	
  	
  	
  
IP’s	
  Role	
  in	
  Entrepreneurship	
  &	
  Innova)on”	
  (in	
  HKSTP	
  on	
  April	
  17,	
  2015)	
  
	
  
Prepared	
  by:	
  	
  Al	
  Kwok	
  (郭灿辉)	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Governor	
  &	
  Co-­‐founder,	
  IIPCC	
  Hong	
  Kong	
  Chapter	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Governor	
  &	
  Co-­‐founder,	
  HKIURCA	
  (⾹香港產學研合作促進會)	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Member,	
  HKSAR	
  “IP	
  Trading”	
  Working	
  Group	
  
	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Governor	
  &	
  Co-­‐founder,	
  Savantas	
  Policy	
  Ins)tute	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  President,	
  CASPA	
  (华美半导体协会)	
  PRD	
  Chapter	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Former	
  VP	
  &	
  CIPO,	
  NetLogic	
  Microsystems	
  (“NETL”)	
  
Product Development Methodology - KBP 1
Product Development Methodology
– Making Knowledge-based
Processors the Game-Changer!
Apr. 17, 2015
Acknowledgement
n  Innovations in IC industry have always been
collaborative efforts. No single-effort superstars!
n  I am indebted to my colleagues and co-workers at
NetLogic Microsystems (NM) for their assistances
and supports to develop NM’s IP strategies and
portfolio as well as the system of continuing
innovations to make NM one of the best IC start-
ups in history, making its Knowledge-based
Processors the critical components addressing
QoS in Information Age.
n  Special thanks to Dr. Norm Godinho and Dr.
Varad Srinivasan.
Apr. 17, 2015 Product Development Methodology - KBP 2
Essence of Continuous Innovations
n  Innovations – the Ideas, Inventions
n  Ideas can just be academic curiosities unless they are
productized for the Benefits of Mankind - Values
n  Innovations have to be Collaborative for Ecosystem-building
n  Entrepreneurship – the end-to-end Process
n  From a Concept to make it into a “Product” – Vehicle of Values
n  What it takes to Execute the Teamwork to realize the dream
n  IP – the Direction, Strategy & Business Model
n  What Goals and Sustainable Values we want to achieve with our
Innovations and Entrepreneurship?
n  Sustainable Development ó Continuous Innovations
n  The continuous Learning cycles of Basic System of “Innovation
ó IP ó Entrepreneurship” driving the Progress of a Society
n  Old things (practices and methods) have to be obsoleted to
make rooms for emerging new things! Learning Cycles!
Apr. 17, 2015 Product Development Methodology - KBP 3
AK comment: Considering the facts that NM is much less than 1/10 of the size (in revenue) of the other
9 top-ranking companies and much younger (<10 years old), it is a crowning achievement! Likewise,
“ipIQ” rated NM’s portfolio the best for a medium size (~$100M) high-tech company worldwide in its
“Patent Scorecard 2006” report with the 2nd highest CII (current impact index).
Mkt. Cap.: US$250M @ 2004 IPO => US$3.7B @ 2011 M&A (14.8X in 7 years = >46% CAGR)
(All multi-billion$ companies)
AK comment: Based on a portfolio of ONLY ~100 (high-quality) patents
Product Development Methodology - KBP 4Apr. 17, 2015
Lifetime Achievement as its “Founding CIPO”:
(Killer Patents!!!)
(Game Changers!!!)
IDT Founders’ Spin-off (Serial Entrepreneurs)
1980	
   1981	
  1982	
  1983	
  1984	
  1985	
  1986	
  1987	
  1988	
  1989	
  1990	
  1991	
  1992	
  1993	
  1994	
  1995	
  1996	
  1997	
  1998	
  1999	
  2000	
   2001	
  
Al	
  Kwok	
   AMD	
   AMD	
  AMD	
   A/I	
   IDT	
   IDT	
   IDT	
   IDT	
   VTI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   Self	
   PMC	
   PMC	
   NMI	
   NMI	
   NMI	
   NMI	
  
#256	
   #	
  7	
   #	
  7	
   #	
  10	
  
George	
  	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   Clon	
  Laws	
  
Huang	
   	
  	
   	
  	
  
Frank	
  Lee	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   GVT	
   GVT	
   GVT	
   GVT	
   GVT	
   GVT	
   G/C	
  
Norm	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   PSI	
   Nova	
  Nova	
   NMI	
   NMI	
   NMI	
   NMI	
   NMI	
  
Godinho	
   	
  	
   	
  	
  
Chun	
  Chiu	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   Q/I	
  
Mano	
   HP	
   HP	
   H/I	
   IDT	
   IDT	
   IDT	
   IDT	
   IDT	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
  
Malwah	
   	
  	
   	
  	
  
Varad	
   ?	
   ?	
   ?	
   ?/I	
   IDT	
   IDT	
   IDT	
   IDT	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   Nova	
   NMI	
   NMI	
   NMI	
   NMI	
   NMI	
  
Srinivasan	
   	
  	
   	
  	
  
Jen	
  Hong	
   ?	
   ?	
   ?	
   ?/I	
   IDT	
   IDT	
   IDT	
   IDT	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   QSI	
   ?	
   NY	
   NY	
   NY	
   NY	
   NY	
  
Apr. 17, 2015 5Product Development Methodology - KBP
n  Collaborative Innovations leads to Co-founders
n  Entrepreneurs create their own jobs
n  Serial Entrepreneurs are the major job creators and new
engines of GDP – treasure of a Knowledge-based Society
n  IDT (CMOS) & NMI (KBP) enabling IT, impacting >>$10T GDP globally
The Big Picture for Product Development
Lead Customers’ Requirements => 2nd G => 3rd G =>…
Differentiating Value Creations => 2nd G => 3rd G =>…
Business Model => 2nd G => 3rd G =>…
Service/Product Roadmap => 2nd G => 3rd G =>…
Application/Technology Roadmap => 2nd G => 3rd G =>…
IP Portfolio Development => 2nd G => 3rd G =>…
The next innovation ideas come from customers (CRE) & “Stress Tests” identifying
(1)  The weak-links in product design & performance and scalability
(2)  System (architecture) integrity and scalability (elasticity) issues
(3)  The bottlenecks for scalability (technology and manufacturability roadmap)
NetLogic Microsystems is a good benchmark for SMEs as innovators
Close collaboration between the customer (CRE) and the vendor
Mission-&-Time Critical Requirements along Demand-chain
Product Development Methodology - KBP 6Apr. 17, 2015
Apr. 17, 2015 Product Development Methodology - KBP 7
AK Comment: Need GM @ ~65% to sustain R&D efforts @ ~30% for continuous world-
class Independent Innovation
Lead Customers’ Requirements
(The Apps/Product/Tech Roadmaps
to Meet Them)
Apr. 17, 2015 Product Development Methodology - KBP 8
Apr. 17, 2015 Product Development Methodology - KBP 9
Apr. 17, 2015 Product Development Methodology - KBP 10
Apr. 17, 2015 Product Development Methodology - KBP 11
Apr. 17, 2015 Product Development Methodology - KBP 12
Apr. 17, 2015 Product Development Methodology - KBP 13
Apr. 17, 2015 Product Development Methodology - KBP 14
Apr. 17, 2015 Product Development Methodology - KBP 15
AK Comment: This shows NetLogic Microsystems’ product/technology/patent roadmaps meet market needs
Apr. 17, 2015 Product Development Methodology - KBP 16
Differentiating Value Creation ó Innovation
n  Values (to Customers) to get paid - Maximizing
n  Performance/Power
n  Max. performance at a low (specific) power
n  Performance => speed + functionalities (features)
n  Battery power for portability, anywhere and anytime
n  Personalization
n  Quality/Reliability => High Yield too!!
n  Food safety assurance is an universal pressing issue
n  Delivery => throughput time + logistics + zero waiting
n  Just-In-Time + Mini. Process time + Mini. Handling time
n  Price => Priced according to values instead of costs
n  Price = “Brand (Trust) + Emb. IP + Services” + Cost > 4X Cost
n  IP = “Brand (Trademark) + Embedded IP (Patents & Copyrights)
+ Pre-sale Design Win & Post-sale Services (Trade Secrets)”
Apr. 17, 2015 Product Development Methodology - KBP 17
Apr. 17, 2015 Product Development Methodology - KBP 18
NetLogic Microsystems IP Strategy -
A “King-making” Methodology
Apr. 17, 2015 Product Development Methodology - KBP 19
IP as the Core Strategy from the Start
n  I joined NM in 1998 after its re-organization as VP of Business Development
& CIPO, and later also VP of Operations
n  Read NM’s first 2 (CAM) patent application files before deciding to join
n  Assessed NM’s potential to be the KING of parallel search engine
n  Full commitment from the CEO/Chairman/Major Investor on IP
n  Former colleagues from IDT and QSI (incl. CTO) - 6 out of 9
n  Hired experienced patent attorneys to expedite drafting patent applications
n  The proper way to ensure high-quality patent generation
n  Hired a patent attorney as Director of IP in 6 months
n  He became the Corporate Counsel (& CIPO) of NetLogic Microsystems
n  Complementary team building to hire top engineers in product, test &
technology, and strategic vendor partnership
n  Set up Patent Award Incentive Program (3000 shares per patent)
n  Formed Executive Patent Committee (Dir. of IP, CTO, CIPO)
n  Set up claim guideline to include all enabling elements and methods creating
values to customers (cost, performance, quality, delivery…)
n  Reviewed and improved patentable ideas from inventors
n  Decided what patents to file and foreign patent filings
n  Prioritized killer patent filings that could block competitors
n  Set IP strategic development direction based on customer feedback
Apr. 17, 2015 Product Development Methodology - KBP 20
Understand the Core Differentiation
n  How fundamental is the idea? More the better!
n  Independent of technology? “Must-have” for intelligent?
n  What position is it in the value-chain? Higher the better!
n  On top at the global system architecture level? Or H/W level?
n  What values can it bring to the customer?
n  Mission-and-time critical? Improve its profit margins?
n  How disruptive can it be? Exponential growth potential!
n  Whole new paradigm shift? Last forever?
n  Can another technology/idea be its disruptor?
n  How basic is the invention? On “NDA” level?
n  Its usefulness over time - invariant? Its lifecycle?
n  What is the required supporting ecosystem for its usefulness?
n  What are the alternative/competing solutions?
n  What is its market share? Differentiations?
n  How large the TAM can it serve now and future?
n  Demand driven by Moore’s Law and Metcalfe’s Law?
Apr. 17, 2015 Product Development Methodology - KBP 21
Anatomy of a Generic Problem-solving
(Intelligent) Process
Steps in an intelligent process
The cycle: Observe/monitor Analyse Decide Execute
Focus: References/result Ref./result Action Action
Constraint: Data (more the
better)
Data (more
the better)
Resources
(less the better)
Resources
(less the better)
Preferred
mode of
operation
Concurrent &
real-time
Concurrent
& real-time if
possible
Interactive &
iterative
(what if?)
Concurrent if
possible
Time factor Parallel Parallel if
possible
Algorithmic by
nature
Parallel if
possible
Preferred
method:
Pattern
recognition
Pattern
recognition
Pattern recognition parallel-search engine is
fundamentally superior to algorithmic one
Presented by Al Kwok as
a vision in 1999
The NetLogic Microsystems’ core patent portfolio was fundamentally
based on this core concept: how to perform pattern recognition better
through parallel-search engines (including Layer 7 since then).
Apr. 17, 2015 Product Development Methodology - KBP 22
n  The basic DNA of intelligence is the ternary (“1” or “0” or “X”) CAM cell
with the implementation of “don’t care” state in circuit by means of the
Mask bit
n  2 memory cells, a comparator circuit to determine “Match” (i.e., basic intelligence)
& a Mask bit to give a dimension of freedom (i.e., option)
n  Degree of intelligence <=> degree of possible options
n  The ternary CAM (content addressable memory) becomes the basic building
block for parallel-processing engines/filters.
n  KBP (knowledge-based processor) is essentially a massy array of ternary
CAM with some classification and prioritization circuits.
n  SRAM that was avoided by IC manufacturers like plague has reborn into its
second life as high-value ternary CAM -- What an innovation! Discovering
treasure in a junk yard!
A Fundamental & Useful Innovation! (2008)
11
Input bit
= Ref. bit
10
Input bit
= Ref. bit
Mask bit = 1Mask bit = 0
Match bit
IP Value Assessment Criteria
n  Factors driving valuation (based on share % of TAM)
n  The Strength of the patent (legal aspect)
n  Scope, territories, claims, enforceability…
n  The Significance of the patent (technical aspect)
n  How fundamental? Timelessness of its values
n  Differentiating functionalities: Values to customers
n  Competing solutions: need comprehensive benchmarking
n  The Usefulness of the patent (market aspect)
n  Applications with respect to industry standards and ecosystems
n  Sunrise (emerging trends) vs. Sunset (displaced practices)
n  Present state of market readiness (units shipped and growth rate)
n  Differentiations against competition (market share)
n  Customer/market acceptance: TAM and market share
n  Average Selling Price of the product and IP value in the product
n  The Lifecycle of the patent (longevity aspect)
n  The expiration date of the patent
n  Emerging disruptive technologies against the patent
Product Development Methodology - KBP 23Apr. 17, 2015
Apr. 17, 2015 Product Development Methodology - KBP 24
Hierarchy of IP Management
Source: VSI Alliance (IPPWP2 1.0)
Level 1
Long-term Growth
(Market dominance)
Short-term Growth
(Market share)
Profitability
(Within the domain)
Cost-effectiveness
(Within the domain)
Increasing capabilities
to affect the future
Each level of IP Management builds on the foundation of the lower levels
Apr. 17, 2015 Product Development Methodology - KBP 25
Focus for Innovation
n  Proper SIP focus for design-house start-ups:
n  System architecture and interface
n  New system architecture/function(s)
n  New interface scheme for higher I/O data rates
n  Performance (chip level): =/>100X improvement
n  New functions
n  New architecture: chip and block level
n  Power/Voltage reduction
n  New power management scheme
n  New architecture: chip or block level
n  Density (feature size reduction)
n  New array architecture
n  New storage element
Apr. 17, 2015 Product Development Methodology - KBP 26
Valuable Patent Portfolio
Patent # Title matter Type Elapsed # Claims Yearly
Filing Issued Days Total
1 6,199,140 Multiport CAM and timing signal S, A 30-Oct-97 16-Mar-01 1,233 21
2 6,148,364 Method for cascading CAMs S, A 30-Dec-97 14-Nov-00 1,050 31 2
3 6,240,485 Learn operation in depth-cascaded CAMs F, BA 11-May-98 29-May-01 1,114 30
4 6,219,748 Implementing Learn instruction BA, C 11-May-98 17-Apr-01 1,072 39
5 6,381,673 Next HPM in CAM F, BA 6-Jul-98 30-Apr-02 1,394 37
6 6,418,042 Tenary (3-state with "don't care") CAM A 9-Sep-98 9-Jul-02 1,399 75 4
7 6,237,061 Method for LPM F, BA 5-Jan-99 22-May-01 868 7
8 6,125,049 ML control circuit for CAM BA, C 5-Jan-99 26-Sep-00 630 8
9 6,137,707 Compare operation for CAM F, BA 26-Mar-99 24-Oct-00 578 40
10 6,460,112 Determining LPM F, BA 22-Jun-99 1-Oct-02 1,197 51
11 6,393,514 Full flag and almost full flag F, BA 12-Jul-99 21-May-02 1,044 38
12 6,175,513 Detecting multiple matches in a CAM F, BA 12-Jul-99 16-Jan-01 554 35
13 6,243,280 Selective match-line pre-charge in IRC BA, C 9-Sep-99 5-Jun-01 635 40
14 6,275,426 Row redundancy BA, C 18-Oct-99 14-Aug-01 666 53
15 6,154,384 TCAM cell A 12-Nov-99 28-Nov-00 382 19
16 6,147,891 ML control circuit for CAM BA, C 21-Dec-99 14-Nov-00 329 15 10
17 6,191,970 Select ML discharge in a part. CAM array BA, C 13-May-00 20-Feb-01 283 11
18 6,324,087 Partitioning a CAM A 8-Jun-00 27-Nov-01 537 33
19 6,249,467 Row redundancy BA, C 8-Jun-00 19-Jun-01 376 20
20 6,229,742 Spare address decoder BA, C 8-Jun-00 8-May-01 334 5
21 6,252,789 Inter-row configurability (IRC) A 14-Jun-00 26-Jun-01 377 49
22 6,246,601 Inter-row configurability A 14-Jun-00 12-Jun-01 363 10
23 6,243,281 Segment access in IRC BA, C 14-Jun-00 5-Jun-01 356 29
24 6,317,350 Hierarchical depth cascading S, A 16-Jun-00 13-Nov-01 515 53 8+
25 6,445,628 Row redundancy BA, C 18-Jun-01 3-Sep-02 442 20
Ave. / S.D. 709 / 367
Total 769
Date
Apr. 17, 2015 Product Development Methodology - KBP 27
Build a Valuable Patent Portfolio
n  Application & market potential
n  Assess commercial values – in term of cost/
performance/power/form-factor improvements
n  Differentiation – for competitive advantages
n  Types of innovation in order of value hierarchy
n  System application level (S): e.g., the Sandisk “338”
patent for flash-memory card
n  Including new functionality (F) & system architecture
n  Chip architecture level (A) – building blocks
n  Chip array architecture level (A) – for memory array
n  Block architecture level (BA) – enhanced
functionality/performance
n  Circuit level (C) – circuitry (more difficult to monitor)
Apr. 17, 2015 Product Development Methodology - KBP 28
NetLogic Microsystems’ M&A as IP Strategy
n  1997: Founded (competitions from IDT, Lara, Sibercore, Music,
Kawasaki Semi…)
n  2000: Intended to acquire BroadWeb (Taiwan)
n  Gained system-level software engineering supports
n  2001: Strategic partnership with TSMC
n  Accessed TSMC cutting-edge design IP library
n  2004: IPO at NASDAQ (mkt. cap. @~US$250M)
n  2006: Acquired Network Div. from Cypress Semi
n  Took over Lara’s intellectual assets and business from Cypress
n  2007: Acquired Aeluros Inc. (10G Layer 2)
n  Got cutting-edge analog and mixed-signal IP, know-how & business
n  Filled the missing link on physical layer performance gap
n  2009: Acquired Network IC Div. from IDT
n  Eliminated the last Network Search Engine competition
n  2009: Acquired RMI Corp. (multi-core processors)
n  Got cutting-edge multi-core IP and how-how
n  Filled the critical gaps in multi-core processing design/test
Customer Demand-side Driven Innovations
Key Design Considerations
Noise
(Low)
Performance
(High Speed
& Features)
(Low)
Power
(High)
Density
(/area)
Yield/
Reliability
(High)
Form Factor/
Thermal Stress
(Small & Robust)
Reducing
Overall
Cost to End
Customers
SystemInterfaceFactors
FabTechnologyFactors
Package Technology
Apr. 17, 2015 Product Development Methodology - KBP 29
"Design-in Methodology” for "Doing the Right Things Right at the First Time" mindset
(to proactively solve problems at their sources of creation) to enable "First-Silicon”
Success: Marketability, Scalability, Robustness, Manufacturability, Reusability, Quality/
Reliability, Testability, etc. – All for “Integrated Design Capability”
Costs to Society
is the Wildcard
Design-in Methodology for Product Dev.
n  1st-level customer demands
n  Marketability – Proper performance & power spec.
n  Robustness – Proper operation-margin stabilities
n  Testability – Proper observability and verifiability
n  Reusability – Proper system dev. cost amortization
n  2nd-level customer demands – yield, quality and
reliability, thus overall cost minimization
n  (Mass) manufacturability – Proper yield-ability
n  Scalability – Proper application/roadmap adaptabilities
n  Quality – Proper operational invariance
n  Reliability – Proper invariance over long time
Apr. 17, 2015 Product Development Methodology - KBP 30
Apr. 17, 2015 Product Development Methodology - KBP 31
Basic Requirements for Competitiveness
n  The foundation for Global Competitiveness are:
n  Value Proposition (demand-side/external critical success factors),
Domain Capability/knowledge (supply-side/internal critical success
factors) and Organization (the means to meet the demand with the
supply)
Value Proposition:
Values to customers,
shareholders &
partners; customer
services; product
differentiation…
Organization:
Core team, TQM,
human resource
managm’t., CRM,
structure, system,
procedures, etc.
Domain Capability:
Core competency,
intellectual capital,
supply-chain mgmt.,
technology,
innovations, etc.
The Foundation for Global Competitiveness
Apr. 17, 2015 Product Development Methodology - KBP 32
The Key to Success of “NETL”
n  Value proposition (with 2nd highest Pipeline Impact index):
n  Enable IT service providers to provide high-value mission-and-time-
critical differentiating services
n  Enable cost-effective IT network security end-to-end up to Layer-7
content filtering level at maximum (backbone wire) speed
n  Domain capabilities/knowledge (being the sole leader in its domain):
n  Fully capable of providing cost-effective turn-key best-of-class system-
level “QoS” solutions from H/W level to service level
n  Capable of addressing all relevant mission-and-timer-critical applications
within its domain of expertise
n  Comprehensive IP portfolio to further enhance innovation leadership
n  Organization/execution:
n  A corporate culture striding for continuous innovations
n  Product development for 1st silicon success
n  All-out efforts for securing design wins
n  Product introduction for best possible time-to-market
n  Product engineering for best possible time-to-mass production
n  Corporate dedication to total customer satisfaction
Apr. 17, 2015 Product Development Methodology - KBP 33
Path to Success!
n  Great companies take advantage of the 2
engines driving Information Age!
n  NetLogic Microsystems are benefiting greatly from
both Moore’s Law and Metcalfe’s Law
n  For all high-tech companies, the questions are:
n  Does the Moore’s law work for you or against you?
n  Does the migration to a new technology node give you better
performance, lower cost, more functionality, lower power and
more profit opportunities?
n  Does the Metcalfe's Law work for you or against you?
n  Are your solutions (architecturally) scalable with the
increasing bandwidth requirements?
n  Are your solutions independent of the carrier characteristics?
n  Do your solutions provide differentiating (mission-&-time-
critical) values (like “QoS” and security)?
Apr. 17, 2015 Product Development Methodology - KBP 34
NetLogic Microsystems
Innovation Methodology:
A Proven Path for
World-class Innovation Leaders
Apr. 17, 2015 Product Development Methodology - KBP 35
Innovation Methodology - Valuable Ideas
n  Customer value driven corporate culture:
n  Innovation is pursued solely to create DIFFERENTIATING
VALUES to the customers
n  Contributing directly to their bottom-line in term of critical functionality,
cost, performance, low-power, quality and delivery
n  Strategic partnership and close working relationship with the lead
customer is a must
n  All valuable innovation ideas come from lead (strategic) customers
n  Cisco for NetLogic Microsystems (recently ranked as the best supplier
by Cisco)
n  Aligning all the company’s activities to be proactively responsive to
the customers’ current and future needs
n  Including technology and product roadmaps as well as employee
evaluation/promotion
n  Continuous innovations by solving the customers' next biggest
problems (the next product development cycle)
Apr. 17, 2015 Product Development Methodology - KBP 36
Innovation Methodology - Process
n  Proper standardized process for innovation:
n  Goal: to create differentiating values to the customer
n  Scope: to be consistent with the corporate capability and core
competence expansion roadmap
n  Alignment: to company interests and strategic development
n  Method and procedure:
n  Discovery, peer review, first draft of the invention, background check
including competitive benchmarking, patent committee review,
further refinement and due diligence checks, patent prosecution, etc.
n  Division of labor between the patent attorney and the inventor:
n  The in-house or hired patent attorney is responsible for drafting the
patent application including claims (which are legal statements and
must be handled by the patent attorney instead of engineer)
n  The inventor (inventing engineer) is responsible for full (written and
oral) disclosure of the invention to the patent attorney
Apr. 17, 2015 Product Development Methodology - KBP 37
Innovation Methodology - Team
n  Team building/teamwork:
n  Train engineers to acquire critical-thinking and truth-discovery skills, to
collaborate with one another
n  Constructive interaction instead of internal friction
n  Challenge conventional wisdom and assumptions (with “What If” and “Why
Not”) thinking “beyond the box”
n  Open to new ideas but mindful of the weak links
n  Pro-action (progress driven) - speedy learning through practices and actions
n  Build team with talents of complementary technical domain knowledge,
including specialists and generalists
n  Understanding higher system-level optimization and trade-offs is essential
n  It must be a COLLABORATION EFFORT (to be more valuable) instead
of individual one
n  Useful solutions and creations are mostly from multi-disciplinary approaches
n  Collaboration provides the necessary sanity check against "missing the big
picture" and ensuring the money and resources are well spent
n  Innovation costs a lot of money and misled innovation can be an opportunity loss or
a major disaster to the company.
n  Too many high-tech companies went into disaster because of premature
innovations (due to lack of supporting ecosystem/infrastructure):
n  VMOS was a good example that sank AMI in the early 1980s.
Apr. 17, 2015 Product Development Methodology - KBP 38
Innovation Methodology - Sustainability
n  Ecosystem for sustainable efforts:
n  Top management participation & full-commitments:
n  Executive patent committee consisting of CTO, VP of
Business Development or CMO, and Chief IP Officer or in-
house leading patent attorney
n  Incentives to inventors (positive reinforcement):
n  Stock or monetary incentives
n  Career advancement considerations
n  Relieving the inventor the burden of drafting the patent
application
n  Corporate culture conducive to continuous innovation:
n  Driven by value creations to the customer
n  Reinforcing team building, teamwork and information sharing
n  Cross learning among the project team members with
different functional/domain expertise (e.g., design, device/
process, product, test, packaging, applications)
Thank You!
(al@iipcc.org)
Apr. 17, 2015 Product Development Methodology - KBP 39

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Product Development Methodology – KBP as a game-changer

  • 1.                      Presenta)on  at  the  8th  Workshop  of  the  “IIPCC  HK  Chapter  IP  Workshop  Series:           IP’s  Role  in  Entrepreneurship  &  Innova)on”  (in  HKSTP  on  April  17,  2015)     Prepared  by:    Al  Kwok  (郭灿辉)                      Governor  &  Co-­‐founder,  IIPCC  Hong  Kong  Chapter                      Governor  &  Co-­‐founder,  HKIURCA  (⾹香港產學研合作促進會)                      Member,  HKSAR  “IP  Trading”  Working  Group                        Governor  &  Co-­‐founder,  Savantas  Policy  Ins)tute                      President,  CASPA  (华美半导体协会)  PRD  Chapter                      Former  VP  &  CIPO,  NetLogic  Microsystems  (“NETL”)   Product Development Methodology - KBP 1 Product Development Methodology – Making Knowledge-based Processors the Game-Changer! Apr. 17, 2015
  • 2. Acknowledgement n  Innovations in IC industry have always been collaborative efforts. No single-effort superstars! n  I am indebted to my colleagues and co-workers at NetLogic Microsystems (NM) for their assistances and supports to develop NM’s IP strategies and portfolio as well as the system of continuing innovations to make NM one of the best IC start- ups in history, making its Knowledge-based Processors the critical components addressing QoS in Information Age. n  Special thanks to Dr. Norm Godinho and Dr. Varad Srinivasan. Apr. 17, 2015 Product Development Methodology - KBP 2
  • 3. Essence of Continuous Innovations n  Innovations – the Ideas, Inventions n  Ideas can just be academic curiosities unless they are productized for the Benefits of Mankind - Values n  Innovations have to be Collaborative for Ecosystem-building n  Entrepreneurship – the end-to-end Process n  From a Concept to make it into a “Product” – Vehicle of Values n  What it takes to Execute the Teamwork to realize the dream n  IP – the Direction, Strategy & Business Model n  What Goals and Sustainable Values we want to achieve with our Innovations and Entrepreneurship? n  Sustainable Development ó Continuous Innovations n  The continuous Learning cycles of Basic System of “Innovation ó IP ó Entrepreneurship” driving the Progress of a Society n  Old things (practices and methods) have to be obsoleted to make rooms for emerging new things! Learning Cycles! Apr. 17, 2015 Product Development Methodology - KBP 3
  • 4. AK comment: Considering the facts that NM is much less than 1/10 of the size (in revenue) of the other 9 top-ranking companies and much younger (<10 years old), it is a crowning achievement! Likewise, “ipIQ” rated NM’s portfolio the best for a medium size (~$100M) high-tech company worldwide in its “Patent Scorecard 2006” report with the 2nd highest CII (current impact index). Mkt. Cap.: US$250M @ 2004 IPO => US$3.7B @ 2011 M&A (14.8X in 7 years = >46% CAGR) (All multi-billion$ companies) AK comment: Based on a portfolio of ONLY ~100 (high-quality) patents Product Development Methodology - KBP 4Apr. 17, 2015 Lifetime Achievement as its “Founding CIPO”: (Killer Patents!!!) (Game Changers!!!)
  • 5. IDT Founders’ Spin-off (Serial Entrepreneurs) 1980   1981  1982  1983  1984  1985  1986  1987  1988  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000   2001   Al  Kwok   AMD   AMD  AMD   A/I   IDT   IDT   IDT   IDT   VTI   QSI   QSI   QSI   QSI   QSI   QSI   Self   PMC   PMC   NMI   NMI   NMI   NMI   #256   #  7   #  7   #  10   George     IDT   IDT   IDT   IDT   IDT   IDT   Clon  Laws   Huang           Frank  Lee   IDT   IDT   IDT   IDT   IDT   IDT   IDT   PSI   PSI   PSI   PSI   PSI   PSI   PSI   GVT   GVT   GVT   GVT   GVT   GVT   G/C   Norm   IDT   IDT   IDT   IDT   IDT   IDT   IDT   PSI   PSI   PSI   PSI   PSI   PSI   PSI   PSI   Nova  Nova   NMI   NMI   NMI   NMI   NMI   Godinho           Chun  Chiu   IDT   IDT   IDT   IDT   IDT   IDT   IDT   IDT   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   Q/I   Mano   HP   HP   H/I   IDT   IDT   IDT   IDT   IDT   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   Malwah           Varad   ?   ?   ?   ?/I   IDT   IDT   IDT   IDT   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   Nova   NMI   NMI   NMI   NMI   NMI   Srinivasan           Jen  Hong   ?   ?   ?   ?/I   IDT   IDT   IDT   IDT   QSI   QSI   QSI   QSI   QSI   QSI   QSI   QSI   ?   NY   NY   NY   NY   NY   Apr. 17, 2015 5Product Development Methodology - KBP n  Collaborative Innovations leads to Co-founders n  Entrepreneurs create their own jobs n  Serial Entrepreneurs are the major job creators and new engines of GDP – treasure of a Knowledge-based Society n  IDT (CMOS) & NMI (KBP) enabling IT, impacting >>$10T GDP globally
  • 6. The Big Picture for Product Development Lead Customers’ Requirements => 2nd G => 3rd G =>… Differentiating Value Creations => 2nd G => 3rd G =>… Business Model => 2nd G => 3rd G =>… Service/Product Roadmap => 2nd G => 3rd G =>… Application/Technology Roadmap => 2nd G => 3rd G =>… IP Portfolio Development => 2nd G => 3rd G =>… The next innovation ideas come from customers (CRE) & “Stress Tests” identifying (1)  The weak-links in product design & performance and scalability (2)  System (architecture) integrity and scalability (elasticity) issues (3)  The bottlenecks for scalability (technology and manufacturability roadmap) NetLogic Microsystems is a good benchmark for SMEs as innovators Close collaboration between the customer (CRE) and the vendor Mission-&-Time Critical Requirements along Demand-chain Product Development Methodology - KBP 6Apr. 17, 2015
  • 7. Apr. 17, 2015 Product Development Methodology - KBP 7 AK Comment: Need GM @ ~65% to sustain R&D efforts @ ~30% for continuous world- class Independent Innovation
  • 8. Lead Customers’ Requirements (The Apps/Product/Tech Roadmaps to Meet Them) Apr. 17, 2015 Product Development Methodology - KBP 8
  • 9. Apr. 17, 2015 Product Development Methodology - KBP 9
  • 10. Apr. 17, 2015 Product Development Methodology - KBP 10
  • 11. Apr. 17, 2015 Product Development Methodology - KBP 11
  • 12. Apr. 17, 2015 Product Development Methodology - KBP 12
  • 13. Apr. 17, 2015 Product Development Methodology - KBP 13
  • 14. Apr. 17, 2015 Product Development Methodology - KBP 14
  • 15. Apr. 17, 2015 Product Development Methodology - KBP 15 AK Comment: This shows NetLogic Microsystems’ product/technology/patent roadmaps meet market needs
  • 16. Apr. 17, 2015 Product Development Methodology - KBP 16
  • 17. Differentiating Value Creation ó Innovation n  Values (to Customers) to get paid - Maximizing n  Performance/Power n  Max. performance at a low (specific) power n  Performance => speed + functionalities (features) n  Battery power for portability, anywhere and anytime n  Personalization n  Quality/Reliability => High Yield too!! n  Food safety assurance is an universal pressing issue n  Delivery => throughput time + logistics + zero waiting n  Just-In-Time + Mini. Process time + Mini. Handling time n  Price => Priced according to values instead of costs n  Price = “Brand (Trust) + Emb. IP + Services” + Cost > 4X Cost n  IP = “Brand (Trademark) + Embedded IP (Patents & Copyrights) + Pre-sale Design Win & Post-sale Services (Trade Secrets)” Apr. 17, 2015 Product Development Methodology - KBP 17
  • 18. Apr. 17, 2015 Product Development Methodology - KBP 18 NetLogic Microsystems IP Strategy - A “King-making” Methodology
  • 19. Apr. 17, 2015 Product Development Methodology - KBP 19 IP as the Core Strategy from the Start n  I joined NM in 1998 after its re-organization as VP of Business Development & CIPO, and later also VP of Operations n  Read NM’s first 2 (CAM) patent application files before deciding to join n  Assessed NM’s potential to be the KING of parallel search engine n  Full commitment from the CEO/Chairman/Major Investor on IP n  Former colleagues from IDT and QSI (incl. CTO) - 6 out of 9 n  Hired experienced patent attorneys to expedite drafting patent applications n  The proper way to ensure high-quality patent generation n  Hired a patent attorney as Director of IP in 6 months n  He became the Corporate Counsel (& CIPO) of NetLogic Microsystems n  Complementary team building to hire top engineers in product, test & technology, and strategic vendor partnership n  Set up Patent Award Incentive Program (3000 shares per patent) n  Formed Executive Patent Committee (Dir. of IP, CTO, CIPO) n  Set up claim guideline to include all enabling elements and methods creating values to customers (cost, performance, quality, delivery…) n  Reviewed and improved patentable ideas from inventors n  Decided what patents to file and foreign patent filings n  Prioritized killer patent filings that could block competitors n  Set IP strategic development direction based on customer feedback
  • 20. Apr. 17, 2015 Product Development Methodology - KBP 20 Understand the Core Differentiation n  How fundamental is the idea? More the better! n  Independent of technology? “Must-have” for intelligent? n  What position is it in the value-chain? Higher the better! n  On top at the global system architecture level? Or H/W level? n  What values can it bring to the customer? n  Mission-and-time critical? Improve its profit margins? n  How disruptive can it be? Exponential growth potential! n  Whole new paradigm shift? Last forever? n  Can another technology/idea be its disruptor? n  How basic is the invention? On “NDA” level? n  Its usefulness over time - invariant? Its lifecycle? n  What is the required supporting ecosystem for its usefulness? n  What are the alternative/competing solutions? n  What is its market share? Differentiations? n  How large the TAM can it serve now and future? n  Demand driven by Moore’s Law and Metcalfe’s Law?
  • 21. Apr. 17, 2015 Product Development Methodology - KBP 21 Anatomy of a Generic Problem-solving (Intelligent) Process Steps in an intelligent process The cycle: Observe/monitor Analyse Decide Execute Focus: References/result Ref./result Action Action Constraint: Data (more the better) Data (more the better) Resources (less the better) Resources (less the better) Preferred mode of operation Concurrent & real-time Concurrent & real-time if possible Interactive & iterative (what if?) Concurrent if possible Time factor Parallel Parallel if possible Algorithmic by nature Parallel if possible Preferred method: Pattern recognition Pattern recognition Pattern recognition parallel-search engine is fundamentally superior to algorithmic one Presented by Al Kwok as a vision in 1999 The NetLogic Microsystems’ core patent portfolio was fundamentally based on this core concept: how to perform pattern recognition better through parallel-search engines (including Layer 7 since then).
  • 22. Apr. 17, 2015 Product Development Methodology - KBP 22 n  The basic DNA of intelligence is the ternary (“1” or “0” or “X”) CAM cell with the implementation of “don’t care” state in circuit by means of the Mask bit n  2 memory cells, a comparator circuit to determine “Match” (i.e., basic intelligence) & a Mask bit to give a dimension of freedom (i.e., option) n  Degree of intelligence <=> degree of possible options n  The ternary CAM (content addressable memory) becomes the basic building block for parallel-processing engines/filters. n  KBP (knowledge-based processor) is essentially a massy array of ternary CAM with some classification and prioritization circuits. n  SRAM that was avoided by IC manufacturers like plague has reborn into its second life as high-value ternary CAM -- What an innovation! Discovering treasure in a junk yard! A Fundamental & Useful Innovation! (2008) 11 Input bit = Ref. bit 10 Input bit = Ref. bit Mask bit = 1Mask bit = 0 Match bit
  • 23. IP Value Assessment Criteria n  Factors driving valuation (based on share % of TAM) n  The Strength of the patent (legal aspect) n  Scope, territories, claims, enforceability… n  The Significance of the patent (technical aspect) n  How fundamental? Timelessness of its values n  Differentiating functionalities: Values to customers n  Competing solutions: need comprehensive benchmarking n  The Usefulness of the patent (market aspect) n  Applications with respect to industry standards and ecosystems n  Sunrise (emerging trends) vs. Sunset (displaced practices) n  Present state of market readiness (units shipped and growth rate) n  Differentiations against competition (market share) n  Customer/market acceptance: TAM and market share n  Average Selling Price of the product and IP value in the product n  The Lifecycle of the patent (longevity aspect) n  The expiration date of the patent n  Emerging disruptive technologies against the patent Product Development Methodology - KBP 23Apr. 17, 2015
  • 24. Apr. 17, 2015 Product Development Methodology - KBP 24 Hierarchy of IP Management Source: VSI Alliance (IPPWP2 1.0) Level 1 Long-term Growth (Market dominance) Short-term Growth (Market share) Profitability (Within the domain) Cost-effectiveness (Within the domain) Increasing capabilities to affect the future Each level of IP Management builds on the foundation of the lower levels
  • 25. Apr. 17, 2015 Product Development Methodology - KBP 25 Focus for Innovation n  Proper SIP focus for design-house start-ups: n  System architecture and interface n  New system architecture/function(s) n  New interface scheme for higher I/O data rates n  Performance (chip level): =/>100X improvement n  New functions n  New architecture: chip and block level n  Power/Voltage reduction n  New power management scheme n  New architecture: chip or block level n  Density (feature size reduction) n  New array architecture n  New storage element
  • 26. Apr. 17, 2015 Product Development Methodology - KBP 26 Valuable Patent Portfolio Patent # Title matter Type Elapsed # Claims Yearly Filing Issued Days Total 1 6,199,140 Multiport CAM and timing signal S, A 30-Oct-97 16-Mar-01 1,233 21 2 6,148,364 Method for cascading CAMs S, A 30-Dec-97 14-Nov-00 1,050 31 2 3 6,240,485 Learn operation in depth-cascaded CAMs F, BA 11-May-98 29-May-01 1,114 30 4 6,219,748 Implementing Learn instruction BA, C 11-May-98 17-Apr-01 1,072 39 5 6,381,673 Next HPM in CAM F, BA 6-Jul-98 30-Apr-02 1,394 37 6 6,418,042 Tenary (3-state with "don't care") CAM A 9-Sep-98 9-Jul-02 1,399 75 4 7 6,237,061 Method for LPM F, BA 5-Jan-99 22-May-01 868 7 8 6,125,049 ML control circuit for CAM BA, C 5-Jan-99 26-Sep-00 630 8 9 6,137,707 Compare operation for CAM F, BA 26-Mar-99 24-Oct-00 578 40 10 6,460,112 Determining LPM F, BA 22-Jun-99 1-Oct-02 1,197 51 11 6,393,514 Full flag and almost full flag F, BA 12-Jul-99 21-May-02 1,044 38 12 6,175,513 Detecting multiple matches in a CAM F, BA 12-Jul-99 16-Jan-01 554 35 13 6,243,280 Selective match-line pre-charge in IRC BA, C 9-Sep-99 5-Jun-01 635 40 14 6,275,426 Row redundancy BA, C 18-Oct-99 14-Aug-01 666 53 15 6,154,384 TCAM cell A 12-Nov-99 28-Nov-00 382 19 16 6,147,891 ML control circuit for CAM BA, C 21-Dec-99 14-Nov-00 329 15 10 17 6,191,970 Select ML discharge in a part. CAM array BA, C 13-May-00 20-Feb-01 283 11 18 6,324,087 Partitioning a CAM A 8-Jun-00 27-Nov-01 537 33 19 6,249,467 Row redundancy BA, C 8-Jun-00 19-Jun-01 376 20 20 6,229,742 Spare address decoder BA, C 8-Jun-00 8-May-01 334 5 21 6,252,789 Inter-row configurability (IRC) A 14-Jun-00 26-Jun-01 377 49 22 6,246,601 Inter-row configurability A 14-Jun-00 12-Jun-01 363 10 23 6,243,281 Segment access in IRC BA, C 14-Jun-00 5-Jun-01 356 29 24 6,317,350 Hierarchical depth cascading S, A 16-Jun-00 13-Nov-01 515 53 8+ 25 6,445,628 Row redundancy BA, C 18-Jun-01 3-Sep-02 442 20 Ave. / S.D. 709 / 367 Total 769 Date
  • 27. Apr. 17, 2015 Product Development Methodology - KBP 27 Build a Valuable Patent Portfolio n  Application & market potential n  Assess commercial values – in term of cost/ performance/power/form-factor improvements n  Differentiation – for competitive advantages n  Types of innovation in order of value hierarchy n  System application level (S): e.g., the Sandisk “338” patent for flash-memory card n  Including new functionality (F) & system architecture n  Chip architecture level (A) – building blocks n  Chip array architecture level (A) – for memory array n  Block architecture level (BA) – enhanced functionality/performance n  Circuit level (C) – circuitry (more difficult to monitor)
  • 28. Apr. 17, 2015 Product Development Methodology - KBP 28 NetLogic Microsystems’ M&A as IP Strategy n  1997: Founded (competitions from IDT, Lara, Sibercore, Music, Kawasaki Semi…) n  2000: Intended to acquire BroadWeb (Taiwan) n  Gained system-level software engineering supports n  2001: Strategic partnership with TSMC n  Accessed TSMC cutting-edge design IP library n  2004: IPO at NASDAQ (mkt. cap. @~US$250M) n  2006: Acquired Network Div. from Cypress Semi n  Took over Lara’s intellectual assets and business from Cypress n  2007: Acquired Aeluros Inc. (10G Layer 2) n  Got cutting-edge analog and mixed-signal IP, know-how & business n  Filled the missing link on physical layer performance gap n  2009: Acquired Network IC Div. from IDT n  Eliminated the last Network Search Engine competition n  2009: Acquired RMI Corp. (multi-core processors) n  Got cutting-edge multi-core IP and how-how n  Filled the critical gaps in multi-core processing design/test
  • 29. Customer Demand-side Driven Innovations Key Design Considerations Noise (Low) Performance (High Speed & Features) (Low) Power (High) Density (/area) Yield/ Reliability (High) Form Factor/ Thermal Stress (Small & Robust) Reducing Overall Cost to End Customers SystemInterfaceFactors FabTechnologyFactors Package Technology Apr. 17, 2015 Product Development Methodology - KBP 29 "Design-in Methodology” for "Doing the Right Things Right at the First Time" mindset (to proactively solve problems at their sources of creation) to enable "First-Silicon” Success: Marketability, Scalability, Robustness, Manufacturability, Reusability, Quality/ Reliability, Testability, etc. – All for “Integrated Design Capability” Costs to Society is the Wildcard
  • 30. Design-in Methodology for Product Dev. n  1st-level customer demands n  Marketability – Proper performance & power spec. n  Robustness – Proper operation-margin stabilities n  Testability – Proper observability and verifiability n  Reusability – Proper system dev. cost amortization n  2nd-level customer demands – yield, quality and reliability, thus overall cost minimization n  (Mass) manufacturability – Proper yield-ability n  Scalability – Proper application/roadmap adaptabilities n  Quality – Proper operational invariance n  Reliability – Proper invariance over long time Apr. 17, 2015 Product Development Methodology - KBP 30
  • 31. Apr. 17, 2015 Product Development Methodology - KBP 31 Basic Requirements for Competitiveness n  The foundation for Global Competitiveness are: n  Value Proposition (demand-side/external critical success factors), Domain Capability/knowledge (supply-side/internal critical success factors) and Organization (the means to meet the demand with the supply) Value Proposition: Values to customers, shareholders & partners; customer services; product differentiation… Organization: Core team, TQM, human resource managm’t., CRM, structure, system, procedures, etc. Domain Capability: Core competency, intellectual capital, supply-chain mgmt., technology, innovations, etc. The Foundation for Global Competitiveness
  • 32. Apr. 17, 2015 Product Development Methodology - KBP 32 The Key to Success of “NETL” n  Value proposition (with 2nd highest Pipeline Impact index): n  Enable IT service providers to provide high-value mission-and-time- critical differentiating services n  Enable cost-effective IT network security end-to-end up to Layer-7 content filtering level at maximum (backbone wire) speed n  Domain capabilities/knowledge (being the sole leader in its domain): n  Fully capable of providing cost-effective turn-key best-of-class system- level “QoS” solutions from H/W level to service level n  Capable of addressing all relevant mission-and-timer-critical applications within its domain of expertise n  Comprehensive IP portfolio to further enhance innovation leadership n  Organization/execution: n  A corporate culture striding for continuous innovations n  Product development for 1st silicon success n  All-out efforts for securing design wins n  Product introduction for best possible time-to-market n  Product engineering for best possible time-to-mass production n  Corporate dedication to total customer satisfaction
  • 33. Apr. 17, 2015 Product Development Methodology - KBP 33 Path to Success! n  Great companies take advantage of the 2 engines driving Information Age! n  NetLogic Microsystems are benefiting greatly from both Moore’s Law and Metcalfe’s Law n  For all high-tech companies, the questions are: n  Does the Moore’s law work for you or against you? n  Does the migration to a new technology node give you better performance, lower cost, more functionality, lower power and more profit opportunities? n  Does the Metcalfe's Law work for you or against you? n  Are your solutions (architecturally) scalable with the increasing bandwidth requirements? n  Are your solutions independent of the carrier characteristics? n  Do your solutions provide differentiating (mission-&-time- critical) values (like “QoS” and security)?
  • 34. Apr. 17, 2015 Product Development Methodology - KBP 34 NetLogic Microsystems Innovation Methodology: A Proven Path for World-class Innovation Leaders
  • 35. Apr. 17, 2015 Product Development Methodology - KBP 35 Innovation Methodology - Valuable Ideas n  Customer value driven corporate culture: n  Innovation is pursued solely to create DIFFERENTIATING VALUES to the customers n  Contributing directly to their bottom-line in term of critical functionality, cost, performance, low-power, quality and delivery n  Strategic partnership and close working relationship with the lead customer is a must n  All valuable innovation ideas come from lead (strategic) customers n  Cisco for NetLogic Microsystems (recently ranked as the best supplier by Cisco) n  Aligning all the company’s activities to be proactively responsive to the customers’ current and future needs n  Including technology and product roadmaps as well as employee evaluation/promotion n  Continuous innovations by solving the customers' next biggest problems (the next product development cycle)
  • 36. Apr. 17, 2015 Product Development Methodology - KBP 36 Innovation Methodology - Process n  Proper standardized process for innovation: n  Goal: to create differentiating values to the customer n  Scope: to be consistent with the corporate capability and core competence expansion roadmap n  Alignment: to company interests and strategic development n  Method and procedure: n  Discovery, peer review, first draft of the invention, background check including competitive benchmarking, patent committee review, further refinement and due diligence checks, patent prosecution, etc. n  Division of labor between the patent attorney and the inventor: n  The in-house or hired patent attorney is responsible for drafting the patent application including claims (which are legal statements and must be handled by the patent attorney instead of engineer) n  The inventor (inventing engineer) is responsible for full (written and oral) disclosure of the invention to the patent attorney
  • 37. Apr. 17, 2015 Product Development Methodology - KBP 37 Innovation Methodology - Team n  Team building/teamwork: n  Train engineers to acquire critical-thinking and truth-discovery skills, to collaborate with one another n  Constructive interaction instead of internal friction n  Challenge conventional wisdom and assumptions (with “What If” and “Why Not”) thinking “beyond the box” n  Open to new ideas but mindful of the weak links n  Pro-action (progress driven) - speedy learning through practices and actions n  Build team with talents of complementary technical domain knowledge, including specialists and generalists n  Understanding higher system-level optimization and trade-offs is essential n  It must be a COLLABORATION EFFORT (to be more valuable) instead of individual one n  Useful solutions and creations are mostly from multi-disciplinary approaches n  Collaboration provides the necessary sanity check against "missing the big picture" and ensuring the money and resources are well spent n  Innovation costs a lot of money and misled innovation can be an opportunity loss or a major disaster to the company. n  Too many high-tech companies went into disaster because of premature innovations (due to lack of supporting ecosystem/infrastructure): n  VMOS was a good example that sank AMI in the early 1980s.
  • 38. Apr. 17, 2015 Product Development Methodology - KBP 38 Innovation Methodology - Sustainability n  Ecosystem for sustainable efforts: n  Top management participation & full-commitments: n  Executive patent committee consisting of CTO, VP of Business Development or CMO, and Chief IP Officer or in- house leading patent attorney n  Incentives to inventors (positive reinforcement): n  Stock or monetary incentives n  Career advancement considerations n  Relieving the inventor the burden of drafting the patent application n  Corporate culture conducive to continuous innovation: n  Driven by value creations to the customer n  Reinforcing team building, teamwork and information sharing n  Cross learning among the project team members with different functional/domain expertise (e.g., design, device/ process, product, test, packaging, applications)
  • 39. Thank You! (al@iipcc.org) Apr. 17, 2015 Product Development Methodology - KBP 39