Tuesday, September 25, 2007

Business Strategy IS Intellectual Property Strategy

by Ron Carson
Regional Sales Director
Innovation Asset Group, Inc.

IP assets are increasingly recognized as key business assets. The management of IP assets is no longer a discretionary function, nor solely the domain of the legal department. It has become a pillar of corporate strategy. If you are reading this, you probably already know that IP is important.

A lot has been written about both business strategy and IP strategy. In the case of business strategy there are a multitude of models, formulas and approaches that provide a framework to assist in development of the strategy. In contrast, it seems to me, most writings about IP strategy deal with why it is important, but there is little written about how to go about developing or implementing such a strategy. In fact, most writing seems to position IP strategy as a separate concept that must be aligned with a pre-existing business strategy. In my opinion business strategy and IP strategy are at the very least deeply intertwined, if not two sides of the same coin.

IP IS IMPORTANT...
According to a number of recent reports by PWC and others:
• Approximately 90% of worldwide corporate net worth can be attributed to intangibles and intellectual property.
• Over 80% of executives believe the importance of intellectual capital to the value of their companies will increase over the next 3-5 years.

...BUT APPARENTLY MISMANAGED.
• Almost 70% of executives believe IP management is too often treated as a legal, not a strategic issue.
• Over 60% of executives believe current accounting practices understate the value of IP.
• Over 80% of royalty agreements are under reported.
• Over 60% of executives believe their companies could extract significantly more value from existing IP and IP formation if it devoted more assets and attention to relevant processes.

WHY THE INTELLECTUAL PROPERTY DICHOTOMY?
• Over 70% of executives believe a focus on short-term results inhibits the development of sophisticated processes for managing IP.
• Intellectual property is inherently more complex than tangible assets.
• Most business executives would rather not have to read the claims of a patent, let alone the claims of an entire portfolio.
• It is easier to continue to have the legal department manage these assets. (In my opinion, this is why we are seeing the legal function around IP become elevated to a more strategic position in companies, just as we have seen with IT departments in the past 10-15 years. You can read a related post about Chief IP Counsels and Chief IP Officers here.)

IP Strategy can be approached in much the same way as business strategy. In some respects, they are the same.

IP STRATEGY IS BUSINESS STRATEGY
I think part of the challenge executives have is the concept of mapping their IP strategy with their business strategy. IP strategy is simply a component of a business strategy. In fact, I think you could take a model such as the Balanced Scorecard or the Five Forces and insert an additional component for Intellectual Property.

In developing a business strategy, there are some common things to consider that apply equally well to the realm of intellectual property. Generally speaking, you want to consider the needs of your customer, the nature of the competition and your own capabilities. (For the sake of simplicity, I’ll leave market sizing and some other topics out of this post.)

Customer
Eventually, the value of the IP a company hopes to control is derived from the needs of the market. Just as a business strategy must consider the needs of customers in various segments, so too must IP strategy consider the needs of customers. Understanding these needs will drive product requirements, R&D priorities and eventually help prioritize patents to be acquired, licensed, applications to be filed or even trade secrets to be protected.

Competition
In business strategy, a company cannot chart its course without understanding its competition in terms of strengths, weaknesses, distribution strategies, pricing strategies, etc. In the IP realm, companies can look at the profile of their competitors to understand the relative strengths and weaknesses of their IP portfolios, strategies and technological directions. With this information in hand, a company can patent or acquire rights to technologies to strengthen their own competitive position.

Product
In business strategy, a company looks at its relative areas of expertise. What does it do better than other companies, how does it differentiate itself? Similarly in IP strategy, a company must consider its portfolio -- what does it have, and what does it need to add? On the business side, a company has to make the build vs. buy decision. In IP, a company looks out across the IP landscape with an understanding of the market requirements, competitive implications, and determines if it should invent (make) or acquire (buy) the necessary components to round out the portfolio.

Understanding what the market needs, the competition and your own capabilities are key elements of both business and IP strategy. With this information in hand, you can intelligently plot your course forward with all appropriate milestones and metrics.

Stay tuned for next-in-series posts that will get deeper into the ‘how’ does one go about this – at each stage of the IP Value Chain and at varying levels of IP sophistication. And please…feel free to add your insights.

Labels: , , ,

60 Comments:

Anonymous Facebook adverts said...

Ads are placed in order based on Facebook adverts. The highest Ad Rank gets the top spot and so on down to either the last ad qualifying for the auction or the last position on the page. Here is where it really gets interesting; the person in the top spot could actually pay LESS than the people in the spots below them.

December 4, 2017 at 3:09 AM  
Anonymous Company Secretarial in Malaysia said...

We also take care of the whole recruitment process where we will assist our clients in the job offering Company Secretarial in Malaysia and also in the negotiation of the job package and also the signing of the employment contracts. This will ensure our clients can the conventional complicated recruiting process and it will be time and cost effective to our clients too.

December 4, 2017 at 4:22 AM  
Anonymous online business opportunities for moms said...

This online business opportunities for moms guide is really a wonderful source of anyone wanting to work from home. It's particularly created for those who know nothing concerning the work at home globe, as well as for myself, this examines a few things i will not have considered, for example how you can cope with becoming remote in your own home, or even how you can increase productivity.

January 9, 2018 at 12:11 AM  
Anonymous click here said...

Serp Alliance offers place my opportunity on the first page. Thank you so much Serp Alliance organization! I have caused the corporation for quite some time now and they are top notch. Affordable when compared to other people I talked to plus much more receptive, excellent work click here.

January 10, 2018 at 10:14 PM  
Blogger Robert said...


It’s appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I wish to suggest you few interesting things or advice. Perhaps you could write next articles referring to this article. I desire to read even more things about it!

real estate apps

February 15, 2018 at 11:43 PM  
Blogger Anna Schafer said...

I just couldn't leave your website before telling you that I truly enjoyed the top quality info you present to your visitors? Will be back again frequently to check up on new posts. Alexander Mirza

May 14, 2018 at 4:19 AM  
Blogger Owais Khan said...

There are many new attributes of a new corporate office. These range from newer types of gadgets, equipments to even the printed items of the modern type. There is a completely new standard of quality and perfection that has been attached with the new generation of printed items. 55printing

July 5, 2018 at 4:55 AM  
Blogger Elizabeth J. Neal said...

Love what you're doing here guys, keep it up!.. Bukit 828

July 20, 2018 at 11:15 PM  
Blogger Richard C. Lambert said...

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. The Hyde Freehold Condo

July 23, 2018 at 12:37 AM  
Blogger Richard C. Lambert said...

thanks this is good blog. Mayfair Modern Former Mayfair Gardens Enbloc

August 8, 2018 at 1:02 AM  
Anonymous Anonymous said...

Lovely information shared!
Mayfair Modern Oxley

August 17, 2018 at 4:33 AM  
Blogger Unknown said...

Juniper Hill AllgreenYour article was delivered so flawlessly How soon will you be posting another article?

September 21, 2018 at 2:30 AM  
Blogger jeniferlope said...

Thanks meant for sharing this type of satisfying opinion, written piece is fastidious, that’s why I’ve read it completely.
parallel profits bonus

December 27, 2018 at 10:45 PM  
Blogger Silke Fisher said...

Find top realtors in your city or town that go the extra mile and advertise in all the top spots. Our Real Estate Brokers use an inside platform to connect buyers and sellers through Agents in our system. We have lists of developers, builders. And do lan assembly packages to get the best value for your home or property. When only the finest Realtor will do to work with your most valuable asset then look no further than our hand picked Real Estate Brokers list. If you want more info click here link : Real estate Broker Vancouver

March 28, 2019 at 1:00 AM  
Blogger Michael Mayrhofer said...

Nice information, valuable and excellent design, as share good stuff with good ideas and concepts, lots of great information and inspiration, both of which I need, thanks to offer such a helpful information here. examples

June 7, 2020 at 7:53 AM  
Blogger Andre Schroeder said...

They shine at design and project management, website design agency helped the method run smoothly. Communication is consistent and they are always finding ways to be more efficient, often leading to heightened innovation.

June 21, 2020 at 11:33 PM  
Blogger James jones said...

We are committed to providing our best at the affordable price rates. We have developed highly flexible logo designing plans for you. If you want to get your logo at the cheap price rates in Pakistan then just remember our name and don’t hesitate to place your order. Business Logo Designing

June 22, 2020 at 1:48 AM  
Blogger Alice Wong said...

I don’t waste my free time that’s why I read the informative things when I got this blog I really enjoyed reading this.
web design agencies

June 24, 2020 at 3:54 AM  
Blogger Ivan Irwin said...

dc

July 2, 2020 at 2:29 AM  
Blogger Unknown said...

This site is actually a walk-through its the internet you desired about it and didn’t know who to ask. Glimpse here, and you’ll absolutely discover it. Flow Meter Solar

July 11, 2020 at 11:09 PM  
Blogger Leslie Thompson said...

Whatever you have provided for us in these posts really appreciative.
top graphic design studios

July 24, 2020 at 1:25 AM  
Blogger Clara A. Harris said...

Great blogs buddy……… this will definitely assist me.erp software dubai

July 24, 2020 at 9:45 AM  
Blogger UNKNOWN said...

You can attract targeted buyers if you agree on how to market your property internet. This is a quick and simple property marketing to help you get started. property

July 26, 2020 at 12:38 PM  
Blogger Michael Mayrhofer said...

My friend mentioned to me your blog, so I thought I’d read it for myself. Very interesting insights, will be back for more! read more

August 2, 2020 at 5:39 AM  
Blogger Robert Oldham said...

Really amazing blog, I’d love to discover some extra information.
UX designers

September 2, 2020 at 10:08 PM  
Blogger tike mik said...

Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value. finmaxfx.com

October 29, 2020 at 3:13 AM  
Blogger Ali jan said...

Besides cargo vessels, barges and river cruise boats the local water traffic is also busy. Speed boats and pleasure boats are available. budapest rental

November 1, 2020 at 1:29 AM  
Blogger kenwood said...

This was usually so a lot of room could be saved within the house allowing perhaps an older sibling or some related adult to be in the other room. bed with slide

November 10, 2020 at 11:59 AM  
Blogger Anonymous said...

It is imperative that we read blog post very carefully. I am already done it and find that this post is really amazing. Crypto bank account

December 4, 2020 at 10:41 AM  
Blogger Qaiser Mehmood said...

Designers usually charge by the hour. A designer will know how long is spend in the design of your business card. They are pretty reasonable, and I think the printing will be the more expensive, you can get a cheap printing company and tell the designer to send it to them. The costs are : For a junior designer $40 per hour up to senior designers which can charge you as much as $200 per hour. But if you want a simple business cards there are many promotions in the net. Click here: qaiserm.com

February 28, 2021 at 12:55 PM  
Blogger shane lee said...

The quality and durability of the truck mattress are also essential factors to consider. Just buying a low quality mattress will never allow you to have better sleep and in fact it can become the reason for back ache or other health issues. cheap truck mattress

April 3, 2021 at 12:48 PM  
Blogger Anonymous said...

Very nice article. I enjoyed reading your post. very nice share. I want to twit this to my followers. Thanks !. immobilienmakler mülheim an der ruhr

April 7, 2021 at 3:48 AM  
Blogger Anonymous said...

Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers. immobilienmakler mülheim

April 7, 2021 at 11:02 PM  
Blogger Kimberly Beckham said...

The team is much more reliable and competent than previous developers, and their work has resulted in a much better website
best website design companies

June 28, 2021 at 3:39 AM  
Blogger UNKNOWN said...

No doubt this is an excellent post I got a lot of knowledge after reading good luck. Theme of blog is excellent there is almost everything to read, Brilliant post. https://makingwayforpeople.wordpress.com/2021/06/21/why-do-business-in-cambodia-9-reasons-for-it/

July 27, 2021 at 2:09 AM  
Blogger aaronnssd said...

Hi there to everyone, the contents present at this web page are actually amazing for people knowledge, well, you can also visit Boeing Mission Statement . Keep up the good work.

September 15, 2021 at 8:42 AM  
Blogger Requel Murillo said...

Thanks friends, for providing such enlightening data.
mobile digital agency

September 17, 2021 at 1:41 AM  
Blogger Charlie Freda said...

Continue the good work; keep posting more n more n more.
UI design firm

November 2, 2021 at 3:15 AM  
Blogger Ivan Irwin said...

Your articles and contents are encouraging.
UI UX service

December 31, 2021 at 2:59 AM  
Blogger William John said...

Your blog is very interesting , I was troubling and trying to verify my blog but could not do so. Thank you very much.

January 21, 2022 at 8:47 PM  
Blogger amazeful said...

I generally check this kind of article and I found your article which is related to my interest.internet reputation management company Genuinely it is good and instructive information. Thankful to you for sharing an article like this.

March 19, 2022 at 7:44 AM  
Blogger purplewindow said...

It is what I was searching for is really informative. It is a significant and useful article for us. Thankful to you for sharing an article like this.Cloud Based Real Estate Asset Management Software

March 22, 2022 at 12:02 PM  
Blogger calido said...

Nice post! This post gives a better idea. Thanks for the useful information. I hope you will share some more content. Please keep sharing! product strategy business plan sample

March 30, 2022 at 12:10 PM  
Blogger Roatan Reef Realty said...

You have Shared great content here about roatan honduras real estate agents online I am glad to discover this post as I found lots of valuable data in your article. Thanks for sharing an article like this.

April 4, 2022 at 5:47 AM  
Blogger Ameeratel INC said...

Thanks for a very interesting blog. What else may I get that kind of info written in such a perfect approach about Business Process Outsourcing ? I’ve got an undertaking that I am simply now operating on, and I have been on the lookout for such info.

April 13, 2022 at 4:11 PM  
Blogger Gadget Portal said...

Very interesting, Good job, and thanks for sharing such a good blog and you can get it from here TCP Events.

April 15, 2022 at 4:25 AM  
Blogger crispctc said...

Excellent job, this is great information which is shared by you. This info is meaningful and factual for us to increase our knowledge about it. So please always keep sharing this type of information. Read more info about Real Estate Agent Concierge Services

May 10, 2022 at 12:20 PM  
Blogger homemega said...

Clearly, It is an engaging blog for us that you have provided here about real estate for sale in queens This is a great resource to enhance our knowledge about it. Thank you.

June 27, 2022 at 11:22 PM  
Blogger john William said...

Via reading, you got me engaged, and guess what? I would like to learn more about that. This is what is considered an entertaining message. Also read aboutHelimix Shaker

March 31, 2023 at 5:29 AM  
Anonymous Marine Drive Escorts said...

Such A Great blog.Thank you for A Great Post

July 28, 2023 at 10:05 PM  
Anonymous Schloka Escorts Vijayawada said...

I Visit Your Website First Time. Thanks for Sharing a Nice Blog

August 10, 2023 at 3:24 AM  
Anonymous nuru massage in bangalore said...

B2B spa sessions can boost morale, reduce absenteeism, and increase productivity by alleviating stress and promoting a positive work environment.

March 25, 2024 at 10:43 PM  
Anonymous female to male body massage near me said...

female to male massage near me targets the deeper layers of muscles and connective tissues, we are sure if you once take our spa services then you feel relax

March 27, 2024 at 10:45 PM  
Anonymous body massage at home in hyderabad said...

If you're looking for a massage at home service in Hyderabad ? then Priya sweety best option at hyderabad.

April 30, 2024 at 12:02 AM  
Anonymous body to body massage said...

Weekend with out a massage is wasted so don't waste your wonderful time enjoy holistic massage therapies in our

May 11, 2024 at 2:54 AM  
Anonymous Escort service in pushkar said...

This is a premium source for hobbyists to book exotic women for royal adult experiences with enjoyable services.

June 1, 2024 at 2:07 AM  
Anonymous Escort Service in Gurgaon said...

Great post! Really enjoyed reading. Keep up the good work! 

June 1, 2024 at 2:08 AM  
Anonymous Call girls in Gurgaon said...

Thanks for sharing this information. It's always helpful to learn something new.

June 1, 2024 at 2:08 AM  
Anonymous Mumbai escorts said...

I appreciate the thorough research and analysis you put into your posts.

June 1, 2024 at 2:09 AM  
Anonymous Hyderabad escorts said...

I love how you blend personal anecdotes with informative content. It makes for a compelling read.

June 1, 2024 at 2:31 AM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home