1. The Importance of Intellectual Property for Business Development and Growth
Dr. Guriqbal Singh Jaiya
Director
Small and Medium-Sized Enterprises Division
World Intellectual Property Organization

2. SMEs Website

3. IP for Business Series Making a Mark (Trademarks)
Looking Good (Designs)
Inventing the Future (Patents)
Creative Expression (Copyright and Related Rights)

5. Spotlight is on knowledge in today’s economy
Knowledge, Weightless, Information, Digital or Service Economy
Factors of production: Land, Labor, Capital, Intangibles (Knowledge)
Knowledge as useful Information (or Service)
Information as a “Public Good”
Information as Property

6. Market-oriented Economy
Playing Field: Unfair competition; free riding
National Legal Systems: Diversity (bilateral/regional/ international treaties or agreements)
Adding Value : Meeting or exceeding market needs or expectations
Market research: Consumers’ needs, competing products or substitutes, gaps
Technological innovation as an element of marketing

7. The challenge of adding value in today’s economy
Raw materials/Inputs: Processing (Value addition) = Value added output/component; product; sale; Profit
Value addition: Better: Functional/technological or aesthetic/non-technological; Rational/Emotional (More for Less)
Price; access/availability; consistency
Individual, Enterprise (legal person), Chains, Networks; consortia; Open Innovation (Industry-Government-Academia)
Ownership vs. access to knowledge
Value Addition, Value Delivery and Value Extraction

8. Levels of Product Core Benefit or Service Augmented Product
Installation
Packaging
Brand
Name
Features
Delivery
& Credit
After-
Sale
Service
Core
Benefit or
Service
Quality
Level
Design
Warranty
Core
Product
Actual
Product

9. THE PRODUCT LIFE CYCLE
A reminder that most products do not live for ever
A conceptual framework only
Difficult to measure where a product is in its life cycle

10. Tangibility Spectrum             Intangible Dominant
Salt 
Soft Drinks 
Detergents 
Automobiles 
Cosmetics 
Fast-food
Outlets 
Intangible
Dominant
Tangible
Dominant  
Fast-food
Outlets 
Advertising
Agencies 
Airlines 
Investment
Management 
Consulting
Teaching

11. What is innovation?
Innovation is the process and outcome of creating something new, which is also of value.
Innovation involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization (Schumpeter).

12. What is innovation?
Today it is said to involve the capacity to quickly adapt by adopting new innovations (products, processes, strategies, organization, etc)
Also, traditionally the focus has been on new products or processes, but recently new business models have come into focus, i.e. the way a firm delivers value and secures profits.

13. What is innovation?
Schumpeter argued that innovation comes about through new combinations made by an entrepreneur, resulting in
a new product,
a new process,
opening of new market,
new way of organizing the business
new sources of supply

14. Dimensions of innovation
There are several types of innovation
Process, product/service, strategy,
which can vary in degree of newness:
Incremental to radical,
and impact:
continuous to discontinuous

15. Drivers for innovation
Financial pressures to reduce costs, increase efficiency, do more with less, etc
Increased competition
Shorter product life cycles
Value migration
Stricter regulation
Industry and community needs for sustainable development
Increased demend for accountability
Demographic, social and maket changes
Rising customer expectations regarding service and quality
Changing economy
Greater availability of potentially useful technologies coupled with a need to exceed the competition in these technologies

16. What is innovation?
Gary Hamel argued that today’s market place is hostile to incumbents, who now needs to conduct radical business innovation:
Radically reconceiving products and services, not just developing new products and services
Redefining market space
Redrawing industry boundaries

17. New conditions for innovation
Small start-up entrepreneurs increasingly depend on large firms:
as suppliers or customers
for venture finance,
for exit opportunites,
for knowledge (production, markets and R&D)
and for opening new markets.

18. New conditions for innovation
Large firms increasingly depend on small start-ups
for NPD,
as suppliers of new knowledge (which they cannot develop themselves),
or organizational renewal, for experimentation with busienss models,
for opening new markets, etc

19. New developments in innovation raises new issues and problems
Greater emphasis on commercializing scientific discoveries, particularly in IT and the bio-sciences
Speed and potential value of scientific progress leads to emphasis on solid and well-designed portfolios of research projects
Universites as active drivers of innovation: Academic entrepreneurship and the entrepreneurial university
University-industry partnerships
Increased search for radical innovation and top-line growth.

20. Complementary Resources
Distribution
Manufacturing
Finance
Service
Core
technological know-how
Complementary
technologies
Marketing
Other
Other
Bargaining power of owners of complementary resources depends upon whether complementary resources are generic or specialized.

21. The eleven modes of cooperation agreements: illustration of their anchor points
Research
contract
Common
purchase
Subcontracting
Engineering
Patent
licence
production
Trademark
Consortium
(common
marketing)
Distribution
agreements
Ways
of...
designing
supplying
producing
marketing
delivering
Know-how transfer
contract
Source: S. Urban, S. Vendemini, CESAG, Strasbourg

22. Cooperations modes and value chain
Distri-bution
Reciprocal distribution agreements (access to existing distribution networks)
Marke-ting
Trademark licence
Consortium (common marketing)
Joint advertising
Produc-tion
Subcontracting agreements
Common manufacturing agreements
Implementation of engineering contracts
Patent license
Production consortium
Logistic
supply
Common purchases
Access to the specific resources of the country (raw materials, subventions, capital cost, compared advantages)
Link of the chain
Coope-
ration
modes
R&D
Exchanges of existing knowledge
Organisation of a common research
Setting up of a common project (design, engineering)
Services
After sale
Lobbying
Relations
Source: S. Urban, S. Vendemini, CESAG, Strasbourg

23. THE CHAIN MODEL VALUE CROSSES ONE SINGLE CHAIN : DESIGN INDUSTRY
RETAIL
HOW TO TURN
TECHNOLOGY
INTO ART
TECHNOLOGY
INNOVATION
QUALITY/PRICE
IN ORDER
TO TRANSMIT
TO CONSUMERS
A UNIQUE IMAGE

24. New Business Models Emerge
Then…
One Integrated Company
Now…
Many Distributed Companies
Product Development Cycle
Product Development
Tool Companies
Testing Services
CRO’s
CRM’s

25. New Regional Model Emerge
Then…
Manufacturing
Research
Development
Trials/Testing
Services
Self-contained regional clusters
Region A
Region E
Region B
Region F
Region D
Region C
Region G
Now…
Specialized, networked regions

26. Commercialization Model
Strategic Investment is the Foundation of a Successful Commercialization Model

27. Strategic Entrepreneurship and Innovation
Entrepreneurship is concerned with:
The discovery of profitable opportunities
The exploitation of profitable opportunities
Firms that encourage entrepreneurship are:
Risk takers
Committed to innovation
Proactive in creating opportunities rather than waiting to respond to opportunities created by others

28. Understanding the Process of Innovation
The Process/Steps of Innovation
Pre-IPO
Time $
Viable
Market acceptance
Heading to IPO or M&A
Expansion
Legal Entity
Founders = Mgt Team
Minimal Revenue
Slow Growth
High Growth
Head Count
Multiple Cycles
Bright Idea
Experimental
Research
Business Plan
Proof of Concept
Start-Up
Support Functions
Administration
Marketing
Revenue Growth
Seed
Idea / Concept

29. IP Management Needed in all stages
The Needs of Each Stage
Recruitment
Business Development
A & P
Market Access
Corporate and Secretarial
Financial
Training
PR and Marketing
Networking
Business Development
Time $
Expansion
Business Plan
Prototype/ POC
Project Management
Business Premises
Management Training
International support and Mkt. Access
Diversification strategies and support
Recruitment
Training and Incentives
Start-Up
Seed
Idea / Concept
IP Management Needed in all stages

30. The firm with a product meeting a market demand=
demand
the market

31. The firm with uncertain future market demand
time ? =
drivers of change:
population
tastes and fashions
economic conditions
technology
politics and regulations
the market

32. The firm adapted to changes in market demand
time = =
the market
the market

33. The firm facing competitive activity
competitors
the firm
the firm
time = =
the market
the market

34. MARKET ORIENTATION a corporate philosophy
the implementation of the marketing concept
an ideal
a policy statement
a corporate state of mind

35. MARKET ORIENTATION a faith an organizational culture
a concept of stages of development and degree of maturity that parallels the economic development of the national market

36. MARKET ORIENTATION A form of organizational culture that:-
places the highest priority on the profitable creation and maintenance of superior customer value while considering the interests of other key stakeholders
provides norms for behaviour regarding the organizational development of and responsiveness to market information

37. Different orientations of business:
Product orientation
Cost orientation
Capacity orientation
No-commitment orientation
Competitor orientation
Market orientation

38. Entrepreneurship 1
Entrepreneurship drives innovation, competitiveness, job creation and economic growth.
It allows new/innovative ideas to turn into successful ventures in high-tech sectors and/or can unlock the personal potential of disadvantaged people to create jobs for themselves and find a better place in society.

39. Entrepreneurship 2
Entrepreneurship, in small business or large, focuses on "what may be" or "what can be".
One is practicing entrepreneurship by looking for what is needed, what is missing, what is changing, and what consumers will buy during the coming years.

40. Entrepreneurship 3 Entrepreneurs have: A passion for what they do
The creativity and ability to innovate
A sense of independence and self- reliance
(Usually) a high level of self confidence
A willingness and capability (though not necessarily capacity or preference) for taking risks

41. Entrepreneurship 4 A tolerance for organizational bureaucracies
Entrepreneurs do not (usually) have:
A tolerance for organizational bureaucracies
A penchant for following rules
A structured approach to developing and implementing ideas
The foresight to plan a course of action once the idea is implemented and established

42. Entrepreneurial Success
1. People (Entrepreneur /Entrepreneurial Team)
2. Opportunity (Marriage of Market and
Product/Service)
3. Access to Resources (Land. Labor, Capital, Knowledge
And the fit amongst these three elements
(Business Model)

43. (fran*tre*pre*neur) n.
What is a Franchisee?
“Frantrepreneur”
(fran*tre*pre*neur) n. 
One possessing the desire to be a business owner -- without the desire to recreate the wheel -- by following a proven system for the benefit of personal and professional goals.

44. The Frantrepreneur Mentality
“I have the opportunity to learn from the success and failure of others.”
“I’m in business for myself, but not by myself”.
“I want a ‘bottled’ process for success that I can use in developing my own successful business.”
“Why would I work for someone else when I can work for myself and reap the rewards of my efforts?"
"Why would I spend years and the investment required to establish a successful brand when I could buy a franchise which provides immediate access to a successful business system and a brand name which others already have made successful?"

45. Entry Strategies New Business Existing Business
Develop a new product or service
Develop a similar product or service
Competitive approaches
Existing Business
Buying a business
Franchise
Joint venture – customer or supplier

46. “Competitive strategy is about being different
“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value.”
Michael E. Porter

47. Definition Competitive Advantage
An advantage over competitors gained by offering consumers greater value than competitors offer.

48. Competitive Strategies
How does an organization improve their competitive performance?
Must establish a competitive advantage in 3 areas:
Uniqueness: of resources & processes (Bill Gates knowledge of IBM)
Value: where products/services warrant a higher-than-average price or exceptionally low
Difficult to imitate: when products/services are hard to mimic or duplicate

49. Competitive Strategies
Basic Competitive Strategies: Porter
Overall cost leadership
Lowest production and distribution costs
Differentiation
Creating a highly differentiated product line and marketing program
Focus
Effort is focused on serving a few market segments

50. Competitive Strategies
Basic Competitive Strategies: Value Disciplines
Operational excellence
Superior value via price and convenience
Customer intimacy
Superior value by means of building strong relationships with buyers and satisfying needs
Product leadership
Superior value via product innovation

51. CORE COMPETENCES Definition
Hammel and Prahalad defined core competence as a central value - creating capability of an organization/enterprise.

52. CORE COMPETENCES
Core competences are activities or processes that critically underpin an organisation competitive advantage.
They create and sustain the ability to meet the critical success factors of particular customer groups better than providers in ways that are difficult to imitate

53. CORE COMPETENCES
Core competences are distinctive capabilities that lead a company to a competitive advantage.
Features of an enterprise that cannot be readily reproduced by a competitor.

54. CORE COMPETENCES
Core competences can vary through the time depending on the strategy adapted by the companies and the identification of the core competencies is the first step for a company to decide which business opportunities to pursue.

55. The Five Generic Competitive Strategies

56. Relative costs and differentiation
High
Low
High
Outstanding
success
Niche
Differentiation
Lowest
cost
Disaster
Low

57. PRICING OBJECTIVES CORPORATE OBJECTIVES ENVIRONMENTAL ANALYSIS PRICING
PROFIT
ORIENTATED
VOLUME
ORIENTATED
COST
ORIENTATED
COMPETITION
ORIENTATED

58. PRICING STRATEGIES Segmented/Differential:
random/periodic/second market discounting
Exploiting Competitive Position:
price signalling/penetration/experience curve/geographic pricing

59. PRICING STRATEGIES Product Line Pricing:
image pricing/price bundling/premium pricing/complementary pricing
Dynamic Pricing Strategies:
multi-tiered price or channel pricing

60. Low-Cost Provider Strategies
Keys to Success
Make achievement of meaningful lower costs than rivals the theme of firm’s strategy
Include features and services in product offering that buyers consider essential
Find approaches to achieve a cost advantage in ways difficult for rivals to copy or match
Low-cost leadership means low overall costs, not just low manufacturing or production costs!

61. Differentiation Strategies
Incorporate differentiating features that cause buyers to prefer firm’s product over brands of rivals
Find ways to differentiate that create value for buyers and are not easily matched or cheaply copied by rivals
Not spending more to achieve differentiation than the price premium that can be charged
Objective
Keys to Success

62. Where to Find Differentiation Opportunities in the Value Chain
Purchasing and procurement activities
Product R&D and product design activities
Production process / technology-related activities
Manufacturing / production activities
Distribution-related activities
Marketing, sales, and customer service activities
Internally
Performed
Activities,
Costs, &
Margins
Margins of
Suppliers
Buyer/User
Value
Chains
Activities, Costs,
& Margins of
Forward Channel
Allies &
Strategic Partners

63. How to Achieve a Differentiation-Based Advantage
Approach 1
Incorporate product features/attributes that lower buyer’s overall costs of using product
Approach 2
Incorporate features/attributes that raise the performance a buyer gets out of the product
Approach 3
Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways
Approach 4
Compete on the basis of superior capabilities

64. Types of Differentiation Themes
Unique taste – Dr. Pepper
Multiple features – Microsoft Windows and Office
Wide selection and one-stop shopping – Home Depot, Amazon.com
Superior service -- FedEx, Ritz-Carlton
Spare parts availability – Caterpillar
Engineering design and performance – Mercedes, BMW
Prestige – Rolex
Product reliability – Johnson & Johnson
Quality manufacture – Michelin, Toyota
Technological leadership – 3M Corporation
Top-of-line image – Ralph Lauren, Starbucks, Chanel

65. Sustaining Differentiation: Keys to Competitive Advantage
Most appealing approaches to differentiation
Those hardest for rivals to match or imitate
Those buyers will find most appealing
Best choices to gain a longer-lasting, more profitable competitive edge
New product innovation
Technical superiority
Product quality and reliability
Comprehensive customer service
Unique competitive capabilities

66. Best-Cost Provider Strategies
Combine a strategic emphasis on low-cost with a strategic emphasis on differentiation
Make an upscale product at a lower cost
Give customers more value for the money
Deliver superior value by meeting or exceeding buyer expectations on product attributes and beating their price expectations
Be the low-cost provider of a product with good-to-excellent product attributes, then use cost advantage to under price comparable brands
Objectives

67. Focus / Niche Strategies
Involve concentrated attention on a narrow piece of the total market
Serve niche buyers better than rivals
Choose a market niche where buyers have distinctive preferences, special requirements, or unique needs
Develop unique capabilities to serve needs of target buyer segment
Objective
Keys to Success

68. Examples of Focus Strategies
Animal Planet and History Channel
Cable TV
Google
Internet search engines
Porsche
Sports cars
Cannondale
Top-of-the line mountain bikes
Enterprise Rent-a-Car
Provides rental cars to repair garage customers
Bandag
Specialist in truck tire recapping

69. Focus / Niche Strategies and Competitive Advantage
Achieve lower costs than rivals in serving a well-defined buyer segment –
Focused low-cost strategy
Approach 1
Approach 2
Offer a product appealing to unique preferences of a well-defined buyer segment – Focused differentiation strategy
Which hat is unique?

70. An Aspect of Good Management
People Management – because IP is generated by people and used by people
Knowledge Management – because a lot of knowledge is informal and may or may not crystallise as recognisable category of IP
IT Strategic Planning – because a lot of IP is IT-related; some of the more complex IP issues arise in IT context
Contract Management – because IP is often created (or improved) in context of a contract (eg, supply contract or joint venture relationship)
Asset Management – because IP is an asset, albeit intangible; it has a value
Risk Management – because there are risks to an organisation flowing from its actions, or failure to act, in relation to IP (including risk of lost opportunity)
Philip Crisp etc, could ask for any other suggestions from the audience here
with permission of P Crisp, AGS, 2003

71. Introduction to IP Management 1
Legal
Technical
Business
Export
Financial
Relationships
Accounting
Tax
Insurance
Security
Automation
Personnel

72. Introduction to IP Management 2
Trademarks (Brands)
Geographical Indications
Industrial Designs
Patents and Utility Models
Copyright and Related Rights
Trade Secrets
New Varieties of Plants
Unfair Competition

73. Basic Message 1
IP adds value at every stage of the value chain from creative/innovative idea to putting a new, better, and cheaper, product/service on the market:
Trademarks/ GIs Ind. Designs/Patents/Copyright
Patents / Utility Models/Trade secrets
All IP Rights
Patents / Utility models
Industrial Designs/ Trademarks/GIs
Invention
Commercialization Marketing
Exporting
Financing
Product Design
Licensing
Literary / artistic creation
Copyright/Related Rights
All IP Rights

74. Basic Message 2
IP Strategy should be an integral part of the overall business strategy of an Enterprise
The IP strategy of an Enterprise is influenced by its creative/innovative capacity, financial resources, field of technology, competitive environment, etc.
BUT: Ignoring the IP system altogether is in itself an IP strategy, which may eventually prove very costly or even fatal

75. Basic Message 3 (More for Less)
Own Use
Licensing
Franchising
Merchandising (Mickey Mouse, Hello Kitty)