ip, innovation and investments 2020-01-28 · 2020-01-28 · ip is not a sufficient tool to control...
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IP, INNOVATION AND INVESTMENTS
2020-01-28
AG E N DA
01 Introduction
02 The Rouse Framework and Use Case
03 Open Discussion & Questions
04 Key Take Aways
years
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29 16 13 680+offices countries people
About Rouse
Stockholm, SE
TODAY’S PRESENTERS
5
Thomas Randes
Business Unit Manager(Experience: Industry, IP Lawer,
Consultant)
Erik Oskarsson
Head of Professional ServicesExperience: Industry, Start-up,
Consultant
INTRODUCTION TO CONTROL POSITIONS
6
Control
IP Based controlSecrecy Based
control
Relationship Based
controlCapability
Based control
IP/IPR Base control – Refers to control that can be established by
using intellectual property rights.
Secrecy based control – Refers to control that can be established
by deploying secrecy processes and behaviors
Relationship based control – refers to control that can be
exercised through relationships with other commercial and non-
commercial entities
Capability based control – Refers to control that is created by a
unique set of capabilities that requires considerable investments
(time & money) to obtain.
Control is defined as - Ownership and/or possession over an asset in relation to a graspable/quantifiable time
horizon.
THE ROUSE FRAMEWORK
3 FUNDAMENTAL QUESTIONS
8
I. What are you selling/offering (or intend to sell)?I
I. How do you compete or intend to compete? II
I. How do you sustain/control competitive advantages over time? III
HIGH RESOLUTION MAP OF COMPETITIVE ADVANTAGES AND THEIR DYNAMICS
9
Level of Establishment
Valu
e
A Technology / Offering / Innovation
Value for Whom?
In this specific business context?
A
C
B
How will this change
over time? Digital to physical conversion
Hardware and systems
Intelligence & analytics
LEVEL OF ESTABLISHMENT VS. VALUE RENDERED
10
Valu
e
Level of establishment
Low High
Low Level of Establishment
The future
High risk
Potentially abstract
Trial & Error
Disruptive?
High Level of Establishment
Less differentiation
Med-Low risk
Established business models
Clear value
Easy(ier) to appraise
Perceived Value?
Quantifiable Value?
FINANCIAL VALUE OF KEY AREAS AND UNDERLYING ASSETS
11
Valu
e
Level of establishment
Low High
A
C
B
Area A – Digital to physical conversion
Est. future revenue and profit
contribution Identifying underlying assets and
gaps
Do we need to control this area?
Area B – Intelligence & analytics
Est. future revenue and profit
contribution Identifying underlying assets and
gaps
Do we need to control this area?
Area C – Hardware and systems
Est. Current & future revenue and profit
contribution Identifying underlying assets and gaps
Do we need to control/strengthen our
control of this area?
Estimating future/current revenue stream and profit is typically conducted by income-based financial models/modelling
USE CASE – SOCIAL MEDIA
ROUSE APPROACH TO INNOVATION DUE DILIGENCE
13
Current Situation Action Plan
Typical Steps,
Interviews with identified key
people
Analyze target company,
public data and information
Draft analyzed map and
current control positions
Output: Detailed map of risks, IP
position(s) and external dependencies
Output: Execution plan with the intent of
closing gaps, reduce risk and leverage
investment
Typical Steps,
Identified necessary actions
in terms of own control
positions
Identified necessary actions
in terms of external situation
Plan execution of remedies to
secure value
USE CASE - SOCIAL MEDIA PLATFORM FOR LIVE STREAMED CONTENT
14
Valu
e fo
r end
-use
r
Level of establishment
Low High
Production equip.
USE CASE - SOCIAL MEDIA PLATFORM FOR LIVE STREAMED CONTENT
15
Valu
e fo
r end
-use
r
Level of establishment
Low High
Social media platf.
Connected dev.
Data
Technical
platform
Subscription
model
Production
Business
Acumen
Production
planning
User interface
Live
Content
Ad Solutions
Intelligence/
analysis
Live streamed
Social media
Production equip.
USE CASE - SOCIAL MEDIA PLATFORM FOR LIVE STREAMED CONTENT
16
Valu
e fo
r end
-use
r
Level of establishment
Low High
Social media platf.
Connected dev.
Data
Technical
platform
Subscription
model
Production
Business
Acumen
Production
planning
User interface
Live
Content
Ad Solutions
Intelligence/
analysis
Value is set from the
perspective of the end-
user of the platform Activities arranged in
terms of perceived value
for user
Live streamed
Social media
Activities arranged according
to level of establishment in the
specific context
Key Question:
Current control and own
IP position?
External IP positions and
risks?
External dependencies?
Production equip.
USE CASE - KEY AREAS FOR PLATFORM EXECUTION AND CONTROL POSITIONS
17
Valu
e fo
r end
-use
r
Level of establishment
Low High
Social media
Connected dev.
Data
Technical
platform
Digital Subscription
model
Production
Business
Acumen
Production
planning
User interface
Live
Content
Ad Solutions
Intelligence/
analysis
Revenue modelThe platform is free for end-users, thus the
revenue is generated by a digital ad solution
and a platform specific digital subscription
model.
Value: 50% of 3y cash flow prediction
Risk: High. A highly litigious and IP intensive area
Current Control: Low. A plausible approach is
partnership, to mitigate risk and strengthen
control. Time and cost effective. Technology EnablersThe underlying technology drives the
platform and the value it creates.
Value: Est. 50% of 3y cash flow
prediction
Risks: High risks due to external IP and
low current control
Current control: Low. Considerable
technology assets exists, but currently
only controlled by informal secrecy.
Additional control is needed.
Transactional Object(s)The live streamed content is the USP of
the platform and the driver behind
both users and revenue.
Value: Est. 20-25 MSEK (3y cash flow)
Risks: Medium, given current control
Current Control: Medium. Draft
contracts are in place (needs
amendments).
ROUSE APPROACH TO INNOVATION DUE DILIGENCE
18
Current Situation Action Plan
Typical Steps,
Interviews with identified key
people
Analyze target company,
public data and information
Draft analyzed map and
current control positions
Output: Detailed map of risks, IP
position(s) and external dependencies
Output: Execution plan with the intent of
closing gaps, reduce risk and leverage
investment
Typical Steps,
Identified necessary actions
in terms of own control
positions
Identified necessary actions
in terms of external situation
Plan execution of remedies to
secure value
Conclusions
The strategic approach of an Ecosystem platform is already partly been
initiated by Client and Company X (see appendix F)
An open approach is likely to drive Clients 's Automation offering and
dismantle current (and future) competitors IP positions
Defining the MMS systems functionality in layers is a key task going
forward, as well as securing ownership to valuable (identified) IP for
Client .
ACTION PLAN FOR BUILDING CONTROL – INTELLIGENT SYSTEM
19
No effort”
The opportunities are
easy to capture since
they fit to our strengths
BA
DC
Current status of Activity Summary of Analysis
Potential hinders
Potential risks
Opportunities to
be exploited
Areas for
improvement Level of Establishment and Current Control
External Dependencies High
Level of Establishment Emerging
Movement Fast
Level of Control Low
Secure ownership through contractual arrangement to the following items,
o Code Package A & B
o Algorithm Xx
The following secrecy considerations are required by Client,
o Future data based cause-effect relationships
o Database access
File patent(s) on edge-analysis technology incl. configuration algorithm.
Definition: Intelligent system using visualization and positioning to support increased production
and production assets utilization. The data is derived from Wi-Fi/LTE/RFID beacons.
Leverage openness
No Established ecosystems
exists today
Client’s market position and
strength
Secure ownership to all
valuable IP
Define functionality of
MMS system in layers
Cross-functional
processes alignment
Current relationships with
partners
Conservative industry
Competing platforms
Lack of internal alignment
Lack of partner alignment
Time to market – being late
and thus not being able to
actively drive/partake in
setting a standard
Business Case(s)
Supporting BCs Automate & Increased
utilization
Recommended control Positions
Financial Value (Revenue)
Current (2018) 60 MSEK
Future (5-7 y) 800 – 1200 MSEK
Collaboration & Partner Considerations
Strictly follow layer structure of know-how and IP (See appendix F) when defining Background,
Sideground & foreground.
Drive towards dived-and-conquer exclusivity for the following geographical areas, CN, South America,
North America, Europe and Australia.
Conclusions
The strategic approach of an Ecosystem platform is already partly been
initiated by Client and Company X (see appendix F)
An open approach is likely to drive Clients 's Automation offering and
dismantle current (and future) competitors IP positions
Defining the MMS systems functionality in layers is a key task going
forward, as well as securing ownership to valuable (identified) IP for
Client .
ACTION PLAN FOR BUILDING CONTROL – INTELLIGENT SYSTEM
20
No effort”
The opportunities are
easy to capture since
they fit to our strengths
BA
DC
Current status of Activity Summary of Analysis
Potential hinders
Potential risks
Opportunities to
be exploited
Areas for
improvement Level of Establishment and Current Control
External Dependencies High
Level of Establishment Emerging
Movement Fast
Level of Control Low
Secure ownership through contractual arrangement to the following items,
o Code Package A & B
o Algorithm Xx
The following secrecy considerations are required by Client,
o Future data based cause-effect relationships
o Database access
File patent(s) on edge-analysis technology incl. configuration algorithm.
Definition: Intelligent system using visualization and positioning to support increased production
and production assets utilization. The data is derived from Wi-Fi/LTE/RFID beacons.
Leverage openness
No Established ecosystems
exists today
Client’s market position and
strength
Secure ownership to all
valuable IP
Define functionality of
MMS system in layers
Cross-functional
processes alignment
Current relationships with
partners
Conservative industry
Competing platforms
Lack of internal alignment
Lack of partner alignment
Time to market – being late
and thus not being able to
actively drive/partake in
setting a standard
Business Case(s)
Supporting BCs Automate & Increased
utilization
Recommended Control Positions
Financial Value (Revenue)
Current (2018) 60 MSEK
Future (5-7 y) 800 – 1200 MSEK
Collaboration & Partner Considerations
Strictly follow layer structure of know-how and IP (See appendix F) when defining Background,
Sideground & foreground.
Drive towards dived-and-conquer exclusivity for the following geographical areas, CN, South America,
North America, Europe and Australia.
SUMMARY OF SEMINAR
WRAP UP AND SUMMARY OF TODAY’S SEMINAR
22
KEY TAKE AWAYS
Think control instead of Intellectual Property
IP is not a sufficient tool to control innovation
Innovation is [mostly] intellectual, i.e. establishing
control is key to secure investments
Focus on the context
Appraising control position is primarily done by
appraising context. Legal dimension are
secondary.
Control and Value
The value of any form of
control position is contextual,
thus in order to secure
investments we need to
understand the context.
APPENDIX A – B
APPENDIX A – MULTINATIONAL EQUIPMENT MANUFACTURER (MNC)
24
Level of Establishment
Birth Emerging Established Common
Val
ue c
lient
A
A
D
C A D
Benchmarking
Monitoring
Telematics
Software
A
B
B
Network LTE
Safety
Systems
Open Integration API:s
Data
Analytics
D D
D
CPositionin
g
for Safety
Managem
ent
Software
Auto-Functions Unit
RCS
Platform
Change Management
C
A
Change Management
Telematics
Hardware
A
Estimated Direct Business Value: 75 – 100 MSEK (per annum)
Estimated Indirect Business Value: 1,5 – 2 BSEK (2-3 years)
- Active movement
C
Estimated Direct Business Value: 1 BSEK (per annum)
- Restricted movement
APPENDIX B – AUTONOMOUS DRIVING VEHICLES (SCALE-UP)
25
Level of Establishment
Birth Emerging Established Common
Val
ue c
lient
CAN-BUS
Sensors
OEM
Backend
API
Aggregation
B
Specific
data
Normalization
3rd
Party
AppsValidationOTAP
Algo
tune
C
Clustering
DSD &
LoadG
EF
Algorithm
Parameter
tuning
DCL
SPP
3rd
Party
Data
Offering
Local Map
matcher
A
Forecast
A/B/C: Parts of the value chain is required a controlled level of
openness
Business implication: Without this approach no OEM will adopt
the technology (dual sourcing issues and transactional costs of
technology adoption).
Business value: Reduced time to market by 5-8 years (subjected
to platform renewals).
D/E/F/G: Strict controlled is required reduce movement
towards common.
Business implication: Core competitive advantages lies in these
activities. To sustain these over time is crucial for client.
Business value: 10-15 m€ over 5 years.
Comment: High and unique customer value activities requires
openness to be leverage on the market. Lower customer value
activities however requires strict control in order to sustain
competitive advantages.
SECTION BREAK
Thank you!