Improving IP Returns At An Industrial Multinational Company
The client is a multinational industrial company with >EUR 30 billion in yearly sales. The importance of IP for the company is growing, with increasing technology complexity, higher IP intensity in the market and convergence with for example the ICT sector. Like in many other large industry companies, the patent department was considered a support function, focusing mainly on creating and maintaining IP rights and less on using them for business. To address these issues, a project was initiated together with Konsert Strategy & IP to improve the alignment between the client's IP management and business priorities. The objective was to ensure that IP is actively used to support competitiveness, growth and profitability in an effective way.
The client commissioned Konsert Strategy & IP to lead the development of a new IP strategy framework and format, which sets priorities and objectives for IP operations to support existing business and R&D strategies within the company. Through an interview-based analysis of business areas, business models, and operational challenges, primary mechanisms for creating business value from IP were identified. To ensure alignment of the IP strategy with business strategies and the organizational structure, a business domain structure was developed. The team also studied internal operations adjacent to IP in order to identify the correct interfaces to link up IP with the rest of the business organization.
The client expects the new business-driven IP strategy to generate substantial business benefits through increased revenues and reduced costs across products, supply chain and R&D. The initial results are promising, and besides qualitative improvements across all IP management processes, the client has also managed to free up resources and funds through strategy-guided portfolio maintenance. Long-term, new behavior together with a strengthened IP portfolio, is expected to result in increased profit margins and market share for products and services, as well as significant cost-reductions through strengthened bargaining positions in supplier relationships, collaborations, M&As and divestures.