IMPROVING BOTTOM-LINE PROFITABILITY AT MULTINATIONAL ENGINEERING COMPANY
The client is a global engineering company with >EUR 200 million in yearly R&D spending. Technology and knowledge is considered key drivers of competitiveness and profitability for the client. At the same time, the client faced challenges with unfulfilling output from R&D projects and that IP was inventor-driven and not aligned with business strategy. The client was in need of developing specific capabilities for technology-based business management to build and control strategic values within its field of operation. The client initiated a project together with Konsert Strategy & IP to create a new Intellectual Asset Management (IAM) organization to improve the ability to communicate, collaborate on, manage, and exploit valuable knowledge and technology.
Konsert Strategy & IP helped the client to develop the clients IAM capability and establish an Intellectual Assets & IP Strategy team. The team’s role is to improve competitiveness by supporting prioritized business areas with business-driven IP strategy development and by mapping and assessing intellectual assets in order to develop exploitation strategies. The team functions as a continuous strategic advice support towards business areas and innovation projects of particular strategic importance and support internal functions in specific situations such as acquisitions, divestures, sourcing negotiations and collaboration partnerships.
The Intellectual Assets & IP Strategy team has helped to improve the client’s patent applications to R&D spending ratio with approximately 25% over the past years using the IAM-based approach. The greatest benefits are however that IAM is helping the client to ensure that patents are filed on the right innovations, for the right reasons, and that these patents are drafted in the best possible way. By combining IAM with a forward-looking and business-driven IP strategy the client has generated cost-effective portfolios perfectly adapted for supporting prioritized business objectives, with direct impact on the bottom line. IAM has helped the company’s engineers to become truly business-oriented through revealing the underlying value-driving mechanisms of technologies, their effect on differentiating features/performance, and how they can best be controlled and utilized.