Transcript The Intellectual Property Rights System: A Tool for Enhancing the Competitiveness of SMEs in the Food Processing Sector Guriqbal Singh Jaiya Director, SMEs Division World intellectual.

The Intellectual Property Rights
System: A Tool for Enhancing
the Competitiveness of SMEs in
the Food Processing Sector
Guriqbal Singh Jaiya
Director, SMEs Division
World intellectual Property Organization
Geneva, Switzerland
www.wipo.int/sme
11/6/2015
IP for Business Series
• Making a Mark
(Trademarks)
• Looking Good
(Designs)
• Inventing the
Future (Patents)
• Creative
Expression
(Copyright and
Related Rights)
SMEs Website
Definition
• Competitive Advantage
–An advantage over competitors
gained by offering consumers
greater value than competitors
offer.
Importance of
Intellectual Capital
(Market Value - Value of
Fixed Assets) = Intangible
Assets, i.e., Intellectual
Capital
Value of Companies
1978: Book Value (95 % tangibles)
and Market Value (5 % IP and
Other Intangibles)
1998: Book Value (28 % tangibles)
and Market Value (72 % IP and
Other Intangibles)
Intangibles Assets as % of S & P
Market Capitalization
• 1982: TA=62%; IA= 38%
• 1992: TA=38%; IA= 62%
• 2002: TA=13%; IA= 87%
TA= Tangible Assets
IA= Intangible Assets
Source: Brookings Institute
The Innovation Challenge –
Creating Value in the Knowledge Economy
Value added by knowledge based services and Industries
G7 comparison, 2000
Per cent of total value added
Finance, Insurance, Other Business Services,
Community, Social and Personal services
Communication Services
High and Medium-high Tech
50
40
30
20
10
0
Germany
Source: OECD
UK
France
Japan
US
Canada*
Italy
“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
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
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
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
CORE COMPETENCES
Definition
Hammel and Prahalad defined
core competence as a central
value - creating capability of an
organization/enterprise.
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
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.
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.
Innovation – What is it?
The creation of new ideas/processes which
will lead to change in an enterprise’s
economic or social potential
[P. Drucker, ‘The Discipline of Innovation’,
Harvard Business Review, Nov-Dec, 1998, 149]
Innovation
How to classify newness and degree of
innovation and what to focus on:
• New to the firm?
• First in the market?
• First in the world?
• Incremental or radical innovation?
Product Development Strategies
Old Product New Product
Old
Market
Market
Penetration
Product
Development
New
Market
Market
Development
Product
Diversification
Innovation Process
Invention
Innovation
Imitation
• The adoption of an
innovation by similar
firms
• Usually leads to
product or process
standardization
• Products based on
imitation often are
offered at lower prices
but with fewer features
The Innovation Process
• An innovation starts as an idea/concept that is
refined and developed before application.
• Innovations may be inspired by reality (known
problem). The innovation (new product
development) process, which leads to useful
technology, requires:
–
–
–
–
–
Research
Development (up-scaling, testing)
Production
Marketing
Use
• Experience with a product results in feedback and
leads to incrementally or radically improved
innovations.
The Innovation Process
Translation of a Creative Idea into
Useful Application
Analytical
Planning
To Identify:
Product
Design
Market
Strategy
Financial
Need
Organizing
Resources
Implementation
Commercial
Application
To
To Provide:
To Obtain:
Accomplish: Value to Customers
Materials
Organization Rewards to Employee
Technology
Product Design Revenue to Investors
Human Resources
Manufacturing Satisfaction of
Capital
Services
Founders
The Profitability of Innovation
Profits
from
Innovation
Value of an
innovation
• Legal protection
Innovator’s
ability to
appropriate
value from an
innovation
• Ease of imitation
of technology
• Complementary
resources
• Lead time
Appropriating Value from Innovation
Barriers to Integration
Different Time
Orientation
Interpersonal
Orientation
Different Goal
Orientation
Formality of
Structure
Facilitators of
Integration
Shared Values
Leaders’ Vision
Budget Allocation
Effective
Communication
Time to
Market
CrossFunctional
Integration/
Design Teams
Product
Quality
Creation of
Customer
Value
Value
Appropriation
from
Innovation
Product Life Cycle
Maturity
Decline
Sales
Growth
Introduction
Time
New Product Development
Stages in a New Product Development process:
• Idea Generation
• Idea Screening
• Concept Development and Testing
• Business Analysis
• Beta Testing and Market Testing
• Technical Implementation
• Commercialization
Technology Adoption – Diffusion of Innovation
Time
Take up Rate
Early
Adopters
Innovators
Innovators:
Early adopters:
Early majority:
Late majority:
Laggards:
Early
Majority
Late
Majority
Laggards
venturesome; greatest need
opinion leaders; needs driven
deliberate
skeptics
traditionalists; suspicious
Sourcing And Acquiring New
Technologies
• Make-or-buy decision
–the question an organization asks itself about whether to
acquire new technology from an outside source or
develop it itself
–Internal development - potentially advantageous to
keep the technology proprietary
–Purchase - most technology is available in products or
processes that can be openly purchased
–Contracted development - contract development to an
outside source
–Licensing - when technology is not easily purchased,
may be able to license it for a fee
Sourcing And Acquiring New
Technologies (cont.)
• Make-or-buy decision (cont.)
– Technology trading - may be used between rival companies
•becoming increasingly common because of the high cost of
developing advanced technologies independently
– Research partnerships - each member enters the partnership
with different skills or resources needed for successful newtechnology development
– Joint venture - have greater permanence
•outcomes result in entirely new companies
– Acquisition of an owner of the technology
•outright purchase of the entire company
•acquiring a minority interest to gain access to the technology
Technology Acquisition Options
Yes
Yes
Available skills
and resources
Important to
remain
proprietary
Acquisition of the technology
owner
No Exclusive research contract
Yes
No
Internal
development
Available for
sale
No
Purchase
License
Trade
Joint venture
Research partnership
Dramatic Change in Life Cycle
Demand
fluctuation
Volume
Higher
peak
Introduction
Maturity
3-5 years
1 year
Shorter time Dramatic
end of life
to market
Development
Conventional
Source: Dr Tsugio Makimoto - Hitachi/Sony
New Digital Consumer
Innovation risk
RISKS
RESEARCH
COSTS
DEVELOPMENT
COMMERCIALISATION
New Business Models Emerge
Then…
Now…
CRO’s
Product
Development
Product
Development
Cycle
Tool
Companies
One Integrated
Company
CRM’s
Testing
Services
Many Distributed
Companies
New Regional Model Emerge
Then…
Now…
Region D
Region A
Region B
Manufacturing
Region C
Research
Trials/Testing
Services
Development
Self-contained
regional clusters
Region G
Region E
Region F
Specialized,
networked regions
Commercialization Model
• Strategic Investment is the Foundation of a
Successful Commercialization Model
Complementary Resources
Manufacturing Distribution
Finance
Core
technological
know-how
Service
Complementary
technologies
Marketing
Other
Other
Bargaining power of owners of complementary
resources depends upon whether complementary
resources are generic or specialized.
Alternative Strategies for Exploiting Innovation
Licensing
Risk &
Return
Strategic
Alliance
Joint
Venture
Shares
investment &
risk. Risk of
partner
conflict &
culture clash
Small risk, but
limited returns
also (unless
patent position
very strong
Limits
investment, but
dependence on
suppliers &
partners
Benefits of
flexibility;
risks of
informal
structure
Few
Allows outside
resources &
capabilities
To be accessed
Permits pooling of the
resources/capabilities of
more than one firm
Konica
licensing its
digital
camera to
HP
Pixar’s movies (e.g.
“Toy Story”)
marketed &
distributed by
Disney.
Competing
Resources
Examples
Outsourcing
certain
functions
Apple and
Sharp build
the
“Newton”
PDA
Microsoft
and NBC
formed
MSNBC
Internal
Commercialization
Biggest risks &
benefits.
Allows complete
control
Substantial
resource
requirements
TI’s
development of
Digital Signal
Processing
Chips
Uncertainty & Risk Management in Tech-based Industries
Technological
uncertainty
Sources of
uncertainty
Market
uncertainty
Selection process for standards and
dominant designs emerge is complex
and difficult to predict, e.g. future of 3G
Customer acceptance and adoption rates
of innovations notoriously difficult to
predict, e.g. PC, Xerox copier, Walkman
Cooperating with lead users
early identification of customer requirements
–assistance in new product development
Strategies for
managing risk
Flexibilility
—keep options open
—use speed of response to adapt
quickly to new information
—learn from mistakes
Limiting risk exposure
—avoid major capital commitments
(e.g. lease don’t buy)
—outsource
—alliances to access other firms’
resources & capabilities
—keep debt low
Mortality of New Product Ideas
The “ Right” Innovative Product?
 The right product is one that becomes
available at the right time (i.e., when the market
needs it), and is better and/or less expensive
that its competition.
 To have the right product, therefore, one must:
 Predict a market need
 Envisage a product whose performance and
capability will meet that need
 Develop the product to the appropriate time scale
and produce it.
 Sell the product at the right price
Innovation and Competitive Advantage
Difficult for
competitors to imitate
Commercially exploitable
with present capabilities
Provides significant
value to customers
Timely
Competitive
Advantage
Understanding the Process of Innovation
The Process/Steps of Innovation
Pre-IPO
$
Expansion
• Legal Entity
• Viable
• Market acceptance
• Heading to IPO or M&A
• High Growth
• Founders = Mgt Team
• Bright Idea
• Head Count
• Minimal Revenue
• Experimental
Start-Up
• Multiple Cycles
• Slow Growth
• Research
• Support Functions
• Business Plan
• Administration
Seed
• Proof of Concept
• Marketing
• Revenue Growth
Idea / Concept
Time
The Profitability of Innovation
Profits
from
Innovation
Value of an
innovation
• Legal protection
Innovator’s
ability to
appropriate
value from an
innovation
• Ease of imitation
of technology
• Complementary
resources
• Lead time
The Five Generic
Competitive Strategies
Type of Advantage Sought
Lower Cost
Market Target
Broad Range
of Buyers
Narrow
Buyer
Segment
or Niche
Differentiation
Overall Low-Cost
Broad
Leadership
Differentiation
Strategy
Strategy
Best-Cost
Provider
Strategy
Focused
Focused
Low-Cost
Differentiation
Strategy
Strategy
Differentiation Strategies
Objective
•
Incorporate differentiating features that cause buyers to
prefer firm’s product or service over the brands of rivals
Keys to Success
•
Find ways to differentiate that CREATE VALUE for
buyers and that are NOT EASILY MATCHED or
CHEAPLY COPIED by rivals
• Not spending more to achieve differentiation than the
price premium that can be charged
The Appeal of Differentiation
Strategies
•
A powerful competitive approach when
uniqueness can be achieved in ways that
– Buyers
– Rivals
– Can
perceive as valuable
find hard to match or copy
be incorporated at a cost well
below the price premium that buyers
will pay
The Benefits of Successful
Differentiation
A product / service with unique and
appealing attributes allows a firm to

Command a premium price and/or

Increase unit sales and/or

Build brand loyalty
= Competitive Advantage
Sustaining Differentiation: The Key
to Competitive Advantage
•
•
Most appealing approaches to differentiation:
–
Those hardest for rivals to match or imitate
–
Those buyers will find most appealing
Types of Differentiation:
–
Quality – Design is the same but better
–
Design - Technical differences
–
Service – additional customer services
–
Image – Brand name
The Competitive Strengths of a
Differentiation Strategy
•
Buyers develop loyalty to brand they like best--can
beat RIVAL COMPETITORS in the marketplace
• Mitigates bargaining power of large BUYERS
since other products are less attractive
• Buyer loyalty acts as a barrier to POTENTIAL
ENTRANTS
• Differentiation puts a seller in better position to
fend off threats of SUBSTITUTES not having
comparable features
What Can Make a
Differentiation Strategy Fail
•
•
•
•
•
Trying to differentiate on a feature buyers do not
perceive as lowering their cost or enhancing their
well-being
Over-differentiating such that product
features exceed buyers’ needs
Charging a price premium that
buyers perceive is too high
Failing to signal value
Not understanding what buyers want or prefer
and differentiating on the “wrong” things
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
Objectives
•
•
Create superior value by MEETING OR EXCEEDING
buyer expectations on product attributes and
BEATING their price expectations
Be the low-cost producer of a product with GOODTO-EXCELLENT product attributes, then use cost
advantage to UNDERPRICE comparable brands
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 – Karastan, Michelin, Toyota
• Technological leadership – 3M Corporation
• Top-of-line image – Ralph Lauren, Starbucks, Chanel
The Promise of IP
• IP Assets may:
– generating revenue
– decreasing costs
– expanding and protecting competitive
positions
– enhancing customer value propositions,
and
– increasing the attractiveness of businesses
in an increasingly interconnected world
IP Environment
Other Competitors
Established Leader
Disruptive
Technologies
Suppliers
You
Customers
Converging
Technologies
Complimentors
IP Management
•
•
•
•
•
•
•
Legal
•
Technical
•
Business
•
Export
•
Financial
Relationships•
Accounting
Tax
Insurance
Security
Automation
Personnel
Types of IP Rights
•
•
•
•
•
•
•
•
Trade Secrets
Copyright and Related Rights
Industrial Designs
Trademarks (Brands)
Geographical Indications
Utility Models and Patents
New Varieties of Plants
Unfair Competition
The Needs of Each Stage
$
•Recruitment
•Business
•Corporate and
Development
Secretarial
•A & P
•Financial
•Market Access
•Training
•PR and Marketing
•Networking
Expansion
•Business
•Business Plan
Development
•International support and
•Prototype/ POC
Mkt. Access
•Project Management
Start-Up
•Diversification strategies
•Business Premises
and support
•Project Management
•Recruitment
•Management Training
•Training and Incentives
Seed
Idea / Concept
Time
IP Management Needed in all stages
Key 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
Patents /
Utility models
Invention
Commercialization
Marketing
Financing
Literary / artistic
creation
Copyright/Related Rights
All IP Rights
Industrial Designs/
Trademarks/GIs
Product Design
Licensing
All IP Rights
Exporting
Key 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
Key Message 3 (More for Less)
• Own Use
• Licensing
• Franchising
• Merchandising (Mickey
Mouse, Hello Kitty)
Bringing it All Together
• Patent for the fountain pen
that could store ink
• Utility Model for the grip and
pipette for injection of ink
• Industrial Design: smart
design with the grip in the
shape of an arrow
• Trademark: provided on the
product and the packaging to
distinguish it from other pens
Source: Japanese Patent Office
Bringing it all together
® Registered Trade Mark
‘TM’ Unregistered
Registered Design
Copyright: Labels & Artwork
Patents: Several dozen!
Case Study: Ring-Pull
1950: launch of tin cans (punch holes or can
opener)
• 1963: Ermal Fraze patented an idea
for a drinks can with a tear-strip
• 1965: Omar Brown & Don Peters
designed a ring to pull away the
tear-strip (ring-pull was born)
• 1975: Brown and Fraze patented the
modern "push-in and fold-back” version
What Does It Take To Be A
Successful Entrepreneur?
Commitment
and determination
Motivation
to excel
Leadership
Successful
entrepreneurs
typically have:
Creativity,
self-reliance,
adaptability
Opportunity
obsession
Tolerance of
risk and
uncertainty
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
Entrepreneurship
Creativity is at the heart of entrepreneurship, enabling entirely new
ways of thinking and working.
Entrepreneurs identify opportunities, large or small, that no one
else has noticed.
Good entrepreneurs also have the ability to apply that
creativity—they can effectively marshal resources to a single end.
They have drive—a fervent belief in their ability to change the way
things are done, and the force of will and the passion to achieve
success.
They have a focus on creating value—they want to do things
better, faster, cheaper.
And they take risks—breaking rules, cutting across accepted
boundaries, and going against the status quo.
Entrepreneurship
Defining entrepreneurship is difficult because there is no
universal, clear-cut definition of the term. In its most basic
sense, entrepreneurship is manifest in a business venture
when an individual is able to turn a novel idea into a
profitable reality. In practice, however, entrepreneurship is
more multifaceted, ranging from operating a small
business in one’s own home, to bringing a national
franchise to a small town, to turning a new and unique
idea into a high-growth company. Entrepreneurship can
involve starting a business that brings a new store to main
street, offering a product or service previously unavailable
to a community, or acquiring an existing business that has
had a long-standing presence in a community and helping
it evolve to reflect one’s own vision and personality.
Entrepreneurship
The word entrepreneurship literally means, "to take or
carry between" in the sense of an economic
transaction; to be a market-maker. It does not literally
convey the notion of innovation that we commonly
associate with the term.
Joseph Schumpeter (1883-1950), one of the more well
known theorists on entrepreneurship, defined an
entrepreneur as one who reorganizes economic activity
in an innovative and valuable way. That is, an
entrepreneur is one who engages in a new economic
activity that was previously unknown. An entrepreneur
is a risk taker because being innovative means there
are few rules or history for guidance.
Entrepreneurship
Entrepreneurship is the process of
creating or seizing an opportunity, and
pursuing it regardless of the resources
currently controlled.
The Webster’s Third New International
Dictionary defines an entrepreneur to be
“one who organizes, owns, manages,
and assumes the risks of a business”
Entrepreneurship
•The entrepreneur shifts resources out of an area of lower and
into an area of higher productivity and greater yield.
•[J. B. Say, French economist, circa 1800]
•Entrepreneurship is creative destruction. Dynamic
disequilibrium brought on by the innovating entrepreneur, rather
than equilibrium and optimization, is the norm of a healthy
economy and the central reality of economic theory and
practice. [Joseph Schumpeter, Austrian economist, 1911]
•The entrepreneur searches for change, responds to it, and
exploits it as an opportunity. Innovation is the specific tool of
entrepreneurs, the means by which they exploit change as an
opportunity for a different business or a different service
[Peter Drucker, 1985]
Entrepreneurship
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.
Entrepreneurship
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.
Entrepreneurship
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
Entrepreneurship
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
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
Bringing it All Together
Example No. 1
• Decades ago, Coca-Cola decided to keep its
soft drink formula a secret
• The formula is only know to a few people
within the company
• Kept in the vault of a bank in Atlanta
• Those who know the secret formula have
signed non-disclosure agreements
• It is rumored that they are not allowed to
travel together
• If it had patented its formula, the whole world
would be making Coca-Cola
Bringing it All Together
Example No. 2
• Patent for stud and tube
coupling system (the way
bricks hold together)
• But: Today the patents
have long expired and the
company tries hard to keep
out competitors by using
designs, trademarks and
copyright
Bringing it All Together
Example No. 3
• Patent for the fountain pen
that could store ink
• Utility Model for the grip and
pipette for injection of ink
• Industrial Design: smart
design with the grip in the
shape of an arrow
• Trademark: provided on the
product and the packaging to
distinguish it from other pens
Source: Japanese Patent Office
Bringing it All Together
Example No. 4
® Registered Trade Mark
‘TM’ Unregistered
Registered Design
Copyright: Labels & Artwork
Patents: Several dozen!
Bringing it All Together
Example No. 5 : Personal Computer
• Patent protection for the innovative functional
features of the computer
• Trademark protection for the brand name that
goes on the box
• Copyright protection for the software that runs
inside
• Trade secret protection for the semiconductor
processing techniques used to create the
processor
Key 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
Patents /
Utility models
Invention
Commercialization
Marketing
Financing
Literary / artistic
creation
Copyright/Related Rights
All IP Rights
Industrial Designs/
Trademarks/GIs
Product Design
Licensing
All IP Rights
Exporting
Key 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
Key Message 3 (More for Less)
• Own Use
• Licensing
• Franchising
• Merchandising (Mickey
Mouse, Hello Kitty)
IP Management
•
•
•
•
•
•
•
Legal
•
Technical
•
Business
•
Export
•
Financial
Relationships•
Accounting
Tax
Insurance
Security
Automation
Personnel
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)
with permission of
P Crisp, AGS, 2003
UNO : A Pioneer of Modern Turkish Bread Market
•Key facts
 Turkven-Advent-Doruk bought 100% from Dogus Holding
in May 2003
 The total bread market in Turkey is over USD6 billion,
with less than 1% branded (< USD60 million)
 UNO is the leading packaged bread company in Turkey
5 times larger than the next biggest competitor
 The company grew 100% in yearly sales to USD35 million
under our tenure in the last 12 months
 We have also doubled the number of distribution points and introduced 23
new SKUs with a new advertising campaign
 Mr Hasip Gençer, the Founder of UNO-Doruk, and a serial entrepreneur
acts as the CEO
 The Doruk Group is the leading wheat trader and flour mill operator in
Turkey and operate a JV with Zeelandia (NL) for ingredients
Our goal is to
become an active
institutional
shareholder
which adds value
in key areas of
strategy, finance
and governance
Source:
Turkven
Valio Ltd 2006
Finland’s largest food business
Founded
Main business
1905
Processing and marketing of
milk and fresh dairy products
Owners
23 co-operatives
(February 2007)
Milk producers
11,880
Production plants Finland 15 (incl. Nordic Jam)
Estonia 2, Belgium 1
Personnel
Valio Ltd 3 310
31 Dec. 2005
Valio Group 4 000
- of which abroad 610
Net turnover
Valio Group € 1.6 bill.
- Domestic € 1.1 bill.
- Exports € 0.5 bill.
Valio Group net turnover
by product group:2006
Others 7 %
juice
products,
frozen foods
Butter and
spreads
12 %
Cheese 28 %
Powdered
Ingredients 6 %
Fresh dairy
products
47 %
Valio product range
(% of turnover)
Functional products <10%
Value added products 30–40%
Low lactose HYLA products
Lactose free milk drink
Low fat products
Vitamin added products
Basic products 50–60%
Valio Functional Dairy Products
 Functional products are based on clinical
research that meets scientific criteria
 Placebo-controlled double-blind studies
 Efficacy stated in at least two independent
studies
 The research has been conducted using
the end product and the recommended
daily dose
 Valio functional products comprise the
Gefilus®, Evolus® and Benecol®
product families
Valio’s daily-dose drinks
Functional drinks in convenient daily-dose bottles. Easy!
• Valio Gefilus® strengthens
natural immunity
• Valio Benecol® lowers cholesterol
• Valio Evolus® helps control blood
pressure
• 4 x 100 ml Tetra Top bottle
• All launched in 2004
Technology Commercialization
Valio’s Technology Commercialization unit
licenses and sells Valio expertise,
technologies and patents outside Valio’s
Home Market.
Main products and technologies
 Functional LGG® lactic acid bacterium
 Functional Evolus® and related
technology
 Lactose free milk production technology
 Starters sold to producers outside Valio
Customers
 Customers are primarily dairy
companies in different parts of the world
TINE Group (31.12.2003)
18.780 producers – cow
600 producers - goat
279.300 cows
Turnover € 1,5 Billion
(26th largest company)
1.482 mill. litres cow’s
milk
46.900 goats
19,7 mill. litres of goat’s
milk
5 regional dairy
companies
with
56 dairy plants
Employees:
5.430
TINE Group: Some Products
TINE’s market share in Norway
100
90
80
70
60
50
40
30
20
10
0
95,8
99,7
85,3
91,5
77,5
18,3
Milk
Yoghurt
White
cheese
Brown
cheese
Spreadable
cheese
Butter
Export of cheese per market 2002
2003:
Total export: 16.624 tons
Total
export:
17,975 tons
NOK 549
mill.
NOK 532 mill.
Jap an
30,2%
Ot hers
1,8%
D enmark
0,6 %
Swed en
3,8 %
U SA
38,1 %
Great B rit ain
6,5 %
Germany
3,4 %
C anad a
5,9%
A ust ralia
9,2%
Export of cheese per brand/category
Total export: 17.975 tons
2003
NOK 532 mill.
Norvegia
24.1 %
Jarlsberg
61.7 %
Others
0.1 %
Frozen Curd
1.5 %
CWC/LFWC
8.8 %
Whey cheese
2.8 %
Ridder
Snøfrisk
0.4 %
0.5 %
TINE R&D
center
YOUR INNOVATION
PARTNER IN TINE
We need R&D to be competitive
UP TO NOW
• Focus on The Norwegian Market (except Jarlsberg)
• Copying and adapting
IN THE FUTURE
• extra values in the products
• more unique products and solutions:
–patents ©, trademarks ™ ® , design
• need long term research
• international networks and strategic alliances are
more important
R&D for the whole TINE Group New challenges
• Diplom-Is AS (ice cream)
• Felles Juice AS (juices, ice tea ..)
• Maritex AS (cod liver oil, marine by products, marine
ingredients)
• Small People AS (baby food)
• Fjordland (margarine, ready to eat dinner, Marian:
fresh fisk and marine food products)
• BoviBank AS : has their own R&D
a young company with a long history
• Commercial dairy cattle biobank based upon >25 years of
data collection
• Elements in biobank: phenotypes, biological material (DNA)
and pedigrees
• Collaboration with Tine, Geno and Agricultural University of
Norway; establishing partnerships with US biotech companies
• Two projects started: Identifying functional mutation
influencing disease resistance (US company) and fertility
(looking for partners), and other health traits to follow
• BoviBank is looking for academic and commercial partners to
develop the biobank material further
Important Research Areas and Projects
• Nutrition and Functional Food
–Basic research on milk fat - cheese –
coronary hearth disease
–Biola (documentation of clinical effects)
–Antioxidants in fruit and juice (content in
different fruits, process, clinical effects)
• Milk quality in the future
–Goat milk, genetic variants – characterization
–Cow milk – effect of different kinds of feeds.
In the future also breeding and perhaps
functional genomics will contribute.
Important Research Areas and Projects
• New Technology
– Statistical and chemometric methology for our industry (cheese
production: on line instrumentation, controlled processes and
quality)
– Biotechnology: Lactic acid bacteria (starter cultures/fermentation)
Ingredients
– Whey proteins in low fat /low cal. products
– New ingredients
• Marine
– Omega 3 oil for Functional Foods (different applications)
– Combination products marine - dairy (new product 2005 )
– Fresh fish products (properties of pre-rigor raw fish..)
Examples of products from R&D
in 2004 /2005
Approx. 50 – 60 new products in
2004 into the market
–Biola (small bottles)
–MANA (antioxidant juice)
–Small People (baby food,
porridge, dinner…)
–Yoghurt (new taste, low cal…)
–Cheece (new variants, low fat..)
In the Future
• Demand for new and unique products are
increasing
• Product differentiation is based more and more
upon competencies in biotechnology
• To be competitive we need to collaborate with the
best
• In addition to the Agricultural University we may
need to establish international R&D partnerships
• WTO gives challenges and opportunities and TINE
needs to adjust accordinly
Value-Added Markets
• Consumers willing to pay more for
high-value products
– Contain requested quality attributes
• Quality attributes/characteristics
– Process oriented
• Growth enhancers, pesticides, feed,
animal treatment….
– Content oriented
• Fat content (lean), marbling, bacteria
and/or disease free
Credence Characteristics
• Many quality attributes are credence
in nature
• Credence characteristics can NOT
be discerned by physical inspection
• Consumer uncertainty regarding the
existence of the attribute
• Seek quality assurances from
industry and government agencies
Price Premiums
• Studies show consumers willing to
pay premiums for:
– Food safety
– Specific nations/areas of origin
– Natural/organic production
– Humane animal treatment
• Traceability systems allow for
process and content attribute
verification
Case Examples of Companies
Requiring Traceability
• McDonald’s, Jack in the Box, & Red Lobster
– Purchase meat from processors which
ensure high food safety standards
– Rewards include guaranteed sales contracts
and premium pricing
• Seek evidence of safety procedures
through record-keeping
– McDonald’s plan to have 10% of beef
purchases source traceable by end of 2004
Case Examples of Companies
Using Traceability
• Maverick Ranch
– Natural and organic products
– 3rd party testing for antibiotics, growth
hormones, and pesticide residue
– USDA certified “organic” label
• Coleman Natural Meets
– Free range grazing, natural grass feed
– No hormones or antibiotics
– Humane animal treatment
– USDA approved “natural beef” label
Case Examples of Companies
Using Traceability
• Farmland Industries
– Farmer-owned cooperative
– USDA “processed verified” logo
– Process verification system
•
•
•
•
•
Genetics
Animal nutrition
Animal health and welfare
Safety measures
Environmental protection
– 100% traceability of all products in program
Production Efficiencies
• Traceability systems enhance
producer ability to:
– Track animal performance from
weaning to slaughter
– Identify most profitable genetics
• Herd management
– Sell low performing cattle
– Reproduce identified high performance
genetics
Example Case of Production
Related Efficiencies
• Ranchers Renaissance
– Cooperative of ranchers, stockers, feeders,
processors, and retailers
– Market Cattleman’s Collection, Harris
Rancher, and Rancher’s Reserve brands
– Use electronic ID system since 1997
• Efficient and economic way to collect data on each
animal and share with all partners
• Data includes animal source, process, and genetic
verification
– Increased revenues by $2-$3 per hundredweight on each calf
Olam: Threading a New Tapestry
Starting & Scaling a Business to Global Leadership
Presentation to
SMU EDGE CONFERENCE 2005
Bridging the Gap: Entrepreneurship in Theory & Practice
12th July 2005
Singapore
SMU Edge Conf-Startg & Scalg a
Biz to Global
History: Rapid Growth & Expansion
1989
Start-Up
1 product
1 country
1 end Market
4 customers
2 employees
S$0.15m Book Value
S$0.15m Mkt Value
2005
14 products
39 countries
50 end markets
3,000 customers
3,400 employees
S$2.58 billion (9M)
turnover
S$48.1 million (9M) PAT
S$461m Book Value
S$1,725m Mkt Value
 Sales CAGR 57% and PAT CAGR 50% over the last 15 years
Transitioned from a Trader to an Integrated Supply Chain Manager
115
Products: Building Leading Global Position
High absolute Market Share - Top 3 Global Rank
Edible Nuts, Spices & Beans
• Spices
• Cashew nuts
• Other edible nuts • Beans
1.
More than 25% market
share of global raw
cashew nut trade
• Sesame
of three largest
Confectionery & Beverage Ingredients One
suppliers of cocoa &
2.
• Cocoa
• Coffee
• Sheanuts
Food Staples & Packaged Foods
3.• Rice
Sugar
•
4.
• Dairy products
• Packaged foods
Fibre & Wood Products
• Cotton
• Wood products
robusta coffee
worldwide
One of the top
three global rice
suppliers
One of the leading
suppliers of teak in
the world
116
Strong Customer Base
Direct End-Customer Relationships
117
Over 3,000 customers, 50 end markets
Price isn’t everything: factors involved in buying decision
10%
2%
Price
On-time delivery
8%
35%
Consistent quality
Customised grades
5%
VMI Services
Organic Certification
FTP Certification
15%
Risk Solutions
10%
5%
Proprietary Mkt Intelligence
10%
Opportunity for segmentation beyond traditional differentiators of size & geography.
SMU Edge Conf-Startg & Scalg a
Biz to Global
Segmentation: Three kinds of customers
Price
On-time delivery
Consistent quality
Customised grades
VMI Services
Organic Certification
FTP Certification
Risk Solutions
Proprietary Market
Intelligence
Service-oriented
Customers
(35% of total)
Product-oriented
customers
(20% of total)
Price-sensitive
customers
(45% of total)
Customer segment
SMU Edge Conf-Startg & Scalg a
Biz to Global
World's Leading Food Companies
The USD >10 billion Food Companies in FY 2004
70'000
Food Sales (in mio USD)
60'000
50'000
40'000
30'000
20'000
10'000
0
Nestlé
Kraft Foods
PepsiCo
Unilever
Coca-Cola
Mars
•Only Food (incl. petfood) & Beverages (excl. alcohol)
Danone
ConAgra
Cadbury
Schweppes
General
Mills
Sara Lee
Our Line of Products
•
•
•
•
•
•
•
•
Soluble Coffee
Infant Nutrition
Confectionery
Dairy
Chocolate Milk Beverages
Bottled Water
PetCare
Ice Cream (co-leader with
Unilever)
6 worldwide strategic
corporate brands
The Group Intellectual Property
Department Manages IP Rights
Worldwide
Strategic and local brands are
protected & managed by IPD
Brands
Local
Protections
Managed by 16
Regional IP Advisers
28'000
(RIPA's) for local
Nestlé Operating
Companies
6'000
75'000
Strategic
340
Managed by Center IP
Department in cooperation with the
Strategic Business
Units ('SBU's) and the
RIPA's
Nestlé has a substantial
patent portfolio
The Nestlé patent portfolio contains as
at 18.03.2005:
• 9'018 granted patents
• 6'127 pending cases which may result in the
grant of a patent
The top 5 patenting territories for
Nestlé are: USA, Europe, Canada, Australia and
Mexico
Nestlé's IPRs are centrally owned &
licensed to local Nestlé Companies...

Société des Produits Nestlé S.A. is the
registered trademark and design owner and
Nestec SA is the registered patent owner, in
both cases acting as nominee for Nestlé S.A.,
who is the beneficial owner
- Central ownership applies to trademarks linked to
strategic as well as to local brands

These rights are licensed, together with knowhow, to the Nestlé Operating Companies who
pay royalties for their use
Nestlé R&D Network
Confectionery
EUR
PTC YORK
Petcare
Ice Cream
R&D AMIENS
PTC BEAUVAIS
Chilled Dairy
Water
PTC LISIEUX
PTC NESTLE WATERS
Culinary
Coffee
PTC SINGEN
PTC ORBE
R&D SHANGHAI
Research
Nestlé Research Centre
AMS
AOA
Foodservices
PTC NEW MILFORD
Nutrition
PTC KONOLFINGEN
Frozen Food
R&D SOLON
Petcare
PTC St. LOUIS
Coffee
Confectionery
Ice Cream
R&D MARYSVILLE
Savoury Snacks
R&D SDEROT
Culinary
R&D SINGAPORE
R&D Matrix for Tech Transfer
C o m p e te n c e s a v a ila b le
P ro d u c t a re a s
Food
E nzym e
P o wd e r
E xtrusio n
F re e sing
P ro te ins
m icro b io lo g yte chno lo g y te chno lo g y te chno lo g y te chno lo g y
B a b y fo o d & m ilk
X
Insta nt co ffe e
X
X
X
X
X
F la vo rs
X
X
C ho co la te
X
X
Ice cre a m
X
D e hyd ra te d fo o d
X
X
F ro ze n fo o d s
X
X
P e t fo o d
X
X
C e re a ls
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Nestlé Philosophy
Successful
Innovation
Needs
Efficient
Technology
Transfer
And
Integrated
Competitive
Intelligence
Actions
Nestlé : 4 main missions
to play the turning role
Transfer of Technological
Competences & Information
within the R & D system
Transfer new, Emerging
Technologies for Potential
Applications in all small groups
TTT
Transfer know-how to all
CRN and R & D
Transfer Existing, Traditional
Technologies for New Applications
in other product areas
R & D turning plate for the
evaluation of new technologies.
Technologie Transfer
Universities
Brokers
Consultants
SBU ’s
Suppliers
CRN
Patents
Markets
Thank You
Guriqbal Singh Jaiya
[email protected]
www.wipo.int/sme/en/index.html
www.wipo.org