Organizing for the Future

• Author: Russell L. Parr
• Profession: President of Intellectual Property Research Associates
• Pages: 372-383

CHAPTER 24

ORGANIZING FOR THE FUTURE

The greatest business challenge in the future will be to ensure that intellectual property

is optimally exploited. This goal is more complicated for many companies because they

are not aware of all the intellectual property they possess. Vague references to intellectual

property still are common among top executives and consultants—they havethe basic con-

cept, but do not seem to understand the details. A typical, yet vague strategy statement by

many companies goes as follows: “U.S. corporations must begin to leverage their com-

petencies across businesses,” and “We plan to form alliances with partners that possess

complementary knowledge capital.”

Intellectual property represents the keystone to success for most companies. Trademarks

capture market share, and patented technologies often command premium prices for the

products they represent. In some cases, over 85% of a company’s value is derived from the

intellectual property that it owns. Yet enormous and expensive management information

systems are better equipped to count and control raw materials or manufacturing equipment.

Rarely is there a means for capturing the existence of intellectual property. Admittedly, the

intangible nature of keystone intellectual property complicates the task. Yeta rather serious

effort is warranted when the lion’s share of corporate valuelies among patents, trademarks,

distribution networks, and other intangibles.

Knowledge capital and competencies will not earn a dime unless they are better dened

to show more clearly how theywill contribute to increased sales, generate higher prots, and

ultimately create corporate value. Before something can be exploited, it must be identied.

This chapter will attempt to provide some guidance for nding the intellectual property that

can be licensed, traded, sold, joint ventured, or otherwise made to serve as the admission

price into a potentially lucrative strategic alliance.

Once the intellectual property of a company is assessed, management must identify the

future portfolio of assets that will be needed for future success.

MAPPING INTELLECTUAL PROPERTY

An inventory of intellectual property is a realistic goal but is complicated by the multi-

faceted nature of these intangible assets. Intellectual property cuts across many aspects of a

business and often interplays with other intangible assets. When intellectual property does

not cut across business boundaries, new questions arise, such as: Why not?

The trademark of a company with various divisions and products, all using the same

trademark banner, cannot be conveniently placed in an inventory account that is associated

with one of the manufacturing plants or one of the divisions. However, customer lists often

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