Generating profit is now a game of out thinking your competitor and less about out producing him. The old way of doing business designs a product and sells it through a distribution channel to generate revenue. The new way of doing business focuses on managing your intellectual property to extract revenue from the entire market.
In the mid 1970’s the biggest value of the largest companies was tangible assets such as real estate, plants and equipment. Today, tangible assets only account for 30% of their value.
Study after study confirms that companies focused on managing their intellectual property significantly outperform their competitors.
A good example is General Electric. They’re value is not in their factories…it’s in their Six Sigma processes and management systems. Their competitive advantage is now built on what it knows and not what it owns.
Everyday your business creates and use intellectual property. Just take a look at how your business generates revenue and you’ll find it’s from your IP. Whether it’s creating new products or services, improving current ones, developing a customer relationship system, or figuring out ways to delivering them faster and cheaper, it’s all some form of IP.
But the management tools that worked in the tangible economy don’t work very well in the intangible economy. In fact, you’re tangible management tools are increasingly likely to fail as the markets continue to shift into an intangible economy.
Managing your IP is essential to your business’s survival and growth. IP management skills and becoming critical for every business owner and CEO. The internet is bringing many new IP management tools into the marketplace. But using these tools requires an internal shift in the way you do business.
Managing your IP successfully, means operating your business with right management tools and IP strategy. You can’t think of your IP only as a legal process. You must focus on activities that help to identify, secure, and use your IP to increase revenues and expand your business.