Download - 2012 cre&i expo
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
“Customer Service is the Most Valuable Source for Innova7on – a Success Story of Silicon Valley”
A presenta*on at 2012 Hong Kong Interna7onal CRE & Innova7on Expo
Prepared by: Al Kwok
Principal IP Advisor, STARS Founda*on (www.STARSF.org) Founder, China Interna*onal Intellectual Property Services Ltd. Governor & Co-‐founder, Savantas Policy Ins*tute Former VP & CIPO, NetLogic Microsystems (“NETL”)
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
⇒ End-‐to-‐end Product/Service Lifecycle Analyses ⇒ Complete Value-‐Chain Analyses (focusing on
Mission-‐and-‐*me Cri*cal Links in the Chain) ⇒ (Produc*on) Supply-‐Chain Management (SCM) +
Applica*on-‐Service Demand-‐Chain Management ⇒ CRE Design-‐win Professional Services
Innova*on Leadership ⇒ New Applica7on/Service PlaMorms + (China)
Market Sustainability & Scalability
Customer Rela7onship Excellence <=> Product/Service Focus Innova7on Leadership <=> Value Crea7ons for Customers
“Customer Rela7onship Excellence => Innova7on Leadership”
Outline
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
The Value Hierarchy (Business Models) Va
lues
/Pro
fit M
argi
ns
Applications (Mkt. & Standards)
System Integration (Archit., …)
Engineering (Design, ODM,..)
Manufacturing (Process, OEM)
Intellectual Property (IP)
Out
sour
cing
Tr
end
Consumer recognition Core competency
Brand Innovation
50%
40%
30%
Presented at Intellectual Property Symposium 2002 in Guangzhou on December 10, 2002
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
The Value Chain (=> DemandSupply in Alignment)
IC H/W PlaMorm
IC S/W PlaMorm (API, drivers, etc.)
System Applica7on PlaMorm(s)
Generic Reference Design (w/ other chips)
Differen7ated Applica7on Designs
Various Applica7ons/Services
Consumer Markets (End Users)
IC Design houses
System Integrators
Service Providers
For Consumer Electronics Market (Ecosystem)
System Manuf.
Great end-‐to-‐end push-‐pull effect for market scaling thru lifecycles
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Raising Values of a Product (IP is the Core)
• 价格 = 给客户的价值 => 价格 = 成本+服务+IP授权+品牌
• Pre-‐sale services mean design-‐win efforts providing solu*ons to address customers’ problems • This is the best sources of innova7on
and ideas for the next-‐genera*on products (Product & Tech Roadmaps)
• Post-‐sale services mean reducing customers’ costs of ownership, extending the useful life*me of the product, genera*ng recurring sales & product improvement ideas
• Embedded IP licensing means the customers can use the product IP for their own product upli[ing & differen*a*ons -‐ e.g., “Intel Inside”
• Brand recogni7on means the customers recognize the product and its maker for superb quality, performance, reliability & services
Manufacturing Cost (生产成本)
Pre-‐ & Post-‐Sale Services (售前及售后的服务)
Brand Recogni*on (品牌认知)
Embedded IP Licensing (隐含IP授权)
Incr
easi
ng V
alue
s (提高增值
) Price = Values to Customers
(价格 = 给客户的价值)
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Serv
ice
requ
irem
ents
driv
e H
/W p
latfo
rm im
prov
emen
ts
Existing OEM/ODM business model breaks the IT Business Food Chain without positive feedback from Service to drive next product dev. cycle
IT Business Food-‐chain
Hierarchy of IT Business (from “service to consumers” as the top of the food-chain with highest Gross Margin then down):
Service (to consumers) <=> Domestic market (localization) (China market is huge enough) Application (for service) <=> Domestic market (localization) (China centric standards & IPs) Network platform <=> Domestic stds. for local services/appl. International stds. (for global interface)
System Integration <=> Domestic market (localization) vs. Int’l. mkt. (for applications) (China centric standards & IPs vs. Int’l. ones)
S/W & F/W platform <=> Int’l and domestic stds. (global & local) H/W platform <=> International stds. (global IC supplies)
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
High-‐end vs. Low-‐end Example
China e-‐book as a low-‐end example “Shanzhai” business model (山寨型商业模式) Copy others’ design concepts
Add more common (proven) applica*ons Aim for low-‐cost and low-‐price (~US$250) Lidle post-‐sale on-‐going services
Lidle connec*on to on-‐going e-‐commerce service Lidle customer feedback, no learning and no product innova*on
Apple’s iPad as a high-‐end example Designed as an e-‐commerce CRM tool (*ed to iTunes e-‐commerce
plaeorm) -‐ one-‐stop e-‐commerce business ecosystem More recurring business from post-‐sale of iPad (hardware)
Aim for high-‐value and affordable price (~US$600) Complete the “H/W plaMorm to Service” end-‐to-‐end cycle for
next-‐genera7on product innova7on
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Mature (must have)
Und
er-‐develop
ed
Ecosystem
Well-‐d
evelop
ed
Cut-‐throat Compe77on (me too!)
Applica7on Futuris*c (nice to have)
Too Far-‐out: Not ready,
hype, bubble
Future Growth: Longest-‐term
Future Growth: Long-‐term
Future Growth: Short-‐term
Well-‐developed infrastructure: consumer market by nature with lower (30-‐>50%) profit margins
Building infrastructure &
ecosystem: Indu
stria
l market b
y nature with
highe
r (50-‐>70%)
profi
t margins
Market Posi7oning -‐ Product Focus
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Types & Ranking of Innova7on
In the order of las*ng value impact to society (from most to least): New business model (global produc*vity jump) -‐ great las*ng value impact
E.g.: e-‐Commerce (internet), pure-‐play foundry business model, carbon trading…
New business process (global produc*vity jump) -‐ great las*ng value impact E.g.: Window/Office (new work environment), outsourcing, TQM, ERP…
New applica*on/market (for exist. prod. or tech.) -‐ great value impact E.g.: GPS, RFID, radar guiding… -‐ from military to commercial applica*ons
New technology (for exis*ng product) -‐ great value impact some*mes E.g.: High-‐speed CMOS (over NMOS) for power reduc*on and device scaling
New product/service (for exis*ng market) -‐ medium value impact E.g.: On-‐line shopping/trading, SMS (China), digital broadcast…
New combina*on of package of technologies, products and services E.g.: Apple’s iPhone and iPod, Blackberry, solar, clean tech…
New design (implementa*on or appearance) -‐ limited value impact New system architectures: e.g., the Sandisk “338” patent for flash-‐memory card New subsystem/circuitry
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Success Example: GPS-‐based Services (MyCard Ltd.)
MyCard Confidential 9August 1, 2008
GPS/GPRS Logistics Service Platform - System Architecture
GPRS
Logistics & PassengerLogistics & Passenger
Logistics Co.
ForwardingAgents
SecurityMonitoring &
Alerts
Customer-specified Call
Services
Functions of Control/Call/Data Centers & Service Platform
Customs
InsuranceCo./ Bank -Asset Mgt.
Real-timeLocationTracking
Coordination,Security Checks
& Alerts
Data analyses / Bus.Intel., Map Database &
User Web Portal
CallCall
CenterCenterControlControl
CenterCenterData Center /Data Center /
Access PlatformAccess Platform
Data Storage &Archives
Map Database Mgmt.
User Access Control &Portal Management
GUI & Templates
EmergencyAlerts
Senders &Receivers
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Maximizing IP Value Crea7on – Part 1 Innova*on <= Differen*a*ng values to customers
Highest values = Mission-‐and-‐*me cri*cal (“Must-‐have”) ones Customers must use and buy the product when available
Lidle values <= “me-‐too” innova*on w/o differen*a*on Intellectual property (IP)
Protected, reproducible and scalable innova*on Patent is the best form of protected IP
Exclusive rights for 20 years to use for commercial purposes
Values of the patent is based on its “CLAIMS” The 1st CLAIM is most important in a patent Scope – the broader and the more independent, the beder
The fewer enabling elements and less restric*ons, the beder Coverage – covering all means of customer value crea*ons
Mapping value crea7ons vs. enabling elements Values to customers: performance (func*onality & speed), price (yield
improvement & cost reduc*ons), quality (robustness, consistency, tolerance & reliability) & delivery (shortened cycle-‐*me and lead-‐*me).
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Maximizing IP Value Crea7on – Part 2 Customer value driven corporate culture:
Innova*on is pursued solely to create DIFFERENTIATING VALUES to the customers (sharpshoo7ng & no shotgun approach) Contribu*ng directly to their bodom-‐line in term of cri7cal func7onality,
cost, performance, low-‐power, quality and delivery
CRE => Strategic partnership and close working rela*onship with the lead customer is a must All valuable innova*on ideas come from lead (strategic) customers
Cisco for NetLogic Microsystems (recently ranked as the best supplier by Cisco)
Aligning all the company’s ac*vi*es to be proac*vely responsive to the customers’ current and future needs Including applica*on/technology and service/product roadmaps as well as
employee evalua*on/promo*on Con*nuous innova*ons by solving proac*vely the customers' next biggest
problems (the next product development cycle)
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Methodology for “CRE + Con7nuing Innova7on”
Lead Customers’ Requirements => 2nd G => 3rd G =>…
Differen*a*ng Value Crea*ons => 2nd G => 3rd G =>…
Business Model => 2nd G => 3rd G =>…
Service/Product Roadmap => 2nd G => 3rd G =>…
Applica*on/Technology Roadmap => 2nd G => 3rd G =>…
IP Poreolio Development => 2nd G => 3rd G =>… The next innova*on ideas come from customers & “Stress Tests” iden*fying (1) The weak-‐links in product design & performance and scalability (2) System (architecture) integrity and scalability (elas*city) issues (3) The bodlenecks for scalability (technology and manufacturability roadmap)
Close collaboration between the customer and the vendor
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected] July 20, 2010 CIIPS Presentation 14
AK comment: Considering the facts that NM is much less than 1/10 of the size (in revenue) of the other 9 top-‐ranking companies and much younger (~10 years old), it is a crowning achievement! Likewise, “ipIQ” rated NM’s poreolio the best for a medium size (~$100M) high-‐tech company worldwide in its “Patent Scorecard 2006” report with the 2nd highest CII (current impact index). Mkt Cap: US$250M @ 2004 IPO => US$3.7B @ 2011 M&A (14.8X in 7 years = >46% CAGR)
(All mul*-‐billion $ companies)
AK comment: Based on a poreolio of ONLY ~100 patents
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Conclusion Knowledge Economy must be Prof. Service/Applica7on driven
Core competency in professional services is the key to global compe77veness IBM’s transforma*on is a good example (from H/W to Professional Services)
Must focus on “True Demand” – Mission/Time Cri7cal ones Supply-‐side economics (Reaganomics) is a dead-‐end – unsustainable Real economic growth must come from “True Demand” – not unsustainable
Cheap-‐Credit Inflated False Demand causing con*nual global economic crises OEM/ODM, SCM… are for the “Push Effect”. From the Demand Side, Services
and Applica*ons based on standardized services provide the “Pull Effect” – the horse (engine providing the Pull Effect) should be in front of the cart (economy)!
CRE “Professional Services” is the Intrinsic Source of Innova7on & IP Valuable IP development is from Pre-‐ and Post-‐Sale Professional Services Core competency development requires “Technical, Business and IP/Legal
Domain Exper*se” – HK’s educa*on & prof. development systems have to adapt
Hong Kong & the whole world need China for market scalability GD-‐HK-‐Macau CEPA PlaMorm must be further strengthened with CEPA Special-‐
Policy Pilot (Landing) Site (for product/service localiza*on) – STARSF’s goal!
1/F., CMA Building, 64-66 Connaught Road Central, Hong Kong Tel: +(852) 2810 1777 Email: [email protected]
Thank You! 多谢光临指导!