technology outsourcing outsourcing is the supply of various management resources required in...

Technology Outsourcing

bull Outsourcing is the supply of various management resources required in corporate activity from not

bull internal but external sources through contracting In the case where technology related

bull management resources are externally supplied it can be considered as technology outsourcing

bull There is no opposition to the view that technology outsourcing will rapidly become widespread

bull following the recent changes in the management environment

Technology outsourcing subjects

Complete corporations amp technology required for commercialization (production sales etc)

Sectional amp key factor technology which can supplement in-house technology

Technology services required in the technology development amp commercialization process

Research facilities amp equipment Other technology related management support

Why tech outsourcing

Strategic Outsourcing and the Virtual Corporation

bullOutsourcingndash Allowing subcontractors to perform value creation activities

Outsourcing advantagesOutsourcing advantages Efficient subcontractors Efficient subcontractors

reduce overall costsreduce overall costs Better product differentiationBetter product differentiation Allows for the concentrationAllows for the concentration

of available resourcesof available resources Firm becomes more flexible Firm becomes more flexible

and responsiveand responsive

Outsourcing disadvantagesOutsourcing disadvantages Failure to learn from Failure to learn from

outsourced activityoutsourced activity Too much dependence on a Too much dependence on a

single suppliersingle supplier Danger of outsourcing value Danger of outsourcing value

creation activities leading to creation activities leading to competitive advantagecompetitive advantage

WHAT IS LICENSING NEGOTIATION

bull What is Licensing

bull 1048707 Websterrsquos defines a ldquolicenserdquo as

bull ldquohellipa permission granted by competent

bull authority to engage in a business or

bull occupation or in an activity otherwise

bull unlawfulrdquo

What is Licensing Negotiation

bull 1048707 hellipto arrange for or bring about through conference

bull discussion and compromise a permission granted by

bull competent authority to engage in a business orbull occupation or in an activity otherwise unlawfulbull 1048707 In the licensing business it is usually the right

to makebull use or sellhellipbased on proprietary rightshellipforbull considerationhellipbull WHAT

WHAT IS ldquoTECHNOLOGYrdquo LICENSING

bull For purposes of this discussion ldquotechnologyrdquo includes

bull 1048707 Patents

bull 1048707 Copyrights

bull 1048707 Trademarksservice marks

bull 1048707 ldquoKnow-how

Creating a WinndashWin Outcome

bull We want to create that small piece of common ground

bull upon which both parties can agreebull 1048707 Several possible outcomesbull 1048707 Good deal for both = Good for bothbull 1048707 Great deal for them = Good for usbull 1048707 Lose ndash Win or Win ndash Lose = Good for onebull 1048707 Good for them = Great for us

WinndashWin

bull 1048707 Desirable Outcomes

bull 1048707 Good deal for both

bull 1048707 Good for them ndash Great for us

bull We want to create that small piece of common ground upon which both parties can agree

Step 1mdashPreparation

bull 1048707 The most important factorbull 1048707 You need to understandbull 1048707 The purpose ndash for both partiesbull 1048707 Needs wants desiresbull 1048707 Strengths weaknessesbull 1048707 Time framebull 1048707 Prioritiesbull 1048707 Commitment by both parties to negotiate

bull Ask your side ndash ldquoWhen the negotiation is over what do we want to leave withrdquo

bull 1048707 What are they thinking Conceptualize ldquoWhat do they wantrdquo

bull 1048707 Four types of sessionsbull 1048707 ldquoBlind Daterdquobull ldquoInitial Sessionrdquobull ldquoIn the Heat ofrdquohellipbull ldquoClosurerdquobull 1048707 All require intense preparation

Step 2mdashStrategy

bull The second most important factorbull 1048707 Compose our team (see step 3)bull 1048707 Understand their teambull 1048707 Who are their gatekeepers and the decisionbull makersbull 1048707 Strengths weaknessesbull 1048707 Time framebull 1048707 Prioritiesbull 1048707 Commitment by both parties to negotiatebull 1048707 What do we wantbull 1048707 Write it down

Strategy (Cont)

bull Transmit a license applicationbull 1048707 Ask for a business plan balance sheet and

income statementbull 1048707 Manage both partiesrsquo expectationsbull 1048707 Be able to respond to changesbull 1048707 Create options that allow closurebull 1048707 Define our walkaway positionbull 1048707 Conceptualize ldquoWhat are they thinkingrdquobull 1048707 What do we wantbull 1048707 Write it down

bull General company informationmdashname type of business size etc

bull 1048707 Description of intellectual property (IP) desiredbull 1048707 Description of license rights desiredmdashexclusivity field

of use territory etcbull 1048707 Intended commercial applications products etcbull 1048707 Competitive market products servicesbull 1048707 Market barriers for entrybull 1048707 Anticipated investment ROI revenue and profitbull 1048707 Date of prototype first salebull 1048707 Market size and expected capture for 5 years

Step 3mdashNegotiating Team

bull 1048707 May be as few as one per side two is better for your side

bull 1048707 But too many can be sub-optimalbull 1048707 Define the leader who will conduct the overall

negotiationbull 1048707 Who responds to technical issuesbull 1048707 Who responds to legal issuesbull 1048707 Understand their team compositionbull 1048707 Never negotiate with anyone who does not have thebull authority to do so

bull Negotiating Team (Cont)bull Mechanicsbull 1048707 One voicebull 1048707 Second team member is observernote takersubjectbull matter expertbull 1048707 The leader conducts the overall negotiationbull 1048707 Each member of your team understands individual

rolesbull 1048707 Take notesbull 1048707 Develop a time-out signalbull 1048707 There can only be one leader

Step 4mdashPreparation for Initial Session

bull Gather as much information as possiblebull 1048707 Analyze license application business plan balance

sheetbull and income statementbull 1048707 Review and refine our strategybull 1048707 Draft and transmit term sheetbull 1048707 Obtain our teamrsquos and decision makerrsquos approvalbull 1048707 Visualize their possible comments and prepare

responsesbull 1048707 Understand how our technology fits into their strategicbull focusbull 1048707 Whorsquos attending - With or without lawyers

bull Term Sheetbull 1048707 Proprietary rightsbull 1048707 Exclusivity fields of use license durationbull 1048707 Sublicensing rights and considerationbull 1048707 Gross sales definitionbull 1048707 Patent reimbursementbull 1048707 Upfront fee minimum royalty percentage of salesbull (equity)bull 1048707 Diligence provisionsbull 1048707 Sponsored research

Step 5mdashInitial Session

bull Our primary goal is term sheet agreementbull 1048707 Understand how our technology fits into their strategic

focusbull 1048707 Review license application income statement

business plan and anybull draft agreementsbull 1048707 View their comments and prepare responsesbull 1048707 Upon term sheet agreement prepare draft licensebull 1048707 Conceptualize what they want (framework of their

request)bull 1048707 Whorsquos attending - With or without lawyers

How to Get Started

bull 1048707 Develop our strategybull 1048707 Pre-script our points priorities and who will speak

and whenbull 1048707 Arrive 5 minutes early ndash Not earlier unless it is

expectedbull 1048707 Seating ndash The two negotiatorsbull 1048707 Place no departure deadline on yourself but do not

leave the session open-endedbull 1048707 Rarely initiate business discussionsbull 1048707 Have them talk about their company business plan

license application etcbull 1048707 Dress up ndash not down

What Do We Need to Have With Us

bull For every sessionbull 1048707 Prepare negotiation binder or filebull 1048707 For newly proposed language have copies for

everyonebull 1048707 Copies of the IPbull 1048707 Prepare past negotiations summarybull 1048707 Establish a time-out signalbull 1048707 If not concluded suggest alternating meetinglocations

Step 6mdashldquoIn the Heat ofrdquo Session

bull 1048707 Where 1+ iterations have transpiredbull 1048707 View their comments and what might be their proposed

adjustmentsbull 1048707 Define our proposed adjustmentsbull 1048707 Decide what adjustments we will make and what will the extra

effort forbull closure takebull 1048707 Lead the discussionbull 1048707 Upon commencing askbull 1048707 ldquoCan we briefly summarize our last sessionrdquobull 1048707 ldquoWhat would we both like to see at the end of this sessionrdquobull 1048707 Timingbull 1048707 Whorsquos attending - With or without lawyers

Step 7mdashClosure Session

bull 1048707 Last iteration of negotiationbull 1048707 ldquoWhere did we leave off in our last

discussionrdquobull 1048707 View their comments and prepare responsesbull 1048707 Define priorities necessary to make

adjustmentsbull 1048707 Conceptualize what their response will be to

those proposed adjustmentsbull 1048707 Strategize how to grudgingly ldquogive inrdquo on the

adjustments we are holding for closurebull 1048707 Whorsquos attending - With or without lawyers

bull It is because there is no other waybull but to adapt and find countermeasures to the changing

management environment for survival andbull achieve essential corporate aims whether it is a

corporation or not As the atmosphere in relation tobull the necessity of technology outsourcing increases the

demand for industries in technology risesbull and this calls upon the supply of technology That is

when there is demand business opportunitiesbull are created and this kind of business opportunity in

most cases attracts and absorbs marketbull participants The general subjects of technology

outsourcing are as follows

The ldquoBlind Daterdquo Phenomenon

bull 1048707 The ldquoblind date phenomenonrdquo is when you arebull unexpectedly invited or requested to attend a

sessionbull 1048707 Obtain as much information as possible

before you go1048707 Whorsquos the ldquodaterdquo (the people amp parties)bull 1048707 Whatrsquos their interest (timing amp purpose)bull 1048707 What we want (whatrsquos the deal)bull 1048707 Lessons learned with the Principal

Investigator (PI)

Step 8mdashDetails

bull Listeningbull 1048707 Ask the right questions and listen completelybull 1048707 Ask in a way that encourages other party to favorablybull respondbull 1048707 Be their ldquobest audiencerdquobull 1048707 How can we persuade when we do not fully listen orbull understand their positionbull 1048707 Watch body language

bull Have a signing ceremony

bull 1048707 Take lots of pictures

bull 1048707 Run an article in your organization

bull laboratory newsletter

bull 1048707 Do a press release

bull 1048707 Have a celebratory dinner

THINGS TO DO AND THINGS TO AVOID

THINGS TO DO

bull Develop preapproved negotiation strategybull 1048707 Determine who speaks for them and

what authoritybull they carrybull 1048707 Determine who speaks for usbull 1048707 Assure proper table placementbull 1048707 Be gracious with amenities if hostingbull 1048707 Maintain eye contact

bull Listen carefully ndash Take extensive notes including who

bull says whatbull 1048707 Practice silence ndash Develop ldquopoker facerdquobull 1048707 Take time-outs to maintain team focusbull 1048707 Send a thank-you notebull 1048707 Consider signing ceremonycelebrationbull 1048707 Press releasebull 1048707 Newsletter article

bull Talking too muchbull 1048707 Overstating erodes credibilitybull 1048707 Develops unnecessary expectationsbull 1048707 ldquoBlurt outsrdquobull 1048707 Losing control of the negotiation directionbull 1048707 Emotionsbull 1048707 Avoid at all costsbull 1048707 Escalation of back-channel negotiationbull 1048707 Manage your managers









WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31


Complete corporations amp technology required for commercialization (production sales etc)

Sectional amp key factor technology which can supplement in-house technology

Technology services required in the technology development amp commercialization process

Research facilities amp equipment Other technology related management support


















bull unlawfulrdquo















WinndashWin










Step 2mdashStrategy


Strategy (Cont)






















How to Get Started






























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31


















bull unlawfulrdquo















WinndashWin










Step 2mdashStrategy


Strategy (Cont)






















How to Get Started






























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31















WinndashWin










Step 2mdashStrategy


Strategy (Cont)






















How to Get Started






























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31






Step 2mdashStrategy


Strategy (Cont)






















How to Get Started






























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31

Strategy (Cont)






















How to Get Started






























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31




















How to Get Started






























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31

























Investigator (PI)

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31

Step 8mdashDetails









THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31








THINGS TO DO














WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31












WinndashWin


Slide 11

Step 2mdashStrategy

Strategy (Cont)

Slide 14


Slide 16


Slide 18


How to Get Started




Slide 24


Step 8mdashDetails

Slide 27


THINGS TO DO

Slide 30

Slide 31

technology outsourcing outsourcing is the supply of various management resources required in...

Documents