Like other legal operations functions, the current Intellectual Property Business Management Model (IPBM) focuses on business impact. The IPBM model has moved away from managing intellectual property from a purely legal or asset-based perspective to focus on the impact of an organization’s intellectual property portfolio on the business, and vice versa.
Essentially, IPBM is moving from an IP lawsuit-based lifecycle to an enterprise-integrated lifecycle. IPBM’s overarching goal is to support core business operations, revenue generation and business value with a robust data-driven decision-making program.
Legal, operational and business alignment
The goal of implementing an IPBM model is to expand the capabilities of an IP operation to align strategy, processes, and organizational dynamics. This model relies heavily on involving more departments and decision makers in analyzing how to turn this idea into strategic action.
The illustrative IP Enterprise Management Model below depicts the central role that IPBM plays in addressing key asset management challenges to achieve positive results. As the model shows, the core principle of IPBM is the integration and alignment of the organization’s legal, operational, and business processes to identify, address, mitigate, and resolve IP management challenges.
IPBM for companies: an illustrative model
IPBM thus presents a unique set of opportunities to increase business value through better innovation and risk management, while generating more revenue and cost savings. From a more tactical perspective, IPBM aligns core organizational competencies, then delivers efficiencies by defining, monitoring, and supporting the day-to-day processes that capture, nurture, and manage the organization’s innovation assets. .
In this context, the integration and alignment of the organization’s legal, operational and business processes provides insight into an organization’s IP activities – enabling IP managers to have informed discussions with their peers and make decisions about how best to invest organizational resources. Among the goals is a clearer understanding of how the activities of one stakeholder group could – or should – affect the outcomes of another stakeholder group.
IPM as a continuous business process
To further explore this concept, the flowchart below depicts the integrated business process loop defined by four phases: Need, Growth, Maintenance, and Achievement. This flowchart shows the progression of traditional IPM, which was largely focused on – and limited to – managing innovation and pursuing intellectual property (the “growth” phase in the chart below ) towards a more dynamic and interactive means of strategic management of the company. As such, the IPBM lifecycle demonstrates the importance of aligning business and strategic goals in the inputs (needs), outputs (growth), and commercialization of innovation.
The Needs component is where the decisions that determine the IP lifecycle intersect with the businesses that drive creation, and where the decisions that determine business outcomes are made. We may call this dynamic colloquially the “businessification of law”, where IPBM is dynamic and scalable by design.
In the next installment of this series, we will discuss changing practices in capturing and developing innovation.