Marketing bán hàng - Chapter 13: Definition

Copyright 2015 Jack M. Kaplan & Anthony C. WarrenTechnology EntrepreneurshipPatterns of Entrepreneurship Management5th Edition, Chapter 13Chapter 13DefinitionScopeIssuesSocial MediaBusiness ModelsInverse CommonsCopyright 2012 Jack M. Kaplan & Anthony C. WarrenPresentation OutlineDefinition of Technology EntrepreneurshipConstraints - Path Dependency with Examples - Network Effects - Technology Road-Maps - Standards and CompatibilitiesTiming and Market Segmentation Topics - Long-Tail - Gartner Hype Cycle - Technology Adoption Cycle - CooperativeIntellectual Property- Patents and Patenting Process - - Trademarks- Copyright - Trade SecretsChapter 13DefinitionScopeIssuesSocial MediaBusiness ModelsInverse CommonsCopyright 2015 Jack M. Kaplan & Anthony C. Warren“What distinguishes technology entrepreneurship from other entrepreneurship types such as: social entrepreneurship small business management and self-employment is the collaborative experimentation and production of new products/services, assets, and their attributes, which are intricately related to advances in scientific and technological knowledge and the firm’s asset ownership rights”.DefinitionProf. Tony Bailetti, Carleton University, Ottawa, Feb. 2012Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyThe best technology does not always prevail – new innovations have to fit with existing infrastructure and history which can be highly constraining. For example: Path Dependency is the tendency of a past or traditional practice or preference to continue even if better alternatives are available.Also related to so-called Lock-in or Legacy Effects.“You can’t always start from here!”Path DependencyChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyPath Dependency Example: Alternate KeyboardsThe original QWERTY keyboard designed for mechanical typewritershas not been replaced by later, supposedly better, innovations.Copyright 2015 Jack M. Kaplan & Anthony C. WarrenStill Dominant after nearly 150 years!A network effect (also called network externality) is the effect that a single new user of a good or service has on the value of that product to other people. When a network effect is present, the value, V, of a product or service increases as the Number, N, of people using it according toMetcalf’s Law V=N2For example, the introduction of the FAX machine had no value to the first user; a network needed to be in place for Metcalf’s Law to be effective. How can this be achieved?Related Topics – Inverse Commons, Tipping Point, Viral Marketing, Lock-in StandardsNetwork EffectsChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenNetwork Effects – Value Gap Created by a Fast Leader An entrepreneur can claim a large part of a market if they can take advantage of network effects. But if a competitor has already been a “fast leader” then trying to take away market share is difficult and riskyChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenNetwork Effects – Loss of Value by a Weaker FollowerChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyExamples of winners/losers: Netflix/Blockbuster; Facebook/Myspace, VHS/Betamax etc. Copyright 2015 Jack M. Kaplan & Anthony C. WarrenTechnology Road-MapsA technology roadmap is a plan that matches short-term and long-term goals with specific technology solutions to help meet those goals. It is a plan that applies to a new product or process, or to an emerging technology.Roadmaps are important for:Spotting when a number of unconnected innovations reach practicality and together create something new and valuableb) Searching for possible threats to an innovation as new technologies mature create obsolescence Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenExample - Video RecorderChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyTechnology does not evolve linearly or synchronously. Commercial application may involve many unrelated developments coming together at the right market timing.Copyright 2015 Jack M. Kaplan & Anthony C. WarrenExample of Poor Roadmapping – Iridium Satellite Phone System-- Conceived by Motorola in 1985 – a mobile phone to work anywhere Phones communicate via network of 66 satellites in stationary orbits$5 billion spent on R&D, deployment and marketingService launched in 1996 and failed to gain any market sharePhones cost $3000, weighed 1lb., low battery life, high call chargesLong transmission paths led to delay between caller and receiverThe company filed for bankruptcy in 1999The system is still operable and used by reporters and the military only.The engineers failed to undertake a future technology road map covering emergence of hig-speed digital networks, programmable phones, GPS enhancements, battery technology, memory costs, etc. etc. The technology used was obsolete the day that the product came on sale!Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCompatibility, Standards and RegulationsChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenNew technology innovations may have to fit products and systems that are already in existence. This usually requires compatibility, and meeting existing standards and satisfying government regulations.Examples:Compatibility: Apple requires any application written for its products are compatible with their operating systems. Mobile networks require any device that communicates with them to be compatible with the network protocols. Gasoline blends must be compatible with the specifications laid out by the automobile manufacturers.Standards:All electronic devices must meet certain standards with regard to radio-frequency emissions, insulation, drop resistance etc. All building components must meet standards defined by the building industry and its codes.Regulations: All medical products sold in the US for therapeutic use must be approved by the FDA. All new cars sold in the US must meet emission standards stated by the Federal Government. Regulations can vary from country to country, state to state and even county to county FDA can be a major hurdle in getting new foods, pharmaceuticals and medical devices into the market. Sometimes overseas market entry are a means to overcome stringent US regulationsFTC Regulations on electronic products can be a major hurdle. Issues like bandwidth availability, RF emissions, interference, safety etc. must be metRegulations often do not keep up with technology advancements and being a pioneer to get new technologies past regulators can take a long time and a lot of funding Some Regulatory IssuesChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenGartner’s Hype CycleChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyAn exciting “breakthrough” technology often creates a lot of interest, fueled by the media. New companies are formed and attract investment. Rarely do the promises come true. Gartner describes this “bubble” as a “Hype Cycle”.Copyright 2015 Jack M. Kaplan & Anthony C. WarrenStage 1: Technology trigger. A breakthrough, public demonstration, product launch or other event that generates significant press and industry interest. Stage 2: Peak of inflated expectations. A phase of over-enthusiasm and unrealistic projections during which a flurry of publicized activity by technology leaders results in some successes but more failures as the technology is pushed to its limits. The only enterprises making money at this stage are conference organizers and magazine publishers. Stage 3: Trough of disillusionment. The technology becomes unfashionable and the press abandons the topic, because it did not live up to its overinflated expectations. Gartner’s Hype Cycle – Definitions - 1 Copyright 2015 Jack M. Kaplan & Anthony C. WarrenChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyStage 4: Slope of enlightenment. Focused experimentation and solid hard work by an increasingly diverse range of organizations lead to a true understanding of the technology's applicability, risks and benefits. Commercial off-the-shelf methodologies and tools become available to ease the development process. Stage 5: Plateau of productivity. The real-world benefits of the technology are demonstrated and accepted. Tools and methodologies are increasingly stable as they enter their second and third generation. The final height of the plateau varies according to whether the technology is broadly applicable or only benefits a niche market. Copyright 2015 Jack M. Kaplan & Anthony C. WarrenGartner’s Hype Cycle – Definitions - 2 Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyGartner Hype Cycle: Example 2009Copyright 2015 Jack M. Kaplan & Anthony C. WarrenWhere are they now?Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenRogers’ Bell-Curve – Technology Adoption PatternsRoger’s curve describing market entry strategy applies particularly strongly to new technology products and services where the innovators and early adopters can be avid early customers. Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyThe Long-Tail PhenomenonChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyAnderson introduced the concept of “the long-tail” to illustrate that a large number of niche products can add-up to a large market. Search engine capability, and web-marketing can enable a small company to find customers for a new technology product by focusing on the long-tail initially. 50% demarcation lineCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCopyright 2015 Jack M. Kaplan & Anthony C. WarrenIntellectual Property Is PropertyIP is usually a key asset of a technology based venture.IP has valueIt can be sold or licensedIt can be stolenIt can and should be protectedIt is subject to much of property and contract law as well as to specialized IP lawChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenPatent ClassificationsDesign patents are issued to individuals who have created a novel ornamental design. These are often of limited value as they are easy to get around.Plant patents are issued to individuals who have invented or discovered a novel type of plant and who have been able to reproduce that plant asexually. Utility patents are issued to individuals who have invented novel processes, machines, and compositions of concern matter, or improvements. These are by far the most common forms of patents.Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenPatentable inventions must have:Utility: Any useful machine, process, or improvement may be patented provided is not disclosed in prior art Novelty: requires that the invention predates public knowledge and the use or sale within the U.S. or any foreign country Non-obvious: if the invention is judged to have been obvious to any person in the field relating to the invention, it may be barred from receiving patent approval Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenThe Patent ProcessChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyPrepareDocumentDisclosureePatent SearchPatentApplicationPatentExaminationPatentGrantProvisional Filingto establish priority date atpatent office Preliminary search of patent records declarations, and required fees Inventor files formal written application with drawings claims, declarations, and required feesPatent Office makes thorough search and patent examination, and specifies claims allowedPatent Office documents new patent grantRecorded as “patent Pending Final patent recorded and sent to inventorletters patentCopyright 2015 Jack M. Kaplan & Anthony C. WarrenArticle I, Section 8:Congress shall have the power...to promote the progress of Science and useful Arts by securing for limited times to Authors and Inventors the exclusive Right to their respective Writings and discoveries.(This “right” is granted to an inventor in exchange for fully disclosing the invention and how it may be executed).The United States ConstitutionChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenStatutory Requirements for a US PatentAllowable scope?Cannot be a Law of natureNovelty Is there any Prior Art?UtilityGood for something?Must be “operable”Non-obviousnessTo one of ordinary skill in the artFull disclosure of knowledgeReduction to practice not necessaryChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenA Patent Only Enables You to Do One ThingYou can prevent someone else -- anyone else -- from practicing what you have claimed in a jurisdiction (country) where you have a valid patentThis is a legal monopoly But antitrust law and legal precedents can prevent you from exercising if you have “market power”Or, you can license others to practice your inventionYou may nevertheless not be able to practice your own invention without licenses to patents owned by other parties which may cover part of your requirements to practiceChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenPatents - Key PointsA patent is an exclusionary monopolyThe monopoly is defined by the claimsPatent value is arrived at from a business caseA patent is virtually worthless if no one else wants to practice the inventionLawyers are not optionalFiling a full patent and maintaining especially overseas is very expensiveTherefore it is important to evaluate whether it is worth patenting an inventionChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCriteria for Filing a Patent ApplicationSize of market affected by inventionNovelty of the technical field coveredHow central is the invention to expected productsScope of broadest claimsPortfolio needs in the area of the inventionHow easily can use of the invention be detectedHow easy is it to avoid using the inventionWhat percentage of companies in the field may use the inventionAny value to current or anticipated alliance activityAny value to current or anticipated technology transfer activityLikely enhancement of your (or your organization’s) prestige and ability to raise capitalChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenTypical Patent Legal CostsService DescriptionAttorneyAgentInitial ConsultationFreeFreeHourly Rate$500$350Preparation and Submission$15,000$7,500Expected Total Costs$15 – $25K $7,500 – 10,000Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenKinds of ClaimsStructureProcessMethodUseCombinationForm of matterSoftwareForm of life (gene, plant...)A single patent can have many claims, of different typesBroken into primary and dependent claimsMay be different in different countriesChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenSoftware PatentsCurrently are being (very!) freely grantedCritical difference from copyright: Copyright protects form of presentationPatent protects essential ideaSoftware patent must meet same statutory requirements as any other patentUsefulNovelNon-obviousValue still being establishedIt’s a jungle and the rules are not clearly establishedEssential to seek legal adviceChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenPatents on Business ModelsCan make incredibly powerful patentsNeed very little "technical" substanceEmerging and important trendParticularly financial instrumentsE-commerce, Internet, “web 2.0” methods etc.Opportunity for clever "inventors" to stake out huge claimNeed to meet statutory requirements"Obviousness" seems less a problemVarious examplesFreeny: Delivery of goods mediated by networkOften, Patent Examiner lets a questionable one throughOnly courts can remedy See USPTO White Paper: www.uspto.gov/web/menu/busmethpChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenJust because it's there, it may not be freeInternet creators advertise they are free spiritsIntellectual property is free as the airDownloading software or content creates big exposures, such asUse of the material infringes a patentThe material is copyrightThe license terms are restrictiveThe protected material will be inadvertently incorporated in a productPosting material may limit owner's rightsPosting material may reveal owner's misstepsIP,the Internet and e-CommerceChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenExample: The “Single Click” ClaimA method of placing an order for an item comprising: under control of a client system, displaying information identifying the item; andin response to only a single action being performed, sending a request to order the item along with an identifier of a purchaser of the item to a server system;under control of a single-action ordering component of the server system, receiving the request;retrieving additional information previously stored for the purchaser identified by the identifier in the received request; andgenerating an order to purchase the requested item for the purchaser identified by the identifier in the received request using the retrieved additional information; and fulfilling the generated order to complete purchase of the item whereby the item is ordered without using a shopping cart ordering model. Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenExamples of Legal ActionsAmazon.com sued Barnesandnoble.com for infringing its "single click" patent.Priceline.com (Jay Walker’s flagship company) sued Expedia.com (a.k.a. Microsoft) for infringing its "on-line auction" patent. Tom Woolston (a.k.a. MercExchange) filed to have Priceline's patent declared invalid, claiming he invented it first.Sightsound.com sued MP3.com and CDNow.com for infringing its patent, claiming it holds the patent on the entire concept of downloading music.Audiohighway.com says their patent covers Internet music. Ebay has been sued by Network Engineering Software for infringing their patent covering an “automated on-line information service and directory, particularly for the Web” Ebay has sued Bidders Edge for violating their copyrights, among other assertions, for posting listings taken from the ebay site.NTP, a so-called Patent Troll group sued and won a major case against RIM , the manufacturers of the Blackberry portable device.Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCourts Have Ruled that...Software patents are validBusiness method patents (“ways of doing”) are validAlgorithm Patents (“ways of calculating”) are validChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenThe exclusive privilege of an author or proprietor to make multiple copies of literary, artistic or intellectual productions and license others to do soThe right to copyProtects the form, not the underlying ideaThe work must be original -- but may be a derivative workIt is created -- and therefore subject to copyright -- when it is fixed so it may be perceived, reproduced or otherwise communicatedNotice optionalRegistration optional -- necessary for statutory damagesOtherwise, only actual damages Copyright DefinitionsChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCopyrights give you full rights to ReproducePrepare derivative worksDistribute copiesPerformDisplayEach can be assigned separatelyFair use allows some exceptionsFirst sale allows subsequent transferProof of infringement is not always easyInfringers may insert bogus elements, lines of code, addresses, etc.Copyright Issues - 1Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenFirst strategy for protecting computer programs if Patent Office refused patent protectionCopyright easy and inexpensiveShrink wrap or online license protects copyright Limited protection from infringementModificationsProof neededOnly in recent years has USPTO made software patents easier to getStill difficult to enforceS/W culture negativeDiscovery a challengeMany (most) programs are not patentableCopyright Issues - 2Chapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenElements of US Copyright Law"Original" works of authorshipNot necessarily "novel""fixed in a tangible medium"Such as film, tape, disk...An unrecorded game or performance is not protected"...of expression"Limits protection to "expression", not "idea"Separation of "expression" from "idea" no easy matterHow much change is necessary to create a "new" work? Usually not muchChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenTrademark DefinitionsTrademarks are tools employed to distinguish a company’s product from its competitorsCan take the form of: a name, symbol, motto, jingle, etc.Also of the Trademark family:Service mark—applies to services rather than productsCollective mark—used by orgs. to denote membershipCertification mark—used when someone, other than the owner, is using the trademarkChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenTrademark ValueThe value of a trademark is in its potential to create a positive impression on consumers which will spur them to buy your productTrademarks will also allow you to differeniate your product or service clearly from competitorsChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenTrademark ProcessProcess to RegisterConsult an attorney; ensure uniqueness of proposalDecide on Use vs. Intent-to-Use ApplicationAmendment to allege use vs. statement of useRegistration confirmation (usually 1 yr after submission)Must remain in use to maintain rights of registrationChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. Warren...A secret formula or process, unpatented, known to a limited number of individuals who use it, to competitive advantage, in the manufacture of an article of trade having commercial value..."Relevant factorsHow widely knownHow protectedHow valuableHow hard to develop independentlyOwner has demonstrable evidence that they intend to protect the secrets..e,g restricted entrance, shredded documents, need-to-know policies etc. Can only be disclosed under confidential agreementDo not exist without a contractCan be licensed as IPLasts forever -- unless no longer secretMay be preferable to patent in some cases – especially for process know-how which is difficult to detect in final product.Trade Secrets - Definition and IssuesChapter 13DefinitionConstraintsTimingMarketsIntellectual PropertyCopyright 2015 Jack M. Kaplan & Anthony C. WarrenCost of a patent: Think “$thousands”, usually less than fiftyCost of suing to protect your patent: Think “$million”, at least one, perhaps tenA decision will take yearsIf you’re lucky, you might get an injunctionExpect to settle -- everyone tries toTime to get a patent: About two years from file dateIt’s a secret while in the USPTO for first 18 monthsBut you have no other protection until it issuesLife of a patent: Twenty years from date of filingLife of a copyright: Life of creator plus 75 yearsLife of a trade secret: As long as it stays secretMiscellaneous Points on IPChapter 13DefinitionConstraintsTimingMarketsIntellectual Property