The management objectives enumerated above define the main processes that an IPM program should cover. Exhibit 13.1 represents a framework for the implementation of the IPM stage at both the strategic and operational levels. The IP audit is a preliminary process aimed at creating the IP portfolio, which provides the platform for effective management of the primary IP of the organization both on the strategic and operational levels. At the strategic level, the portfolio is used by top management to forge the appropriate strategies for leveraging IP, for both competitive positioning and commercialization purposes. On the operational level, the portfolio is used by the IP strategy unit and IP synergy teams to operationalize the competitive and commercialization strategies respectively. Three main changes are implemented to operationalize the various IP strategies and to make IPM the job of everyone, and thus develop the competency of managing IP for maximization of value. The main processes are:
• Strategic Level
• Process 1. Undertake an IP audit and create a portfolio of the primary form of IP to uncover the strengths and weaknesses of the IP portfolio, and enable the spotting of opportunities and risks. This step should aim at creating portfolios that present a snapshot of the organizational IP wealth while at the same time highlighting which of the IPs are of strategic importance. The audit should result in the identification of patents in relation to the businesses of which they are of value (see also about money investment).
• Process 2. Decide on IP competitive strategies to enable the use of IP as a competitive weapon to prevent competition from gaining a stronghold in a certain market, protect the organization's competitive positions (short to medium term), and acquire new IP in areas where the organization can develop a market leadership position (long term). Licensing is used here to serve competitive purposes, and to develop new IP for sustaining the business competitive advantage (see also about how to invest).
• Process 3. Decide on the appropriate IP commercialization strategies to leverage IP as a business asset by seeking commercialization opportunities in related and analogous markets, and in various geographical locations. The IP should be viewed here as a bundle of rights that may be separated for use in various business transactions (see also about opportunity investment).
• Operational Level
• Process 4. Create IP strategy units at the business unit level, or product division level for consumer products organizations, to define and manage the IPs that are the basis of the unit's competitive advantage. This unit should define the areas in which these IPs will be utilized as competitive weapons and is responsible for maintaining them in that regard with the legal department (see also about intellectual capital management).
• Process 5. Create cross-functional, cross-divisional IP synergy teams responsible for leveraging the IPs that can be used as business assets across the organization as a whole then outside the organization by operationalizing the commercialization strategies. These teams are responsible for developing a commercialization plan in conjunction with the IP strategy unit, concerned business units, and functional departments.
• Process 6. Devise and implement an IP program designed to raise IP awareness and make IPM the job of everyone in the organization. This is done by creating the right culture that is protective of the organization's own IP and preventive of infringing the IP of others (see also about money investment).
• Process 7. Provide the tools and methods that enable the use of IP as both a competitive weapon and business asset, hence valuation methods and tools.