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Speaking with manufacturing industry customers is more exciting than ever. The Digital Transformation and Industry 4.0 meanwhile have arrived everywhere. However, the approach and progress vary significantly - especially, when it comes to the Intellectual Property Strategy. While some companies focus on internal digital end-to-end optimization of their product design- and production processes for shorter time to market, individualized product offerings and cost efficiency, others are taking the digital value directly to market - leveraging their enormous industry process know-how, specialized data insight and their ability to predict or optimize their customer´s value creation.

There is a chicken-egg-interdependency of business- and Intellectual Property strategy. This explains, why IP-strategy discussions without a deep understanding of business makes no sense.
Bowman Heiden – Deputy Director, Center for Intellectual Property, University of Gothenburg

The factory of the future will have only two employees, a man, and a dog.  The man will be there to feed the dog.  The dog will be there to keep the man from touching the equipment.
Warren G. Bennis

Let´s have a short excurse into research intense industries like bio-tech or pharma. The use of new developed seeding material or next generation drug is primarily not limited by the physical reproduction but by rights the patent holders reserved to protect their IP. Even, if you don´t like gene modified crop, patenting- or trademarking nature, separating the intellectual contribution from its physical representation may imply revolutionary effects to the business establishment in your industry as well. E.g. the agricultural-technology and licensing exports from the Netherlands meanwhile surpassed their traditional food production exports in value. Decades ago, the Software Industry emancipated form Hardware Industry by introducing the commercial concept of selling usage rights for software independently from hardware - usage gets monetized while the IP remains in hands of the software vendor. This revolutionary approach explains the disruptive potential software has to traditional, hardware centric business models. Again, it´s about who takes control in a digitized industry to come.

European Patent Office [EPO 2017] - Annual Report 2017 Infographics - International patent, trademark and design filings under the PCT, Madrid and Hague systems (2016)

The Semmelweis reflex or “Semmelweis effect” is a metaphor for the reflex-like tendency to reject new evidence or new knowledge because it contradicts established norms, beliefs or paradigms. Medicine men and women still work on their discipline in washing hands to fight lethal super bugs and super fungis in hospitals but no one would dispute the relevance of hygiene today.

The medical establishment was sceptic when physician Ignaz Semmelweis  found clear evidence, by 1847, that mortality through puerperal fever ("childbed fever"), could be drastically reduced by simply washing hands. He instituted a clinic-wide policy of mandatory hand washing between cutting up a body during autopsy and assisting in a birth. Despite proven success the experts of his time ignored his advice to clean and separate different work tasks. Source: npr.org - The Doctor Who Championed Hand-Washing And Briefly Saved Lives

In times where globalization turns into protectionism this seems a big ask and may create discomfort with a whole industry but it is possible. Similar to Civil Aviation back in 1944 where, the Chicago Convention on International Civil Aviation led to common, binding security standards and safety procedures which saved millions of lives. Moreover, it shows that meaningful regulation can instill trust and enable global economic growth over decades. The Chicago Convention changed the face of an industry and keeps reminding us that innovation is not finished when making the possible happen but also requires relentless work on preventing what ought to be impossible.

Source: The World Bank and B3A Data

Fix a problem before regulation makes it a crisis.
Wayne Brown, Ernst & Young - Ten lessons Financial Services can learn from other industries

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... 'Cause there's a monster living under my bed - Whispering in my ear ... Carlos Santana - Put Your Lights On ​​A while ago, I had a refreshing and insightful conversation with a customer who happened to be the editor of a major newspaper. He described how he sees parts of his traditional business erode through digital channels but he also welcomed the efficiencies of digital productivity for his employees. Still, the ambivalent coopetition in today’s business is reality - seizing opportunity jointly with the global digital giants on a worldwide level but also fiercely competing with them on your own home turf. Surprisingly, there was no sign of fear or worry - where is his confidence coming from?

... There's an angel, with a hand on my head
She say I've got nothing to fear!
​Carlos Santana - Put Your Lights On

Auch der stärkste Mann schaut einmal unters Bett.
Erich Kästner

Source: Shutterstock ​In 1965, Gordon E. Moore made a prediction, that the compute power will double every 2 years, while decreasing in relative cost. It is a race at an exponential pace meanwhile lasting for decades fueling economic growth.

Digital Transformation? - No worries, I will not join the battle on the prerogative of interpretation but connect some dots. The digital innovation meanwhile continues for decades and each phase impacted it´s own aspect of productivity or made new things possible. While the natural resources on earth are trending towards a physical limit, we see the human intellectual capacity and imagination prosper almost infinitely. ​

In skating over thin ice our safety is in our speed.
Ralph Waldo Emerson

When it comes to digital, the only thing worse than standing still is running in the wrong direction.
INSEAD Knowledge  Read more here