IP Management in Maintaining the Company's Profitability, Growth, and Competitive Edge Juan Argueta, Senior IP Analyst, SAP America, Inc.

Abstract

To satisfy customer demands while not only remaining profitable, but increasing profitability, SAP Service Portfolio Management drives Service Productization by relying on a solid IP Monetization Framework.

I. The Customer Pain Points
   a. 5:1 cost of services to software ratio
      i. Decrease TCO/TCI of Services;
      ii. Faster ROI
   b. Customer requests for streamlining reuse of content;
      i. Dissatisfaction with "starting from scratch;"
      ii. Consistency and quality of reusable content;
      ii. Repeatable approaches
   c. Clarity of the Services Portfolio
      i. Reduction and Bundling of "Services"
      ii. Strategic Portfolio Management for Services
II. Solving the Pain points:. While remaining Profitable
   a. We are primarily a Software Company
      i. Recognizing Revenue for IP within the Services Business Model
         1. From "Licensing time/bodies" to
         2. Licensing content
         3. Business model innovation from "Man days" to "content licenses"
      ii. Effects on the "Consulting business"
         1. Lost Profitability if remaining unchanged ;
         2. Profitability saturation point?;
         3. Risk to VSOE
         4. Lost revenue potential
         5. No mechanism for capturing revenue beyond consulting effort.
   b. Protecting and valuating reusable content
      i. Interaction with cross-corporate functions
         1. Explaining our business
         2. Explaining our content
         3. Bridging the gap between legal and business
   c. How IP plays a central role in the Services Portfolio of the future
      i. "Productized Services"
      ii. Fixed-pricing models
         1. Costs for core components + consulting effort bundled
         2. Predictive pricing
      iii. Expanded Monetization Use Cases
      iv. Redesign of future services to minimize portfolio
      v. Technical protection measures?

Speaker Biography

Juan Argueta graduated Cum Laude from Rutgers University School of Law, Camden New Jersey in 2008. He joined SAP in 2007, where his focus on Intellectual Property was leveraged in the newly formed Service Portfolio Management organization. In this role, he is responsible for IP Management of the SAP Service Portfolio, including strategy, cross-functional alignment, and end-to-end monetization preparation for Services. In this challenging role, Juan has learned more about the groundwork and elements crucial to leverage IP in a large international Corporation than he could have hoped to accomplish anywhere else.