A lot of people see "Sustainability" as static. In fact, true sustainability is dynamic and at least have 3 levels: Policy, Ecosystem and Innovation.
- 1. Presented by: Al KWOK () Founder, Intl. IP Commercialization Council Vice Chairman, Asia Pacific Cloud Apps Alliance Co-founder & Governor, Savantas Policy Institute Founding President, CASPA PRD Chapter Former VP & CIPO, NetLogic Microsystems IIPCC Confidential & Copyright Protected 1 Sustainability means Continuous Improvement: Change is the Only Universal Constant Jan. 19, 2014
2. Preface ! It occurs to me a lot of people including policy makers have a static view about sustainability. ! Sustainability should be viewed dynamically and from at least 3 levels: ! Policy (for Law-makers), ! Ecosystem (for a society), and ! Innovation: Individual/Corporate (grass root) ! We are all together in a spaceship called Earth; its life-supporting system is deteriorating. Jan. 19, 2014 IIPCC Confidential & Copyright Protected 2 3. Philosophical Background of Sustainability Jan. 19, 2014 IIPCC Confidential & Copyright Protected 3 4. The True Meaning of Sustainability ! The Universal Cycle (Buddhism) ! (1) Accomplishing () ! (2) Dwelling () or Status Quo ! (3) Corrupting () or Deteriorating ! (4) Emptying () - or Dying () ! The Chinese Holiest Book ! The Book of Change - I Ching () ! Sustainability means: ! Cycles of Change: the Learning Curve/Pattern ! One must stay away from (3) Corruption because it will inevitably lead to (4) Death Jan. 19, 2014 IIPCC Confidential & Copyright Protected 4 5. Sustainability means Change (Improvement) ! The Core Messages are: ! Change is the Only Constant of the Universal ! To avoid Corruption, one must Change ! Everything must be expired Lifecycle must end (for a new one)! ! Perpetual Special Interests will lead to Corruptions! ! When we Dwell too long, inevitably we Corrupt ! Forms of Corruption: complacency, status quo, protectionism... ! Only the Paranoid (for Change) Survive by Andrew Grove ! One must stay on the Learning Curves of Change: ! In-between the stages of (1) Accomplishing and (2) Dwelling on a different curve of a family of curves ! Short Dwelling means Consolidating. But then, Moving-on to improve ! As we improve (change for better), we are on a new Learning Curve ! One may change the Game Game-changer! ! IC -> IT -> IP Evolution enabling KB Economy is game-changing Jan. 19, 2014 IIPCC Confidential & Copyright Protected 5 6. Pillars for Knowledge-based Economy (KBE) IC IT IP Hardware Network Know-how/Content Functionality Physical devices Connectivity Experience sharing Scalability Moores Law Metcalfes Law TBD!? Scaling Factor 2X/18 mon. Value ~ n2 Value ~ XR (X, R >1) Disruptive Driver CMOS (IDT) IPv4/6, Internet, QoS (NMI) Apple iTunes -> Unified IP Pooling Driving Product/Service Memories & CPU => SOC QoS, Mobile Multimedia Standardization for scaling Start Time ~1985 ~2000 ~2015? Mkt. Size (20 yr) ~$300B Trillions Zillions? Jan. 19, 2014 IIPCC Confidential & Copyright Protected 6 Evolution of Knowledge-based Economy (KBE): IC -> IT -> IP Value of IP is based on its Reusability and Ability to Share: The more it is reused, the higher its value is No physical limitation: IP can be used by many users at the same time The impact of free-market IP sharing on KBE is immeasurable 7. The Impacts of Game-changers (IC, IT & IP) The Pillars of Information Age established by Game-changers for Benefits to mankind (that are far-reaching and immeasurable): ! CMOS (led by IDT) became the Mainstream IC technology solving the Moore's Law scalability challenges (as the only way for power reduction) and starting the Microelectronics Age and then the Information Age ! Digital processors (led by Intel, Motorola & TI) replaced Analog ones as the major means for IC designs solving all application challenges ! Foundry business model (led by TSMC) broke the restrictions enabling top IC designers (without their own fabs) to productize their ideas and be their own bosses (making IC/SOC applications covering all walks of life) ! Internet (led by Netscape, Yahoo & Cisco) replaced Telecommunication Network as the Backbone for global communications and Information Age ! Knowledge-based processors (led by NetLogic Microsystems) replacing (software) hashing algorithm providing the only deterministic routing decision solution to handle multimedia traffic latency challenges satisfactorily to realize interactive on-demand QoS ! e-Platform for on-line sale of books (led by Amazon) or Music with copyrights protection (led by Apple) on iTunes It has been much easier to initiate Game-changing in Productive Force (technologies) than Production Relationship (business models) in human history, because new Productive Force triggers the re-organization or new formation in Production Relationship Jan. 19, 2014 IIPCC Confidential & Copyright Protected 7 8. The Learning Curve/Pattern: How to Learn Time-effectively is the Competitive Advantage of Knowledge-based Economy (the Information Age) Jan. 19, 2014 IIPCC Confidential & Copyright Protected 8 9. Our Learning Curve/Pattern ! School setting (Pay to Learn): ! 1 -> 6 yrs.: Child ! Open-minded, Curiosity-driven ! Character forming (Instinctive), EQ, IQ ! 6 -> 12yrs.: Kid ! Judgment forming (Cognitive): Morality, Equality, Fairness, ! Role models: Parent, Teacher, Relative, Peer, Friend, ! 12 -> 18 yrs.: Teenager ! Individualism forming: Challenging authorities, Identity-asserting ! 18 -> 22/24 yrs.: University/undergraduate ! Social skill (Balance) forming: College lifestyle (Transitional) ------------- Huge Gap (for Corporate to absorb) ------------- ! Corporate setting (Paid to Create Values): ! Individual Contributor: Contributing as an Individual ! Team-builder/Deal-maker: Managerial ! Path-finder / Ecosystem-builder: Executive Jan. 19, 2014 IIPCC Confidential & Copyright Protected 9 10. IP Learning Curve in My IC/IT Ind. Career ! AMD (1979-1983) lost to Intel for lack of IP strategy ! No comprehensive IP portfolio development game-plan ! Missed-out acquiring DEC/Alpha IP portfolio (vital for clock management) ! IDT (1983-1988, IPO in 1984) failed to stay world-class ! The Disruptor introduced CMOS as the mainstream IC technology ! Top management did not believe in IP strategy & it could not be great! ! Failed to adopt Continuous Innovation as corporate culture ! VTI (1988-1989) formed JV with Hitachi ! A few trips to Japan and understood Japans limitations to innovate ! QSI (1989-1995, IPO in 1996) as a member of its founding team ! Adopted from start foundry outsourcing to Japanese partners ! Licensed technology to Japanese foundry partners for seed funding ! Missed out partnering with TSMC in 1989 (due to tunnel vision!) ! IPO was delayed for ~2 yrs. by a frivolous IP infringement lawsuit from a competitor ! PMC-Flash (1996-1998, acquired in 2012) as its CIPO/VP ! Adopted IP Licensing business model for its PMOS-Flash technology ! Failed to seize the window of opportunity to make its tech. mainstream ! NMI (1998-2002, IPO in 2004) as its CIPO/VP ! Made NSE & KBP as the Disruptor revolutionizing IT infrastructure (QoS) ! IP strategy and execution game-plan from start for IP domination IIPCC Confidential & Copyright Protected 10Jan. 19, 2014 11. Invention/Innovation vs. Game-changing Types of Invention/Innovation: Its percentage 1) Fool-hearted: >50% ! Purely subjective with little differentiating market value 2) Incremental improvement: >30% ! Some market value but none significant 3) Transitional: 70%)profitmargins Market Positioning - Product Focus IIPCC Confidential & Copyright Protected 31Jan. 19, 2014 32. Raising Values of a Product (IP is the Core) " Price = Value to Customers => Price = Mftg. Costs + Services + Embedded IP License + Brand " Pre-sale services mean design- win efforts providing solutions to address customers problems " This is the best sources of innovation and ideas for the next- generation products " Post-sale services mean reducing customers costs of ownership, extending the useful lifetime of the product, generating recurring sales " Embedded IP licensing means the customers can use the product IP for their own product uplifting & differentiations - e.g., Intel Inside " Brand recognition means the customers recognize the product and its maker for superb quality, performance, reliability & services IIPCC Confidential & Copyright Protected 32Jan. 19, 2014 Manufacturing Cost () Pre- & Post-Sale Services () Brand Recognition () Embedded IP Licensing (IP) IncreasingValues() Price = Values to Customers ( = ) >70%PM ~10%PM >60%PM >40%PM Mkt. Cap. / Intangible Asset: 1)Apple: ~US$393B / >99% 2)Foxconn: ~US$3B / 70%PM ~10%PM >60%PM >40%PM Demand Side Demand Side Demand Side Supply Side OPEN OPEN PRIVATE Trademarks Utility Patents, Design Patents, Copyrights Trade Secrets (Know-how) Only 2nd G => 3rd G => Differentiating Value Creations => 2nd G => 3rd G => Business Model => 2nd G => 3rd G => Service/Product Roadmap => 2nd G => 3rd G => Application/Technology Roadmap => 2nd G => 3rd G => IP Portfolio Development => 2nd G => 3rd G => The next innovation ideas come from customers (CRE) & Stress Tests identifying (1) The weak-links in product design & performance and scalability (2) System (architecture) integrity and scalability (elasticity) issues (3) The bottlenecks for scalability (technology and manufacturability roadmap) NetLogic Microsystems is a good benchmark for SMEs as innovators Close collaboration between the customer (CRE) and the vendor Mission-&-Time Critical Requirements along Demand-chain IIPCC Confidential & Copyright Protected 34Jan. 19, 2014 35. AK comment: Considering the facts that NM is much less than 1/10 of the size (in revenue) of the other 9 top-ranking companies and much younger ( US$3.7B @ 2011 M&A (14.