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Bulletproof Your IP Strategy through Business Analytics

An excellent and easy to understand example of this strategy is cited by Davenport and Harris in their book, Competing on Analytics.

The cited case study is Netflix. The very nature of Netflix’s business requires them to track customer rental habits and it should come as no surprise that they use that data to drive business decisions. One aspect of their business is distribution rights for DVDs.

A very basic decision in this part of their business is the appropriate volume of DVDs to purchase in order to distribute a given film. If they order too many copies of a film with very little interest among their customer base, the distribution obviously will not be profitable. If they do not order enough, they will not be able to meet the demand, fracturing their sales model, which is to say customers will stop subscribing. Netflix promises their customers they will receive their DVD order in about one business day and there is no contract; cancel at anytime.

Given their business model, it is critical that they use analytics to optimize their distribution decisions. In this example the company bought the rights to Favela Rising, …

Bulletproof Your IP Strategy Through Business Analytics – Introduction

Today there is a new and growing trend in business which relies on analytics to drive critical decisions and to be distinct from the competition. Like most disciplines in which success can be objectively measured, business is a blend of art and science.

In his book Sun Tzu and the Art of Business � Six Strategic Principles for Managers, Mark McNeilly writes “Like Sun Tzu’s Age of the Warring States, today’s business world is one of continual conflict between companies as they strive for survival and success across the globe. Faced with scarce and expensive resources and an ever-changing environment, competitors seek even the slightest advantage.”

The art of business can’t be overlooked, but neither can the science of making strategic decisions based on analytic data. Data-driven decisions can help to ensure that your decisions are sound and are aligned with your business strategy, which should also be based on keen market analysis.

Analytic data can provide critical insights into market trends, your competition and even your intellectual property management practice, which now typically governs two thirds of a company’s asset value. Because your IP composes so much of your company’s …