Archive for collaboration
At the IP Business Congress Asia 2014 (IPBC Asia 2014), a collection of IP experts from around the world are here in Shanghai, China sharing best practices and advice to help fellow IP workers. Yesterday during a panel discussing ways to build a world-class in-house IP team, a comment from the audience provided a valuable example of how management can stimulate innovation in a company inexpensively. At Aruba Laboratories, a social event was held in which a number of people cam wearing a T-shirt that said “Thought Leader.” Before the event, such T-shirts had been ordered for every person who had submitted an invention disclosure in the past year. There was buzz about what the T-shirts might mean and why some were wearing them. Then an executive spoke and congratulated those with the shirts, explaining what they meant. This simple, inexpensive act of recognition created an incentive to submit invention disclosures, which more than doubled that year. A 200% increase in invention disclosures shared–that’s a great return for a small amount of effort.
It’s important that management work to consistently recognize and show appreciation for the innovators in the company. It doesn’t require large bonuses, though I recommend that cash incentives also be used to recognize IP creation. Creating a culture of innovation above all requires the attention of management and leaders throughout the company.
There are many other issues to consider. For example, the attitude of the Legal Department in interacting with inventors can affect inventor attitudes for good or bad. When IP attorneys are aloof and bureaucratic, it can be a barrier. When they interact regularly with innovation teams and get to know and like the potential innovators of the company and take simple steps to encourage them, this can draw out important contributions. Facilitate innovation. Small things can become big barriers or big incentives. Pay attention to these factors and constantly gauge the health of your own innovation culture.
A small start-up company fighting one of the great giants of all time: it’s a classic story of David vs. Goliath, or in this case, David vs. Googleliath (a.k.a. VSL vs. Google).
Many small companies have claimed that Google misappropriated trade secrets or other IP, but rarely has Google graciously (and accidentally) cooperated in providing smoking-gun evidence the way they apparently did for Vedanti Systems, Ltd. (VSL). In this case, they allegedly left sticky notes on VSL’s trade secret materials showing their questionable intentions to take Vedanti’s technology. If VSL prevails against this giant, it may be more a case of Googleliath falling on its own sword than David being great with a sling.
VSL and their partners are now suing Googleliath for infringement of patents and theft of trade secrets in two courts. The suits are against Google (here also known as “Googleliath”) and their subsidiairies, YouTube and On2 Technologies. London-based Vedanti Systems Limited and their U.S.-based parent, VSL Communications, Inc., have turned to Max Sound for help in enforcing IP rights. The patent suit was filed in U.S. District Court for the District of Delaware, while the trade secret suit was filed in Superior Court of California, County of Santa Clara.
The complaints claim that Google executives met with Vedanti Systems in 2010 to discuss the possibility of acquiring Vedanti’s patented digital video streaming techniques and other trade secrets. Vedanti’s compression technology for streaming audio and video files is far superior to what Google had, Google’s own standards for streaming video t the time led to “jittery, low-quality video and sound for large-sized video files,” according to the patent complaint.
As part of the talks with VSL, Google had access to trade secrets such as VSL’s proprietary codec for encoding and decoding a digital data stream. That codex has proprietary techniques for “key frame positioning, slicing and analyzing pixel selection of video content to significantly reduce the volume of digital video files, while minimizing any resulting loss of video quality.”
Shortly after the negotiations began, Google allegedly began implementing VSL technology into its WebM/VP8 video codec, applying what they had learned from VSL but not letting VSL know. The WebM/VP8 video codec is extremely important for Google. It is used in many of their services and websites including YouTube.com, Google TV, the Android operating system, and Chrome web browser. They had inferior technology, but by allegedly stealing Vedanti’s, they were able to quickly advance their business at virtually no cost.
There’s just two pesky little problems for Google:
1. Vedanti has patents for its technology and is not afraid to sue. Now you might see why Google seems to really hate software patents (rather, other people’s software patents). They have been a leading force in some of the patent reform measures and related steps that have made protecting IP rights harder than ever for little guys like Vedanti. This giant, with its easy access to the White House and many other influencers, has also been an important voice against software patents, and may have helped influence popular opinion and the courts into recent devastating attacks on software patents. But Vedanti’s patents are still alive for now, so Google has cause for concern.
2. Google seems to have assisted VSL’s case by returning VSL’s trade secret materials with tell-tale sticky notes all over them showing their intent. Huh? This is really an amazing part of this story.
When the VSL Google talks ended, VSL demanded the return of its files. The returned documents were covered with incriminating Post-it notes that had apparently been left behind by Google employees. Attorney Adam Levitt claims that the notes said, among other things, that Google might possibly be infringing VSL’s then-pending patent and that Google should “keep an eye” on VSL’s technology and sweep it into a Google patent. In addition, notes warned Google engineers not to be caught “digging deep” and to “close eyes to existing IP.”
The complaint alleges that Google began to amend its preexisting patent applications and file new applications using VSL’s technology. Then in early 2012, VSL noticed that there were significant improvements to the video quality of Google’s Android operating system as well as other Google software. In June, the staff at VSL analyzed Google’s publicly available code only to discover that the code contained VSL trade secrets. Levitt asserts that the “Defendants’ theft of VSL’s trade secrets pervades virtually every website and product offered by defendants.”
“The use of new technology by established companies should be based on original creation and innovation,” said Adam Levitt, head of Grant & Eisenhofer’s Consumer Protection practice, who is representing the plaintiffs. “Vedanti Systems created groundbreaking digital video technology — technology that has forever changed the way that video content is streamed and displayed over the Internet.”
The lawsuits allege that Google willfully infringed Vedanti Systems’ patent and did so deliberately and knowingly, while recognizing the serious shortcomings of their own video streaming capabilities prior to the infusion of stolen IP.
Whether the suit will succeed or not remains to be seen, but I find Google’s lapse in leaving sticky notes on the borrowed materials to be rather hilarious, if it is true. One thing is for sure: If Vedanti’s allegations are factual, their chances of seeing some degree of justice are vastly greater by virtue of having a patent than if they did not. Software patents are essential for protecting innovations in the hugely important arena of information technology. This is the Knowledge Economy, folks, not the Iron Age. Economic growth and progress is more likely to come from advanced software and IT innovations than from hammering out better cogs and gears, and we need an IP system that understands this. Most judges and politicians ranting against software patents or patents in general do not understand this. Recent ruling that make many software innovations not even eligible for patents show that we have judges and influencers very ignorant of the physical nature of information and computer systems. Innovations like those of Vedenati are not tantamount to mere abstraction and mental exercises. They should have just as much right to be considered for a patent (provided they are novel, nonobvious, and useful) as any tool wielded by or widget hammered out by an innovative blacksmith.
Software patents matter, and they are vitally important for the best innovators of our day if they are to stand against the anti-patent giants that want anything but a level playing field. VSL vs. Google, or David vs. Googleliath, is a compelling reminder of that.
VSL’s patents in Europe are already causing pain for Google. Here is an excerpt from “Court Seizes Google’s Infringing Android Devices in Germany at IFA,” Stockhouse.com, Sept. 11, 2014:
SANTA MONICA, CA–(Marketwired – September 11, 2014) – VSL Communications, creators of Optimized Data Transmission technology and Max Sound Corporation (OTCQB: MAXD) (MAXD) creators of MAX-D HD Audio solutions, have been granted multiple preliminary injunctions from the District Court Berlin against OEM’s (Original Equipment Manufacturers) to stop the sale of certain Google Android devices in the Federal Republic of Germany at the Premier show IFA in Berlin (Internationale Funkausstellung, http://www.ifa-berlin.de/en), the world’s leading fair for Consumer Electronics and Home Appliances).
Max Sound, under agreement with VSL Communications, is enforcing intellectual property rights on VSL’s behalf and has obtained preliminary injunctions against Shenzhen KTC Technology Co. Ltd and Pact Informatique S.A., France. German Customs authorities further inspected several other exhibitors of smartphones and tablet PC’s with Android operating system. Shenzhen KTC Technology Co. Ltd. is one of the largest Chinese electronics groups operating worldwide, and Pact Informatique is a French electronics company operating in many European countries under the brand Storex. Max Sound’s actions were based on infringement of VSL’s European Patent EP 2 026 277 concerning an Optimized Data Transmission System Method. The Infringement was found on the basis that Google’s Android OS implements the H.264-Standard for video encoding, which is protected by VSL’s patent. A bailiff seized all smartphones and tablets of KTC and Pact at the trade fair IFA in Berlin on September 10, 2014. The injunctions have no automatic time limit, and opponents can file an opposition.
So what will Google do? For starters, I’m predicting we’ll see VSL and their allies soon being called some kind of “troll.” I also think we can rely on Google’s friends at the USPTO and beyond to find all sorts of reasons why Vedanti’s patents aren’t even drawn to patent eligible subject matter, regardless of how novel they may be. But the trade secret case is where I think tiny Vedanti might have a fighting chance, thanks to Googleliath’s cooperation with the sticky notes. Who said IP law wasn’t entertaining? Weird Al could have a lot of fun with this story. Suggestions for what tune to use in his spoof?
Note: The US cases referred to are captioned as: Vedanti Systems Ltd. and Max Sound Corp. v. Google, Inc., YouTube, LLC, and On2 Technologies, Inc., No. 1:14-cv-01029 (D. Del., filed Aug. 9, 2014) and Max Sound Corp., VSL Communications Ltd., et al. v. Google, Inc., et al., No. 114-cv-269231 (Cal. Sup Ct.).
- Max Sound Corp. Files Two Lawsuits Against Google, Accusing Search Giant of Misappropriating Proprietary Digital Video Streaming Technology (PRNewswire.com)
- Story at Yahoo! News
- Android Devices Seized in Europe (Stockhouse.com)
- Originally posted at JeffLindsay.com
In a previous post here, I reported a huge loan to a Chinese paper company backed by its mostly Chinese IP as collateral. The 8 billion RMB obtained by China’s Tralin Paper (Quanlin Paper in Chinese, though they use www.tralin.com for their website), one of the biggest IP-backed loans in the world, not only shows that Chinese IP is coming of age, but is now being used to bring some of their technology to the US and to create over 2,000 US jobs. Tralin Paper, renaming themselves as Tranlin Paper for some reason, has just signed a deal with the State of Virginia, obtaining state support as Tralin/Tranlin/Quanlin invests $2 billion to create a new environmentally friendly paper mill and create over 2,000 US jobs. Recent news from the office of Governor Terry McAuliffe of Virginia proudly announces the plans of “Tranlin Paper.” Also see reports at TAPPI.org and MFRTech.com.
As the West continues to decry Chinese IP and innovation, always viewing China as a source of IP theft and job loss for the US, this story may come as a pleasant surprise. Here is an innovative Chinese company that has created and protected their own IP in a green technology, used innovative financial tools (and plenty of solid Chinese guanxi) to obtain massive financing based on that IP, and then brought their money and their technology to the US to create many jobs. At least some parts of this story are going to be repeated in many ways in days to come. The old paradigm of China lacking IP or lacking valuable IP is fading.
After the announcement at ChinaPaper.net, the first report on this story to the English-speaking world, as far as I know, was my original March 6, 2014 report here at InnovationFatigue.com followed by an update here on the Shake Well blog that gave a translation of the Chinese story. It was picked up by Intellectual Asset Magazine and by World Trademark Review, but is still a generally unrecognized but important story.
China still has a long ways to go in overcoming its problems and strengthening innovation and IP, but the trends here are remarkable and should not be discounted. Meanwhile, we should welcome stories like Tranlin’s, and watch for many more to come. But for some US companies, this will mean even tougher competition that won’t be easily avoided with restrictive, protective tariffs or antidumping legislation.
(Similar account cross-posted on the Shake Well Blog.)
Breaking news from the Province of Shandong in northern China: A Chinese paper company, Quanlin Paper (also called “Tralin Paper”) has successfully used its portfolio of patents and trademarks to secure a huge loan of 7.9 billion RMB (about $1.3 billion). Potentially significant story for those tracking IP and innovation in China. The story was just reported on March 3, 2014 at China Paper (the story is in Mandarin). This is quite a big deal and may be a record for China in terms of how much value IP brought in seeking a corporate loan. To emphasize the significance of this development, the normally dry China Paper publication begins with a somewhat flowery statement based on an interview with the Chairman, who expresses surprise and delight at how much money they were able to obtain with their IP. Here’s my loose translation, followed by the actual Chinese:
“I never thought that intellectual property could have such a big effect in obtaining this loan. IP was a big part of it,” according to Quanlin Paper Company’s Chairman of the Board, President Li Hongfa, speaking today to a reporter about the 7.9 billion yuan from bank lenders that began this week. He said that this money will help them rapidly expand and seize market opportunities. For an enterprise where funds have been tight, this new addition is gladly welcomed just as the mist-covered earth rejoices in the spring rains from the night before.
OK, a bit flowery, but again, this is big news for China and things get flowery when the big news is good. This development shows that IP in China can be valuable (though the portfolio includes some international patents, though it is mostly Chinese IP). It also shows that Chinese companies, even in seemingly dull industries like the paper industry, can be innovative and create valuable IP. I haven’t reviewed their IP to assess its value, but I understand they have over 100 Chinese patents in areas such as technology for using straw and other renewable or recycled materials for making paper, with alleged benefits of enhanced environmental friendliness and cost effectiveness. Shandong Province’s IP Office has also created some publicity about Quanlin’s IP estate (see the Chinese article here), though this was before the news of the massive loan secured with the help of IP. Expect more publicity from them shortly.
Further background comes from Baidu’s wiki-like entry on Quanlin Paper.
When nations develop strong IP systems, companies can use their IP to protect their innovations. This also motivates them to take the risk and spend the money need to drive further innovation, and gives investors courage to fund growth and innovation. In this case, it helped give a lending partner (a Chinese financial organization) the courage to loan a giant sum of money to help Tralin grow. Tralin has been pursuing IP not just for tax breaks it seems but also for strategic purposes, and information coming out about this story shows that they have been developing expertise in their staff to develop their IP estate. Sure looks like that has paid off for them.
This is one of many signs that China is becoming serious about IP and innovation, and not just low quality IP, but IP that can provide significant value. For IP to apparently be a crucial part of such a large loan in this challenging economic times is a remarkably positive sign for China, in my opinion.
A hat tip to Ian Feng (Yan Feng) of Goldeast Paper in Zhenjiang, China for bringing this news to my attention.
Update: On my mostly China-related blog, Shake Well Before Serving, I offer my full translation of the China Paper article, if you are interested. The translation is in the post, “A Sign of China’s Growth in Intellectual Property: Chinese Company Relies on IP to Gain Giant Loan,” where I have cross-posted the breaking news on Tralin Paper (a.k.a. Quanlin Paper).
Contests can be one of the most interesting innovation tools. With the right challenge and incentives, creative groups from across the world can help invent and innovate rapidly. The creativity of crowds fueled by a content was just demonstrated in the Shredder Challenge contest that was launched October 2011 by the U.S. government’s DARPA (the Defense Advanced Research Projects Agency). DARPA wanted to know what could be achieved with computer tools in reassembling shredded documents to recover the originals. Since many different approaches were possible, this was an excellent candidate for crowdsourcing. Rather than hire a huge team for a short while to pursue many different paths, or use a small team pursuing many paths over a long period of time, just throw this one out to the crowds for healthy competition. The objective in this competition was to create a system for reconstructing shredded documents. The system would have to demonstrate success by reassembling the shreds from five documents whose shredded remains were posted on a website. As reported at Gizmag, the “All Your Shreds Are Belong to U.S.” team won the $50,000 prize for this contest by assembling all five documents two days before the Dec. 4 deadline. Given the hours that the winning team put into this competition, $50,000 was a very good deal for DARPA (and the American taxpayers) and not such a good deal for the winning team. If you consider all the thousands of additional hours put in by many other teams working on the competition, DARPA got quite a lot for a small investment.
Companies can and do this kind of thing as well, with varying degrees of success. Capturing the imagination of people with the skills needed for the problem is the key. Prizes help, along with fame and bragging rights. Intellectual property issues can get in the way for some companies. I’ll point to Local Motors as one of the leading examples of for-profit crowdsourcing. Their business model is sophisticated and highly refined, something I’ve written about here previously.
As for the hilarious title of the winning group, you might enjoy reviewing the history of the classic phrase, “All your base are belong to us.”
Many companies seeking innovation overlook their own internal barriers to innovation success. One of the biggest barriers can be their own attorneys. Lawyers are needed for many aspects of innovation, such as drafting the agreements with partners in open innovation and protecting IP with patents, trademarks, and other intellectual assets. The skill of a good lawyer who understands the business and its needs will often make the difference between success and disaster. But frequently non-lawyers fail to recognize how broad the spectrum of lawyer quality is and how non-standardized and diverse the practice of law can be. People with a technical or financial background, who are used to seeking and finding “correct answers” in problems of math, engineering, and accounting, might not recognize how subjective and variable in style and outcome the work of lawyers can be. More specifically, they might not recognize how ridiculous and counterproductive the work of their attorneys is.
In working with various companies seeking to promote innovation, I’ve sometimes watched in horror as a single misguided attorney not only impedes deals but even destroys relationships as he or she seeks short-term gains that destroy the long-term potential in a relationship. The tone of an attorney’s work can exude distrust and harshness at a time when trust and friendship needs to be built. Opportunities can be destroyed by an attorney urging the client to twist the screws to extort unreasonable gains from a potential partner, by pushing for extreme terms, by treating every encounter with the outside world or with inside employees as an adversarial relationship to be won at all costs. I’ve seen good innovators walk away from partnerships or even from their own companies through the antics of poor lawyers.
When it comes to innovation and partnerships, managers must not assume that their legal team know what they are doing (in spite of genuine excellence in the letter of the law), and instead must take steps to educate the attorneys about the relationships they wish to build, the tone they wish to convey, and the long-term goals they seek. Innovation success may require aligning your legal team with the not only the business goals but the principles to be pursued, the relationships to be strengthened and the spirit and character they wish to show.
Don’t take Shakespearean extremes. Rather, first simply align all you lawyers. Then you’ll be a little more likely to overcome innovation fatigue.
The landscape of higher education will soon witness dramatic change as technology coupled with new business models provides customized education to more people at lower cost. For unprepared institutions, the winds of change may be disruptive. Important aspects of the future of higher education are illuminated in The Innovative University: Changing the DNA of Higher Education from the Inside Out (John Wiley & Sons, 2011), a landmark book by Clayton Christensen of the Harvard School of Business and Henry J. Eyring, Vice President of Academics at Brigham Young University-Idaho. Clayton is the man who gave the world a new lens to better recognize the threats and opportunities of “disruptive innovation,” and Henry Eyring at BYU-Idaho is a thought leader who has chronicled the details of a successful experiment in disruptive innovation in education at BYU-Idaho. The collaboration of Christensen and Eyring represents a pleasantly surprising combination of talent and insights, one that is fitting given the influence of Harvard on BYU-Idaho’s journey of innovation.
Henry J. Eyring kindly allowed me to interview him about this forthcoming book that is scheduled for release later this summer. He displayed great passion for the mission of taking the blessings of education to more people at lower cost, and applying new tools and business models that can make this possible without sacrificing quality. Henry is concerned that the cost of a 4-year college degree has increased by 2 to 3 times since the 80s while starting salaries for graduate have remained flat in real terms, leaving universities vulnerable to classic disruptive innovation in which a once easy-to-ignore “inferior,” low-cost alternative improves gradually to the point where it can become a serious threat.
Online course content, once viewed as inadequate, is now generally accepted by students and can result in better educational performance, especially when used in hybrid models with face-to-face elements and with adaptive tools that respond to what and how students learn. Online models can allow a course to be customized to meet the learning styles and needs of a student, improving the quality of education. “Existing universities must view online learning as a sustaining innovation for their models,” Eyring says. Failure to embrace the potential of online learning will leave universities vulnerable to disruption, both from competitors and from budgetary pressures. “Even the best universities will be pressed to show better ROI.” They may need to become less universal, no longer offering the same graduate programs in all fields as they do in science and engineering. There is a need to change the very DNA of the university, the thrust of The Innovative University, a remarkable fruit of the collaboration between Henry Eyring, who began writing about the BYU-Idaho experience in 2008, and Clayton Christensen, who teamed up with Henry to add the framework of disruptive innovation and further insights from the Harvard perspective to complete this scholarly but highly readable work.
Like many of the best books about the future, this one is based upon a great deal of history. Much of the book explores the stages of development in education and business models for two very different schools, Harvard and Brigham Young University-Idaho (initially Bannock Stake Academy, then Ricks College and more recently BYU-Idaho). The scholarship is outstanding, the writing crisp and clear, and the stories told interesting and instructive. Some readers may not wish to grasp the historical foundations of these universities and the currents of change that have brought us to our present state. Fortunately, the book is organized to allow the impatient to turn to the latter portions of the book (say, Parts Four and Five) to access major conclusions and recommendations.
The authors chronicle the rise of BYU-Idaho from its humble rural Idaho roots to a bustling campus of over 22,000 students. Rather than ascend the traditional “Carnegie ladder” of adding ever more expensive programs and costly benefits, BYU-Idaho recently embarked on a path aimed at getting the most from the heavy investment in the physical campus and staff, while offering more students an enhanced education at lower cost. Much of this was driven by a Dr. Kim Clark, who came to BYU-Idaho after serving as a noted and respected Dean of the Harvard School of Business. Clark built on the foundation of major reforms implemented by the previous president, David Bednar. Change was also driven by the vision of leaders in the church that owns and oversees BYU-Idaho, The Church of Jesus Christ of Latter-day Saints. The resulting innovations include:
- a new trimester schedule that keeps the campus in heavy use year round;
- dramatic revision in course offerings such as modular majors and carefully tailored GE courses making it easier and less costly for students to switch majors or to customize their education;
- strengthening of internship program to better prepare undergraduates for employment;
- elimination of expensive inter-collegiate sports programs;
- combining online content and face-to-face instruction to reach more students and improve education (with many innovations on the path to high-quality online content);
- augmentation of faculty teaching with peer-to-peer assistance in which students who understand the material efficiently help their peers;
- extension efforts in several cities where online content is coupled with face-to-face mentoring to reach more students;
- establishing a common “Learning Model” for education, with emphasis on learning experiences and case studies that can be enhanced with peer-to-peer interaction and supplemented with online content; and
- elevating faculty pay to above-average levels to compensate for the additional effort required of the faculty to make the more intense BYU-Idaho system succeed.
The importance of online content as an element of disruptive innovation is emphasized in the book, which offers numerous valuable insights into the business models and applications of the technology that have brought success to BYU-Idaho, as well as the foundations for Harvard’s success and leadership in education. Those interested in either school or in higher education in general should appreciate the historical development and insights. Many other innovative schools are also highlighted in case studies throughout the book.
The authors use the theme of DNA throughout the book, and argue that successful educational reform requires changing the DNA of a university. “Genetic reengineering” is needed to build new models and systems that will be sustained over time and grow. The book is aimed at identifying and spreading the new genes that will result in healthier, stronger education. For those that resist and cling to the old DNA, disruptive innovation could one day overtake the universities and leave them unable to compete and unable to serve, saddled with shrinking resources, higher costs, and fewer students willing to endure their increasingly less competitive programs.
The learnings from the journeys of BYU-Idaho and Harvard University are extended to the broader challenges faced by institutions of higher education worldwide. How can they adapt their programs to be more efficient, to better serve more students at lower cost? How can they provide education without requiring students to take on a mountain of debt? How can education be more personalized, more customized, to help students better prepare for the careers or graduate educational experiences they desire? How can universities better achieve the missions of teaching and research? What tasks do universities really need to focus on for the future? The authors offer valuable guidance, based on extensive research and insights.
Though higher education has remained relatively immune from the pressures of disruptive innovation for years, the power of new business models and technologies coupled with social and financial pressures will lead to change that may surprise and even pummel many universities now on the traditional path of making education more expensive and elite. Christen and Eyring offer a monumental guide to avoiding the pain of disruption and capitalizing on the promise of positive disruptive innovation for those institutions with the courage and vision to become an innovative university. For educators, policy makers, parents and students, I recommend The Innovative University for breakthrough thinking that can help transform education.
Update, May 10, 2011
Further information below about BYU-Idaho is based on input from Steve Davis, their Alumni Director, derived from some online comments.
Since the decision in 2000 by President Gordon B. Hinckley to turn Ricks College into BYU-Idaho, the university has grown from a capped enrollment of 8,200 students on a traditional fall/winter track, to over 14,000 students each term and over 22,000 annually — largely because of the innovative 3-track (year round) enrollment. BYU-Idaho has also launched several online initiatives, including the Pathway pilot program, discussed several times in The Innovative University, that enables students to earn BYU-Idaho professional certificates, associate, or bachelor degrees while staying at home. The online offerings at BYU-Idaho are different than independent study in that each course is semester and cohort based. Students are part of cohorts, groups of students they will interact with to enhance the educational process. or example, students in an online section could have classmates from other Pathway sites, as well as regularly enrolled BYU-Idaho students.
Online content is coupled with face-to-face interaction at a local physical location to help students in multiple regions away from BYU-Idaho. Students meet weekly and take an Institute class for BYU-Idaho credit, but the remainder of their curriculum is online. This program is now operating at 23 domestic sites (all LDS Institutes) as well as Accra, Ghana, and Puebla, Mexico.
Allergan (NYSE: AGN), the major multi-specialty pharmaceutical company with expertise in ophthalmology and beauty, has been on a tear in the stock market, driven by its bold approach to innovation. The market cap, now $25 billion, has roughly doubled in the past year. I heard CEO David Pyott speak to Jim Cramer on Mad Money last night and am impressed with the financial commitment to innovation. I am also impressed with the new product development work that is done in extending great products to new fields. For example, Botox® (Botulinum Toxin Type A), used so successfully for cosmetic surgery, also has potential to modify hyperactive bladders or juvenile cerebral palsy. Their expertise in neuroscience is also being applied to migraine headaches, where a promising product is in Stage 3 clinical trials. The Botox® approach to skin beauty is being enhanced with Juvederm® hyaluronic acid (HA) dermal filler formulation, a material that can be injected into the skin to fill some wrinkles. They are also addressing the challenge of obesity with their FDA-approved laproscopic band, a less invasive approach to bariatric treatment. In ophthalmology, one of their most profitable segments, a host of products treat eye conditions such as glaucoma or dry eye.
Allergan’s products are well suited for the needs of the aging baby boomer population and appear to be riding a wave of technical success well matched to a demographic wave. Many growth opportunities still exist, and with the heavy investment in innovation and research, Allergan appears poised to continue growing, something that is unusual for many large pharmaceutical companies these days.
The company began in 1950 when chemist Chemist Stanley Bly developed anti-allergy nose drops and got the help of his friend, Gavin S. Herbert Sr., who owned a pharmacy. Two years later, after listening to advice from a pharmacist about patient needs, they developed an eye drop with anti-histamine, the first such eye drop in the United State. Sales skyrocketed and Allergan became a major player in ophthalmology, which today makes up almost half of their business still.
Listening to market feedback and acting on clues and suggestions from knowledgeable people like a pharmacist allowed Allergan to quickly shift its focus and its product array in the early days to address an important unmet need. This led to eye products, not just nose drops, and the opportunity in ophthalmology that will continue to be huge for Allergan, now representing nearly 50% of sales, if they can keep an eye on innovation.
During the CoDev 2011 conference in Scottsdale, Arizona, I was impressed with a speech given by a local CEO, John (“Jay”) Rogers of Local Motors in Chandler, Arizona. This small company designs exciting new vehicles using design contests that are open to the public. Their rapidly growing community (12,000 participants so far) contributes designs and feedback to help in the selection of potentially successful concepts that Local Motors will then build locally in a microfactory, with final customization of the appearance being achieved with an environmentally friendly and durable vinyl wrap that eliminates the need for paint and gives the owner freedom to have a unique look. The final assembly is done with hands-on help from the new owner, who becomes intimately familiar with the vehicle and with its maintenance.
I was impressed enough with what I heard that I changed my evening plans to drive down to Chandler and attend an open house at Local Motors hosted by Jay himself. He allowed photography, so below you can see some views of Jay speaking and some shots of his vehicles in various stages of construction. The Rally Fighter that I am standing by sells for $59,000. It’s an incredible rugged, safe, and fun car that is legal on the road but a load of fun off road as well. It’s able to do very nice jumps.
These cars weigh much less than other cars their size, offering a huge bonus in mileage. Great engineering and innovation at many levels makes this possible.
The microfactory concept involves assembly of a small number of vehicles at a time in sustainable, efficient processes.
One of the highlights of the past few years for me has been the annual CoDev conference on open innovation sponsored by the Management Roundtable. Top-notch speakers on open innovation and collaboration will speak, sharing their experiences and insights. Speakers from companies like Procter and Gamble, Colgate, Pepsico, General Mills and ConocoPhilips (one of the new companies speaking this year) have much to share. It’s a great venue for networking with many thought leaders and experts. Many of the participants are executives, directors, or managers responsible for collaborative innovation and are the kind of people you ought to know if you or your company care about advancing your approach to innovation.
This year Innovationedge will be conducting a pre-conference workshop on innovation and IP strategy. I hope you’ll be there with us!
The setting is Scottsdale, Arizona, which is the place to be in January. Beautiful region! The conference runs from Jan. 24-26, 2011.
This year I’m especially excited about one of the key-note speakers, my friend Adriano Amaral from Brazil. He was one of the visionary leaders of the government in Brasilia in the past decade who transformed the economy of that state into the strongest economic engine of Brazil. He is a tremendously successful CEO of a for-profit business, POSEAD, and of a non-profit educational organization, CETEB, both of which have transformed education for speakers of Portuguese and Spanish with a remarkably successful business model. He will share some of his story, a tiny part of which I’ve shared previously on this blog. Connecting with this influential leader from Brazil could easily be worth the price of the conference for some of you.