Supply Chain Management:
Managing Intellectual Property.
Presented by Dr. Darren Prokop, Professor of
Logistics, University of Alaska Anchorage.
What is supply chain management?
It is the linkage of organizations in
order to meet some strategic goal.
Linkages could be achieved through contractual
relationships or through mergers and acquisitions.
Linkages could be more informal and involve a joint venture or
strategic alliance covering a more limited business activity.
In any case, the intent of supply chain management is to foster trusting
relationships whereby the partners are more valuable together than apart.
Raw materials, sub-assemblies and finished goods, as tangible items, are part
of a value adding process as they proceed downstream along a supply chain.
Support services as intangible items, also
provide value as they proceed downstream.
Of course, another source of value that firms
leverage is called intellectual property.
If these are secured by law, they are akin to
placing a wall around the firm's place of business.
Intellectual property (IP) is a creation of the mind;
and is intangible, (i.e. ideas, knowledge and skills)
Intellectual Property Rights (IPRs) involve the right
to: own, publish, sell, distribute or license IP.
Since IP can be owned, it is an asset of marketable value, but it is
state-sanctioned monopoly ownership(albeit for a specific period of time).
Intangible items are easy for rivals to capture
and as such, create a disincentive to develop IP.
Monopoly control (for a period of time) allows profits to be earned,
thus validating the time and money put into innovative thinking.
Why is IP being intangible
easy to capture?