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A Structure for Funding Deferred Revenue Initiatives within an Organization

IP.com Disclosure Number: IPCOM000010785D
Original Publication Date: 2003-Jan-21
Included in the Prior Art Database: 2003-Jan-21
Document File: 2 page(s) / 45K

Publishing Venue

IBM

Abstract

Contained here is a method of funding "deferred revenue initiatives" within an organization.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 49% of the total text.

Page 1 of 2

A Structure for Funding Deferred Revenue Initiatives within an Organization

This invention describes a novel business process for funding the development of deferred revenue initiatives. The primary focus and intention of this disclosure is to enhance the creation of Intellectual Property (IP) within R&D organizations, numerous other applications and benefits exist. This process can be applied to either classical Intellectual Property assets or it could be applied to Intellectual Property Services Components (unlicensed or unregistered products offered for sale to outside interests), and it could be applied to the development of internal reuse assets. Furthermore, it has applicability to funding any employee activities which have long-term, "deferred benefits" to the corporation, but the pursuits of which are counter to the immediate financial aims of an employee's department.

Corporations have a vested interest in an ever-expanding asset portfolio, as executives increasingly see the value of intellectual capital, either for external or internal use, as a lever in an organization's business strategy. A problem arises, however, in that line organizations and their management have quarterly and annual revenue/profit targets that must be met, and as such, any activities not contributing to immediate revenue flow must take a lower priority. This is particularly problematic when one considers that many large corporations reorganize themselves on a regular basis, such that a manager of a given department may or may not have the same functional responsibilities several years later, when intellectual property payoffs might be expected to accrue.

This invention specifically describes a method for funding invention development by line organizations in a manner that favorably impacts revenue/profit attainment while allowing for the desired growth in IP development. The twin goals of expanding the corporate IP portfolio and having line organizations meet profit and revenue targets are thus jointly attainable. Companies can benefit from IP produced by any and all employees. Line organization employees can devote some portion of their time to IP development while at the same time contributing to revenue and profit targets of their respective organizations. This invention addresses the problem of funding personnel to create intellectual capital while functioning in an operational organization with revenue and/or profit measurements. The conflict which this invention resolves is the one based around two contrary goals of a corporation: to develop a broad IP portfolio (achieved by all employees contributing), counter-weighted by the line management's need to have their employees drive immediate revenue and profit, via pursuit of nominal, i.e., "day job" duties. In this invention, the Corporation creates a funding pool or pools to be administered by a new organization or an arm of the existing R&D group. The existence and funding of this pool(s) ar...