Arm updated track h
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The document discusses when it makes sense for a company to leverage external intellectual property (IP) versus developing everything internally. It provides 10 factors to consider in the decision, including expertise, functionality, standardization, strategy, ecosystem, time-to-market, cost effectiveness, roadmap, market dynamics, and risk. While developing all IP internally can provide more control, the reality is more complex given technical requirements, time and cost constraints, ecosystem dependencies, and market dynamics. The key is to evaluate each potential use of external IP across these factors and work backwards from customer needs to place strategic bets that leverage partnerships and expertise.
Arm updated track h
- 1. When Leveraging External IP Makes Good Sense ... and when it doesn’t Eric Schorn Vice President Marketing Processor Division ARM
- 2. Invent Everything Given : Enough expertise Correct design point Necessity to differentiate Fragmented competition Ecosystem independence Luxurious timeframes Generous funding Compelling future roadmap Accepting customers High risk tolerance You should invent everything yourself It is not that simple...let’s dig into the detail
- 3. Invent Everything? Given : Enough expertise – Expertise Correct design point – Functionality Necessity to differentiate – Standardization Fragmented competition – Strategy Ecosystem independence – Ecosystem Luxurious timeframes – Time-to-market Generous funding – Cost effectiveness Compelling future roadmap – Roadmap Accepting customers – Market dynamics High risk tolerance – Risk You should invent everything yourself It is not that simple...let’s dig into the detail
- 4. 1. Expertise Simplicity on the surface 1000’s of design decisions Variety of disciplines Cumulative experience Known, unknown dependencies
- 5. 2. Functionality Technical requirements Tradeoffs, alternatives IP is a product business Engineer once, license many Many stakeholders, many dependencies Feature implications
- 6. 3. Standardization Differentiation is an imperative Value add Customer Standardization enables ecosystem Other people adding value to your product
- 7. 4. Strategy Control..why? Momentum Responsibility, accountability Future investment Credibility halo 1970s Vertical Suppliers Fully Vertically Integrated 1980s ASIC Vendors System Manufacturer ASIC Vendor 1990s Fabless Semis Design & Distribution Manufacture EDA Today IP Driven Design Design IP EDA Manufacture Fab Equipment
- 8. 5. Ecosystem Special purpose, general purpose Slipstream investments Past Future Facet of reuse
- 9. 6. Time-to-Market Basic premise Production proven On the shelf Roadmap Risk, reward Engagement, opportunity Aligned interests
- 10. 7. Cost Effectiveness Marginal cost of IP transaction Perceptions, precedent, pay checks, partners Making movies Rights, value Arch. Subscription Implementation Term Single Use Design Foundry Program Academic / Research DesignStart
- 11. 8. Roadmap Megatrends, market knowledge, discontinuities Innovation Investment Alignment
- 12. 9. Market Dynamics Customers Competitors Suppliers, substitutes Switching Demand generation
- 13. 10. Risk Stuff happens Understanding, competitive advantage Reducing risk elsewhere Partnership, relationship
- 14. Conclusion Good reasons to outsource IP, but not all IP Complex scorecard, including Work from the end-user backwards Place justified bets Relationships, partnership Collaborative differentiation Expertise Functionality Standardization Strategy Ecosystem Time-to-market Cost effectiveness Roadmap Market dynamics Risk
- 15. Thank You