CENSIS white paper: Intellectual Property in Business

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Intellectual Property in Business: IP basics, IP management, IP strategy IP Strategy for Expanding Companies and Corporates (continued) 18 Process for developing IP strategy Setting the goals for a business or an IP strategy is a difficult task fraught with risk and uncertainty. Although the latter cannot be avoided and basically represents an irresolvable fact of life, diverse decision-making processes can aim to minimise that risk. A useful and helpful model is offered by the so-called ‘OODA Loop’ (see Figure 4) 79 , which has gained popularity in business as a tool to facilitate the decision-making process in a very turbulent and dynamic environment. Action Decision Observation Orientation Figure 4: Simplified OODA Loop OODA stands for Observe-Orient-Decide-Act and is a model of an adaptive decision-making cycle developed by military strategist Colonel John Boyd and published in a series of essays written between 1976-1987 (Figure 5, shows an OODA Loop completed by him from 1995). 80 Boyd has been ranked as one of the outstanding general theorists of strategy of the twentieth century 81 , and before the OODA Loop went ‘viral’, the model was initially adopted in the doctrine of the US military and applied, for example, in the training of jet pilots: Boyd also echoed Sun Tzu in, for instance, emphasizing using superior judgement, rapidity, exploiting uncertainty, and constant adaptation as a weapon. 82 Unfolding Circumstances Outside Information Observe Feed Observations Forward Unfolding Interaction with Environment Implicit Guidance and Control Genetic Heritage New Information Orient Decide Act Cultural Traditions Analyses & Synthesis Previous Experience Feedback Feedback Feed Forward Decision (Hypothesis) Implicit Guidance and Control Feed Forward Action (Test) Unfolding Interaction with Environment Figure 5: Real OODA Loop The model consists of four basic areas of information processing, which are, as indicated in its acronym, observation, orientation, decisions and actions. As its creator explained, the information processing runs in parallel in all four areas. Nothing is static. There is a constant adaptation loop (synchronisation) between the areas, and it therefore offers a good model for continuous strategy development. The best way to summarise the idea behind the OODA Loop in the business context is ‘organisational adaptability’. 83 79 Frans Osinga, ‘Getting’ A Discourse on Winning and Losing: A Primer on Boyd’s ‘Theory of Intellectual Evolution’ (Contemporary Security Policy, 2013, 603-624) 604 accessed 2 December 2022. 80 Ibid 603. 81 Ibid 603. 82 Ibid 607. 83 Ibid 603. 44
Intellectual Property in Business: IP basics, IP management, IP strategy IP Strategy for Expanding Companies and Corporates (continued) The OODA Loop has been adapted to diverse fields and applications, and a well-elaborated proposition of its use for IP strategy is shown in Figure 6. 84 Technology environment Customer needs Competitor activity Partner ecosystem Legal environment Observe External: Surveillance Internal: Performance monitoring Orient Information filtering, analysis & dissemination • What information? • To whom? • When? Act Talent Innovate Protect Leverage Knowledge Technology Proprietary rights Statutory rights Through Products Direct Exclude Defend Exchange Priorities and objectives Decide IP strategic plan BU strategic plan Corporate strategic plan Figure 6 OODA Loop for IP strategy 84 Ralph Eckardt, ‘What is IP Strategy?’ (IPSTRATEGY.COM, 3 October 2012) accessed 2 December 2022. 45
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