How to Estimate Loss of Intellectual Property in Case of Outsourcing

      
			              Best Practices
			            
							              19

		            		Gerrit Kubassa, Germany
			            
How to Estimate Loss of Intellectual Property in Case of Outsourcing

	          		I am working on the analysis of a product which is already being produced... Completely in-house in our company. My task is to draw a model in which effects of outsourcing are visible. I would like to know the effect on IP (intellectual property) as well as cost advantages/disadvantages. The problem is that I do not know any FSC from our contract manufacturers as well as the fixed costs to be allocated to our product. The volume we are going to produce is unclear as well...

How to approach?

Thanks in advance for any feedback/hint/idea.
				      
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										              8

						            	Andreas Fischbacher
Partner, Switzerland
												
				                How to Estimate Loss of Intellectual Property in Outsourcing

													Hi Gerritt, you asking for ideas on how to approach this problem of drawing a model on the effects of loss of IP of outsourcing over cost per unit.

My approach would be to estimate the value per unit of the IP and the amortisation/write-off period. You need to establish a correlation then to the product life in specific markets as well as on the competitive advantage that the specific IP is giving you, and relate this to estimated sales. There, I would have to know more about it to be able to give a more precise statement.

Other effects are on brand awareness, erosion of competitive advantage, etc, as well as quality, tax and other issues of the specific outsourcing location. Differentiate intrinsic and extrinsic knowledge in this context. Would outsourcing really help lowering the cost per unit significantly? How are the IP rights protection regulations in that country in relation to your product? How quick do you need to move to market?

Another thing, what is 'FSC' in this context?

Hope this helps, Andreas.
				                
										              3

						            	Manny Fernandez, JR
Consultant, United States
												
				                How to Make a Decision as to Whether or not to Outsource
There are several reasons why someone would consider a make or buy situation. I think it is importan... Sign up
				              
										              6

						            	Bob Strasser
Canada
												
				                Outsourcing Costs for Computer Programming
The model that can work is a divided outsourcing model where parts of the outsourced program are sen... Sign up
				              
										              9

						            	tan liong choon
Management Consultant, Singapore
												
				                Take a Step Back and Establish Why and what to Outsource
Intellectual Property control is a matter of law and various legal terms can be established in the o... Sign up
				              
										              1

						            	adrian hidalgo
Manager, Ecuador
												
				                How to Estimate Loss of Intelectuall Property in Case of Outsourcung
Overall in Latin America everything seems everything can be copied, especially brands and ideas. It ... Sign up
				              
										              2

						            	Y Srinivas rao
Manager, India
												
				                Loss of Intellectual Property in Case of Outsourcing Activity
There are other issues like spin off benefits or ingenuity / reverse engineering capability of outso... Sign up
				              
										              1

						            	Georg Metz, Germany
												
				                Losses of Intellectual Property in case of Outsourcing
We have developed a concept and software to estimate such effects via a cash flow analysis.
Please ... Sign up
				              
										              2

						            	Shipperbottom
CEO, United Kingdom
												
				                Intellectual Property Value, Outsourcing
The answer depends on many more factors the you have provided, Gerrit!
By way of extreme illustrati... Sign up
				              
										              2

						            	Norm Nopper
Managing Director/Consultant, Canada
												
				                How to Protect Intellectual Property in Case of Outsourcing
I'll state the obvious: the worst case is that you lose control of your intellectual property, sever... Sign up
				              
										              2

						            	Harry Whitney, United States
												
				                IP Estimation / Valuation
I think Tan and Norm have outlined the issues very adequately. The only other issue involving valuat... Sign up
				              
										              2

						            	William Mullins
Management Consultant, United States
												
				                Loss of Intellectual Property at Outsourcing
If intellectual property is really important to your business, not just one product, then it's what ... Sign up
				              
										              4

						            	Dr zahra gheidar
Consultant, Iran
												
				                Valid Measurement Tools for Intellectual Property
You spoke about somethings such as, model, effect, visible outsources, intellectual property that al... Sign up
				              
										              2

						            	Prakob Chaibuntan
Teacher, Thailand
												
				                Loss of Intellectual Property in Outsourcing: a Lesson from the Roman Empire
Tan and Norm are right for large avenue to success but before your avenue (outsourcing) is designed,... Sign up
				              
										              2

						            	Ramesh Chander Khanna, India
												
				                How to Estimate Loss of Intellectual Property in Case of Outsourcing?
Whether to continue making inhouse or outsource is a very complex decision; risks will be there.
We... Sign up
				              
										              3

						            	Anand H

				                Outsourcing: Focus on Possible Disadvantages
The very concept of outsourcing indicates a set of time tested advantages for organizations which pr... Sign up
				              
										              0

						            	amneh masswadi 
Financial Consultant, Jordan
												
				                Calculating Intellectual Property
Hi Mr. Kubassa: for calculating intellectual property you need the application of this equation.
In... Sign up
				              
										              0

						            	Leodegardo M. Pruna
Professor, Philippines
												
				                Calculating Intellectual Property
Determine how much a product cost by adding all costs from conceptualization to commercialization. T... Sign up
				              
										              3

						            	amneh masswadi 
Financial Consultant, Jordan
												
				                How You Can Estimate Loss of Intellectual Property in Cost
Dear Gerrit I hope amortization can solve your problem.
Intangible assets give the owner a right or... Sign up
				              
										              2

						            	Dilip Khanal
CEO, Nepal
												
				                Long Term Investment or Short Term Gain on Transaction
It all depends upon how IP is valued. Outsourcing may reduce tangible and visible cost, but in house... Sign up
				              
										              4

						            	Bob Strasser
Canada
												
				                Protecting Intellectual Property (in Outsourcing)
The first persons that will steal a company's IP are its employees, internal or external.
IP is imp... Sign up
				              
										              2

						            	Postolov
Professor, Macedonia
												
				                In my Country we Have These Problems...
We have a big problem to secure intellectual property in the case of outsourcing. My opinion is that... Sign up
				              
										              1

						            	Hyder Ibrahim Mohammed
Director, Sudan
												
				                International Accounting Standards 38 and 32
Dear Kubassa, I suggest to get the complete picture take a look at International Accounting Standard... Sign up
				              
										              3

						            	Julius Caesar Ssemyalo, Uganda
												
				                How to Estimate Loss of Intellectual Property in case of Outsourcing
I conclude that first your model has to identify the core IP/tasks to retain and the mundane ones to... Sign up
				              
										              2

						            	Anwer M. Baig, Pakistan
												
				                Intangible Values are Hard to Measure, Often Cannot Be Measured with Accuracy
If intellectual properties are considered intangible assets like "goodwill" its evaluation may only ... Sign up
				              
										              0

						            	Kurt Ludikovsky
Consultant, Austria
												
				                Still There and what are we Talking About
@Geritt: are you still there. Now answer to any of the questions!
@All: what are we talking here ab... Sign up
				              
										              2

						            	Lanuzo
Professor, Philippines
												
				                How to Calculate Loss of Intellectual Property
You could approach it from the basic straight line or declining balance computation with the time-fr... Sign up
				              
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