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License 26#
Efforts are focused on developing intellectual property that can be licensed to other manufacturers. This model, therefore, relies not on the realization and utilization of knowledge in the form of products, but attempts to transform these intangible goods into money. This allows a company to focus on research and development. It also allows the provision of knowledge, which would otherwise be left unused and potentially be valuable to third parties.
Examples: Iconic Cases
How they do it: SAP enables customers to license its software products and offerings in a variety of ways. These include for instance perpetual, subscription-based, or consumption-based licenses. This flexibility allows SAP to serve a group of customers with heterogenous customer needs.
Learn more about SAP →
How they do it: As Bosch investes a lot in research and development of its technologies but don’t create and market full products out of every patent, they monetize these patents by licensing them to partners.
Learn more about Bosch →
How they do it: GE licenses IP and technology across its operating areas, enabling 3rd parties to commercialize their developments more rapidly and create new companies based on them. GE also provides adjacent resources such as training and scientists to accelerate the process of bringing new technologies to market.
Learn more about General Electric →
How they do it: Brilliance licensed production rights from German manufacturer BMW producing its cars in China for the Chinese market.
Learn more about Brilliance China Auto →
How they do it: ARM only creates and licences its technology as intellectual property, rather than selling its own physical products. This allows them to focus on specializing on further developing their technology.
Learn more about ARM →
Below, the top industries for the pattern "License" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 15 firms using this pattern.
Top Industries
Automotive
50% of firms using pattern
50% of firms using pattern
Transportation
36% of firms using pattern
36% of firms using pattern
Information Technology
8% of firms using pattern
8% of firms using pattern
All Industries
Below, the pattern "License" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
Integrator
2 pattern co-occurrences
2 pattern co-occurrences
Direct Selling
2 pattern co-occurrences
2 pattern co-occurrences
Reverse Engineering
2 pattern co-occurrences
2 pattern co-occurrences