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Intellectual Capital and Expertise Management Dr. Jean Botti – EADS Chief Technical Officer The World Conference on Intellectual Capital for Communities May 22-23, 2008; World Bank Office, Paris

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Page 1: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

Intellectual Capital and Expertise Management

Dr. Jean Botti – EADS Chief Technical Officer

The World Conference on Intellectual Capital for CommunitiesMay 22-23, 2008; World Bank Office, Paris

Page 2: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

2

What does Dilbert tell us about Patents?

Page 3: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

3

Contents

How we manage our intellectual capital

Who we are

EADS Hall of Fame

Human Resources – EADS’ experts policy

Page 4: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

4

EADS at a glance

Page 5: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

5

The EADS Chief Technical Officer (CTO)

FinanceHans Peter Ring

EADS North AmericaRalph Crosby Jr.

Airbus Military Transport Aircraft

Eurocopter Astrium Defence & SecuritySystems

Marketing, Strategy & Global DevelopmentMarwan Lahoud

Tom Enders Carlos Suárez François Auque Stefan ZollerLutz Bertling

Chief Technical Officer Jean Botti

Rüdiger GrubeChairman of the Board of Directors

Louis GalloisChief Executive Officer

Human ResourcesJussi Itävuori

Page 6: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

6

Chief of StaffChief of Staff

Chief Technical OfficerChief Technical Officer

EADSInnovation Works

EADSInnovation Works

Executive Technical Council (ETC)

Executive Technical Council (ETC)

EADS Executive CommitteeEADS Executive Committee

R&T Enablers & Support

R&T Enablers & Support

Chief Information Officer

Chief Information Officer

Chief Quality Officer

Chief Quality Officer

CTO Accountabilities:

The EADS R&T StrategyThe EADS R&T Operative PlanThe EADS R&T Annual BudgetIndependent Technical Assessments

R&T Council

EADS Corporate Technical Office - Organization

COO InnovationGlobal Innovation

Networks

COO InnovationGlobal Innovation

Networks

Page 7: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

7

Contents

How we manage our intellectual capital

Who we are

EADS Hall of Fame

Human Resources – EADS’ experts policy

Page 8: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

8

Chief of StaffChief of Staff

Chief Technical OfficerChief Technical Officer

EADSInnovation Works

EADSInnovation Works

Executive Technical Council (ETC)

Executive Technical Council (ETC)

EADS Executive CommitteeEADS Executive Committee

Chief Information Officer

Chief Information Officer

Chief Quality Officer

Chief Quality Officer

R&T Council

COO InnovationCOO InnovationGlobal Innovation

NetworksR&T Enablers

& SupportR&T Enablers

& Support

EADS Corporate Technical Office - Organization

Strategy & New Business

Public National & European Programmes

Intellectual Property

Finance & Contracts

Knowledge Management

Technical Communication

Strategy & New Business

Public National & European Programmes

Intellectual Property

Finance & Contracts

Knowledge Management

Technical Communication

Page 9: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

9

Patent Filings at the ‘Big 5’ Patent Offices

Since 2005, the biggest patent office in the world is in China!

Page 10: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

10

EADS First Filings

324 330418

521585

791

958

0

200

400

600

800

1000

1200

2001 2002 2003 2004 2005 2006 2007

Page 11: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

11

Nov ‘07

Nov. ‘07

Apr. ‘07

Apr ‘08

Nov ‘07

Nov. ‘07

Apr. ‘07

Apr ‘08

Aerospace & Defense Patent Scorecard in ‘The Wall Street Journal’

EADS is moving up:from 9th (Apr ’07) to 4th

position in 2008. More to come in 2008!

Data basis: US patents only, as published in ‘The Wall Street Journal’

Page 12: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

12

Global Players – PCT applications as an Indicator for the Globalisation of Patent Protection

Glossary: The PCT provides an international system for filing patent applications. The PCT procedure consists of an international phase followed by a national or regional phase. In the national (or regional) phase, the applicant requests national processing of the PCT international application, pays additional fees and initiates the national search, examination and granting procedure. PCT international applications lead only to a national patent grant – there is no international patent.

As WIPO does not consolidate EADS figures, chart was calculated from WIPO’s ‘List of the Top 500 PCT Applicants in 2007’

Page 13: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

13

History Tells Lessons about IP Protection

Page 14: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

14

How to Build and Exploit a Patent Portfolio

Invention are created within Divisions and IW patent filing

Review national files for extensions, identifying licensing opportunities, develop license

business case, negotiate and close license contracts, follow-up for royalties, maintenance

fees

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Invention are created within Divisions and IW patent filing

Review national files for extensions, identifying licensing opportunities, develop license

business case, negotiate and close license contracts, follow-up for royalties, maintenance

fees

Invention are created within Divisions and IW patent filing

Review national files for extensions, identifying licensing opportunities, develop license

business case, negotiate and close license contracts, follow-up for royalties, maintenance

fees

Review national files for extensions, identifying licensing opportunities, develop license

business case, negotiate and close license contracts, follow-up for royalties, maintenance

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Page 15: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

15

Exploitation Example: ‘Green Technology’

• License granted to matrix material manufacturer

• Wind turbine manufacturer asked for a license to produce wind turbine blades

• Technology developed for aircraft components in carbon-fibre composites

• By technology transfer, EADS is actively supporting ecological energy generation.

0

0

0

0

0

0

20 0 3 2 00 4 20 0 5 2 0 06 20 0 7*

License revenues

0

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License revenues

Page 16: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

16

Exploitation Example Airbus’ AlMgSc Material Patents

• Alloy originally developed for A350XWB fuselage

• Material supplier asked for a license to exploit technology with other aircraft manufacturer

Page 17: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

17

Contents

Human Resources – EADS’ experts policy

How we manage our intellectual capital

Who we are

EADS Hall of Fame

Page 18: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Why an EADS Experts’ Policy?

Technical expertise in engineering makes the difference on the market. EADS must do its very best to keep best the Expertise resources.Expertise is first a matter of people!

Therefore, EADS must develop its ability to manage Expert populations

Talent management is all about attracting, developing and retaining. What does that mean in the case of Experts?

The Expert policy is to stimulate our inventive potential in the engineering community

Page 19: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

19

Some Key Solutions for Experts

AttractionEarly investment through cooperation with Engineering schools;

Strong HR marketing to attract the best European engineers.

Development Creation of an Experts policy to offer an alternative in terms of

career management, compensation & benefits, development.

Retention

Retention policy through the Experts policy

Page 20: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Who are the “Experts”?

Experts use high-level technical skills most of their time,each and every day in one of the Aerospace and Defence fields that are of importance for the Group.

Our Experts:

Contribute to the development of knowledge in their field of expertise.

Advise the management for improving operational solutions.

Work in networks to seek out knowledge related to their specific fields.

Share their knowledge and train young experts and managers.

Secure our know-how by mastering Intellectual Property issues

The other fields of expertise are not covered by this policy

Page 21: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Experts’ Policy Objectives

Identify experts and make them visible in the Group

Offer inside EADS identical career opportunitiesand recognition for both experts and managers

Attract, develop and retain experts

Diversify and open the number of careers comprising managerial and technical components

Secure portfolio of technical competenciesin the coming years by offering options of pure technical positions

Increase the sense of belongingfor the EADS experts

-

ProfessionalManager

Management

Expert / Specialist / Advisor

Expert & Manager of professionals

BU - management

Project Manager

System Integrator

Expertise

Manager

Senior Manager

Executive

Expert

Senior Expert

ExecutiveExpert

Page 22: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Contents of the Policy

Identification of Experts based on a 3P (Person, Position, Performance) assessment

Nomination of Experts by classical career committee in the Divisions (except for Executive Experts, nominated by Corporate HR and CTO)Classification: for each Experts level (Executive – L3, Senior – L4, Expert – L5):exactly the same reward system as for a managersTraining: 6 days for all nominated Experts

Defining the classification

Impact on compensation

Person / Profile :

Potential

Performance:

Behaviors

Individual contribution

PositionAccountabilities

CompetenciesValue of the job

Personal results

Technical Domain

Defining the classification

Impact on compensation

Person / Profile :

Potential

Performance:

Behaviors

Individual contribution

PositionAccountabilities

CompetenciesValue of the job

Personal results

Technical Domain

Page 23: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Experts Training

A development program fully dedicated to experts

Mod

ule

1M

odul

e 2

EADS Strategy and policies

Understand how to contribute to the strategy and to the business performanceUnderstand EADS Experts’policy

Influencing through CommunicationHow to communicate with stakeholders (managers, programmes, research institutes, other experts…)

Influencing through Negotiation

How to negotiate with stakeholders (manager, programmes, research instituts, other experts…)

Innovation

How to move from the “good idea” to successful innovative solutions and business results

Intellectual Property

How to protect my innovation and how to use IP as a competitive advantage

Knowledge Transfer

How to develop a new mindset to support knowledge transfer during all experts’ life

Page 24: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Next Steps

Develop the Experts communityProcess steered by a reduced group formed by the involved parties (divisions binomial HR and technical side), LDL, the CTO and Innovation Works functions:

To monitor and consolidate the implementation of the EADS Expert policy in all divisionsTo organise events and provide tools for the community (Experts day, Yellow Pages…)To train around 40 executive/senior experts and 150 experts L5 in 2006

Launch a common process between Technical Directors and HR for matching EADS expertises with future needs

To analyse today’s portfolio of expertise (BUs, Innovation Works)To analyse future needs (at BU and at EADS level)To identify corresponding actions

Page 25: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Conclusion

The expert policy has been developed to achieve the EADS strategy of identifying and promoting expertise in the Aerospace and Defense technical fields to maintain a European independence in the field of Engineering.

Technical Expertise has to be promoted in the following way:

Expertise evaluation, based on assessment criteria, form the basis, including a selection process, set up to take into account proposals for nomination by the line management.

A training and development policy ensures that experts receive the appropriate training to develop their expertise.

The compensation scheme and the grouping of the experts into respective grading are consistent with the managerial bands and are validated to ensure consistency of the evaluations within EADS.

Page 26: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Contents

EADS Hall of Fame

How we manage our intellectual capital

Who we are

Human Resources – EADS’ experts policy

Page 27: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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EADS Hall of Fame rewards the innovation spirit through four prizes:

The Great Inventors The Great Innovators The Great Craftsmen

and a special prize is given to

The Best Lean Manufacturing Team

Recognizing Talent as a Strategic Human Capital

It is a process conducted every two years and concluded with at a festive award ceremony event

Held for the first time in Paris, atCité de la Science on Nov. 22, 2007

Award winners’ names and portraits are displayed in galleries located in the Headquarters buildings in Paris, Ottobrunn and Suresnes

Page 28: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Selected for inventions and software, subject to patent applications or invention disclosures or copy righted software

Innovative projects implemented during last two years that helped generate significant revenue increase or competitive advantage

Blue collars with unique contributions, key for our business

EADS Hall of Fame Award Winners 2007

Great InventorAlain Porte

Airbus

Great InnovatorTony CraigAstrium UK

Great CraftsmanAntoine Garcia

Eurocopter

Recognises the best improvement initiatives to generate savings, to deliver on time or to increase quality

Best Lean Manufacturing TeamAndrés Diego, Juan Pedro SanchezFrancisco Canto, Manuel TembladorAlfonso Illana, Jorge Gonzalez MTAD

Page 29: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Page 30: Intellectual Capital and Expertise Management · Marwan Lahoud Tom Enders Carlos Suárez Lutz Bertling François Auque Stefan Zoller Chief Technical Officer Jean Botti Rüdiger Grube

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Thank you for your attention