Expert MgmtEADS

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Intellectual Capitaland 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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What does Dilbert tell us about Patents?


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Contents

How we manage our intellectual capital

Who we are

EADS Hall of Fame

Human Resources EADS experts policy


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EADS at a glance


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The EADS Chief Technical Officer (CTO)

Finance

Hans Peter Ring

EADS North

AmericaRalph Crosby Jr.

Airbus MilitaryTransportAircraft

Eurocopter Astrium Defence &SecuritySystems

Marketing, Strategy &

Global DevelopmentMarwan Lahoud

Tom Enders Carlos Surez Franois Auque Stefan ZollerLutz Bertling

Chief Technical

OfficerJean Botti

Rdiger GrubeChairman of the Board of Directors

Louis GalloisChief Executive Officer

Human

ResourcesJussi Itvuori


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Chief of StaffChief of Staff

Chief Technical OfficerChief Technical Officer

EADS

Innovation Works

EADS

Innovation Works

Executive TechnicalCouncil (ETC)


EADS Executive CommitteeEADS Executive Committee

R&T Enablers

& Support

R&T Enablers

& SupportChief Information

Officer

Chief Information

OfficerChief Quality

Officer

Chief Quality

Officer

CTO Accountabilities:

The EADS R&T Strategy

The EADS R&T Operative Plan

The EADS R&T Annual Budget

Independent Technical Assessments

R&T Council

EADS Corporate Technical Office - Organization

COO Innovation

Global InnovationNetworks

COO Innovation

Global InnovationNetworks


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Contents


Who we are

EADS Hall of Fame



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Chief of StaffChief of Staff

Chief Technical OfficerChief Technical Officer

EADS

Innovation Works

EADS

Innovation Works



EADS Executive CommitteeEADS Executive Committee

Chief Information

Officer

Chief Information

OfficerChief Quality

Officer

Chief Quality

Officer

R&T Council

COO InnovationCOO InnovationGlobal Innovation

Networks

R&T Enablers

& Support

R&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


Finance & Contracts

Knowledge Management

Technical Communication


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EADS First Filings

324 330

418

521585

791

958

0

200

400

600

800

1000

1200

2001 2002 2003 2004 2005 2006 2007


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Nov 07

Nov. 07

Apr. 07

Apr 08

Nov 07

Nov. 07

Apr. 07

Apr 08

Aerospace & Defense Patent Scorecard inThe Wall Street Journal

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

position in 2008. More tocome in 2008!

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


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Global Players PCT applications as an Indicator forthe 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 PCTinternational application, pays additional fees and initiates the national search, examination and granting procedure. PCT internationalapplications lead only to a national patent grant there is no international patent.

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


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History Tells Lessons about IP Protection


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How to Build and Exploit a Patent Portfolio

Invention are created within Divisions

and IW patent filing

Review national files for extensions, identifyinglicensing opportunities, develop license

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

fees

Inve

ntion

cre

ated,

paten

t

draft

ing

begi n

s

Natio

nal

pa

tent

applica

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filed

12 months

Inter n

atio

nal

applicatio

nfile

d

Com

mer c

ializ

ati

o

nisstartin

g12 months 30 / 31 months

Ext e

nsio

nsfiled

Pa

tentse

xpire

after20

yea

rs

afte

rfiling

20 years





fees





fees



fees

Inve

ntion

cre

ated,

paten

t

draft

ing

begi n

s

Natio

nal

pa

tent

applica

tion

filed

12 months

Inter n

atio

nal

applicatio

nfile

d

Com

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ializ

ati

o

nisstartin


Ext e

nsio

nsfiled

Pa

tentse

xpire

after20

yea

rs

afte

rfiling

20 years

Inve

ntion

cre

ated,

paten

t

draft

ing

begi n

s

Natio

nal

pa

tent

applica

tion

filed

12 months

Inter n

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nal

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nfile

d

Com

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ializ

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nisstartin


Ext e

nsio

nsfiled

Pa

tentse

xpire

after20

yea

rs

afte

rfiling

20 years


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Exploitation Example: Green Technology

License granted to matrix materialmanufacturer

Wind turbine manufacturer asked for a

license to produce wind turbine blades Technology developed for aircraft

components in carbon-fibrecomposites

By technology transfer, EADS is

actively supporting ecological energygeneration.

0

0

0

0

0

0

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

License revenues

0

0

0

0

0

0

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

License revenues


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Exploitation ExampleAirbus AlMgSc Material Patents

Alloy originally developed forA350XWB fuselage

Material supplier asked for a

license to exploit technology withother aircraft manufacturer


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Contents



Who we are

EADS Hall of Fame


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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 keepbest the Expertise resources.Expertise is first a matter of people!

Therefore, EADS must develop its abilityto manage Expert populations

Talent management is all about attracting,

developing and retaining. What does thatmean in the case of Experts?

The Expert policy is to stimulate our inventivepotential in the engineering community


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Some Key Solutions for Experts

Attraction

Early investment through cooperation with Engineering schools;

Strong HR marketing to attract the best European engineers.

DevelopmentCreation of an Experts policy to offer an alternative in terms of

career management, compensation & benefits, development.

Retention

Retention policy through the Experts policy

?


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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 Defencefields 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

E t P li Obj ti


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Experts Policy Objectives

Identify experts and make them visible in the Group

Offer inside EADS identical career opportunities

and recognition for both experts and managers

Attract, develop and retain experts

Diversify and open the number of

careers comprisingmanagerial andtechnicalcomponents

Secure portfolio oftechnical competenciesin the coming yearsby offering options ofpure technical positions

Increase the sense of belongingfor the EADS experts

-

Professional

Manager

Management

Expert / Specialist /

Advisor

Expert & Manager of

professionals

BU - management

Project

Manager

System

Integrator

Expertise

Manager

SeniorManager

Executive

Expert

SeniorExpert

ExecutiveExpert

C t t f th P li


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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 managers

Training: 6 days for all nominated Experts

Defining the classification

Impact on compensation

Person / Profile :

Potential

Performance:

Behaviors

Individual contribution

Position

Accountabilities

Competencies Value of the job

Personal results

Technical Domain

Defining the classification

Impact on compensation

Person / Profile :

Potential

Performance:

Behaviors

Individual contribution

Position

Accountabilities

Competencies Value of the job

Personal results

Technical Domain

Experts Training


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Experts Training

A development program fully dedicated to experts

M

odule1

Modul

e2

EADS Strategy and policies

Understand how to contributeto the strategy and to thebusiness performance

Understand EADS Expertspolicy

Influencing throughCommunication

How to communicate withstakeholders (managers,

programmes, researchinstitutes, other experts)

Influencing throughNegotiation

How to negotiate withstakeholders (manager,

programmes, researchinstituts, other experts)

Innovation

How to move from the goodidea to successful innovativesolutions and business results


How to protect myinnovation and how to useIP as a competitiveadvantage

Knowledge Transfer

How to develop a new mindsetto support knowledge transferduring all experts life

Next Steps


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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 andInnovation Works functions:

To monitor and consolidate the implementation of the EADSExpert policy in all divisions

To organise events and provide tools for the community (Experts

day,Yellow Pages)

To train around 40 executive/senior experts and 150 experts L5 in2006

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

To analyse todays portfolio of expertise (BUs, Innovation Works)

To analyse future needs (at BU and at EADS level)

To identify corresponding actions

Conclusion


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Conclusion

The expert policy has been developed to achievethe EADS strategy of identifying and promotingexpertise in the Aerospace and Defense technical

fields to maintain a European independence in thefield of Engineering.

Technical Expertise has to be promoted in thefollowing way:

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

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

The compensation scheme and the grouping of the expertsinto respective grading are consistent with the managerial

bands and are validated to ensure consistency of theevaluations within EADS.

Contents


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Contents

EADS Hall of Fame


Who we are


Recognizing Talent as a Strategic Human Capital


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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 twoyears and concluded with at afestive award ceremony event

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

Award winners names and portraits

are displayed in galleries located inthe Headquarters buildings in Paris,Ottobrunn and Suresnes

EADS Hall of Fame Award Winners 2007


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Selected for inventions and software, subjectto patent applications or inventiondisclosures or copy righted software

Innovative projects implemented during lasttwo years that helped generate significantrevenue increase or competitive advantage

Blue collars with unique contributions, keyfor our business

EADS Hall of Fame Award Winners 2007

Great InventorAlain Porte

Airbus

Great InnovatorTony CraigAstrium UK

Great CraftsmanAntoine Garcia

Eurocopter

Recognises the bestimprovement initiativesto generate savings, to

deliver on time or toincrease quality

Best LeanManufacturing TeamAndrs Diego, Juan Pedro SanchezFrancisco Canto, Manuel Temblador

Alfonso Illana, Jorge GonzalezMTAD


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Thank you for your attention


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Thank you for your attention

Expert MgmtEADS

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