Trade Secret

Trade Secret

Trade Secret Jonathan Poland

A trade secret is a type of carefully guarded information that gives a company a competitive advantage in the market. In order to be considered a trade secret, the information must be unknown to competitors and must have the potential to contribute to the company’s future revenue. This can include things like proprietary processes, recipes, formulas, or business strategies.

Trade secrets are different from other forms of intellectual property, such as patents, which are registered and publicly disclosed. Because trade secrets are not publicly disclosed, they can provide a company with a long-term competitive advantage if they can be effectively protected from being revealed to competitors.

To protect trade secrets, companies must take steps to maintain the confidentiality of the information and prevent it from being disclosed to outsiders. This may involve measures such as limiting access to the information, requiring employees to sign non-disclosure agreements, and implementing secure storage and communication systems.

Overall, trade secrets are an important consideration for companies that want to maintain a competitive advantage in the market. By carefully guarding and protecting their trade secrets, companies can ensure that they have a unique and valuable asset that sets them apart from their competitors. The following are common types of trade secret.

Formula
The formula for a product. Some types of products, such as food are required to display ingredients on the label in most jurisdictions. However, this is usually a high level list of ingredients that leaves the exact formula a secret.

Process
A process such as a cooking process that results in an advantage such as a unique flavor.

Design
The design of a product or service. It can be difficult to keep designs secrets for long as they can typically be reverse engineered.

Methods
Methods such as an algorithm or calculation that improves decisions, operations or products.

Tools
A tool that improves work results such as a propriety design tool that improves productivity and quality.

Automation
Propriety systems and robotics that automate work to improve efficiency and quality.

Patterns
A reusable solution that applies to multiple designs, systems or processes.

Know-how
The ability to solve a problem that the competition isn’t able to solve.

Learn More…

Service Level Objective Jonathan Poland

Service Level Objective

An service level objective (SLO) is a standard used to measure the…

Workload Automation Jonathan Poland

Workload Automation

Workload automation is the process of automating the execution of routine tasks…

Continuous Improvement Jonathan Poland

Continuous Improvement

Continuous improvement is a systematic approach to improving products, services, and processes…

Risk Acceptance Jonathan Poland

Risk Acceptance

Risk acceptance involves consciously deciding to take on a risk, often because…

Product Differentiation Jonathan Poland

Product Differentiation

Product differentiation is the unique value that a product offers on the…

Hyperinflation Jonathan Poland

Hyperinflation

Hyperinflation is a situation in which there is a rapid and significant…

Technology Factors Jonathan Poland

Technology Factors

Technology factors are any external changes related to technology that may affect…

Scarcity Marketing Jonathan Poland

Scarcity Marketing

Scarcity marketing is a strategy that involves creating a perception of limited…

Operating Revenue Jonathan Poland

Operating Revenue

Operating revenue is the income that a company generates from its core…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Research Types Jonathan Poland

Research Types

Research is the process of systematically seeking and interpreting knowledge through inquiry,…

Marketing Costs Jonathan Poland

Marketing Costs

Marketing costs are expenses that are related to promoting and selling products…

Types of Win-Win Jonathan Poland

Types of Win-Win

Win-win, also known as mutually beneficial, refers to a situation or plan…

What is a Focus Group? Jonathan Poland

What is a Focus Group?

A focus group is a research method in which a small, diverse…

Relative Advantage Jonathan Poland

Relative Advantage

Relative advantage refers to the extent to which a company’s product, service,…

Internal Controls Jonathan Poland

Internal Controls

Internal controls refer to the structures, processes, practices, reports, measurements, and systems…

Brand Equity Jonathan Poland

Brand Equity

Brand equity refers to the value that a brand adds to a…

Conflicts of Interest Jonathan Poland

Conflicts of Interest

A conflict of interest exists when an individual or organization has incentives…

Branding 101 Jonathan Poland

Branding 101

Branding is the process of creating a unique and recognizable identity for…