The intellectual property (IP) value chain shows research & development, legal protection, product & service aggregation, channel distribution, and end-user acceptance. The foundation of the IP value chain includes business strategy, competitive IP intelligence, the IP roadmap, and education. These components support and direct each of the steps of the IP value chain, and they must all be in place for the company to derive maximum benefit from it. As shown below, Value Chains help break down all the activities that produce a good or service and understand areas of cost savings and differentiation. With a value chain, one can optimize efforts, eliminate waste, and improve profitability.