Electronic Controls and Communications

The Global Challenge Of Strategic Standardization Management Alec McMillan Rockwell Automation Director, Global Standards & Trade February 1st 2000

2 Agenda Standards Market Profile Standards & Technology Management Rockwell Automation Standards Roadmap Templates Impact Of Culture On Standards

3 Key: Standards Market Profile

4 Enhancing Market Share Opportunities What standards should the product comply with? What technology meets the standard? What standards should the process follow? What tests are required to self- certify per conformity rules? What regional marks are needed? What are the safety-related system standards? Are there region specific regulations? Prefers a safe, reliable, high-quality, cost- effective product that meets industry standards ! Marketing Design Engineering ManufacturingCommercial Services Quality Assurance System Integrators Regulatory Environment Customer

5 Standardization Across the Supply Chain Safety, Environmental, and Quality Standards Material, Component, Design, Manufacturing, and Distribution Standards Electronic Commerce, Customs, Marking, and Other Regulatory Standards Product, System, Application, and Industry Standards Component & Equipment Suppliers to Automation Vendors Materials & equipment Components & Services Automation Vendor Products & Services Customer Products & Services Raw materials, fuels & equipment Raw materials & fuels Utilities, Equipment & Materials Suppliers Supplier of Automation Products Consumers Users of Industrial Automation Products

6 Typical Market Requirements e.g Functional Safety Standards System Requirements System Hazard Identit. & Risk Assessment OSHA ANSI TR 3 ANSI TR 4 ISA SP 84 UL 1998 ANSI B11 ISO IEC IEC IEC Machine Safety EN 1050 EN 954 EN 292 DIN VDE 801 EN 692 Converging standards are changing the rules

7 Key: Standards & Technology Management

8 Technology Road Map Relationships Industry Roadmaps –What are the anticipated developments in Government Regulations ? –What are the expected specifications on which these regulations will be based ? –How can a business harness a technology in a form to exceed anticipated regulatory requirements and provide competitive advantage ? –How can business participate in the regulatory/standards process to gain advantage for their technology/business solutions ? Product Roadmaps –What standards will apply to the products under development ? –How can standards be met with competitive value add to lead the competition in the market place ?

9 Standards Management Global Standards Require –International Consensus –Multiple Geographies –Multiple Industries –Multiple Applications –Multiple Vendors within an Integrated Supply Chain Where are the standardization Opportunities ? What are the company management processes that enable the opportunities to be leveraged ? How are the voice(s) of the customer(s) in an integrated technology supply chain coordinated to achieve non conflicting and mutually beneficial standards ?

10 Key: Rockwell Automation Standards Roadmap Templates

11 6 Most Critical Standards - Group

12 Industry Norm Standards Competitive Influence - Group Leading Following Standard 1

13 Business Group Interdependencies - Group Group1 Group2 Group4 Group3 Group5 Critical Standards Standard 1

14 Regional Standards Focus - Group Key: Commercial Competitive PositionLeadingIndustry Norm Following North America Europe South America Asia-Pacific Standard Summary - Summary of current competitive position - where with regard to the rest of industry.

15 10 Most Critical Standards

16 Business Group Interdependencies - Top 10 Critical Standards Potential Opportunities

17 Business Group Interdependencies - Top 10 Critical Standards Potential Opportunities

18 Key: Impact Of Culture On Standards

19 Standards Is a Participation Process Leadership based on Sponsored (Funded) Participation Consensus based on majority of participating individuals –International, Regional, National Interests –Employee, Professional, Individual Interests –Government, Industry, Organization Interests Participation Strategies –Lead, Participate, Monitor –Promote, Permit, Protest Success is usually a compromise between participants –Win 80:20:00 where 20 does not impact negatively –Win 70:20:10 where 10 impacts negative –Loss 70:10:20 where 20 represents negative impact –Other shades of gray in between

20 Individual Goals/ Views / Actions Dependant upon their sponsor Dependant upon their national culture –Government, Education, History, Language Dependant upon their own Character Standards……a single process; multiple scenarios –Voluntary Standards created by Industry adopted by Government –Regulations specified by Government, adopted by Industry