1. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 1 ASEAN Regional Workshop on Standards in Services Strategic Development of Service Standards Horizontal and Vertical Perspectives SPRING Singapore July 12-13, 2004 Siglinde Kaiser DIN Berlin

2. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 2 Outline To set a standard To choose a strategy Impact of standards Experiences in Germany Standardization is...

3. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 3 To Set a Standard (1) Set a standard using position on the market Competition through: –Technology –Design –Customer relations –Innovation strategies –Financial power Examples: –Keyboards (QWERTZ and QWERTY) –Video systems (VHS) –“Microsoft is a Standard” Risks: financial capacity Chances: capture the market !

4. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 4 To Set a Standard (2) Set a standard through combined industry effort Competition characterized by: –distributed risks within alliance –competitors with similar preferences –fast results –strong influence on results Examples: –product classifications (e-cl@ss) –Quality Labels (RAL) Risks: –Competition of different consortia –Raise of costs for transaction and for participation in several consortia Chances: –Market Leadership or large shares of the market

5. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 5 To Set a Standard (3) Set a standard using a formal standardization approach Competition within the scope of the standard: –rules and principles of formal standardization Examples: –ISO 9000 Risks: –competition in quality, costs, services –costs for participation –long process of negotiation Chances: –sustainable result –worldwide availability –transparency of systems –safe investment

6. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 6 To Set a Standard (4) Business Strategy Patents, company standards, standards Consortium Standards Strategic Alliance In-house Development Formal Standards Approach Patent Company Standard Industry Standard PAS Formal Standard Private Property Public Property one supplier closed technology monopoly many suppliers open, transparent technology competition on the basis of quality, price, function several suppliers closed technology oligopoly Economic Context

7. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 7 To Set a Standard (5) Criteria for setting a standard in services Impact –Frequency of provision –Degree of interaction between service provider and consumer –Costs of specification –Reproducibility –Degree of complexity The lower the complexity of processes and functions required the more easily a service can be automated and standardized lowhigh © Fraunhofer IAO, IAT Universität Stuttgart

8. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 8 To Choose a Strategy (1) Result: Benefits Result: Standards Result: Strategy course of action Result: Structured standardization requirements Result: Standardization potential Sector and subject- based know-how Phase V: Activity: Evaluation Phase Model © Fraunhofer IAO, IAT Universität Stuttgart Point of Departure Phase I Activity: Survey Phase II Activity: Analysis Phase III Activity: Assessment Phase IV: Activity: Realization

9. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 9 To Choose a Strategy (2) Assessment of standardization potential Need of standardization Definition of area / sector Subject of Standard Analysis of existing standards Assessment of context Assessment of area / sector Definition of goals, intention, purpose, objective Participants Level of standardization Type of Standard Scope of Standard

10. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 10 Impact of Standards (1) Nature Laws PAS Formal Standards Directives Industry Standards Company Standards Impact imperative voluntary imperative voluntary compulsory Participation legislators parties invited stakeholders administration industry consortia department

11. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 11 Impact of Standards (2) Relevance of Level of Standards Industry Standards National Standards Laws, regulations EU Directives European Standards International Standards © Fraunhofer IAO, IAT Universität Stuttgart

12. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 12 Impact of Standards (3) © Fraunhofer IAO, IAT Universität Stuttgart Use of standards to comply with requirements of customers 23 % Use of standards to get competence and performance across to customers 26 % Use of standards and directives to comply with legal requirements 26 % Use of European and international standards is prerequisite for action on export market 25 %

13. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 13 Experiences in Germany (1) Results from DIN Technical Report 116 Survey on relevance of standards Standards for data exchange formats –relevance of standards: high 58 % –most used level of standard: company 34 % –most favored level of standard: international horizontal 49 % Standards for business models –relevance of standards: medium 30 % –mostly used level of standard: company 62 % –most favored level of standard: company 41 % © Fraunhofer IAO, IAT Universität Stuttgart

14. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 14 Experiences in Germany (2) Scientific Theory and Field Results from R&D Phase standardization projects... A personal interpretation of German reality... AIR-CRAFT (e-Procurement): Issue:Standardized reference models for business processes Result:Such reference models can help SME to access international markets via global partners Setback:information is kept back for fear of loss of position on market reluctance as to accept the importance of such models Strategy: information, communication, dissemination of results, neutral discussion grounds Issue:Standardized data exchange formats Result:Such formats support the security and flow of data and accelerate processes; need of standardized interfaces Setback: on-going standardization process is slow Strategy:dissemination of project results, recommendations for stakeholders in standardization process

15. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 15 Experiences in Germany (3) Approaches towards standards in services –awareness of situation and needs on market and among stakeholders –awareness of range of approaches –assessment of need of market and stakeholders –application of innovative instruments –development of appropriate innovative approaches –assessment of level of participation needed Requirements –standards bodies need qualified personnel –standards bodies as moderators/facilitators need to be neutral –standards need to be voluntary

16. 2004-07- 12/13_2 APRIS-ASEAN Workshop Singapore 16 Standardization is Creativity !