Innovation and Legislation: Standardization in ... - The Bolin Group
Innovation and Legislation: Standardization in ... - The Bolin Group
Innovation and Legislation: Standardization in ... - The Bolin Group
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INNOVATION AND LEGISLATION: STANDARDIZATION IN<br />
CONFLICT<br />
DECEMBER 4-5, 2003<br />
WASHINGTON, DC<br />
Prepared by:<br />
Sherrie Bol<strong>in</strong><br />
President & CEO<br />
<strong>The</strong> Bol<strong>in</strong> <strong>Group</strong><br />
Phone 831.336.9964<br />
sherrie@sbol<strong>in</strong>.com<br />
© 2004 <strong>The</strong> Bol<strong>in</strong> <strong>Group</strong>. All Rights Reserved.
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>:<br />
St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
By Sherrie Bol<strong>in</strong><br />
Executive Summary ___________________________________________________________ 3<br />
Introduction__________________________________________________________________ 5<br />
St<strong>and</strong>ardization <strong>and</strong> <strong>Innovation</strong>__________________________________________________ 7<br />
Role of Government ___________________________________________________________ 9<br />
<strong>Legislation</strong> _______________________________________________________________ 10<br />
Interoperability <strong>and</strong> Infrastructure___________________________________________ 13<br />
Globalization _____________________________________________________________ 14<br />
Architecture ______________________________________________________________ 16<br />
Intellectual Property Rights _________________________________________________ 16<br />
Antitrust _________________________________________________________________ 18<br />
Chang<strong>in</strong>g Markets, Chang<strong>in</strong>g Strategies__________________________________________ 19<br />
Value of St<strong>and</strong>ards ________________________________________________________ 19<br />
Strategic St<strong>and</strong>ardization ___________________________________________________ 22<br />
Strengthen<strong>in</strong>g the System ______________________________________________________ 25<br />
Infrastructure ____________________________________________________________ 26<br />
Susta<strong>in</strong>able architecture ____________________________________________________ 27<br />
Conclusion: <strong>The</strong> Nuts <strong>and</strong> Bolts of the Problem ____________________________________ 28<br />
About <strong>The</strong> St<strong>and</strong>ards Edge: Dynamic Tension ___________________________________ 30<br />
Appendix A _________________________________________________________________ 32<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 2—
Executive Summary<br />
O<br />
n December 4-5, 2003 <strong>in</strong> Wash<strong>in</strong>gton, DC, leaders <strong>in</strong> <strong>in</strong>dustry, government, <strong>and</strong> academia<br />
gathered to discuss the topic “<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict.”<br />
While the title is <strong>in</strong>trigu<strong>in</strong>g, just what does it mean?<br />
(a) That st<strong>and</strong>ardization is be<strong>in</strong>g pulled <strong>in</strong> two directions, <strong>in</strong>novators <strong>and</strong> legislators on opposite<br />
ends of the rope<br />
(b) That st<strong>and</strong>ards developers are <strong>in</strong> conflict<br />
(c) That st<strong>and</strong>ards themselves are conflict<strong>in</strong>g with each other<br />
(d) That there was yet another st<strong>and</strong>ards conference <strong>in</strong> an exotic, tropical location<br />
(e) That the person who chose the locations <strong>and</strong> dates of the last two conferences (December <strong>in</strong><br />
Boston <strong>and</strong> Wash<strong>in</strong>gton) is <strong>in</strong> clear need of an atlas <strong>and</strong> a Farmer’s Almanac<br />
If you chose a,b,c, <strong>and</strong> e, congratulations! You clearly have a good underst<strong>and</strong><strong>in</strong>g of the state of<br />
st<strong>and</strong>ardization today along with a general knowledge of w<strong>in</strong>ter weather patterns <strong>in</strong> the eastern<br />
United States. If you chose d, can I <strong>in</strong>terest you <strong>in</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> beachfront property <strong>in</strong> Siberia?<br />
<strong>The</strong> conference did address conflict <strong>in</strong> st<strong>and</strong>ardization from diverse po<strong>in</strong>ts of view. Featur<strong>in</strong>g<br />
speakers such as Tony Scott, CTO of General Motors, Miann Quddu, Director of Technology<br />
Enabl<strong>in</strong>g for Samsung, Toru Yamauchi of Japan’s M<strong>in</strong>istry of Economy, Trade, <strong>and</strong> Industry<br />
(METI), <strong>and</strong> John Podesta, former White House Chief of Staff for the Cl<strong>in</strong>ton Adm<strong>in</strong>istration, along<br />
with representatives from <strong>in</strong>dustry, government, academia, <strong>and</strong> <strong>in</strong>ternational <strong>and</strong> regional st<strong>and</strong>ards<br />
organizations, the conference treated <strong>in</strong>vitation-only participants to four <strong>in</strong>teractive panels:<br />
• Technical Use of St<strong>and</strong>ardization: Manag<strong>in</strong>g <strong>Innovation</strong>, Creat<strong>in</strong>g Technology, Manag<strong>in</strong>g<br />
Change<br />
• <strong>The</strong> Role of Government <strong>in</strong> St<strong>and</strong>ards: Social <strong>Legislation</strong>, Regulation, <strong>and</strong> Bus<strong>in</strong>ess User<br />
• <strong>The</strong> Bus<strong>in</strong>ess of St<strong>and</strong>ards: Creation, Destruction, <strong>and</strong> Preservation of IPR<br />
• Internationalization <strong>and</strong> St<strong>and</strong>ardization: Creation of National <strong>and</strong> International Markets<br />
While each panel exam<strong>in</strong>ed its respective issues, the nature of st<strong>and</strong>ardization means that many of<br />
those issues have impact across the board. As such, it was not surpris<strong>in</strong>g to f<strong>in</strong>d more visible<br />
concerns such as IPR issues or even st<strong>and</strong>ardization strategies discussed <strong>in</strong> many of the panels.<br />
Despite this fact <strong>and</strong> the diversity of those attend<strong>in</strong>g the conference, key issues were identified. At<br />
the top of the list of issues were:<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 3—
• <strong>The</strong> need for government to facilitate harmonization of global st<strong>and</strong>ards<br />
• <strong>The</strong> need for a more effective <strong>and</strong> flexible IPR solution that addresses the patent “hold up”<br />
problem<br />
• St<strong>and</strong>ards education <strong>and</strong> tra<strong>in</strong><strong>in</strong>g for governments, professionals, <strong>and</strong> students<br />
• Integration of public policy concerns <strong>in</strong>to the st<strong>and</strong>ardization process<br />
• <strong>The</strong> need for strategic st<strong>and</strong>ardization to occur at the top levels of organizations, whether<br />
they be corporations, government agencies, or st<strong>and</strong>ards sett<strong>in</strong>g organizations<br />
Throughout the conference, panelists <strong>and</strong> participants exchanged ideas <strong>and</strong> op<strong>in</strong>ions about where<br />
<strong>and</strong> how to resolve problems <strong>in</strong> the st<strong>and</strong>ardization system. Ultimately, it was concluded that<br />
st<strong>and</strong>ardization can be thought of as an ecosystem. One that, when carefully balanced, can foster<br />
<strong>in</strong>novation <strong>and</strong> serve as an <strong>in</strong>cubator for emerg<strong>in</strong>g technology. As with all ecosystems, some conflict<br />
is necessary <strong>in</strong> order to susta<strong>in</strong> life <strong>and</strong> even to evolve. While some entities will die <strong>and</strong> others will<br />
adapt to meet chang<strong>in</strong>g conditions, the ecosystem itself will cont<strong>in</strong>ue to survive. And it is the<br />
survival <strong>and</strong> improvement of the st<strong>and</strong>ardization ecosystem that these conferences seek to address.<br />
Along with the conference, a book was produced that addresses many of the same issues. <strong>The</strong><br />
St<strong>and</strong>ards Edge: Dynamic Tension <strong>in</strong>cludes an <strong>in</strong>tegrated compilation of articles from many of the<br />
conference speakers <strong>and</strong> lead<strong>in</strong>g experts <strong>in</strong> <strong>in</strong>dustry, academia, <strong>and</strong> government. <strong>The</strong> second <strong>in</strong> <strong>The</strong><br />
St<strong>and</strong>ards Edge series, this book features articles on strengthen<strong>in</strong>g the st<strong>and</strong>ardization system,<br />
government <strong>in</strong>fluence, <strong>in</strong>tellectual property rights (IPR) solutions, strategic st<strong>and</strong>ardization, <strong>and</strong><br />
cross-<strong>in</strong>dustry impact. Further <strong>in</strong>formation can be obta<strong>in</strong>ed by contact<strong>in</strong>g the editor, Sherrie Bol<strong>in</strong>, at<br />
sherrie@sbol<strong>in</strong>.com.<br />
Together, the book <strong>and</strong> the conference strive to br<strong>in</strong>g people together to discuss <strong>and</strong> strengthen the<br />
st<strong>and</strong>ardization system. Additional conferences <strong>in</strong> Europe <strong>and</strong> Asia designed to exam<strong>in</strong>e specific<br />
areas of st<strong>and</strong>ardization <strong>and</strong> additional books <strong>in</strong> <strong>The</strong> St<strong>and</strong>ards Edge series are planned for later<br />
this year.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 4—
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>:<br />
St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
Introduction<br />
I<br />
s st<strong>and</strong>ardization <strong>in</strong> conflict, caught <strong>in</strong> a tug of war between <strong>in</strong>novation <strong>and</strong> legislation? Certa<strong>in</strong>ly<br />
the general perception is that <strong>in</strong>novation <strong>and</strong> st<strong>and</strong>ardization are <strong>in</strong> conflict; two mechanisms at<br />
opposite ends of the spectrum. But perhaps we shouldn’t be so quick to accept this long held<br />
assumption. After all, there was a time when the world assumed<br />
that blood lett<strong>in</strong>g was the cure to all maladies when it <strong>in</strong> fact<br />
dim<strong>in</strong>ished the health of already ill patients. Could we be mak<strong>in</strong>g<br />
the same mistake with <strong>in</strong>novation <strong>and</strong> st<strong>and</strong>ardization by<br />
believ<strong>in</strong>g that total freedom without constra<strong>in</strong>ts is the best way<br />
to spur <strong>in</strong>novation? And what is the relationship between<br />
st<strong>and</strong>ardization <strong>and</strong> legislation? Is legislation pull<strong>in</strong>g<br />
st<strong>and</strong>ardization too far <strong>in</strong> its own direction, <strong>in</strong> effect,<br />
constra<strong>in</strong><strong>in</strong>g the positive effects it can have on the market or its<br />
potential as a stimulus for <strong>in</strong>novation? <strong>The</strong>n aga<strong>in</strong>, perhaps<br />
legislation is provid<strong>in</strong>g too much freedom, tak<strong>in</strong>g a “look the other way” approach that is allow<strong>in</strong>g<br />
st<strong>and</strong>ardization to slowly s<strong>in</strong>k under its own <strong>in</strong>ternal battles <strong>and</strong> proliferat<strong>in</strong>g lawsuits?<br />
<strong>The</strong>se <strong>and</strong> other questions were the catalysts that brought together lead<strong>in</strong>g companies, government<br />
representatives, universities, <strong>and</strong> <strong>in</strong>ternational <strong>and</strong> regional st<strong>and</strong>ards organizations <strong>in</strong> Wash<strong>in</strong>gton,<br />
DC on December 4-5, 2003. <strong>The</strong> conference addressed areas <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>novation, the role of<br />
government, bus<strong>in</strong>ess strategies, <strong>and</strong> globalization. St<strong>and</strong>ardization served as the thread that weaved<br />
the conversations together to form some powerful ideas <strong>and</strong> even a few conclusions.<br />
Participat<strong>in</strong>g <strong>in</strong> the panel discussions were leaders from organizations such as General Motors, NIST,<br />
Deere & Company, the US Government, Japan’s M<strong>in</strong>istry of Economy, Trade, <strong>and</strong> Industry (METI),<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 5—
Mitsubishi Research Institute, AOL Time Warner, ISO, IEC, OMG, 1 Nokia, the University of<br />
Colorado, <strong>and</strong> Georgetown University. For a complete list of speakers, please see Appendix A.<br />
Sponsors of the conference <strong>in</strong>cluded Sun Microsystems, Inc., JEDEC, Oracle Corporation,<br />
Georgetown University, Global Inventures, Samsung Semiconductor, <strong>and</strong> AOL Time Warner. All<br />
deserve congratulations for tak<strong>in</strong>g a h<strong>and</strong>s-off approach when it came to speaker content,<br />
encourag<strong>in</strong>g them to express their op<strong>in</strong>ions even when they directly conflicted with those of the<br />
sponsors.<br />
As with any conference, but particularly with this one, the most exceptional value could be found <strong>in</strong><br />
the halls, at meals, <strong>and</strong> around the coffee station. It was dur<strong>in</strong>g these times that true connections<br />
were made across boundaries that are not often crossed. A glance across the room would f<strong>in</strong>d users<br />
talk<strong>in</strong>g with universities, government talk<strong>in</strong>g with <strong>in</strong>dustry, <strong>and</strong> people of different nationalities<br />
talk<strong>in</strong>g with one another. More importantly, the conversations were animated—organizational party<br />
l<strong>in</strong>es left at the door—as people truly started to connect through ideas. Plans were made for future<br />
cooperative efforts <strong>and</strong> even conferences. In fact, look for similar conferences this year <strong>in</strong> Europe<br />
<strong>and</strong> possibly Asia.<br />
<strong>The</strong> conference was not the only th<strong>in</strong>g that brought people together. A book entitled <strong>The</strong> St<strong>and</strong>ards<br />
Edge: Dynamic Tension grew out of the ideas surround<strong>in</strong>g the conference. Conta<strong>in</strong><strong>in</strong>g a compilation<br />
of articles from lead<strong>in</strong>g experts <strong>in</strong> <strong>in</strong>dustry, government, <strong>and</strong> academia worldwide, <strong>in</strong>clud<strong>in</strong>g the<br />
majority of speakers at the conference, the book provides a more <strong>in</strong> depth exam<strong>in</strong>ation of<br />
strengthen<strong>in</strong>g the st<strong>and</strong>ardization system, government <strong>in</strong>fluence, <strong>in</strong>tellectual property rights (IPR)<br />
solutions, strategic st<strong>and</strong>ardization, <strong>and</strong> cross-<strong>in</strong>dustry impact.<br />
<strong>The</strong> panel discussions, while divided <strong>in</strong>to four dist<strong>in</strong>ct areas, actually touched on similar subjects<br />
across the board. For this reason, this paper exam<strong>in</strong>es the discussions <strong>and</strong> the f<strong>in</strong>d<strong>in</strong>gs of the<br />
speakers <strong>and</strong> the audience as a whole <strong>in</strong> four areas:<br />
• St<strong>and</strong>ardization <strong>and</strong> <strong>Innovation</strong><br />
• <strong>The</strong> Role of Government<br />
• Chang<strong>in</strong>g Markets/Chang<strong>in</strong>g Strategies<br />
1 ISO: International Organization for St<strong>and</strong>ardization<br />
IEC: International Electrotechnical Commission<br />
OMG: Object Management <strong>Group</strong><br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 6—
• Strengthen<strong>in</strong>g the System.<br />
This paper, the conference, <strong>and</strong> <strong>The</strong> St<strong>and</strong>ards Edge: Dynamic Tension represent an opportunity to<br />
learn about the views <strong>and</strong> plans of leaders that will impact your organization, your nation, <strong>and</strong> your<br />
world. Most importantly, they are there to facilitate connections. And connections, after all, are what<br />
st<strong>and</strong>ardization is all about.<br />
St<strong>and</strong>ardization <strong>and</strong> <strong>Innovation</strong><br />
People often perceive st<strong>and</strong>ards as <strong>in</strong>novation killers. As Ben Wu, Department of Commerce, stated<br />
<strong>in</strong> the previous conference, “St<strong>and</strong>ards are a MEGO issue—My Eyes Glaze Over.” How then could<br />
someth<strong>in</strong>g labeled as MEGO actually spur <strong>in</strong>novation? Perhaps it is because most don’t realize that<br />
“ICT st<strong>and</strong>ards are a process, not a th<strong>in</strong>g. St<strong>and</strong>ardization <strong>and</strong> <strong>in</strong>novation are a collection of activities<br />
that have phase relationships with each other that effectively amount to an ecology,” accord<strong>in</strong>g to<br />
Rob G<strong>in</strong>gell, Vice President <strong>and</strong> Chief Eng<strong>in</strong>eer at Sun<br />
“If you can do all this, you will<br />
Microsystems. This ecology must be kept <strong>in</strong> balance to<br />
empower <strong>in</strong>novation by the freedom be effective <strong>and</strong> spur <strong>in</strong>novation. If st<strong>and</strong>ardization<br />
that comes from constra<strong>in</strong>ts.”<br />
occurs too far ahead of the need, time will be spent<br />
focus<strong>in</strong>g on the wrong processes <strong>and</strong> knowledge, which<br />
—Rob G<strong>in</strong>gell, Chief Eng<strong>in</strong>eer,<br />
can actually scare away the <strong>in</strong>novators. If<br />
Sun Microsystems<br />
st<strong>and</strong>ardization occurs too late, the market will become<br />
fragmented with compet<strong>in</strong>g <strong>in</strong>novations. <strong>The</strong>re is an optimum range of chaos <strong>in</strong> front of the<br />
st<strong>and</strong>ard where <strong>in</strong>novation beg<strong>in</strong>s to occur <strong>and</strong> the life cycle for the technology evolves to meet<br />
marketplace needs. To ma<strong>in</strong>ta<strong>in</strong> a healthy balance that fosters <strong>in</strong>novation, exist<strong>in</strong>g practices must be<br />
st<strong>and</strong>ardized, the effectiveness of st<strong>and</strong>ards must be measured by how they are consumed, <strong>and</strong><br />
st<strong>and</strong>ards must offer enough flexibility so that companies who are already perform<strong>in</strong>g the practice to<br />
be codified can cont<strong>in</strong>ue to do so. While it is important to strive for consensus, caution should be<br />
taken to ensure that the level of compromise is not so strong that an <strong>in</strong>stalled base for the st<strong>and</strong>ard<br />
does not exist. F<strong>in</strong>ally, enforcement of the st<strong>and</strong>ard must be achieved by measur<strong>in</strong>g whether<br />
conformance is established <strong>in</strong> a way that is useful to people. “If you can do all this, you will empower<br />
<strong>in</strong>novation by the freedom that comes from constra<strong>in</strong>ts,” declared G<strong>in</strong>gell. People are much more<br />
<strong>in</strong>novative with some framework than if they are given a blank sheet of paper <strong>and</strong> told to go create.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 7—
Ora Lassila, Nokia, questioned whether st<strong>and</strong>ardization could be used to build an ecosystem for new<br />
technologies. Us<strong>in</strong>g the ongo<strong>in</strong>g development of the Semantic Web as a case study, he stated that<br />
st<strong>and</strong>ardization can be helpful to ongo<strong>in</strong>g research because it clarifies an otherwise hard-tounderst<strong>and</strong><br />
technology, creates <strong>in</strong>terest <strong>and</strong> publicity for an emerg<strong>in</strong>g technology, <strong>and</strong> it may resolve<br />
issues that are actually <strong>in</strong>hibit<strong>in</strong>g research from go<strong>in</strong>g forward. Indeed, st<strong>and</strong>ardization can create<br />
new markets <strong>and</strong> serve as a strong foundation from which <strong>in</strong>novation flourishes. One look at the<br />
history of GSM, with its solid base of upfront st<strong>and</strong>ardization, proves that at least <strong>in</strong> some <strong>in</strong>stances<br />
st<strong>and</strong>ardization can <strong>in</strong> fact enable <strong>in</strong>novation to grow, often at a faster pace. However, Lassila<br />
cautioned that st<strong>and</strong>ardization can also serve as a detriment to research <strong>and</strong> <strong>in</strong>novation. For example,<br />
st<strong>and</strong>ardiz<strong>in</strong>g too early may actually lead to <strong>in</strong>ferior outcomes. In addition, it may impact <strong>in</strong>novation<br />
<strong>in</strong> ways that cannot be foreseen.<br />
So, does st<strong>and</strong>ardization foster or stifle <strong>in</strong>novation? Accord<strong>in</strong>g to those at the conference, it has the<br />
potential to stimulate <strong>in</strong>novation if used correctly with<strong>in</strong> the right time frame. St<strong>and</strong>ardize too early<br />
<strong>and</strong> you end up with stale, unimag<strong>in</strong>ative technologies. St<strong>and</strong>ardize too late <strong>and</strong> you may have a lot of<br />
<strong>in</strong>novation, but the market will be so fragmented that it is unlikely that any <strong>in</strong>novation will be able to<br />
ga<strong>in</strong> the market share necessary to survive. Of course, st<strong>and</strong>ardization also offers a unique<br />
opportunity for competitors, <strong>and</strong> sometimes users, to pool their ideas <strong>in</strong>to a collective <strong>and</strong> possibly<br />
more creative solution. While too many m<strong>in</strong>ds can muddle the process unnecessarily, there are<br />
advantages to creat<strong>in</strong>g solutions with those who br<strong>in</strong>g unique perspectives to the problem.<br />
Perhaps the answer to this question has been evident all along <strong>in</strong> the examples found <strong>in</strong> history.<br />
Consider Eli Whitney’s revolutionary <strong>in</strong>novations. While most recognize him as the <strong>in</strong>ventor of the<br />
cotton g<strong>in</strong>, he is less well known for his more important <strong>in</strong>vention—the mass production of<br />
<strong>in</strong>terchangeable parts. Tasked with provid<strong>in</strong>g the US Government with 10,000 muskets with<strong>in</strong> two<br />
years <strong>in</strong> 1797, he created this concept to help him deliver on his promise. Although the process<br />
started with guns, the idea quickly caught on, spawn<strong>in</strong>g the creation of the American System of<br />
Manufacturer. <strong>The</strong> st<strong>and</strong>ardization of parts, or components <strong>in</strong> technology terms, led to such<br />
<strong>in</strong>novations <strong>and</strong> capabilities as Henry Ford’s automobile, the <strong>in</strong>terstate system, <strong>and</strong> the mass, lifesav<strong>in</strong>g<br />
distribution of penicill<strong>in</strong> <strong>in</strong> World War II, among others. By free<strong>in</strong>g <strong>in</strong>ventors from hav<strong>in</strong>g to<br />
create all of the components from scratch, st<strong>and</strong>ardization allowed them to focus on the essential<br />
parts of their ideas <strong>and</strong> br<strong>in</strong>g those ideas to market faster. Of course, the challenges <strong>and</strong> benefits of<br />
st<strong>and</strong>ardization still exist today. Sit down with Tony Scott, CTO of General Motor’s Information<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 8—
Systems <strong>and</strong> Services (IS&S) organization, <strong>and</strong> he’ll tell you about his efforts to get his design<br />
eng<strong>in</strong>eers to use already exist<strong>in</strong>g gas caps <strong>in</strong>stead of re<strong>in</strong>vent<strong>in</strong>g the wheel, so to speak. Scott feels<br />
that concentrat<strong>in</strong>g on gas caps or other areas that already have successful solutions simply for the<br />
sake of be<strong>in</strong>g creative actually <strong>in</strong>hibits the overall <strong>in</strong>novative process. Instead, he encourages his<br />
eng<strong>in</strong>eers to use exist<strong>in</strong>g st<strong>and</strong>ardized components when possible so that they can apply their<br />
energies to <strong>in</strong>novations <strong>in</strong> design that will truly make a difference to customers. After all, most cars<br />
have the same basic parts. It is the unique comb<strong>in</strong>ation of those parts or the enhancement of the<br />
most essential parts that create market differentiation.<br />
While historical <strong>and</strong> real life examples are essential <strong>in</strong> determ<strong>in</strong><strong>in</strong>g st<strong>and</strong>ardization’s impact on<br />
<strong>in</strong>novation, studies can also help to resolve the issue. IDC found that st<strong>and</strong>ardization has <strong>in</strong>creased<br />
the speed of <strong>in</strong>novation <strong>and</strong> enabled market entry by new companies <strong>in</strong> its survey of 340 companies,<br />
report<strong>in</strong>g that “St<strong>and</strong>ardized platforms will cont<strong>in</strong>ue to benefit the end user <strong>in</strong> terms of market<br />
choice, market expansion, <strong>and</strong> technology <strong>in</strong>novation.” 2 In addition, the German Institute of<br />
“St<strong>and</strong>ardized platforms<br />
will cont<strong>in</strong>ue to benefit the<br />
end user <strong>in</strong> terms of<br />
market choice, market<br />
expansion, <strong>and</strong> technology<br />
<strong>in</strong>novation.”<br />
—IDC, 2003<br />
St<strong>and</strong>ards, DIN, found <strong>in</strong> its study that it is not sufficient for<br />
<strong>in</strong>novation to occur. Without an effective means to dissem<strong>in</strong>ate<br />
those advances, <strong>in</strong>novative products have little impact on the<br />
economy. 3<br />
So, what is the relationship between st<strong>and</strong>ardization <strong>and</strong><br />
<strong>in</strong>novation? Is it truly <strong>in</strong> conflict? Perhaps the two are not so<br />
much <strong>in</strong> conflict, but are <strong>in</strong> a state of dynamic tension. A tension,<br />
that when managed properly, creates a healthy ecosystem that<br />
allows <strong>in</strong>novation <strong>and</strong> technologies to grow <strong>and</strong> flourish.<br />
Role of Government<br />
<strong>The</strong> question is not should government be <strong>in</strong>volved <strong>in</strong> st<strong>and</strong>ardization, but how. After all, as some of<br />
the largest customers <strong>in</strong> the world, not to mention ones tasked with ensur<strong>in</strong>g the safety of its<br />
<strong>in</strong>habitants along with fair bus<strong>in</strong>ess practices, strong <strong>in</strong>ternational trade, <strong>and</strong> a healthy economy,<br />
forgett<strong>in</strong>g to <strong>in</strong>vite them to the party is probably not a wise decision. Rather, it would be more<br />
2 IDC, 2001, St<strong>and</strong>ardization: <strong>The</strong> Secret to IT Leverage, p. 2<br />
3 DIN German Institute for St<strong>and</strong>ardization e. V.: 2000, Economic Benefits of St<strong>and</strong>ardization, p. 20<br />
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advisable to not only <strong>in</strong>vite them to the party, but to give specific <strong>in</strong>structions on when to arrive <strong>and</strong><br />
what to br<strong>in</strong>g.<br />
So, the question is where, when, <strong>and</strong> to what level should government be <strong>in</strong>volved <strong>in</strong> st<strong>and</strong>ardization.<br />
And should those roles be def<strong>in</strong>ed on a global basis, try<strong>in</strong>g to make them generally applicable to all<br />
governments? Not an easy task when you consider that governments from around the world come<br />
imbued with their own cultures, rules, biases, <strong>and</strong> expectations from their citizens. <strong>The</strong> op<strong>in</strong>ions of<br />
conference participants about governments’ role <strong>in</strong> st<strong>and</strong>ardization varied as much as the snowflakes<br />
pelt<strong>in</strong>g the w<strong>in</strong>dows outside of the conference room dur<strong>in</strong>g one of Wash<strong>in</strong>gton’s worst snow storms<br />
of the year. But the heat generated by the discussions <strong>in</strong>side was enough to melt away even the most<br />
entrenched icicles adorn<strong>in</strong>g the conference room w<strong>in</strong>dows. Discussions encompassed six areas:<br />
legislation, <strong>in</strong>teroperability <strong>and</strong> <strong>in</strong>frastructure, globalization, architecture, <strong>in</strong>tellectual property rights<br />
(IPR), <strong>and</strong> antitrust.<br />
LEGISLATION<br />
<strong>The</strong>re is no doubt that legislation impacts st<strong>and</strong>ardization. <strong>The</strong>re are of course traditional uses along<br />
the l<strong>in</strong>es of public safety, quality assurance, <strong>and</strong> even security. One only has to look as far as your<br />
own backyard or across the world to f<strong>in</strong>d poignant examples. In Europe, under the new European<br />
Directive, st<strong>and</strong>ards bodies are be<strong>in</strong>g asked to create st<strong>and</strong>ards that support regulations. <strong>The</strong> US<br />
issued Office of Management <strong>and</strong> Budget (OMB) Circular A-119, which requires government<br />
organizations to purchase products based on voluntary st<strong>and</strong>ards produced by formal st<strong>and</strong>ards<br />
development organizations (SDOs)—a decision that lends more credence <strong>and</strong> possibly more<br />
bus<strong>in</strong>ess to formal processes.<br />
But it is not only government impact<strong>in</strong>g st<strong>and</strong>ardization. Lately, there are dist<strong>in</strong>ct signs of<br />
st<strong>and</strong>ardization impact<strong>in</strong>g legislation as governments <strong>in</strong>creas<strong>in</strong>gly recognize st<strong>and</strong>ardization as a<br />
vehicle to support domestic <strong>in</strong>dustries, <strong>in</strong>hibit or facilitate trade, <strong>and</strong> serve as an effective<br />
measurement for legislative conformance. As mentioned previously, the EU not only uses<br />
st<strong>and</strong>ardization as a tool for companies to prove that they conform to legislation, but <strong>in</strong> some cases it<br />
is look<strong>in</strong>g to st<strong>and</strong>ardization to help create <strong>and</strong> drive new legislation. <strong>The</strong> US government now looks<br />
to <strong>in</strong>dustry not only to provide st<strong>and</strong>ards-based solutions, but to create st<strong>and</strong>ards <strong>in</strong> anticipation of<br />
government needs. <strong>The</strong> further you look <strong>in</strong>to the <strong>in</strong>tertw<strong>in</strong><strong>in</strong>g of legislation <strong>and</strong> st<strong>and</strong>ardization, of<br />
government <strong>and</strong> st<strong>and</strong>ardization, the more complex the issues become.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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Before def<strong>in</strong><strong>in</strong>g the appropriate roles of government, it is beneficial to look at the overall risks <strong>and</strong><br />
rewards of government <strong>in</strong>volvement.<br />
Risks<br />
Dur<strong>in</strong>g the conference, a US government representative asked what <strong>in</strong>dustry wants <strong>in</strong> terms of<br />
government <strong>in</strong>volvement, specifically ask<strong>in</strong>g “If Congress stays out of it, will it be best for<br />
everybody?” Robert Noth, Manager of Eng<strong>in</strong>eer<strong>in</strong>g St<strong>and</strong>ards for Deere & Company, spoke out <strong>in</strong><br />
favor of some legislation when necessary, but stated that US legislation is currently too US focused<br />
<strong>and</strong> needs to be more <strong>in</strong>ternational <strong>in</strong> scope. As a partial remedy, he encouraged government to enact<br />
legislation that changes the m<strong>and</strong>ates of relevant government organizations to creat<strong>in</strong>g harmony with<br />
<strong>in</strong>ternational st<strong>and</strong>ards. In addition, he cautioned legislators to base regulations on performance <strong>and</strong><br />
avoid micromanag<strong>in</strong>g or ref<strong>in</strong><strong>in</strong>g the design. Above all, Noth stressed that legislation needs to allow<br />
for flexibility to accommodate changes <strong>in</strong> the marketplace. Too often, legislation is based on market<br />
conditions that no longer apply. Bus<strong>in</strong>esses are tasked with conform<strong>in</strong>g to that legislation, sometimes<br />
to the detriment of their bus<strong>in</strong>esses <strong>and</strong> the users it was designed to protect.<br />
Jack Sheldon, Strategic Development Manager for IEC, expressed similar concerns, stat<strong>in</strong>g his belief<br />
that legislation tends to be longer term <strong>and</strong> more difficult to change than st<strong>and</strong>ards. From his po<strong>in</strong>t<br />
of view, st<strong>and</strong>ardization is much easier to deal with. Karl-He<strong>in</strong>z Rosenbrock (Director-General of<br />
ETSI) believes that the European Directive is a preferable approach as legislation is not always<br />
consensus-based or practical.<br />
Based on his experience, John Podesta, former Chief of Staff for the Cl<strong>in</strong>ton Adm<strong>in</strong>istration <strong>and</strong><br />
currently Visit<strong>in</strong>g Professor of Law at Georgetown University, identified four risks associated with<br />
government <strong>in</strong>volvement <strong>in</strong> st<strong>and</strong>ardization efforts:<br />
• It can lock <strong>in</strong> obsolete technology<br />
• Government driven st<strong>and</strong>ardization can be <strong>in</strong>terpreted as non-tariff trade barriers<br />
• It can reduce beneficial competition between multiple st<strong>and</strong>ards<br />
• It can slow the st<strong>and</strong>ardization process down<br />
Rewards<br />
Despite these risks, Podesta <strong>and</strong> others did see benefits <strong>in</strong> the right government <strong>in</strong>volvement. For<br />
example, Podesta believes that public policy concerns need to be part of the st<strong>and</strong>ardization process<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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early on. He stated that “<strong>The</strong>y (st<strong>and</strong>ards) are <strong>in</strong>creas<strong>in</strong>gly important from a public policy<br />
st<strong>and</strong>po<strong>in</strong>t.” For example, IPV6 was a good technical solution for a technical problem. However,<br />
because the st<strong>and</strong>ards developers did not look at it from a public policy viewpo<strong>in</strong>t, they did not<br />
recognize the privacy implications of a st<strong>and</strong>ard that called for assign<strong>in</strong>g static IP addresses to<br />
enhance identification. <strong>The</strong> IETF eventually addressed the issue, but release <strong>and</strong> adoption of the<br />
st<strong>and</strong>ard was delayed until the issues were resolved.<br />
“<strong>The</strong>y (st<strong>and</strong>ards) are<br />
Another area where public policy concerns are imm<strong>in</strong>ent<br />
<strong>in</strong>creas<strong>in</strong>gly important from a is <strong>in</strong> wireless location track<strong>in</strong>g technologies. <strong>The</strong> concern<br />
public policy st<strong>and</strong>po<strong>in</strong>t.”<br />
is whether users will have control over who accesses their<br />
location <strong>in</strong>formation. In the end, it may be more<br />
—John Podesta, Former White<br />
House Chief of Staff, Cl<strong>in</strong>ton expedient to address public policy concerns <strong>in</strong> the<br />
Adm<strong>in</strong>istration<br />
development stage of a st<strong>and</strong>ard as opposed to revis<strong>in</strong>g it<br />
later on. To accomplish this, Podesta recommends that<br />
SSOs need to <strong>in</strong>stitutionalize public policy considerations <strong>in</strong>to the st<strong>and</strong>ards sett<strong>in</strong>g process by<br />
implement<strong>in</strong>g systematic ways to consider public policy consequences, encourag<strong>in</strong>g the <strong>in</strong>volvement<br />
of public <strong>in</strong>terest organizations, <strong>and</strong> provid<strong>in</strong>g broader education for technologists themselves to<br />
encourage th<strong>in</strong>k<strong>in</strong>g about the social consequences of their st<strong>and</strong>ardization efforts. St<strong>and</strong>ards bodies<br />
<strong>and</strong> their participants will especially need the help of outside sources as dem<strong>and</strong>s <strong>in</strong>crease for<br />
st<strong>and</strong>ards to be <strong>in</strong>ternationally applicable. While st<strong>and</strong>ards developers may be able to foresee the<br />
public policy implications <strong>in</strong> their own country, predict<strong>in</strong>g those implications on a global basis can be<br />
a daunt<strong>in</strong>g challenge. For further expansion of these ideas, see Chapter 15 <strong>in</strong> <strong>The</strong> St<strong>and</strong>ards Edge:<br />
Dynamic Tension.<br />
In evaluat<strong>in</strong>g st<strong>and</strong>ards that impact the public, Podesta expla<strong>in</strong>ed that governments must take <strong>in</strong>to<br />
consideration values, constitutional or rights implications, <strong>and</strong> the effect on <strong>and</strong> abilities of law<br />
enforcement <strong>in</strong> regards to the st<strong>and</strong>ard.<br />
Public policy is not the only area where government is or should be play<strong>in</strong>g a significant role <strong>in</strong><br />
st<strong>and</strong>ardization. Conference participants <strong>and</strong> others who have communicated with their respective<br />
governments have called for them to take a role <strong>in</strong> <strong>in</strong>teroperability <strong>and</strong> <strong>in</strong>frastructure, architecture,<br />
globalization, IPR, <strong>and</strong> antitrust issues. So while most participants strongly called for a h<strong>and</strong>s off<br />
approach to government <strong>in</strong>volvement, they are also look<strong>in</strong>g to those same government organizations<br />
to help solve some very press<strong>in</strong>g issues.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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INTEROPERABILITY AND INFRASTRUCTURE<br />
Interoperability rema<strong>in</strong>s a key issue that costs countries billions of dollars each year. In the U.S.<br />
automotive supply cha<strong>in</strong> alone, <strong>in</strong>teroperability problems, which often require that data files be<br />
repaired or reentered before they are shared, cost members at least $1 billion per year. 4 Phillip Bond,<br />
Undersecretary of Technology for the US Department of Commerce, stated that consumers are<br />
ask<strong>in</strong>g government to help facilitate <strong>in</strong>teroperability. For example, NIST has been authorized to work<br />
with the manufactur<strong>in</strong>g <strong>in</strong>dustry to help develop <strong>and</strong> implement st<strong>and</strong>ards for electronic enterprise<br />
<strong>in</strong>tegration, a move that will remove a huge cost factor from the US economy, accord<strong>in</strong>g to Bond. In<br />
addition, the medical records <strong>in</strong>dustry has approached the US government to <strong>in</strong>crease <strong>in</strong>teroperability<br />
so that medical records can be digitized, securely stored, <strong>and</strong> shared. Far from be<strong>in</strong>g just an <strong>in</strong>dustry<br />
concern, governments also have a high stake <strong>in</strong> <strong>in</strong>teroperability. For example, US Homel<strong>and</strong> Security<br />
is rely<strong>in</strong>g on st<strong>and</strong>ards to deliver <strong>in</strong>teroperability for first responders, security, <strong>and</strong> control systems<br />
for critical <strong>in</strong>frastructure. <strong>The</strong> US government is work<strong>in</strong>g to drive global st<strong>and</strong>ards <strong>in</strong> this area by<br />
work<strong>in</strong>g with other countries that have similar concerns.<br />
Andrew Updegrove (Lucash, Gesmer & Updegrove) po<strong>in</strong>ted out that it is not only <strong>in</strong>formation <strong>and</strong><br />
communications technology (ICT) systems that need to <strong>in</strong>teroperate, but government organizations<br />
as well. In accomplish<strong>in</strong>g this, they may have to overcome their own policies <strong>and</strong> cultural barriers to<br />
shar<strong>in</strong>g <strong>in</strong>formation. Updegrove used the Unocal case 5 as an example. In this situation, a US<br />
adm<strong>in</strong>istrative law judge kicked out the case, stat<strong>in</strong>g that it belonged under the federal courts because<br />
it required <strong>in</strong> depth IPR analysis. Updegrove expressed his frustration that the case would have to<br />
start over aga<strong>in</strong> as it was not already <strong>in</strong> the US federal circuit. In addition, he discussed recent<br />
<strong>in</strong>cidents <strong>in</strong> which the IRS had turned down two st<strong>and</strong>ards organizations because it decided that<br />
every member has to have exactly the same rights <strong>and</strong> the consortia must be able to say it represents<br />
the ENTIRE <strong>in</strong>dustry. Obviously, these are impossible criteria for any SSO to meet. Updegrove<br />
believes that <strong>in</strong>cidents such as these demonstrate that government separation is caus<strong>in</strong>g problems<br />
<strong>and</strong> slow<strong>in</strong>g down the st<strong>and</strong>ardization process. While no conclusions were reached <strong>in</strong> this area, Gail<br />
Lev<strong>in</strong>e, Deputy Assistant General Counsel for Policy Studies, Federal Trade Commission (FTC),<br />
expla<strong>in</strong>ed that sometimes US government agencies are discouraged or even prevented from<br />
4 National Institute of St<strong>and</strong>ards & Technology (NIST): 1999, Interoperability Cost Analysis of the US<br />
Automotive Supply Cha<strong>in</strong><br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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<strong>in</strong>teract<strong>in</strong>g with one another, often under the <strong>in</strong>structions of respect<strong>in</strong>g one another’s jurisdiction.<br />
However, just as with<strong>in</strong> a company, market<strong>in</strong>g, eng<strong>in</strong>eer<strong>in</strong>g, sales, operations, <strong>and</strong> human resources<br />
must communicate <strong>in</strong> order for the company to succeed, perhaps it is time for government<br />
organizations to let goals drive their communications rather than the traditional l<strong>in</strong>es of<br />
responsibilities.<br />
In regards to the <strong>in</strong>frastructure of the st<strong>and</strong>ardization system, Bond believes that government has a<br />
role <strong>in</strong> provid<strong>in</strong>g the right sett<strong>in</strong>g for st<strong>and</strong>ards development <strong>and</strong> <strong>in</strong> work<strong>in</strong>g with other countries to<br />
strengthen the global st<strong>and</strong>ardization system <strong>and</strong> prevent compet<strong>in</strong>g national st<strong>and</strong>ards, which cause<br />
fragmentation. He believes that government should promote an open <strong>and</strong> voluntary approach to<br />
st<strong>and</strong>ardization. However, <strong>in</strong> order to set an environment that allows technology to flourish, it must<br />
rema<strong>in</strong> technologically neutral. Just how should government set this environment? Some of those<br />
answers were discussed under IPR, antitrust, <strong>and</strong> legislation. Yet, throughout the conference, no one<br />
ever mentioned steps that the government could take to strengthen the st<strong>and</strong>ardization system as a<br />
whole. This is someth<strong>in</strong>g that at least the US government has encouraged <strong>in</strong>dustry to provide for<br />
quite some time. A call to action from last year’s conference was for <strong>in</strong>dustry to b<strong>and</strong> together <strong>and</strong><br />
approach government with specific needs for st<strong>and</strong>ardization. While this may have been done on an<br />
<strong>in</strong>dividual company basis, it certa<strong>in</strong>ly has not been accomplished from an <strong>in</strong>dustry st<strong>and</strong>po<strong>in</strong>t. So,<br />
vendors <strong>and</strong> sellers, this is your opportunity—your wake up call. If you want government <strong>in</strong>volved <strong>in</strong><br />
st<strong>and</strong>ardization, if you want its help, now is the time to act.<br />
GLOBALIZATION<br />
Globalization rema<strong>in</strong>s a central theme <strong>in</strong> the st<strong>and</strong>ards world.<br />
Robert Noth, Deere & Company, emphasized that the<br />
current lack of harmonization around the world is the key<br />
challenge <strong>in</strong> st<strong>and</strong>ardization. As a company that does<br />
bus<strong>in</strong>ess <strong>in</strong> 160 countries, it is too cumbersome to meet<br />
multiple st<strong>and</strong>ards <strong>and</strong> regulations around the world. Regulations should be built on <strong>in</strong>ternationally<br />
accepted st<strong>and</strong>ards <strong>and</strong> global acceptance should be one test everywhere. To require different tests <strong>in</strong><br />
all 160 countries ultimately hurts the users, sometimes driv<strong>in</strong>g up a product’s price by as much as<br />
Regulations should be built on<br />
<strong>in</strong>ternationally accepted<br />
st<strong>and</strong>ards <strong>and</strong> global acceptance<br />
should be one test everywhere.<br />
5 Unocal Case: A case alleg<strong>in</strong>g that Unocal misrepresented to a state st<strong>and</strong>ard sett<strong>in</strong>g organization that its<br />
technology was not proprietary <strong>and</strong> was <strong>in</strong> public doma<strong>in</strong>. At the same time, it pursued patents for that<br />
very technology. As a result, consumers <strong>in</strong> California are pay<strong>in</strong>g higher gas prices.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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$10,000.00, accord<strong>in</strong>g to Noth. Others agreed <strong>in</strong> pr<strong>in</strong>ciple with Noth, but stated that sometimes a<br />
one size fits all solution is not possible. All agreed that st<strong>and</strong>ards have to be driven towards identified<br />
goals <strong>and</strong> allow enough functionality <strong>in</strong> them to meet diverse needs.<br />
Bond stated that the ultimate goal is global st<strong>and</strong>ardization. Unfortunately, nationalization <strong>and</strong><br />
competition are fractur<strong>in</strong>g the st<strong>and</strong>ardization system. This is particularly evident between the EU<br />
<strong>and</strong> the US. Bond compared the situation to two elephants fight<strong>in</strong>g over a patch of grass. If the<br />
fight<strong>in</strong>g persists, their actions will destroy the grass on which all entities are dependent upon for<br />
survival. Thus, the carefully balanced ecology that G<strong>in</strong>gell <strong>and</strong> Lassila referred to <strong>in</strong> their<br />
presentations would be destroyed <strong>and</strong> st<strong>and</strong>ardization would cease to be effective. Efforts are<br />
underway to resolve some of the regional <strong>and</strong> national differences <strong>in</strong> st<strong>and</strong>ardization between the EU<br />
<strong>and</strong> the US. <strong>The</strong>se <strong>in</strong>clude an early warn<strong>in</strong>g system that alerts governments to develop<strong>in</strong>g st<strong>and</strong>ards<br />
that will impact their respective markets. Bond is hop<strong>in</strong>g to exp<strong>and</strong> this early warn<strong>in</strong>g system out to<br />
<strong>in</strong>dustry. This system is part of an EU/US <strong>in</strong>itiative that strives to open up l<strong>in</strong>es of communication<br />
on st<strong>and</strong>ardization between them. Of course, nationalism <strong>and</strong> competition are not limited to the<br />
Western world. Ch<strong>in</strong>a, for example, represents another potential for fragmentation. <strong>The</strong> country has<br />
already <strong>in</strong>troduced its own encryption security st<strong>and</strong>ard <strong>and</strong> is consider<strong>in</strong>g creat<strong>in</strong>g its own def<strong>in</strong>ition<br />
of digital TV. In an effort to m<strong>in</strong>imize fragmentation, Bond has been work<strong>in</strong>g with Ch<strong>in</strong>a <strong>and</strong><br />
believes that it will opt for global st<strong>and</strong>ardization as the means to secure more jobs for its citizens—a<br />
priority for its government today. F<strong>in</strong>ally, a core issue rema<strong>in</strong>s: the need to def<strong>in</strong>e what an<br />
<strong>in</strong>ternational st<strong>and</strong>ard is under the Technical Barriers to Trade Agreement (TBTA). A clear def<strong>in</strong>ition<br />
would drive the achievement of global st<strong>and</strong>ards as everyone would ultimately be work<strong>in</strong>g towards a<br />
s<strong>in</strong>gle goal at the higher levels.<br />
Other countries, particularly develop<strong>in</strong>g countries, fear that us<strong>in</strong>g global st<strong>and</strong>ards will result <strong>in</strong><br />
remuneration dem<strong>and</strong>s by richer countries such as the US. For example, Brazil has expressed this<br />
concern over adopt<strong>in</strong>g the HDTV st<strong>and</strong>ard. <strong>The</strong>refore, <strong>in</strong> the <strong>in</strong>terest of global st<strong>and</strong>ardization,<br />
Bond asked <strong>in</strong>dustry to th<strong>in</strong>k differently about licens<strong>in</strong>g <strong>and</strong> fund<strong>in</strong>g models.<br />
F<strong>in</strong>ally, <strong>in</strong> an effort to further global st<strong>and</strong>ardization, the US Department of Commerce (DOC) has<br />
implemented a st<strong>and</strong>ards <strong>in</strong>itiative, which will capture best practices, provide tra<strong>in</strong><strong>in</strong>g for US<br />
International reps, <strong>and</strong> exp<strong>and</strong> the early warn<strong>in</strong>g system. A report on the <strong>in</strong>itiative will be ready <strong>in</strong><br />
March 2004.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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ARCHITECTURE<br />
Dale Hatfield, University of Colorado at Boulder <strong>and</strong> formerly of the Federal Communications<br />
Commission (FCC), called the audience’s attention to the issue of public network architectures. An<br />
architecture is a def<strong>in</strong>ition of a framework (a broad outl<strong>in</strong>e) <strong>in</strong> which a detailed design can take place.<br />
Recent public network architectures <strong>in</strong>clude digital TV, E911 <strong>and</strong> wireless E911, <strong>and</strong> public safety<br />
radio systems. Who chooses the public architecture from which the st<strong>and</strong>ards mak<strong>in</strong>g activities can<br />
proceed <strong>and</strong> the process used to make those choices can have serious public consequences, caus<strong>in</strong>g<br />
delays <strong>in</strong> implementation <strong>and</strong> creat<strong>in</strong>g an unfair play<strong>in</strong>g field for suppliers of architecture<br />
components <strong>and</strong> users.<br />
Choos<strong>in</strong>g network architectures is becom<strong>in</strong>g more difficult due to grow<strong>in</strong>g complexity, competition,<br />
<strong>and</strong> technology convergence. For example, wireless E911 is becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly important as<br />
people trade <strong>in</strong> their LAN l<strong>in</strong>es for wireless—elim<strong>in</strong>at<strong>in</strong>g the ability to track the location of <strong>in</strong>com<strong>in</strong>g<br />
emergency calls. An architecture that enables E911 must take <strong>in</strong>to account 6000 different Public<br />
Safety Answer<strong>in</strong>g Po<strong>in</strong>ts or PSAPs (where your call is routed to when you dial 911). <strong>The</strong>se <strong>in</strong>clude<br />
wireless carriers, all the <strong>in</strong>cumbent local exchange wire l<strong>in</strong>e carriers, the new emerg<strong>in</strong>g compet<strong>in</strong>g<br />
local exchange carriers, <strong>and</strong> equipment suppliers. In regards to competition, not only does it make<br />
consensus difficult, but there is the possibility that the companies <strong>in</strong>volved <strong>in</strong> creat<strong>in</strong>g the<br />
architecture may not always choose <strong>in</strong>terfaces that allow for future competition.<br />
<strong>The</strong> current network architecture selection processes is produc<strong>in</strong>g architectures that are delayed at<br />
best <strong>and</strong> suboptimal at worst, accord<strong>in</strong>g to Hatfield. E911 still has major problems, not the least of<br />
which is <strong>in</strong>teroperability. Because these architectures are a matter of public concern, Hatfield calls for<br />
government <strong>in</strong>volvement. He recommends that government facilitate voluntary agreements among<br />
stakeholders us<strong>in</strong>g <strong>in</strong>formal processes <strong>and</strong> that it m<strong>and</strong>ate legally b<strong>in</strong>d<strong>in</strong>g agreements through a<br />
formal “rulemak<strong>in</strong>g” process with stakeholder participation. Undertak<strong>in</strong>g this role would be an<br />
effective step <strong>in</strong> ensur<strong>in</strong>g that public network architectures are sound, fair, <strong>and</strong> completed on a more<br />
timely basis.<br />
INTELLECTUAL PROPERTY RIGHTS<br />
Unresolved <strong>in</strong>tellectual property rights (IPR) issues around the world are creat<strong>in</strong>g uncerta<strong>in</strong>ty that<br />
directly impacts st<strong>and</strong>ardization <strong>and</strong> thus market economies. Correspond<strong>in</strong>gly, governments are<br />
becom<strong>in</strong>g further <strong>in</strong>volved <strong>in</strong> this issue whether simply through the proliferation of lawsuits <strong>in</strong> this<br />
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area or through policy mak<strong>in</strong>g. For example, <strong>in</strong> Japan METI is sett<strong>in</strong>g the national IPR policy. In<br />
fact, Toru Yamauchi, director of Industrial St<strong>and</strong>ards Research Office for METI, calls for concerned<br />
organizations around the world to address three areas:<br />
• Ensure that <strong>in</strong>centives are offered to encourage patent holders to participate <strong>in</strong><br />
st<strong>and</strong>ardization<br />
• Stabilize patent pools based on st<strong>and</strong>ards<br />
• Develop counter measures for the “hold up” problem (patent holders who claim excessive<br />
royalties for st<strong>and</strong>ardized technologies).<br />
<strong>The</strong> key to remember is that this is a global issue. Intellectual property issues solved <strong>in</strong> one country<br />
will not resolve those same issues <strong>in</strong>ternationally <strong>and</strong> therefore will cont<strong>in</strong>ue to negatively impact the<br />
market. Further, unless government is <strong>in</strong>volved, IPR issues solved with<strong>in</strong> an SSO so that a st<strong>and</strong>ard<br />
can move towards implementation does not prevent roadblocks from companies external to the<br />
st<strong>and</strong>ardization process.<br />
Some SSOs have been work<strong>in</strong>g aggressively towards solv<strong>in</strong>g the IPR problem, at least for their own<br />
st<strong>and</strong>ards activities. ETSI 6 , for example, adopted a FRAND (Fair, Reasonable, <strong>and</strong> Non-<br />
Discrim<strong>in</strong>atory) policy <strong>in</strong> accordance with its belief that everyone has the right to make money off of<br />
their <strong>in</strong>tellectual property (IP). Those who don’t want to license under FRAND terms are<br />
encouraged to disclose their IP early <strong>in</strong> the process. While they are not perform<strong>in</strong>g patent searches<br />
themselves, as <strong>The</strong>rese Hendricks proposed that SSOs take on <strong>in</strong> last year’s conference, they have<br />
created a unique database featur<strong>in</strong>g essential IP. To date, they have over 9,000 IP notifications<br />
submitted by 95 companies. One issue they haven’t resolved is the def<strong>in</strong>ition of FRAND—a<br />
stumbl<strong>in</strong>g block that is prov<strong>in</strong>g difficult for SSOs throughout the world.<br />
Ray Alderman, executive director of VITA, 7 takes a three-prong approach to IPR problems <strong>in</strong> his<br />
st<strong>and</strong>ards organization. First, he assumes that all patents are <strong>in</strong>valid. VITA will attempt to break any<br />
patent under question by show<strong>in</strong>g prior art. If the patent can’t be broken, the members decide<br />
whether to <strong>in</strong>clude the patented technology <strong>in</strong> the st<strong>and</strong>ard. F<strong>in</strong>ally, VITA itself is plann<strong>in</strong>g to apply<br />
for patents. If anyone tries to capitalize on a VITA st<strong>and</strong>ard, VITA will sue them for violation of<br />
IPR.<br />
6 ETSI: European Telecommunications St<strong>and</strong>ards Institute<br />
7 VITA: VMEbus International Trade Association<br />
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Most panelists expressed concern over IPR. In fact, Deepak Kamlani, president <strong>and</strong> CEO of Global<br />
Inventures, po<strong>in</strong>ted out that st<strong>and</strong>ardization exists as a vehicle for monetiz<strong>in</strong>g IPR. Perhaps this is<br />
not surpris<strong>in</strong>g s<strong>in</strong>ce, accord<strong>in</strong>g to Kamlani, US corporations alone spent $193 billion on R&D.<br />
Companies need ways to monetize this <strong>in</strong>vestment <strong>and</strong>, <strong>in</strong>deed many of them are f<strong>in</strong>d<strong>in</strong>g them.<br />
Consider that even four years ago, licens<strong>in</strong>g revenues totaled over $100 billion. IBM alone, <strong>in</strong> the late<br />
1990s, generated $1billion <strong>in</strong> annual licens<strong>in</strong>g revenue <strong>and</strong> $10 billion <strong>in</strong> net earn<strong>in</strong>gs <strong>in</strong> the last ten<br />
years just from their <strong>in</strong>tellectual property. And, with seven million patents issued annually around the<br />
world, accord<strong>in</strong>g to Kamlani, it seems reasonable to estimate that the defense of those patents will<br />
<strong>in</strong>crease drastically from the $45 billion spent on prosecut<strong>in</strong>g <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g patents <strong>in</strong> the US alone<br />
<strong>in</strong> 2001.<br />
L<strong>in</strong>da Garcia, Georgetown<br />
University, predicted that<br />
<strong>in</strong> the year 2000+ the big<br />
battle would be about IP<br />
<strong>in</strong> st<strong>and</strong>ards.<br />
Kamlani warned the audience that <strong>in</strong>vestment <strong>in</strong> IP creation <strong>and</strong><br />
defense will accelerate exponentially <strong>and</strong> already sees corporations<br />
go<strong>in</strong>g after successful bus<strong>in</strong>ess models <strong>and</strong> assert<strong>in</strong>g patent<br />
claims. In l<strong>in</strong>e with this, Kamlani told the audience to expect<br />
oligopolies to dom<strong>in</strong>ate over the next 10-20 years through the IP<br />
they have collected <strong>and</strong> that Wall Street will use IP to help<br />
evaluate companies. F<strong>in</strong>ally, he predicts that RAND will threaten<br />
Royalty Free (RF). Already, he sees major companies refus<strong>in</strong>g to<br />
participate <strong>in</strong> SSOs if they have an RF policy. <strong>The</strong> concern <strong>and</strong> poignancy of IPR issues is not so<br />
surpris<strong>in</strong>g—L<strong>in</strong>da Garcia, Georgetown University, predicted that <strong>in</strong> the year 2000+ the big battle<br />
would be about <strong>in</strong>tellectual property <strong>in</strong> st<strong>and</strong>ards. Ultimately, Alderman predicted that RAND itself<br />
will fail because it can’t be overseen or enforced—especially with non-SSO participants.<br />
ANTITRUST<br />
US Government has <strong>and</strong> will cont<strong>in</strong>ue to be <strong>in</strong>volved <strong>in</strong> antitrust issues. Gail Lev<strong>in</strong>e, US Federal<br />
Trade Commission (FTC) stated that the FTC uses Section II of the Sherman Act to determ<strong>in</strong>e<br />
whether action is antitrust. While these challenges are not common, they do show up <strong>in</strong> the “hold<br />
up” 8 problems. In order to prove antitrust, the FTC must show that first the company has market<br />
power <strong>in</strong> which it: (1) can charge more for its <strong>in</strong>tellectual property after st<strong>and</strong>ardization but its<br />
royalties are lower than switch<strong>in</strong>g costs <strong>and</strong>, (2) can comm<strong>and</strong> significantly higher royalties than<br />
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efore the st<strong>and</strong>ard when it had multiple competitors. If market power is proven, the FTC must also<br />
prove exclusionary conduct, mean<strong>in</strong>g that the company ga<strong>in</strong>ed market power through<br />
anticompetitive practices. For further <strong>in</strong>formation <strong>and</strong> <strong>in</strong>tellectual property recommendations, see<br />
the report at http://www.ftc.gov/reports/<strong>in</strong>dex.htm. An additional report entitled “<strong>Innovation</strong><br />
<strong>and</strong> Antitrust,” which covers st<strong>and</strong>ard sett<strong>in</strong>g issues, will be published <strong>in</strong> March 2004 at<br />
http://www.ftc.gov.<br />
Obviously, as SSOs move forward <strong>in</strong> attempt<strong>in</strong>g to resolve their IPR issues, fears of antitrust<br />
abound. To date, there is no clear l<strong>in</strong>e that def<strong>in</strong>es which behaviors will be deemed antitrust or which<br />
will not. This is of particular concern as some SSOs adopt an ex ante policy, requir<strong>in</strong>g that<br />
organizations reveal their <strong>in</strong>tellectual property early <strong>in</strong> the st<strong>and</strong>ards process. This lack of a clear<br />
def<strong>in</strong>ition will cont<strong>in</strong>ue to cause chaos <strong>in</strong> the st<strong>and</strong>ardization process, creat<strong>in</strong>g numerous <strong>and</strong><br />
possibly unnecessary lawsuits <strong>and</strong> leav<strong>in</strong>g companies <strong>and</strong> SSOs with their h<strong>and</strong>s tied, afraid to take a<br />
progressive step to resolve the issue.<br />
Chang<strong>in</strong>g Markets, Chang<strong>in</strong>g Strategies<br />
VALUE OF STANDARDS<br />
S<strong>in</strong>ce this was a conference on st<strong>and</strong>ardization, it is not surpris<strong>in</strong>g that many of those attend<strong>in</strong>g<br />
touted their value. However, not all of the speakers or participants make their liv<strong>in</strong>g from<br />
st<strong>and</strong>ardization. Podesta, for example, reported that we pay attention to st<strong>and</strong>ards because they serve<br />
as a powerful eng<strong>in</strong>e of economic growth, make markets operate more efficiently, spur competition,<br />
<strong>and</strong> reduce transaction costs. <strong>The</strong> result is more jobs, <strong>in</strong>creased productivity, <strong>and</strong> better products. He<br />
stated that st<strong>and</strong>ards have a significant impact on economic trade <strong>and</strong> policy, cit<strong>in</strong>g that “About 80%<br />
of global merch<strong>and</strong>ise trade is affected by st<strong>and</strong>ards <strong>and</strong> regulations that embody st<strong>and</strong>ards. And<br />
st<strong>and</strong>ards <strong>in</strong>fluence approximately about $200 billion <strong>in</strong> trade<br />
About 80% of global<br />
between Europe <strong>and</strong> the US alone.” Both Bond <strong>and</strong> Yamauchi<br />
merch<strong>and</strong>ise trade is stated that st<strong>and</strong>ards are <strong>in</strong>creas<strong>in</strong>gly important for trade. And<br />
affected by st<strong>and</strong>ards <strong>and</strong> most would agree with them—st<strong>and</strong>ards not only have the ability<br />
to facilitate global trade, but they also have the potential to serve<br />
regulations that embody<br />
st<strong>and</strong>ards.<br />
8 “Hold up” problems: A situation <strong>in</strong> which patented IP is <strong>in</strong>cluded <strong>in</strong> a st<strong>and</strong>ard <strong>and</strong> the owner of that<br />
patent dem<strong>and</strong>s licens<strong>in</strong>g terms beyond what the SSO considers reasonable.<br />
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as barriers to trade when they are used to protect domestic <strong>in</strong>dustries.<br />
From a perspective of an ITC vendor, G<strong>in</strong>gell expla<strong>in</strong>ed that st<strong>and</strong>ards do four th<strong>in</strong>gs: preserve<br />
economic <strong>in</strong>terest, encourage competition by enabl<strong>in</strong>g consumers to lock <strong>in</strong> suppliers, reward risk<br />
tak<strong>in</strong>g, <strong>and</strong> enable companies to use assets effectively. In the end, when st<strong>and</strong>ards are homogenous at<br />
the network<strong>in</strong>g level, they actually provide more choices by allow<strong>in</strong>g heterogeneity at other levels.<br />
Aga<strong>in</strong>, G<strong>in</strong>gell’s “freedom of constra<strong>in</strong>ts” philosophy applies, albeit <strong>in</strong> a different context. This<br />
pr<strong>in</strong>ciple is found <strong>in</strong> many parts of our lives—the university system, for example. In the first few<br />
years of a university education, all students must fulfill basic requirements (i.e., composition,<br />
mathematics, basic science, etc.) so that they ga<strong>in</strong> a solid underst<strong>and</strong><strong>in</strong>g of these subjects, which they<br />
can apply <strong>in</strong> more specialized areas <strong>in</strong> their last few years of school. Without a solid foundation <strong>in</strong> the<br />
basic requirements, students would not be able to underst<strong>and</strong> <strong>and</strong> apply the concepts learned <strong>in</strong><br />
specialized courses such as eng<strong>in</strong>eer<strong>in</strong>g, market<strong>in</strong>g, bus<strong>in</strong>ess adm<strong>in</strong>istration, <strong>and</strong> psychology. So,<br />
start<strong>in</strong>g out with homogenous courses enables students to diverge <strong>in</strong>to a more heterogeneous<br />
selection of courses later <strong>in</strong> their education just as start<strong>in</strong>g out with homogenous network<strong>in</strong>g<br />
components allows a more heterogeneous selection higher <strong>in</strong> the stack.<br />
International st<strong>and</strong>ards have the ability to elim<strong>in</strong>ate mis<strong>in</strong>terpretation or misunderst<strong>and</strong><strong>in</strong>g across<br />
differ<strong>in</strong>g languages, help a buyer get what is expected from<br />
a supplier <strong>in</strong> another country, enhance underst<strong>and</strong><strong>in</strong>g <strong>and</strong><br />
agreement about technical parameters, <strong>and</strong> ultimately lead<br />
to trust, which is the basis of any bus<strong>in</strong>ess relationship,<br />
accord<strong>in</strong>g to Sheldon. Cross<strong>in</strong>g the language barrier, not to<br />
mention the cultural barrier, is a challenge that becomes<br />
more daunt<strong>in</strong>g as companies exp<strong>and</strong> their markets globally.<br />
SSOs must not only deal with these factors successfully<br />
<strong>in</strong>side their own organizations as the participants<br />
themselves become more heterogeneous, but, <strong>in</strong> order for<br />
“We either have to change our<br />
products or change the rules<br />
that impact our products <strong>and</strong><br />
that’s why we participate.”<br />
—Robert Noth Deere &<br />
Company<br />
their st<strong>and</strong>ards to be adopted globally, they must help companies overcome these barriers <strong>in</strong> the<br />
market place.<br />
On a humanitarian note, Bond expla<strong>in</strong>ed that st<strong>and</strong>ards can be the “ris<strong>in</strong>g tide that lifts all boats.”<br />
For example, st<strong>and</strong>ards are enabl<strong>in</strong>g many people to have access to phones for the first time <strong>in</strong> their<br />
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lives. Thanks to the widespread adoption of some wireless st<strong>and</strong>ards, countries that never laid the<br />
<strong>in</strong>frastructure for wire l<strong>in</strong>e phones can now offer wireless phone access at <strong>in</strong>creas<strong>in</strong>gly cheaper rates.<br />
Above all, Bond encouraged the conference participants to “th<strong>in</strong>k about the real benefit to make life<br />
better for the billions of people liv<strong>in</strong>g on the planet.”<br />
What value do users get out of st<strong>and</strong>ards? Robert Noth expla<strong>in</strong>ed that Deere & Company views<br />
st<strong>and</strong>ardization as an evolution of product specifications. “Meet<strong>in</strong>g customer expectations is the<br />
toughest th<strong>in</strong>g we do,” Noth stated, <strong>and</strong> st<strong>and</strong>ards help them to not only meet those needs, but also<br />
to build br<strong>and</strong> reputation, achieve product differentiation, <strong>and</strong> satisfy <strong>in</strong>vestors. St<strong>and</strong>ards are viewed<br />
as an essential part of the company strategy: “We either have to change our products or change the<br />
rules that impact our products <strong>and</strong> that’s why we participate.” Tony Scott expressed a belief similar<br />
to Noth’s, stat<strong>in</strong>g that GM is <strong>in</strong>volved <strong>in</strong> external st<strong>and</strong>ards to <strong>in</strong>fluence emerg<strong>in</strong>g st<strong>and</strong>ards that will<br />
impact its bus<strong>in</strong>ess practices, future technology offer<strong>in</strong>gs, <strong>and</strong> customer expectations. Because it<br />
believes that bus<strong>in</strong>esses should have a stronger say <strong>in</strong> how technology st<strong>and</strong>ards develop, GM is<br />
becom<strong>in</strong>g more <strong>in</strong>volved <strong>in</strong> st<strong>and</strong>ards development areas that are not directly applicable to<br />
automotive st<strong>and</strong>ards. In addition, GM has managed to cut extensive costs through its <strong>in</strong>ternal<br />
After a concerted effort to st<strong>and</strong>ardize,<br />
GM has moved from 7200 to 2200<br />
critical bus<strong>in</strong>ess systems <strong>and</strong> cut IT<br />
spend<strong>in</strong>g by over $1 billion <strong>in</strong> just seven<br />
years.<br />
st<strong>and</strong>ardization efforts. In 1996, GM had the<br />
highest IT costs <strong>in</strong> terms of percentage of sales<br />
<strong>in</strong> the <strong>in</strong>dustry. After a concerted effort to<br />
st<strong>and</strong>ardize, GM has moved from 7200 to 2200<br />
critical bus<strong>in</strong>ess systems <strong>and</strong> cut IT spend<strong>in</strong>g by<br />
over $1 billion <strong>in</strong> just seven years. So, for those<br />
vendors who say that users don’t matter or care<br />
when it comes to st<strong>and</strong>ardization, better th<strong>in</strong>k<br />
aga<strong>in</strong>. Perhaps consumers are still <strong>in</strong> the dark about st<strong>and</strong>ards (although even your average high<br />
school student can tell you that you need a wireless card that is 802.11G compliant), but large<br />
companies with large IT budgets underst<strong>and</strong> the value of st<strong>and</strong>ardization <strong>and</strong> their participation <strong>in</strong><br />
that process quite well. Even if they don’t participate <strong>in</strong> the process, many are becom<strong>in</strong>g more<br />
st<strong>and</strong>ards savvy, dem<strong>and</strong><strong>in</strong>g specific st<strong>and</strong>ards <strong>in</strong> their procurement contracts.<br />
Some questioned whether st<strong>and</strong>ards always produce the best technical solution, po<strong>in</strong>t<strong>in</strong>g out GSM as<br />
an example. Sheldon expla<strong>in</strong>ed that st<strong>and</strong>ards are not about the best technical solution but about<br />
bus<strong>in</strong>ess. Noth agreed, stat<strong>in</strong>g that st<strong>and</strong>ards are about meet<strong>in</strong>g customer needs, about produc<strong>in</strong>g<br />
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saleable products. Even if 3G is not the best technical solution, it offers saleable convenience—the<br />
portability of a phone number so that customers can use that number anywhere.<br />
STRATEGIC STANDARDIZATION<br />
Market conditions have obviously changed over the past few years <strong>and</strong> will cont<strong>in</strong>ue to do so. <strong>The</strong>re<br />
is more competition for fewer funds, requir<strong>in</strong>g companies to <strong>in</strong>creas<strong>in</strong>gly show either differentiation<br />
or an economic advantage <strong>in</strong> their products. In his presentation, Alderman expla<strong>in</strong>ed that markets are<br />
at high saturation levels <strong>and</strong> <strong>in</strong>dustries such as PCs, airl<strong>in</strong>es, <strong>and</strong> color TVs are <strong>in</strong> survival mode. To<br />
survive <strong>and</strong> adapt to new market conditions, companies must play <strong>in</strong> either the niche (low volume,<br />
high marg<strong>in</strong>) or commodity markets (high volume, low marg<strong>in</strong>), accord<strong>in</strong>g to Alderman. It is<br />
important to underst<strong>and</strong> which market you play <strong>in</strong> to be able to underst<strong>and</strong> your “value add.” For<br />
companies who compete <strong>in</strong> a commodity market, their primary “value add” is <strong>in</strong> their manufactur<strong>in</strong>g<br />
processes. Niche players offer their primary value through <strong>in</strong>tellectual contributions. It is equally<br />
St<strong>and</strong>ards must be used<br />
more strategically, view<strong>in</strong>g<br />
them not as a technology<br />
tool, but as a bus<strong>in</strong>ess tool.<br />
important to underst<strong>and</strong> which market your customers play <strong>in</strong><br />
so that you can offer the value they need. For example, if a<br />
customer is <strong>in</strong> a niche market, they look to vendors to provide<br />
them with market advantage. If a customer competes <strong>in</strong> a<br />
commodity market, then their ultimate concern is price.<br />
Regardless of which market a company is <strong>in</strong>, st<strong>and</strong>ards are<br />
always about new technologies. Those technologies can be offered to new or old customers through<br />
new or old applications, but st<strong>and</strong>ards are always about new technologies, expla<strong>in</strong>ed Alderman. For a<br />
more <strong>in</strong> depth discussion of these concepts, read chapter 21 of <strong>The</strong> St<strong>and</strong>ards Edge: Dynamic Tension.<br />
How does all this apply to strategic st<strong>and</strong>ardization? In its simplest terms, commodity players ga<strong>in</strong><br />
significant price advantages as widely adopted st<strong>and</strong>ards drive down costs both for the consumer <strong>and</strong><br />
for the vendor. Niche players can <strong>in</strong>crease their <strong>in</strong>tellectual “value add” by collaborat<strong>in</strong>g with others<br />
to achieve higher levels of <strong>in</strong>novation <strong>and</strong> speed time to market. <strong>The</strong> key is to use st<strong>and</strong>ardization <strong>in</strong><br />
the right manner to complement your market <strong>and</strong> your strategies. Regardless of your market,<br />
st<strong>and</strong>ards can be used to <strong>in</strong>fluence it, accord<strong>in</strong>g to both Kamlani <strong>and</strong> Cargill. For example, Kamlani<br />
expla<strong>in</strong>ed that st<strong>and</strong>ards communities can be formed to create a new marketplace, generate new<br />
revenue opportunities, accelerate market dem<strong>and</strong>, <strong>and</strong> disrupt a specific market. Carl Cargill, Director<br />
of St<strong>and</strong>ards at Sun Microsystems, sees st<strong>and</strong>ards as a way to <strong>in</strong>crease the overall market—this is<br />
especially essential when a company cannot <strong>in</strong>crease the size of its market share. For example, if a<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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company can’t capture 40% market share, it should b<strong>and</strong> together with five other companies <strong>and</strong><br />
each claim 8% market share of a larger market. After all, would you rather have 8% of a $1 billion<br />
market or 8% of a $10 billion market?<br />
St<strong>and</strong>ards must be used more strategically, view<strong>in</strong>g them not as a technology tool, but as a bus<strong>in</strong>ess<br />
tool. Accord<strong>in</strong>g to Kamlani, companies st<strong>and</strong>ardize to create new markets or disrupt their<br />
competitors’ revenue stream with their own IP. In fact, his experience has shown that once a<br />
st<strong>and</strong>ard is widely adopted—def<strong>in</strong>ed here as at least 10% of the market share—it is guaranteed that a<br />
compet<strong>in</strong>g st<strong>and</strong>ard or product will emerge. So, while st<strong>and</strong>ards are viewed as a means for br<strong>in</strong>g<strong>in</strong>g<br />
companies or the market together, the st<strong>and</strong>ardization cycle also <strong>in</strong>herently conta<strong>in</strong>s a fragmentation<br />
mechanism. At the conference, many brought up the “problem of fragmentation.” After all, it seems<br />
to be directly contradictory to what st<strong>and</strong>ards are supposed to accomplish. But if Kamlani is right<br />
<strong>and</strong> fragmentation is <strong>in</strong>deed an <strong>in</strong>herent part of the overall process—perhaps a natural part of the<br />
ecosystem—than is it really underm<strong>in</strong><strong>in</strong>g the st<strong>and</strong>ardization system as a whole or simply weed<strong>in</strong>g<br />
out the weakest l<strong>in</strong>ks, mak<strong>in</strong>g the system stronger? This is an area that should be explored <strong>in</strong> future<br />
conferences.<br />
In sett<strong>in</strong>g a st<strong>and</strong>ards development<br />
<strong>and</strong> revision schedule, it is not<br />
only the vendors <strong>in</strong>corporat<strong>in</strong>g the<br />
changes that we have to consider,<br />
it is the will<strong>in</strong>gness <strong>and</strong> speed of<br />
their customers to adopt those<br />
changes.<br />
St<strong>and</strong>ardization at the corporate decision mak<strong>in</strong>g level is<br />
still a rare f<strong>in</strong>d. At the moment, Kamlani sees<br />
st<strong>and</strong>ardization creep<strong>in</strong>g <strong>in</strong> at the bus<strong>in</strong>ess unit level,<br />
although these efforts are often uncoord<strong>in</strong>ated <strong>and</strong><br />
fragmented. As companies beg<strong>in</strong> to view their patents <strong>and</strong><br />
IP as more strategic, Kamlani predicts that<br />
st<strong>and</strong>ardization will <strong>in</strong>filtrate more <strong>in</strong>to corporate<br />
management practice.<br />
Of course, some companies are ahead of the pack. Samsung, for example, believes st<strong>and</strong>ards help<br />
develop partnerships <strong>and</strong> better system solutions through collaboration <strong>and</strong> bra<strong>in</strong>storm<strong>in</strong>g. <strong>The</strong>y<br />
underst<strong>and</strong> that st<strong>and</strong>ards are not static, but rather an ongo<strong>in</strong>g process that requires consistent<br />
participation. When major customers dem<strong>and</strong> a st<strong>and</strong>ard, Samsung responds quickly to<br />
accommodate them. Consequently, st<strong>and</strong>ardization is a key element <strong>in</strong> Samsung’s market strategy.<br />
Miann Quddu, Director of Technology Enabl<strong>in</strong>g at Samsung, reported that all new products at his<br />
company are required to go through the st<strong>and</strong>ardization process before be<strong>in</strong>g released to the market.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 23—
Why does Samsung place a high emphasis on st<strong>and</strong>ardization? First, because st<strong>and</strong>ards facilitate<br />
market acceptance <strong>and</strong> exp<strong>and</strong> the markets <strong>in</strong> which their products can be sold. Second, because<br />
their customers have become well educated about st<strong>and</strong>ards <strong>and</strong> are now dem<strong>and</strong><strong>in</strong>g st<strong>and</strong>ardization<br />
of products they purchase.<br />
Strategic st<strong>and</strong>ardization isn‘t just about chang<strong>in</strong>g technologies or bus<strong>in</strong>ess strategies. It also <strong>in</strong>volves<br />
a change of m<strong>in</strong>dset by those who set company strategies, those who implement the strategies, <strong>and</strong><br />
those who participate <strong>in</strong> st<strong>and</strong>ardization. Roger Marks of NIST stated that the new way of do<strong>in</strong>g<br />
th<strong>in</strong>gs doesn’t just lie <strong>in</strong> new processes, but <strong>in</strong> the way the people themselves work <strong>and</strong> th<strong>in</strong>k. This is<br />
true. We can have all the technological <strong>in</strong>teroperability possible but if we succumb to the same belief<br />
that hord<strong>in</strong>g <strong>in</strong>formation, even from our coworkers, is more beneficial, then we will have ga<strong>in</strong>ed<br />
noth<strong>in</strong>g. After all, open<strong>in</strong>g up the gates—even those up <strong>in</strong> Redmond—does not guarantee that the<br />
<strong>in</strong>formation will flow. Even if security issues are successfully addressed so that <strong>in</strong>formation can flow<br />
<strong>in</strong> a controlled manner, bus<strong>in</strong>ess practices will not evolve without cultural changes to match our<br />
technological advancements.<br />
In the end, the effectiveness of the st<strong>and</strong>ards themselves directly depends on the effectiveness of the<br />
SSOs <strong>and</strong> the companies that develop <strong>and</strong> use the st<strong>and</strong>ards. If too much st<strong>and</strong>ardization occurs,<br />
much of it will not be used. It is important to remember that the goal is mass implementation of a<br />
st<strong>and</strong>ard. Only through widespread implementation can we achieve <strong>in</strong>teroperability—the true value<br />
of st<strong>and</strong>ards. If the schedule of st<strong>and</strong>ards development <strong>and</strong> revisions doesn’t match the pace of<br />
bus<strong>in</strong>esses—strik<strong>in</strong>g a calculated balance between too slow <strong>and</strong> too fast—the revisions will not be<br />
adopted <strong>and</strong> the develop<strong>in</strong>g organization will end up fragment<strong>in</strong>g its own st<strong>and</strong>ard. In sett<strong>in</strong>g a<br />
st<strong>and</strong>ards development <strong>and</strong> revision schedule, it is not only the vendors <strong>in</strong>corporat<strong>in</strong>g the changes<br />
that we have to consider, it is the will<strong>in</strong>gness <strong>and</strong> speed of their customers to adopt those changes.<br />
Us<strong>in</strong>g st<strong>and</strong>ards strategically is a new concept for an old practice. But the rules <strong>in</strong> that practice are<br />
chang<strong>in</strong>g, just as our markets are. In the end, perhaps it is best to heed a warn<strong>in</strong>g by John Wayne (as<br />
passed on by Ray Alderman): “Life is hard. It’s even harder when you’re stupid.” In this era of<br />
chang<strong>in</strong>g markets <strong>and</strong> tough economic times, why make life harder on yourself? St<strong>and</strong>ardize,<br />
st<strong>and</strong>ardize, st<strong>and</strong>ardize—strategically, that is.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 24—
Strengthen<strong>in</strong>g the System<br />
Challenges obviously abound <strong>in</strong> the st<strong>and</strong>ardization system, but so do the benefits. As Richard Soley,<br />
executive director of Object Management <strong>Group</strong>, stated, “<strong>The</strong> first 17,000 years of st<strong>and</strong>ards went<br />
well <strong>and</strong> then someth<strong>in</strong>g went wrong <strong>in</strong> the 1980s.” So, what did go wrong <strong>and</strong> what can we do to<br />
fix it? To beg<strong>in</strong> to answer this question—<strong>and</strong> it is only the beg<strong>in</strong>n<strong>in</strong>g—it is helpful to take a closer<br />
look at a st<strong>and</strong>ards failure <strong>and</strong> a st<strong>and</strong>ards success.<br />
Mike Smith of ISO opened the panel by ask<strong>in</strong>g “When is a st<strong>and</strong>ard not a st<strong>and</strong>ard?” <strong>The</strong> answer?<br />
“When it is not used.” Jack Sheldon illustrated the validity of this concept by shar<strong>in</strong>g a story about<br />
the attempt to develop a global st<strong>and</strong>ard for plug <strong>and</strong> sockets. <strong>The</strong> process spanned 60 years <strong>and</strong> did<br />
<strong>in</strong>deed result <strong>in</strong> a few st<strong>and</strong>ards. Unfortunately, they were so complex <strong>and</strong> so much of a compromise<br />
that vendors never implemented them. What went wrong? Political <strong>and</strong> commercial <strong>in</strong>terests<br />
<strong>in</strong>tervened so that consensus was difficult to reach, protectionism came <strong>in</strong>to play, experts pretended<br />
there were technical issues when <strong>in</strong> fact the real issues were political <strong>and</strong> commercial, they failed to<br />
underst<strong>and</strong> the implications of globalization <strong>and</strong> device portability, <strong>and</strong> above all the participants<br />
forgot to take a long term view. <strong>The</strong>se same problems exist <strong>in</strong> the st<strong>and</strong>ards development process<br />
today. <strong>The</strong> process is too complex, <strong>in</strong>volves too many people or the wrong people, <strong>and</strong> takes too<br />
long to develop, accord<strong>in</strong>g to Sheldon.<br />
But st<strong>and</strong>ardization is not without its triumphant successes. Rosenbrock brought to attention the<br />
GSM st<strong>and</strong>ard, which is now successfully adopted <strong>and</strong> implemented <strong>in</strong> 170 countries, used by at least<br />
400 network operators <strong>and</strong> one billion customers, <strong>and</strong> specified by more than 2800 ETSI<br />
deliverables. <strong>The</strong> key to its success can be found <strong>in</strong> a strong commitment by all <strong>in</strong>terested parties, a<br />
good st<strong>and</strong>ardization process, the fact that frequency b<strong>and</strong>s were made available early on,<br />
cooperation with other regions, <strong>and</strong> the possibility of strong competition. Used strategically,<br />
Rosenbrock views st<strong>and</strong>ards as a means to future proof technology. In the case of GSM, he believes<br />
that st<strong>and</strong>ardization contributed to GSM’s success because it is load shar<strong>in</strong>g <strong>and</strong> thus cost shar<strong>in</strong>g,<br />
creates a critical mass, br<strong>in</strong>gs economy of scale, <strong>and</strong> fights aga<strong>in</strong>st technical barriers to trade, among<br />
others.<br />
What needs to be done for the future of st<strong>and</strong>ardization? Kamlani recommends three th<strong>in</strong>gs, the first<br />
two on the US front. First, he recommends that we stop look<strong>in</strong>g at government-<strong>in</strong>dustry<br />
collaboration as a bad th<strong>in</strong>g <strong>in</strong> the US. Second, we need a national st<strong>and</strong>ards policy that gets the<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 25—
FTC, FCC, <strong>and</strong> <strong>in</strong>dustry <strong>in</strong>volved <strong>in</strong> identify<strong>in</strong>g where gaps are <strong>in</strong> the marketplace. Once the gaps<br />
have been identified, Kamlani suggests sponsor<strong>in</strong>g the <strong>in</strong>tegration of st<strong>and</strong>ards through consortia or<br />
some other means. This is not an easy task to accomplish as resistance to st<strong>and</strong>ardization will have to<br />
be overcome. Globally, Kamlani promoted the need to create a st<strong>and</strong>ards ecosystem that <strong>in</strong>cludes<br />
education, tra<strong>in</strong><strong>in</strong>g, <strong>and</strong> best practices. <strong>The</strong>se areas are rarely addressed at the university, professional,<br />
or SSO level, result<strong>in</strong>g <strong>in</strong> a weak st<strong>and</strong>ardization ecosystem that seems to be fight<strong>in</strong>g for survival.<br />
INFRASTRUCTURE<br />
Chang<strong>in</strong>g the perception of st<strong>and</strong>ards <strong>and</strong> <strong>in</strong>creas<strong>in</strong>g the accountability of st<strong>and</strong>ards participants back<br />
to their companies should go a long way <strong>in</strong> reduc<strong>in</strong>g the time <strong>and</strong> money <strong>in</strong>vested <strong>in</strong> produc<strong>in</strong>g<br />
useless st<strong>and</strong>ards.<br />
Ultimately, improv<strong>in</strong>g the st<strong>and</strong>ardization <strong>in</strong>frastructure comes down to old versus new. <strong>The</strong> old way<br />
is slower <strong>and</strong> more deliberate. This way is appropriate for some situations such as changes to nuclear<br />
power plants or <strong>in</strong> low change, more stable <strong>in</strong>dustries such as petroleum distillation. However, <strong>in</strong><br />
markets with rapid product cycles, the new way—which speeds up the st<strong>and</strong>ardization process to<br />
meet market needs <strong>in</strong> a more timely way—is more effective. It is no longer about SDOs vs.<br />
Consortia. Now days, you can get someth<strong>in</strong>g through INCITS <strong>in</strong> 12 weeks <strong>and</strong> most SDOs offer<br />
SSOs must look at their<br />
own models <strong>and</strong> f<strong>in</strong>d new<br />
ways to become funded<br />
<strong>and</strong> survive.<br />
similar capabilities. As Smith expla<strong>in</strong>ed, organizations such as ISO<br />
offer an entire “st<strong>and</strong>ardization menu” that is designed to meet a<br />
wide variety of market needs. <strong>The</strong> difference between old <strong>and</strong> new<br />
comes down to the m<strong>in</strong>dset of people <strong>and</strong> companies <strong>in</strong>volved <strong>in</strong><br />
st<strong>and</strong>ardization. To operate <strong>in</strong> the new way, that m<strong>in</strong>dset has to<br />
change. For example, people have to move away from solv<strong>in</strong>g<br />
st<strong>and</strong>ardization problems only at quarterly meet<strong>in</strong>gs. Instead, they need to use technology to solve<br />
problems <strong>and</strong> move the process forward <strong>in</strong> between meet<strong>in</strong>gs. “It is the planners that have to<br />
change, not the processes,” stated Cargill. As <strong>in</strong> the po<strong>in</strong>t made earlier about the need for cultural<br />
changes to keep pace with technological advances, the m<strong>in</strong>dset of those develop<strong>in</strong>g st<strong>and</strong>ards must<br />
be flexible enough to make new processes work for them <strong>and</strong> to design new processes when the old<br />
ones are no longer useful.<br />
But it is not just the m<strong>in</strong>dset of st<strong>and</strong>ards developers that must change. It is equally important for<br />
company executives to take a new approach to st<strong>and</strong>ardization. Regardless of old or new, both ways<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 26—
have <strong>in</strong>herent problems. <strong>The</strong>se company leaders must view st<strong>and</strong>ardization as a management tool<br />
that ultimately reduces risks, as opposed to a technology tool, <strong>and</strong> use that tool strategically. Today,<br />
executives need to know who their st<strong>and</strong>ards people are, what they are accomplish<strong>in</strong>g, <strong>and</strong> how that<br />
relates back to company goals. This, of course, means that st<strong>and</strong>ards have to be <strong>in</strong>tegrated <strong>in</strong>to<br />
company goals <strong>and</strong> strategies every step of the way. Accord<strong>in</strong>g to Soley, this should <strong>in</strong>clude:<br />
• Market identification—leverage a st<strong>and</strong>ard or def<strong>in</strong>e a new one<br />
• Requirements analysis—does it need to be <strong>in</strong>teroperable, portable, comply with exist<strong>in</strong>g<br />
st<strong>and</strong>ards<br />
• Product def<strong>in</strong>ition—platform choice <strong>in</strong>fluenced by st<strong>and</strong>ards<br />
• Product design—which st<strong>and</strong>ards should be used to design a product faster, maximize<br />
tra<strong>in</strong><strong>in</strong>g, etc.<br />
• Product Roll out—can awareness be built through a st<strong>and</strong>ards process<br />
Of course, changes must also come from the SSOs themselves—not only <strong>in</strong> their processes <strong>and</strong><br />
m<strong>in</strong>dset, but <strong>in</strong> their bus<strong>in</strong>ess models. Bond rem<strong>in</strong>ded the audience that it is not all up to<br />
government. SSOs must look at their own models <strong>and</strong> f<strong>in</strong>d new ways to become funded <strong>and</strong> survive.<br />
And his advice makes sense. Just like any bus<strong>in</strong>ess, they must re<strong>in</strong>vent themselves under chang<strong>in</strong>g<br />
economic <strong>and</strong> market conditions. Podesta recommended that SSOs <strong>and</strong> <strong>in</strong>dustry make a concerted<br />
effort to educate government representatives at the higher levels. He expla<strong>in</strong>ed that when <strong>in</strong>dustry<br />
does come to talk to representatives <strong>in</strong> Wash<strong>in</strong>gton, DC, that it ma<strong>in</strong>ly focuses on short term issues<br />
<strong>and</strong> not longer term issues such as st<strong>and</strong>ardization. Government decision makers actually do want to<br />
learn about the longer term issues around technology <strong>and</strong> <strong>in</strong>dustry <strong>and</strong> often lack the resources to do<br />
so quickly <strong>and</strong> efficiently. <strong>The</strong> SSOs can take a stronger role <strong>in</strong> educat<strong>in</strong>g governments worldwide<br />
<strong>and</strong> encourage their members to do the same.<br />
SUSTAINABLE ARCHITECTURE<br />
In creat<strong>in</strong>g <strong>and</strong> implement<strong>in</strong>g st<strong>and</strong>ards <strong>in</strong> products, it is important to keep <strong>in</strong> m<strong>in</strong>d the users. Tony<br />
Scott rem<strong>in</strong>ded the audience that repeatable architectures are critical <strong>and</strong> st<strong>and</strong>ards are a key driver <strong>in</strong><br />
this area. He suggested that perhaps there is too much <strong>in</strong>novation <strong>and</strong>, thus, too much complexity.<br />
“Complexity is an enemy <strong>in</strong> this space,” he stated. For example, just for GM to deliver a simple Web<br />
application requires a m<strong>in</strong>imum of 130 technologies. Instead he encourages st<strong>and</strong>ards <strong>and</strong> technology<br />
developers to foster reuse. Ultimately, he would like to see a sort of a Home Depot of software<br />
components, perhaps offered as a searchable directory through Web Services. Scott also lamented<br />
the lack of a quality st<strong>and</strong>ard, stat<strong>in</strong>g that “this is horrendous <strong>and</strong> a huge detriment to the <strong>in</strong>dustry.”<br />
He recommended that research be conducted on what is quality software from the runn<strong>in</strong>g <strong>and</strong><br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 27—
ma<strong>in</strong>tenance/change po<strong>in</strong>t of view—not just from the perception of product <strong>and</strong> technology<br />
developers. Quality can also be measured by conformance test<strong>in</strong>g <strong>and</strong> Zev<strong>in</strong>, <strong>in</strong> her article “Test<strong>in</strong>g:<br />
A Key to Build<strong>in</strong>g Trust <strong>and</strong> Confidence <strong>in</strong> IT Systems” Chapter 14 of <strong>The</strong> St<strong>and</strong>ards Edge: Dynamic<br />
Tension) discusses the necessity <strong>and</strong> paradigms of test<strong>in</strong>g methods <strong>and</strong> certification.<br />
Conclusion: <strong>The</strong> Nuts <strong>and</strong> Bolts of the Problem<br />
<strong>The</strong> ma<strong>in</strong> challenges identified <strong>in</strong> ICT st<strong>and</strong>ardization dur<strong>in</strong>g this conference were the need for:<br />
• improved global st<strong>and</strong>ardization<br />
• appropriate government <strong>in</strong>volvement <strong>in</strong> st<strong>and</strong>ardization accord<strong>in</strong>g to <strong>in</strong>dustry def<strong>in</strong>ition<br />
(which needs further ref<strong>in</strong>ement)<br />
• a solution or solutions that address the “hold up” problem <strong>in</strong> IPR <strong>in</strong> a flexible way<br />
• a clearer def<strong>in</strong>ition of behaviors that can lead to antitrust allegations<br />
• public policy concerns to be built <strong>in</strong>to the st<strong>and</strong>ardization process<br />
• better <strong>in</strong>teroperability, not only between technologies but between people <strong>in</strong> <strong>in</strong>dustry,<br />
government, <strong>and</strong> st<strong>and</strong>ards sett<strong>in</strong>g organizations<br />
• a more effective process for def<strong>in</strong><strong>in</strong>g public network architectures<br />
• research on st<strong>and</strong>ardization, <strong>in</strong>clud<strong>in</strong>g quality st<strong>and</strong>ards, <strong>and</strong> st<strong>and</strong>ardization education for<br />
professionals, students, <strong>and</strong> government<br />
• strategic st<strong>and</strong>ardization to be practiced both <strong>in</strong>side companies <strong>and</strong> <strong>in</strong> the SSOs themselves<br />
<strong>The</strong> challenges identified at this conference—<strong>in</strong> technology, <strong>in</strong> st<strong>and</strong>ardization, <strong>in</strong> our behaviors <strong>and</strong><br />
cultures—can seem overwhelm<strong>in</strong>g at times. <strong>The</strong> suggested resolutions, when there were some, seem<br />
equally difficult to implement. To put th<strong>in</strong>gs <strong>in</strong> perspective,<br />
Rob G<strong>in</strong>gell rem<strong>in</strong>ded the audience that the Telco<br />
<strong>in</strong>frastructure was perceived as <strong>in</strong>fallible for the last 50<br />
years. In reality, 40 years ago, the components were<br />
break<strong>in</strong>g on a regular basis. Overall, the components were<br />
sound but it was the relationship between those<br />
Fix the higher level problems<br />
<strong>and</strong> the lower level ones will sort<br />
themselves out as the market<br />
dem<strong>and</strong>s.<br />
components that made the system fallible. But that <strong>in</strong>dustry didn’t set out to fix every nut <strong>and</strong> bolt. It<br />
would have been an overwhelm<strong>in</strong>g, if not impossible, task, Instead, the <strong>in</strong>dustry concentrated on the<br />
higher level fixes, lett<strong>in</strong>g economic need drive changes at the lower level when they became critical.<br />
I believe this is true with the ICT <strong>in</strong>dustry as well. It is the relationships—the connections—between<br />
the components that makes systems most fallible. And perhaps this is true even for the ICT<br />
st<strong>and</strong>ardization system as a whole. It is the relationships between the participants <strong>in</strong> an SSO, between<br />
those participants <strong>and</strong> their companies, between those companies <strong>and</strong> their customers, between<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 28—
<strong>in</strong>dustry <strong>and</strong> government, <strong>and</strong> between the SSOs themselves that leave them most fallible. But it is<br />
also those relationships that provide their greatest strength. In go<strong>in</strong>g forward <strong>and</strong> tackl<strong>in</strong>g some of<br />
the challenges identified at this conference, maybe we should all heed G<strong>in</strong>gell’s sage advice:<br />
Concentrate on the connections.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 29—
About <strong>The</strong> St<strong>and</strong>ards Edge: Dynamic Tension<br />
<strong>The</strong> St<strong>and</strong>ards Edge: Dynamic Tension conta<strong>in</strong>s an <strong>in</strong>tegrated collection of articles on st<strong>and</strong>ardization<br />
as both a bus<strong>in</strong>ess enabler <strong>and</strong> policy driver <strong>in</strong> national <strong>and</strong> <strong>in</strong>ternational environments. Created for<br />
corporate executives, academics, <strong>and</strong> worldwide government agencies <strong>in</strong>terested <strong>in</strong> ICT<br />
st<strong>and</strong>ardization, this book addresses the follow<strong>in</strong>g topics:<br />
• Strengthen<strong>in</strong>g the St<strong>and</strong>ardization System<br />
• Government Influence<br />
• Intellectual Property Rights Solutions<br />
• Strategic St<strong>and</strong>ardization<br />
• Cross-Industry Impact of St<strong>and</strong>ardization<br />
Conta<strong>in</strong><strong>in</strong>g articles from leaders such as Tony Scott, CTO of General Motors, Don Deutsch, Vice<br />
President of St<strong>and</strong>ards Strategy <strong>and</strong> Architecture for Oracle Corporation, Toru Yamauchi, Director<br />
of St<strong>and</strong>ards for Japan’s METI, Erkki Liikanen, Directorate-General of the Enterprise <strong>and</strong><br />
Information Society for the European Commission, <strong>and</strong> Phil Bond, Undersecretary of Technology<br />
for the US Department of Commerce, this edition represents a comprehensive collection of<br />
viewpo<strong>in</strong>ts, practical <strong>in</strong>sight, <strong>and</strong> strategies on ICT st<strong>and</strong>ardization.<br />
<strong>The</strong> St<strong>and</strong>ards Edge: Dynamic Tension is the second book <strong>in</strong> <strong>The</strong> St<strong>and</strong>ards Edge series. <strong>The</strong> first<br />
book, <strong>The</strong> St<strong>and</strong>ards Edge, exam<strong>in</strong>ed:<br />
• How St<strong>and</strong>ards are Created<br />
• Maximiz<strong>in</strong>g St<strong>and</strong>ards Investments<br />
• Influenc<strong>in</strong>g IPR Policies<br />
• Government Impact on St<strong>and</strong>ardization<br />
• St<strong>and</strong>ards at Work<br />
While each book <strong>in</strong> the series is funded by <strong>in</strong>dustry research grants, the funders have committed to<br />
allow<strong>in</strong>g Bol<strong>in</strong> Communications editorial autonomy to ensure that objectivity is ma<strong>in</strong>ta<strong>in</strong>ed. Future<br />
books will address other significant topics <strong>in</strong>clud<strong>in</strong>g st<strong>and</strong>ardization <strong>and</strong> education, grid comput<strong>in</strong>g,<br />
<strong>and</strong> eGovernment, as well as the annual book—produced <strong>in</strong> concert with the December st<strong>and</strong>ards<br />
conference—address<strong>in</strong>g significant global st<strong>and</strong>ardization concerns. Suggestions for future topics<br />
<strong>and</strong> potential authors can be sent to sherrie@sbol<strong>in</strong>.com. To learn more about how to help sponsor<br />
this book or to request additional copies, please contact Bol<strong>in</strong> Communications.<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 30—
About the Editor<br />
Sherrie Bol<strong>in</strong> is President <strong>and</strong> CEO of Bol<strong>in</strong> Communications, a strategic consult<strong>in</strong>g firm specializ<strong>in</strong>g<br />
<strong>in</strong> st<strong>and</strong>ardization, strategic plann<strong>in</strong>g <strong>and</strong> implementation, <strong>and</strong> st<strong>and</strong>ardization communications<br />
strategies (mak<strong>in</strong>g st<strong>and</strong>ards <strong>in</strong>terest<strong>in</strong>g). Bol<strong>in</strong> Communications has become the premier provider <strong>in</strong><br />
st<strong>and</strong>ardization consultation, specializ<strong>in</strong>g <strong>in</strong> research <strong>and</strong> analysis reports, communications strategy<br />
designs <strong>and</strong> implementation, <strong>and</strong> tra<strong>in</strong><strong>in</strong>g curriculum development <strong>and</strong> delivery. By emphasiz<strong>in</strong>g a<br />
bus<strong>in</strong>ess approach to st<strong>and</strong>ardization, Bol<strong>in</strong> Communications provides each client with a unique<br />
package of strategies, implementation plans, <strong>and</strong> communication methodologies designed to position<br />
them <strong>in</strong> the complex world of st<strong>and</strong>ardization.<br />
Ms. Bol<strong>in</strong> is the creator <strong>and</strong> editor of <strong>The</strong> St<strong>and</strong>ards Edge series. This series has become one of<br />
the most comprehensive resources on critical st<strong>and</strong>ards issues <strong>in</strong> the current environment <strong>and</strong> now<br />
serves as a significant guide to ICT <strong>in</strong>dustry leaders, academics, <strong>and</strong> representatives <strong>in</strong> the European<br />
Union, Asia, <strong>and</strong> the United States. Ms. Bol<strong>in</strong> is currently at work on additional books <strong>in</strong> <strong>The</strong><br />
St<strong>and</strong>ards Edge series, which exam<strong>in</strong>e separate strategic st<strong>and</strong>ardization issues.<br />
Please contact Ms. Bol<strong>in</strong> by phone or email:<br />
Email: sherrie@sbol<strong>in</strong>.com<br />
Phone: +1 (510) 655-2293<br />
http://www.bol<strong>in</strong>communications.com<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
—Page 31—
Appendix A<br />
Technical Use of St<strong>and</strong>ardization: Manag<strong>in</strong>g <strong>Innovation</strong>, Creat<strong>in</strong>g Technology, Manag<strong>in</strong>g<br />
Change<br />
• Rob G<strong>in</strong>gell, Sun Microsystems, Inc.<br />
• Ora Lassila, Nokia<br />
• Tony Scott, General Motors<br />
• Moderator: Maryfran Johnson, Computerworld<br />
<strong>The</strong> Role of Government <strong>in</strong> St<strong>and</strong>ards: Social <strong>Legislation</strong>, Regulation, <strong>and</strong> Bus<strong>in</strong>ess User<br />
• John Podesta, Former Chief of Staff, Cl<strong>in</strong>ton Adm<strong>in</strong>istration<br />
• Toru Yamauchi, Japan’s M<strong>in</strong>istry of Economy, Trade, <strong>and</strong> Industry (METI)<br />
• Dale Hatfield, University of Colorado at Berkeley <strong>and</strong> formerly of the US Federal<br />
Communications Commission (FCC)<br />
• Gail Lev<strong>in</strong>e, Federal Trade Commission (FTC)<br />
• Moderator: Maryfran Johnson, Computerworld<br />
<strong>The</strong> Bus<strong>in</strong>ess of St<strong>and</strong>ards: Creation, Destruction, <strong>and</strong> Preservation of IPR<br />
• Ray Alderman, VITA<br />
• Deepak Kamlani, Global Inventures<br />
• Miann Quddu, Samsung<br />
• Carl Cargill, Sun Microsystems, Inc.<br />
• Moderator: Don Deutsch, Oracle Corporation<br />
Internationalization <strong>and</strong> St<strong>and</strong>ardization: Creation of National <strong>and</strong> International Markets<br />
• Mike Smith, ISO<br />
• Jack Sheldon, IEC<br />
• Karl-He<strong>in</strong>z Rosenbrock, ETSI<br />
• Robert Noth, Deere & Company<br />
• Moderator: Roger Mart<strong>in</strong>, AOL Time Warner<br />
<strong>Innovation</strong> <strong>and</strong> <strong>Legislation</strong>: St<strong>and</strong>ardization <strong>in</strong> Conflict<br />
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