Success in ICT Standards Setting A Closer Look at Some Influencing Factors

1. Success in ICT Standards Setting A Closer Look at Some Influencing Factors Kai Jakobs

2. A Bit of Background and Motivation • A business strategy may benefit significantly from a supporting standardisation strategy (especially in the ICT sector). • To actually implement a standardisation strategy you need to • know the business-critical standardisation issues; • have a clear idea of what you want to achieve; • know your way round in the standardisation landscape; • know the characteristics of potentially relevant SSOs; • have the right people to do the jobs; • have an adequate internal standardisation management.

3. Types of Organisational Strategies • Prospector Innovative, searches for new markets and new products/services. Broad and adaptive product/service domain. • Analyser Tries to strike a balance between search for new product/service opportunities and a stable set of offerings. • Defender Aims to maintain limited set of products/services. Highly cost efficient but only moderate emphasis on innovation. • Reactor Inconsistent / ill defined strategy; it is not really equipped to respond to environmental changes. May try to assume any role / switch roles, mostly unsuccessfully.

4. Types of Standardisation Strategies1 • Leader Participation in standards-setting is business critical. Aim to control strategy rather than merely participate in technical activities. • Contributor Actively contributes to the development of the standard. Less interested to influence the strategic direction of an SSO. • Follower May occasionally want to influence technical work. • Spectator Main motivation is intelligence gathering; they do not actively contribute. 1 Adapted from Andy Updegrove.

5. Linking Both Strategies This is sector-specific - a company may well be a ‘Prospector’ in one sector and a ‘Defender’ in another.

6. Know Your Way Round Here ….

7. …. And Here OOXML

8. Characterising SSOs1 • General • e.g. overall goals, business models, governance, IPR policy, reputation, competition; • Membership • e.g. # of members, membership classes, key players involved?, which are the active members?; • Standards setting process • e.g. overall time frame, consensus, transparency, decision mechanisms; • Output • e.g. types of products, # of implementations, maintenance. 1Adapted from Andy Updegrove.

9. What a ‘Leader’ Would Look For I • Governance: Does it provide for strong influence of interested players? Or is it more ‘egalitarian’? • Finance: Are finances sound? Will the SSO survive? Does it depend (too) heavily on individual entities/contributors? • IPR policy: Is the IPR policy adequate? Will it put-off users who are afraid of high licensing fees? Will it deter holders of important IPR from joining? • Reputation: Is the consortium well respected in the area in question? Related to that – are its standards widely implemented?

10. What a ‘Leader’ Would Look For II • Competition: Are there competing consortia? Are competitors likely to emerge or are all relevant players members? • Membership levels: Does the top membership level guarantee the necessary level of influence? Who else is at this level? Are leading users represented in the ‘upper’ levels? • Key players involved?: Who are the active players? Are all stakeholders represented? Is the combined market power adequate? • Timing: Will I be able to meet a window of opportunity?

11. What Influences Standards Setting? ISO & ITU • speaking out at meetings, • technical merits of a proposal, • corporate/government interests. IETF • technical merits of a proposal, • defend proposal at meetings. IEEE • presence and reputation of proposers, • technical merits of a proposal, • desire to create a level playing field, but also • powerful employers.

12. What Influences Standards Setting? ISO & ITU • speaking out at meetings, • technical merits of a proposal, • corporate/government interests. IETF • technical merits of a proposal, • defend proposal at meetings. IEEE • presence and reputation of proposers, • technical merits of a proposal, • desire to create a level playing field, but also • powerful employers.

13. Inside the WGs First meeting of the International Telegraph Union, Paris, May 1865

14. The ‘Individual’ “Oddly enough, it's been my experience that individualsdominate ISO. Sometimes the individual will have a powerful multinational corporation or government/national interest on their side, but the bully pulpit is controlled by individuals, and only those with a strong sense of purpose survive.”

15. Some Sample Associated Issues • Do my people really and truly know what to do in the WGs? • i.e. do they know the corporate goals for this particular standards setting activity? • Do they know how to do it? • e.g. do they know the SSO’s rules and by-laws, are they technically savvy; do they know how to negotiate, etc.? • Which roles do they assume? • e.g. company rep., national rep., user advocate, ‘techie’, etc.?

16. Influences in Pictorial Form

17. Recommendations for Practitioners • Be very clear about your goals. • Decide which role to assume in standards setting to reach this goal (e.g. ‘Leader’). • Know your way round in the web of SSOs. • Make an educated choice which SSO to join for which task. • Have well-trained and well-informed people represent your organisation.

18. Thank You Very Much for Your Attention Questions, Please .....

19. What Influences Standards? A very simple model

20. Some Things to Know Internal • A standardisation strategy will be very helpfulor even necessary to support your business strategy. External • Potentially competing standards may be developed by different SSOs. • Some SSOs co-operate (in various ways).