University Faculty Outreach Forum Developing a Standards Agenda for Change

1. University Faculty Outreach Forum Developing a Standards Agenda for Change presented by Jeffrey Strauss Project Director Kellogg School of Management, Northwestern University

2. THE PROBLEM: In companies, standards continue to be viewed primarily as a technical concern relegated to engineers – and given an uncertain budget In schools, standards are generally discussed only in industry-specific technical courses and isolated from broader business issues Standards focused courses and training programs attract limited registration from non-standards people

3. BRIEF HISTORY OF CTIM STANDARDS EDUCATION WORK; INITIAL SUCCESS • ·1998 –ongoing MATI industry consortium • standards management interest group • ·2000-2001 Kellogg School of Management US Department of Education project; interaction with CMCEC (ANSI) • Demonstrated interest: • ·Informal university-government-industry consortium (30 members) – community of practice • ·Funding: Department of Education (Federal gov) grant, gift from John Deere as base for further corporate support • ·Course participation and evaluation (multiple schools applying materials including simulations)

4. EDUCATION/TRAINING FOR THE STRATEGIC MANAGEMENT OF STANDARDS ORIENTATION: 1) Convey importance and challenges of standards and standards management in contexts and forums relevant to target audiences (business/engineering students, faculty, managers and CEO’s of large and small companies, international – non-technical, non-standards professionals)

5. Context considerations: ·Impact on pressing business concerns; strategic management of standards ·Implications of emerging, converging, disruptive technologies and fields oscience-based (e.g. nanotechnology, biotechnology, new materials) oadvanced manufacturing (e,g, e-manufacturing, distributed manufacturing, virtual prototyping, mass customization) ·Changing industry structures and relationships (e.g., enterprise integration) ·Changing standards development venues, priorities ovoluntary consensus, other industry groups oanticipatory standards) ochanging IP concerns ·Course/training settings omarketing, operations, strategic planning, organization design and behavior (academic fit); executive training ·Integration with, contribution to, planning tools and processes; organizational fit ·Present through experience more than through lecture

6. 2)Develop, demonstrate dynamic training teaching/training materials and approaches • ·Cases , vignettes (in development: Rockwell, Deere, IBM) • ·Exercises (e.g., cellular negotiation preparation) • ·Interactive simulations • (experience that is relevant and compelling but not • routine) • oNuCom (evolving technology and standards; emerging economies) • oAdvanced manufacturing / supplier / anticipatory standards (negotiation, mfg – supplier alignment and enterprise integration) – now being evolved with industry input • ·Integration with planning tools such as roadmapping, scenario planning

7. Challenges to top management/corporate-wide recognition of strategic standards management • Standards, standards development and management are: • COMPLEX • cut across technologies, functions, business units and supply chains; • operational and strategic implications; • multiple local, national, regional and global agendas and standard • setting bodies and processes; individuals are often critical; • and becoming more sowith • shortening product lifecycles; • underlying technologies that are changing rapidly – and blending; • increased reliance on supply chains • global alliances and mergers, globalization of firms;

8. SUBTLE • political, cultural and social underpinnings • interplay with broader corporate and national structures, objectives, needs and • vulnerabilities; • varying levels and nature of government involvement; • require cooperation with competitors • The impact of standards management is hard to measure

9. CORPORATE STRATEGIC STANDARDS MANAGEMENT REQUIRES: • Assessment of trends and scenarios • Assessment of current and future competitive positions(s), strengths and vulnerabilities • Specification of standards “roadblocks” and opportunities; explicit inclusion in strategies and roadmaps; integration with other key tools and processes • Determination of the fit of standards unit(s) in corporate structure • Prioritization of standards; assessment of costs, benefits, trade-offs of participation in standards development and decisions • Allocation of resources (including personnel) • Determination of evaluation metrics • Understanding of standards development/selection processes, committees, drivers and factors • Development of negotiation strategies and related skills • Assessment of underlying competitor and country drivers • Cases, models and training are required that highlight and address each step

10. Evolving New Training Simulation (very tentative – input including case content and review welcome) You are part of a consulting team helping a large manufacturer (possibly advanced control systems for the pharma/food sector) planning to expand its manufacturing operations and enter an emerging economy (possibly modeled on either Malaysia or Brazil). The company intends to use this operation as a test of e-manufacturing and to apply a mix of current suppliers and local suppliers. Suppliers will be required to be significantly involved in all aspects of planning in close alignment with the manufacturer. This will entail some internal re-organization. The company will be closely monitoring evolving local and international standards and applying developments in process and product technology (as well as tracking changes in their customers’ dynamic sector). Major competitors for the planned operation include a company that exports to the emerging economy using only its current suppliers, and a local producer. The simulation will include the option to switch perspectives from manufacturer to current and to local suppliers. Updates reflect the dynamic operating and technology environments

11. Illustrative Strategic Standards Management Business School Course Syllabus (may be broken into modules for different course settings) Simulation used throughout course  1.Introduction (3 sessions) •       Strategic importance of standards; changing techno-business contexts •       Taxonomy of standards (internal, voluntary, regulatory, consortia developed, etc.) •       Drivers of standards; underlying assumption •       Standards development and conformity testing mechanisms and organizations (US, Europe, other); Varying role of government 2. Developing and implementing standards strategy; Determining needs (including roadmapping), prioritizing standards, position and representation in development; Participating effectively, selecting and training representatives – negotiation and other critical skills(5 sessions – heavy emphasis on exercises) 3. Corporate organizational settings and structures for standards management function; Critical variations; best practices in context (industry, corporate structure, culture and values, market); Linkages to other processes; Extended organization – supply chain, alliance issues; Inputs to strategic standards management (5 sessions) 4. Cases (including company presentations) (4 sessions) 5. Student project reports (2 sessions) 6. Wrap up (1 session)

12. POTENTIAL RESEARCH TOPICS • Metrics (including interim evaluation criteria) • Best standards management practices (in context); critical personal, organizational and • contextual factors • Anticipatory standards; standards for rapidly emerging/ changing and science based technology (structuring, facilitating rather than constraining research); who sets such standards and on what basis? • Implications of cultural and national policy contexts for standards development • Achieving, sustaining top management attention to standards management • Models and issues for standards management integration with other processes and in organizational structures • Research should, to the extent possible, be carried out by joint industry-university teams and include case development / assessment.

13. Critical “Uncontrollable” Dimensions/Variables in Standards Management Success (initial findings) • Degree of regulation • Pace of change in industry /technology; trends toward convergence • Organizational history of cross-departmental initiatives • Competitive positioning of company • Longevity/seniority and network of standards professionals within • organization