Standardization Strategy.ppt

* Potentials of Standardization Companies participating in standardization realize cost and competitive advantages 25% of companies(1) have participated in standardization to prevent government regulation 36% of these realized large to very large cost savings Influence on the contents of a standard Synergy effects and formation of strategic alliances (1) Survey realized in 2000 * Standardization Strategies Business StrategyPatents, company standards, standards Consortium Standards Strategic Alliance In-house Development Formal Standards Approach Patent Company Standard Industry Standard PAS Formal Standard (ISO, EN, …) Private Property Private Property Public Property one supplier closed technology monopoly several suppliers closed technology oligopoly many suppliers open, transparent technology competition on basis of quality, price, function * Standardization Strategies Set a standard using position on the market Chances: capture the market ! Examples: Keyboards (QWERTZ and QWERTY), “Microsoft is a Standard” Risks: financial capacity Set a standard through combined industry effort Chances: Market Leadership or large shares of the market Examples: Quality Labels (RAL) Risks: Competition of different consortia, raise of costs for transaction and for participation in several consortia Set a standard using a formal standardization approach Chances: sustainable result, worldwide availability, transparency of systems, safe investment Examples: ISO 9000 Risks: competition in quality, costs, services; costs for participation, long process of negotiation * Criteria for Forms and Timing of Standardization Time Degree of consensus Innovationnew productnew process Development Process Readiness for market Investment protection 100% Company standard, patent (individual company) Industry standard (circle of companies with restricted access) Specification (public access, developed with a formal standards organization) Formal Standard (public access, developed with a form