1 IT Standards Management Principles Performance vs. Process Performance vs. Process –Successful...

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IT Standards Management IT Standards Management PrinciplesPrinciples

• Performance vs. Process Performance vs. Process – Successful standards specify performance and interface Successful standards specify performance and interface

requirements requirements • Don’t tell a vendor how to build a product (process specific standards) Don’t tell a vendor how to build a product (process specific standards) • Interested in the final product - not the process used to get there. Interested in the final product - not the process used to get there. • Beware of "management" standards Beware of "management" standards

– Certain "best practice" guides and specifications such as "configuration Certain "best practice" guides and specifications such as "configuration management" are generally OKmanagement" are generally OK

• Market Place Support Market Place Support – Market place - not a Standards Committee - determines which Market place - not a Standards Committee - determines which

standards are the winners! standards are the winners! – Good Market Supported (desirable, useful, workable, effective, Good Market Supported (desirable, useful, workable, effective,

etc.) standards etc.) standards • Realistically solve user problemsRealistically solve user problems• Possess genuine utilityPossess genuine utility• Else, they become ‘shelf ware’Else, they become ‘shelf ware’• Need vendors to build COTS that employ open standardsNeed vendors to build COTS that employ open standards

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• Avoid Government Unique Standards Avoid Government Unique Standards – Government unique (vs. de jure or ‘commercial’) standards Government unique (vs. de jure or ‘commercial’) standards

are: are: • expensiveexpensive• usually counterproductive to achieving cost effective and usually counterproductive to achieving cost effective and

interoperable solutions. interoperable solutions. • Ditto for proprietary solutionsDitto for proprietary solutions• Use MIL-STDS and specifications only when nothing else is Use MIL-STDS and specifications only when nothing else is

availableavailable

• Government Role Government Role – In the US we believe strongly in private enterprise In the US we believe strongly in private enterprise

leadership of voluntary standards setting activities. leadership of voluntary standards setting activities. • In sharp contrast to the rest of the world where the government In sharp contrast to the rest of the world where the government

generally has a central, and oftimes strong, role in standards generally has a central, and oftimes strong, role in standards setting and funding of standards activitiessetting and funding of standards activities

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• Management of IT Standards Activities Management of IT Standards Activities – Governing concept needs to separate the management of Governing concept needs to separate the management of

standardization activities from the technical work standardization activities from the technical work • Standards manager owns the process while the Standards manager owns the process while the • Sponsors and stakeholders own the specific substantive content). Sponsors and stakeholders own the specific substantive content).

– Manage IT standards activities by employing a lifecycle portfolio Manage IT standards activities by employing a lifecycle portfolio with decisions based upon:with decisions based upon:• mission goalsmission goals• architecture architecture • riskrisk• performance performance • expected return on investment (ROI) expected return on investment (ROI)

– For US DoD we include the relationship to transformation to a net-For US DoD we include the relationship to transformation to a net-centric environment in support of the warfighter and supporting centric environment in support of the warfighter and supporting DoD business operations. DoD business operations.

– Ensuring stakeholder involvement is critical – make it easy for them Ensuring stakeholder involvement is critical – make it easy for them to participate via a low-drag administrative process. to participate via a low-drag administrative process.

– Very important to make standards visible, understandable and Very important to make standards visible, understandable and readily available.readily available.

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• ““OPEN” Standards and Specifications, legal issuesOPEN” Standards and Specifications, legal issues– The DoD policy to specify as ‘mandated’ only ‘open’ The DoD policy to specify as ‘mandated’ only ‘open’

standards and specifications are rooted in cost and legal standards and specifications are rooted in cost and legal considerations. Two examples: considerations. Two examples: • (1) If a public organization were to place in their official registry (1) If a public organization were to place in their official registry

of mandated standards a proprietary (not ‘open’) specification of mandated standards a proprietary (not ‘open’) specification that belongs to Vendor ‘A’ or to Consortia ‘B’, we are placing the that belongs to Vendor ‘A’ or to Consortia ‘B’, we are placing the organization in a position of non-competitively “favoring” that organization in a position of non-competitively “favoring” that entity at the expense of others and thus subject to being sued entity at the expense of others and thus subject to being sued accordingly. accordingly.

• (2) If a party in a consortia provides certain intellectual property (2) If a party in a consortia provides certain intellectual property that is incorporated into the organization’s (non-open) standard that is incorporated into the organization’s (non-open) standard or specification and the public organization places this particular or specification and the public organization places this particular specification into their official registry of mandated standards, specification into their official registry of mandated standards, we are then opening the organization up to liability for royalty we are then opening the organization up to liability for royalty payments for employing that intellectual propertypayments for employing that intellectual property

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SUMMARY SUMMARY [1][1]

• Standards support interoperable free-Standards support interoperable free-market, commercial products and servicesmarket, commercial products and services

• Voluntary vs. involuntary standardsVoluntary vs. involuntary standards– Voluntary: consumer choosesVoluntary: consumer chooses– Involuntary: government regulation/lawInvoluntary: government regulation/law

• Treaty vs. non-treaty organizationsTreaty vs. non-treaty organizations– Treaty: UN, ITU, G7, NAFTATreaty: UN, ITU, G7, NAFTA– Non-Treaty: ISO, IEC, IEEE, IETFNon-Treaty: ISO, IEC, IEEE, IETF

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• Standards development organizationsStandards development organizations– Accredited: ISO, IEC, BSI, DIN, CSA, JIS, ANSI, Accredited: ISO, IEC, BSI, DIN, CSA, JIS, ANSI,

IEEE, UL, NFPA, SAE, ASTM, INCITSIEEE, UL, NFPA, SAE, ASTM, INCITS

• Specification development organizationsSpecification development organizations– Non-accredited: IETF (internet), W3C, OMG, Non-accredited: IETF (internet), W3C, OMG,

ATM Forum, Open Group, IRDA, DAVIC, ATM Forum, Open Group, IRDA, DAVIC, consortiaconsortia

• U.S. legal environment: antitrust issues U.S. legal environment: antitrust issues are motivation for accredited standardsare motivation for accredited standards

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• Modes of operation:Modes of operation:– Codifying existing practiceCodifying existing practice– Cooperative development (since mid-1980’s)Cooperative development (since mid-1980’s)

• Types of documents:Types of documents:– standards (shall), profilesstandards (shall), profiles– recommendations (should)recommendations (should)– guidelines (may)guidelines (may)– technical reportstechnical reports

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STANDARDSSTANDARDSTUTORIALTUTORIAL

Part III – Business Part III – Business Case For Case For

StandardsStandards

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WHY STANDARDS? WHY STANDARDS?

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Benefits of StandardsBenefits of Standards

• Encourage InnovationEncourage Innovation– Stimulate InnovationStimulate Innovation– Foster Knowledge Sharing & SynergiesFoster Knowledge Sharing & Synergies– Accelerate Speed to MarketAccelerate Speed to Market

• Foundation for Growth & ProductivityFoundation for Growth & Productivity– Improve EfficiencyImprove Efficiency– Reduce CostsReduce Costs– Increase Consumer ConfidenceIncrease Consumer Confidence

• Facilitate Market SupportFacilitate Market Support– Facilitate Trade Facilitate Trade – Better Access to MarketsBetter Access to Markets– Reduce Business RiskReduce Business Risk

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The Role of Standards The Role of Standards • Good Standards are Required to:Good Standards are Required to:• Support Dynamic Development of Support Dynamic Development of

Manufacturing, Services and Business Manufacturing, Services and Business – across all sectors of the manufacturing and across all sectors of the manufacturing and

service industriesservice industries– along the global supply chain from supplier to along the global supply chain from supplier to

consumerconsumer– throughout the lifecycle of products - may be throughout the lifecycle of products - may be

decadesdecades

• Enhance Government EfficiencyEnhance Government Efficiency• Provide Effective Services to the CitizenProvide Effective Services to the Citizen

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The e-Business Requirement The e-Business Requirement • e-Business is becoming a cornerstone of the e-Business is becoming a cornerstone of the

global economyglobal economy

• Full benefits for consumers, industry and Full benefits for consumers, industry and government demand a comprehensive and government demand a comprehensive and coherent set of Information Technology coherent set of Information Technology standardsstandards– OpenOpen– Interoperable and scaleable Interoperable and scaleable – Internationally accepted/accreditedInternationally accepted/accredited– Market supportedMarket supported

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Business Case for Business Case for Standards Standards [1][1]

• Research confirms that standards Research confirms that standards contribute to:contribute to:– Productivity, Productivity, – Growth, Growth, – Innovation, and Innovation, and – International Trade.International Trade.

See: See: “The Empirical Economics of Standards”,“The Empirical Economics of Standards”, published by UK published by UK Department of Trade and Industry and British Standards Institute.Department of Trade and Industry and British Standards Institute.

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• BSI portfolio of formal standards make an BSI portfolio of formal standards make an annual contribution of GBP 2.5 billion to UK annual contribution of GBP 2.5 billion to UK economyeconomy

• 13% of labor productivity growth from 1948-13% of labor productivity growth from 1948-2002 is attributed to BSI standards2002 is attributed to BSI standards

• Standards proved to be an enabler of Standards proved to be an enabler of innovation, facilitator of technological innovation, facilitator of technological change, and valuable strategic tool for change, and valuable strategic tool for businessbusiness

• Investment in standards makes sound Investment in standards makes sound business sense at both micro and macro-business sense at both micro and macro-economic levelseconomic levels

Source: Research team from University of Surrey, Nottingham University Source: Research team from University of Surrey, Nottingham University Business School, UK and Fraunhofer Institute for Systems Innovation Business School, UK and Fraunhofer Institute for Systems Innovation Research, GermanyResearch, Germany

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• NIST Study on ISO 10303 estimated the net economic NIST Study on ISO 10303 estimated the net economic benefits from STEP at over $1Bbenefits from STEP at over $1B– Decreased avoidance costsDecreased avoidance costs

• primarily associated with maintaining redundant systems primarily associated with maintaining redundant systems • cost of purchasing redundant CAx systems for the purpose of cost of purchasing redundant CAx systems for the purpose of

same format data exchange,same format data exchange,• training cost for maintain designers skills in redundant CAx training cost for maintain designers skills in redundant CAx

systems,systems,• productivity loss due to designers working on systems they are productivity loss due to designers working on systems they are

less familiar withless familiar with• IT staff to support redundant CAx systemsIT staff to support redundant CAx systems• outsourcing costs incurred when outside companies are hired to outsourcing costs incurred when outside companies are hired to

provide data exchange services.provide data exchange services.– Decreased mitigation costsDecreased mitigation costs

• cost of reworking models are part of the transfer processcost of reworking models are part of the transfer process• cost of manually reentering data when methods of data cost of manually reentering data when methods of data

exchange are unavailable or unsatisfactory.exchange are unavailable or unsatisfactory.– Decreased delay costsDecreased delay costs

• profits lost due to decline in market share caused by delaysprofits lost due to decline in market share caused by delays• profits lost due to delay of revenuesprofits lost due to delay of revenues

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““Industry standards, which spread best Industry standards, which spread best practice, are essential for business practice, are essential for business efficiency and maintaining competitive efficiency and maintaining competitive edge … are the foundation on which edge … are the foundation on which business builds success, innovates and business builds success, innovates and increases productivity … and make a increases productivity … and make a significant contribution to the UK significant contribution to the UK economy”economy”

Lord Sainsbury, UK Minister for Science and InnovationLord Sainsbury, UK Minister for Science and Innovation

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• STANDARDS …STANDARDS …– Share state-of-the-art know-how about Share state-of-the-art know-how about

products, materials services, systems and good products, materials services, systems and good practices.practices.

– May set rules, provide guidelines, definitions, or May set rules, provide guidelines, definitions, or requirements to make business simpler, more requirements to make business simpler, more efficient, and more effective.efficient, and more effective.

– Protect the consumer.Protect the consumer.– Provide governments the technical basis for Provide governments the technical basis for

health, safety and environmental regulations.health, safety and environmental regulations.

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Proprietary StandardsProprietary Standards

National StandardsNational Standards

Global StandardsGlobal Standards

1970 1980 1990 1995 2000 2005

Corporate Trend in Corporate Trend in Usage Mix of IT Usage Mix of IT

StandardsStandards

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SourcesSources

TECHNOLOGYTECHNOLOGYTECHNOLOGYTECHNOLOGY BUSINESSBUSINESSNEEDNEED

BUSINESSBUSINESSNEEDNEED

USEFULUSEFULSTANDARDSSTANDARDS

USEFULUSEFULSTANDARDSSTANDARDS

Useful Standards Become Significant Enablers!Useful Standards Become Significant Enablers!Useful Standards Become Significant Enablers!Useful Standards Become Significant Enablers!

2020

TechnologyTechnologyEnablersEnablers

BusinessBusinessProcessesProcesses

MarketplaceMarketplaceSupportSupport

Useful Useful StandardsStandards

Useful Standards Become Significant Enablers!Useful Standards Become Significant Enablers!Useful Standards Become Significant Enablers!Useful Standards Become Significant Enablers!

DriversDriversDriversDriversDriversDrivers

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BEST STANDARDS BEST STANDARDS SOURCESSOURCES

• ISO- de jure consensus-based ISO- de jure consensus-based international standards (SC4)international standards (SC4)

• ITU -International – treaty-basedITU -International – treaty-based

• National - NB accredited standards National - NB accredited standards (KATS, AFNOR, BSI, DIN, JIS)(KATS, AFNOR, BSI, DIN, JIS)

• Consortia – (W3C, IETF, OASIS)Consortia – (W3C, IETF, OASIS)

• Professional Societies – (IEEE)Professional Societies – (IEEE)

Bes

t!B

est!

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Is it Open and Accredited?Is it Open and Accredited?

Will It Do the Job?Will It Do the Job?

Is It Used in the Is It Used in the Marketplace?Marketplace?

Is it Stable and Reasonably Is it Stable and Reasonably Mature?Mature?

UserUserChecklistChecklist

Assessment CriteriaAssessment Criteria

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UserUserChecklistChecklist

SUGGESTED SELECTION SUGGESTED SELECTION CRITERIACRITERIA

• Critical to interoperability Critical to interoperability or business caseor business case

• Mature service, interface, Mature service, interface, or standardor standard

• Technically implementableTechnically implementable

• Publicly available (open)Publicly available (open)

• Consistent with Consistent with authoritative sourceauthoritative source

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