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DO STANDARDS MATTER? A UK PERSPECTIVE Frank Post, Group Communications Director ™ THE BSI GROUP • An independent, global services company • UK’s National Standards Body as recognized by the UK Government • Governance along international PLC lines – full Board of Non-Exec and Exec Directors • Formally a Royal Charter company since 1929 ™ BSI GROUP “An independent global services business that inspires confidence and delivers assurance to all our customers through standards based solutions” ™ THE BSI GROUP • A well established global service organization • Presence in more than 100 countries • 2,100 employees ™ GLOBAL PRESENCE London Washington Beijing Mexico City Singapore New Delhi Worldwide Offices Sao Paulo Sydney ™ BSI AS THE UK’S NATIONAL STANDARDS BODY • Facilitate standards development • Manage stakeholder representation from Industry, Government, Regulators and Consumers for committees • Represents the UK internationally at ISO and IEC • Supports the UK Government’s commitment to EU standardization (Directive 98/34) as the representative for CEN and CENELEC • Offer an expanding range of fast track products and services to meet changing demands of the UK ™ STANDARDS IN SUPPORT OF REGULATION “I agree with the principle [of using standards in place of regulation]...In modern communications and IT, for example, it makes immense sense for standards – principally those driven by the industry itself – to become the de facto mechanism for regulating some of the technologies.” Andrew Miller MP, Chairman of the House of Commons Regulatory Reform Committee, • UK: – Regulations costs UK businesses £100bn p.a (10% GDP) – Government committed to reduce burden of regulation. Standards seen as a means to simplify regulation and focus on risk. • EU: 22 New Approach Directives including, electromagnetic compatibility, and radio & telecoms – all based on state of the art performance focussed specifications ™ IMPROVING THE EFFICIENCY OF PUBLIC PROCUREMENT “They are important to the spread of e-auctions where one of the biggest drivers is to get the right taxonomy and specification so it is understood by all. British standards are tremendously helpful in letting everyone concerned know what is needed.” Richard Abbott, Office of Government Commerce Procurement Programmes Director • 2003 UK public sector expenditure on procurement was £100bn. • UK Treasury target of procurement efficiency savings of £21.4bn over 4 years • Standards simplify the purchasing process through setting clearly defined and consistent requirements ™ STANDARDS SUPPORTING INNOVATION “Overall, standardization should be used in a more strategic manner for growth and procurement as it is standards that make marketable products out of innovations.” Innovation & Standardization, Financial Times Germany, 27th March 2007 • • • Standards help innovation by: – Establishing common vocabularies – Disseminating new technologies – Consideration of health, safety and other aspects – Performance specifications Standards alignment with Innovation agenda – – Nanotechnology Biometrics – Cell Based Therapeutics – Fuel Cells – Sensors & Photonics – Regenerative Medicine – Advanced Materials BSI input in to the UK’s Technology Strategy Board and Sainsbury Review of Science and Innovation ™ PERCEPTION OF STANDARDS “You don’t wake up every morning and say ‘Thank goodness I’ve got some standards’. On the other hand if they weren’t there it would make life rather difficult. It’s a bit like anything that’s [part of the] infrastructure – the only time you notice it is when it’s not there and you know it’s not working.” “I don’t employ anyone at management level who comes to work today to just make sure we do what we did yesterday. Even in the area of safety, we are always trying to improve, be better than we were yesterday .” ™ NATIONAL STANDARDIZATION STRATEGIC FRAMEWORK Mission: • Secure a step-change in the understanding and use of standards & standardization, for the benefit of Business, Government and Society. Activities: • Business & Government engagement: • Emerging technologies and fit to UK technology strategy • Promotion of standardization to education sector • Increased provision and content of standards training • Work and collaboration with overseas standards making parties ™ ECONOMIC BENEFITS OF STANDARDS “Standards are crucial to sustainable development, they are invaluable in helping countries develop their economies and build capacities to compete on global market. Standards make a positive difference to our world.” Former UN Secretary General, Kofi Annan ™ CONTRIBUTORS TO OUTPUT GROWTH IN THE UK (1948 -2002) Standards Annual GDP Growth Technological Change Employment GDP % Growth Per Annum Capital ™ ECONOMIC BENEFITS OF STANDARDS BSI’s portfolio of formal standards: • Contributes £2.5 billion annually to UK GDP • Has contributed £75 billion since 1948 • Accounts for 13% of UK labour productivity growth • Standards are an important part of the international technology transfer process But will only be sustained if: – Standards are relevant, timely and cost effective – We communicate better the benefits and opportunities of standardization – There is greater collaboration and harmonisation internationally Source: DTI Empirical Economic of Standards 2005 ™ ECONOMIC BENEFITS OF STANDARDS • Germany: – Econometric study found standards contribute 1% of GNP, more than patents & licences – Standards help disseminate new ideas, products and technologies – Standards have positive influence on innovation potential – Company survey found 84% of companies use European and International standards as part of their export strategy • Australia: – 1% increase in standards stock increases economy wide productivity by 0.2% – Water & electrical industries benefit by AUS$1.9bn p.a. through standards establishing networks and accessing these networks ™ STANDARDS PROMOTING TRADE “International standards make a contribution to the dismantling of barriers to trade and thus promote international trade” Günter Verheugen, Vice-President, Enterprise Industry, European Commission ™ STANDARDS PROMOTING TRADE • WTO TBT agreement: Avoid unnecessary obstacles to trade • Allows for simplification of trade and removes obstacles to trade • Reduces need for changing design and manufacture to meet national requirements, reducing complexity and cost • Provides greater choice and understanding for consumers • China increasingly adopting international standards as part of its WTO commitment - c.50% of Chinese (GB) standards are now based on international standards ™ SUCCESS THROUGH STANDARDS • A provider of communications solutions and services operating in 170 countries, with a turnover of £19.5bn and more than 104,000 employees • Uses standards to help create the future market and avoid alternative & technical formats. • Competition is based on: – – – – – Design Price Quality Reputation Service • BT used standards to help establish the viability of e-commerce for their own, their customers and their customers’ customers benefit. This activity alone is estimated to save the company £20m each year ™ SUCCESS THROUGH STANDARDS • A leading provider of IT solutions to retailers and retail banking with a turn over of €1.7bn and more than 7,000 employees • Subsidiary, Datalect Group implemented ISO/IEC 20000 IT Service Management Standard • Benefits include: – Improved service levels – Closer working of the organizations departments – Reduction in complaints ™ SUCCESS THROUGH STANDARDS • Global IT Giant with 38,600 employees in more than 100 countries with a turn over of £11.2bn. • Heavily involved with standardization spending c.$20m p.a. to be involved with more than 80 standards organizations including ISO, IEC and open source organizations • Involvement is because : – Aids innovation – Propels wider industry forward – Provides users with long term technical stability “Successful standards expand opportunities for the entire industry” ™ CHINA – UK COLLABORATION • Strong relations developed with Chinese standardizers • – 2004 SAC – BSI Joint Co-operation Agreement – 2005 CNIS – BSI Joint Co-operation Agreement – 2006 BOSTC – SAC – BSI Olympics Agreement – Relations also developed with regional standards organizations and other governmental bodies Key areas of co-operation: – Information security – Construction – Sustainability & environment – Energy – European market access – Infrastructure – Knowledge exchange (secondments and training) ™ BSI IN CHINA • BSI’s first office established in Hong Kong in 1995 • 10 offices employing 250 people serving 4,000 customers including the Industrial & Commercial Bank of China, China Life Insurance Company, Baoshan Iron & Steel, Air China • Certification services provided to major management system standards e.g. ISO 9001, ISO 14001, ISO 27001, ISO 20000, ISO 22000 • 2005 BSI British Standards Chief Representative appointed to build relations between Chinese and UK standardizers ™ CONCLUSIONS Do standards matter? • Pivotal in stimulating innovation, creating value, effective procurement and reducing the regulatory burden • Significant contribution to increasing trade, improving efficiencies and mitigating operational risk • Can be delivered through formal (e.g. ISO/CEN) or informal (e.g. consortia) frameworks • But in all cases capture and disseminate best practice Challenge! • Extend best practice into next practice ™ ® ™ CONTACT US Name: Frank Post Name: Gary Teng (滕钢) Title: Group Communications Director Title: British Standards Manager, China Address: Room 2008, East Ocean Center Address: BSI Group No.24A Jian Guo Men Wai Street 389 Chiswick High Road Beijing London 100004 W4 4AL P.R.China United Kingdom Tel: +86 10 6515 7060 Tel: +44 (0) 20 8996 9000 Email: [email protected] Email: [email protected] Links: www.bsi-global.com ™ Links: www.bsi-china.com