The Role of Standards in Innovation Robert H. Allen and Ram D. Sriram Presented by: Bidisha Sengupta Agenda • • • • • Standards: Definition and Types Innovation Natural relation between Innovation and Standards Case examples Conslusion Understanding ‘Standards’ • • Defined as “documented agreements containing technical guidelines to ensure that materials, products, processes, representations, and services are fit for presentation” Types: a) Metric Standard: Used against which quantities are measured ex: Kgs, Meters, liters etc. Typically useful for consumers. b) Process Oriented or Prescriptive standard: Provide methodology to perform tests and processes in a consistent and repeatable way. ex: American Society of Testing and Material for determining the methods and materials to carry out friction tests on floor surfaces c) Performance based standard: Ultimate performance is specified, not the process. Based on product experience. Ex: ASCE requires mobile homes in Hurricane prone areas to be wind resistant up to 160 Kmph d) Standards for Interoperability among systems: To standardize the data used by various systems like CAD, to ensure smooth inter system operations ex: STEP ( Standard for Exchange for Product Model Data) facilitate exchange of data representation Innovation • • Defined as “Introduction of new idea, method or device to a product or enterprise to impart them uniqueness in form, function or behavior” Types: a) Fundamental: Innovation resulting in new products and ideas, not thought to be or required prior to innovation b) Adaptive: Need generated innovation • • • • Business innovations must create new enterprise or product It should diffuse and create new market Edison- Great inventor but unsuccessful business innovator! A good innovator uses his/her experiences and idea in ways that are unfamiliar. Ex: Gutenberg combined a coin punch and wine press to develop printed page concept Relationship between Innovation and Standard • • How does Standard affect evolution of Ideas and Innovation?? Case 1: QWERTY Keyboard • • Avoid jams in typewriter while typing fast, by placing unrelated letters together and slowing down typing speed Slower the typing rate, less frequent is the Jam Contd. • • • • Dvorak Keyboard : 20% faster typing speed Movement of hands reduced to 1/16th Despite the advantages, 99.99% keyboards are QWERTY based QWERTY’s de facto standard for 20 years, hindered the innovation for the society, even if it improved performance! Contd. • Case II: Product Data Exchange • • • • • • Design and Manufacturing process various computer application systems Computer Aided Design (CAD)- Design parts Process Planning System- Establish manufacturing process Manufacturing and Designing possess data in their own format CAD needs to translate each exchange of data, which is cost intensive Standardization of data formats, reduces this cost to minimum Contd. • Ex: Boeing 777 • • • • • Customers required various configuration of machines, engines designs etc. CAD tools of manufacturers differed with that of Suppliers 100s of systems Boeing needed to exchange to design customized products Translation number shot up Standardization of data formats by STEP, reduced the translators to reducs from n(n-1) to 2n (n is no. of systems) Contd. • • Data Standards ensured the data interchange to become easy Innovation in Boeing designs to be a succes Conclusion • • • • • Standards and Innovation, very uniquely and complexly related Value of having standards in place is critical for economic advancement Global standards facilitate exports and international trade Standards, at times inhibit innovation by codifying inefficient technologies (ex: QWERTY Keyboards) However, they also form a baseline by setting common standards for new technologies to evolve….