SAB Vice Chair’s Report June, 2006

Policies & Procedures The SAB P&P’s for acting as a sponsor were accepted at the June meeting of AudCom The IEEE Standards Board passed a resolution requiring that the only copy of Sponsor P&P’s designated as “official” be on the IEEE AudCom site. This may require a change in the www.computer.org/standards site.

Intellectual Property Rights Update IEEE Standards Board focus is on patents. Claudio Stanziola has approved wording for SISO-SAC (defer to SISO-SAC report) General issue of IP rights is tied to IEEE-SA business models which are in flux Remains an issue – not focus of this report

Future of Volunteer Consensus Standards Personal Observations and Recommendations The future of standardization will be affected by: Changes in intellectual property rights and laws Globalization The Internet Shifting business models for standardization Next series of slides provides a context for this (from a presentation given in February at the Advanced Distributed Learning Initiative’s “International Plugfest II”)

Why Bother With Standards? INNOVATION Standards define and catalyze new technology Standards enable new solutions Standards solve existing problems

Why Bother With Standards? HELP THE CONSUMER Standards prevent lock-in Standards accelerate commoditization Standards increase reliability Standards enable competition

Why Bother With Standards? BUILD MARKETS Standards can lower design, development and production costs Standards help modularize supply chains Standards build consumer confidence Standardization distributes effort

Who participates Researchers Academics Corporate strategists INNOVATION HELP THE CONSUMER BUILD MARKETS Researchers Academics Corporate strategists

Who participates Government Agencies Consumer Groups INNOVATION HELP THE CONSUMER BUILD MARKETS Government Agencies Consumer Groups Companies looking for specific competitive advantages

Who participates Commercial enterprises Industry groups INOVATION HELP THE CONSUMER BUILD MARKETS Commercial enterprises Industry groups

When Does Standardization Occur? INOVATION HELP THE CONSUMER BUILD MARKETS Market moves from underserved to overserved* * Clayton M Christensen & Michael E Raynor, (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth, Harvard Business School Press, Cambridge, Mass. Need arises in an influential community

Observation INOVATION HELP THE CONSUMER BUILD MARKETS Individual Balloting Entity Balloting Post development Funding Pre-development Funding

From the “Disruptive Technology” Perspective: INOVATION HELP THE CONSUMER BUILD MARKETS Emphasis on entity balloting and up-front funding drives standards further up the value chain. The innovation side is being replaced by ad-hoc community-based “standards.”

What do Globalization and the Internet mean for us? Globalization of supply chains is a standardization driver Globalization and disintermediation of information is affecting business models Globalization requires “globally friendly” processes The traditional participants in early-stage standardization are forming virtual communities and working virtually

Recommendation (Golden) opportunity exists for creating a voluntary consensus standardization process that is Easily used and accessed Internet-based Localizable (and uses a process that supports international participation) Secure Ethically rigorous Economically viable Affordable Strongly branded This should play prominently in the SAB agenda