Tom Introduction to international standards and standardisation processes Carina Svensson, Programme Manager – Swedish Standards Institute (SIS)

Wherever you are, you’re surrounded by standards

3 Key challenges identified n All countries, especially developing countries need to become ”standard setters” and not only ”standard takers” n International standards need to be trade supportive not trade barriers n Active involvement in development of standards internationally will enhance possibilities for effective implementation of standards nationally n International standards – to become applicable and relevant to as many countries around the globe n International standards – support local private companies (SMEs) competitiveness on global markets n Support a stakeholder driven standardisation process to increase the expertise and different perspectives incorporated in the standard n Standard implementation – increase the practical usage of standards applicable to various products and services

4 International standards linkage to other areas of importance n Good environmental and sustainable practice promoted in ISO standards n Reduced environmental impact from production n Improved trade opportunities through better access to global markets n Improved consumer protection and safety n Supportive of development of national legislation n Improved influence by stakeholders from private sector in regulations/standards that they are directly affected by n Increased global relevance and appliance of ISO standards

5 ISO International Standards Organisation

ISO rules  1 member / country in ISO  1 member = 1 vote ISO maintaining and developing more than 18,500 standards ISO Environmental management, ISO 9000 Quality Management, ISO Guidance on Social Responsibility, ISO Energy management, ISO Risk management, ISO Food Safety

ISO Membership categories members/countries  Full members (112 countries): –Voting rights, 1 vote / country –Right to participate in technical work  Correspondent member (47 countries): –Rights to attend meetings as Observers –Reduced fees  Subscriber members (4 countries): –Information rights –Reduced fees

Global Relevance “The required characteristic of an International Standard that can be used/implemented as broadly as possible by affected industries and other stakeholders in markets around the world” 8 ISO/Technical Management Board (TMB) definition:

ConsensusVoluntaryStakeholder drivenOpenness Standardisation Principles

Developing a standard Anyone can initiate the process A New Work Item Proposal (NWIP) submitted to all NSBs NWIP includes suggestions for leadership of International Secretariat and possible stakeholders Concept

Developing a standard NS Bs in consultations with stakeholders vote on NWIP NSBs and stakeholders to decide if and how to participate Stakeholders decide to influence the content of an International standard and standardisation process (employers agenda and competence development) ISO decides country leading the International Secretariat Decision Concept

Developing a standard International and national secretariats decide on action plan for standardisation process NSBs usually set up a National Mirror Committees (NMC) Start Concept Decision

Developing a standard National Mirror Committees (NMC) under leadership of International Secretariat develop a draft Proposal Concept Decision Start

Developing a standard Referrals and comments on drafts for considerations (numerous drafts and referrals) Referral Concept Decision Start Proposal

Developing a standard International Committee/Group to draft standard proposals NMCs to discuss and comment on drafts Important to include stakeholders and experts Comments Concept Decision Start Proposal Referral

Developing a standard NSBs to vote on final draft standard Vote Concept Decision Start Proposal Referral Comments

Developing a standard Adoption Concept Decision Start Proposal Referral Comments Vote Given a positive vote, the standard can be adopted as an ISO standard NSBs should decide on adoption of ISO standard on national level (and translation) If a negative vote, discussion on how to proceed (e.g. another ISO standard / Technical specification / Technical Report)

Developing a standard Publication Concept Decision Start Decision Referral Comments Adoption NSBs market the ISO standard nationally Stakeholders decide usage and implementation of ISO standard (e.g. public procurement, international trade) Vote

What is Competitive Advantages? n … a basis for the firm’s long term success? n … a basis for value creation? ”When two or more firms compete within the same market, one firm possesses a competitive advantage over its rivals when it earns a persistently higher rate of profit (or has the potential to earn a persistently higher rate of profit)” - R. M. Grant 2000

Sustainable Competitive Advantages - reflected on Products/Services n Quality of the product and quality of customer service n Design n Innovative product / service n Customized product / service with integrated services n Environmental friendly

Economic Advantages of standardisation  Compatibility – compability standards between different parts and components are essential  Quality & Safety – increase quality and reduce risks for defective products/bad services  Variety Reduction - standards limits the production of a certain product to a certain range of characteristics such as size, quality and other technical specifications  Communication of Technical Parameters – supports trade and trade agreements between different producers in the world  Reduce Trade barriers – harmonization of standards and lower the costs for certifying local products  Reduce Transaction Cost – Standards reduce transaction costs by improving recognition of technical characteristics and avoidance of buyer dissatisfaction.  Use across different markets – way forward for international trade, global applicability, harmonization of standards, facilitation of time delivery products/services, disseminate different technologies

Economic Advantages of standardisation  Compatibility – compability standards between different parts and components are essential  Quality & Safety – increase quality and reduce risks for defective products/bad services  Variety Reduction - standards limits the production of a certain product to a certain range of characteristics such as size, quality and other technical specifications  Communication of Technical Parameters – supports trade and trade agreements between different producers in the world  Reduce Trade barriers – harmonization of standards and lower the costs for certifying local products  Reduce Transaction Cost – Standards reduce transaction costs by improving recognition of technical characteristics and avoidance of buyer dissatisfaction.  Use across different markets – way forward for international trade, global applicability, harmonization of standards, facilitation of time delivery products/services, disseminate different technologies

n Reduce environmental impacts n Less insurance premium n Improved operational efficiency n Better utilization of materials & resources n Reduced costs and wastage n Increased access to world markets n Improved staff morale and work environment n Assurance to interested parties n Enhanced corporate image n Encourages partnership between industry and regulators Environmental Advantages

Social Advantages n Standards enable Regulatory bodies to implement technical regulations n Are used for conformity assessment - enhance confidence

How can standards boost Business? n Competitive advantage n Efficiency/Cost savings n Innovation n Customer confidence/loyalty n Market access/trade n Alternative to regulations

Benefits of Standardisation …To Manufactures: n Rationalize different varieties of products n Decrease the volume of products in the store and also the manufacturer cost n Improve the management and design n Speed up the management of orders n Facilitate the exportation and marketing of products n Simplify purchasing management n Protection of consumer & community interests

….To the Public service:  Simplify the production of legal text  Establish quality, environmental and safety policies  Help to the economical development  Facilitate the business Benefits of Standardisation

….To the Consumer: n Establish quality and safety level to the services and products n Inform to the characteristic of the products n Make easier the comparison between the different offers n Consistent user interfaces n System reliability and durability n Reliability of information n Interoperability & compatibility n More transparency in the market Benefits of Standardisation

……To the Trade n Minimization of delays, correspondence and discussions resulting from inaccurate or incomplete specifications of the stores ordered n Workable basis for acceptance or rejection of goods and for dealing with consequential disputes Benefits of Standardisation