A universal language for industry
Do commercial standards represent a common language? The answer to that question is: not yet
By Krista Johnsen
Krista Johnsen
 | If there were one area where language should be technically precise and meanings not called into question, it is in the area of comercial standards. Otherwise how would a shipbuilder in Thailand be certain that the bolts he receives from China or Japan will hold his ship together appropriately? This feat can only be accomplished through extremely detailed and specific standards to which both parties agree. Industry uses performance or design standards in order that international business can take place.
The development of standards - using the best and most up-to-date technical factors - should be rather straightforward. Oftentimes, however, politics come into play during the creation of standards. Thus, the language in standards can be keenly fought over in order to accord some advantage to one country or group of countries. The stakes can be very high. Entire markets can be opened or closed to manufacturers by a change of a word or two, even a mere change in punctuation.
The U.S. and Germany are presently two of the world's largest exporters. However, just as Britain lost its competitive edge in the 20th century, these preeminent positions are not assured in the future. The U.S. and Germany can jeopardize their leadership positions by not devoting the proper attention to a critical element of international trade: international commercial standards and adherence by industry to those standards. Commercial standards represent a common language that promotes the flow of goods between buyer and seller and protects the general welfare.
International commercial standards are far from arcane technicalities. They are in fact quite essential to the infrastructure of global commerce. Standards are formally agreed upon specifications for products, processes and services that can either facilitate trade or can act as a barrier to that trade. When standards work, as demonstrated in the credit card industry with automatic bank teller machines, they serve as facilitators of commerce. But when they fail, as demonstrated in the case with electrical systems around the world, challenges and market barriers arise. Anyone who has ever had to travel abroad with a bag full of electrical plug adapters in order to operate his or her electric razor or hairdryer can attest to this fact.
Standards and regulations that incorporate standards affect the sale of at least $150 billion in U.S. exports. Effective participation in the international standards arena is now a prerequisite for global competitiveness. More than eleven million jobs in the U.S. are supported by exports.
The globalization of business - described by symbols - needs standards that technical developments are well suited
to each other.
 | Standards that are not yet using a universal language based purely upon the best and most feasible technology present challenges to those who work in this area who are committed to improving market efficiencies, the health and welfare of people, and the environment. Working at the National Institute of Standards and Technology (NIST) of the United States Department of Commerce, I have focused on creating effective standards policy at the Federal level. I have worked for the Executive Office of the President on data security and standards policy in the Clinton Administration. The standards development process in the U.S. is very complex and unique. It is not well understood abroad.
As a Bundeskanzler Fellow I plan to delve into the standards creation process in Germany, in the EU and in international standards developing organizations such as the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC) and the International Telecommunications Union (ITU). Acting as a liaison between the Deutsches Institut für Normungand NIST, I intend to link these two organizations more closely together and to develop more fully relationships that could lead to mutual projects in the future. Parallel to my analysis of the standards creation process, I will closely examine the issues surrounding Third Generation (3G) wireless standards in Germany, Europe and the United States. A further objective will be to examine the effects that the emergence of 3G standards is having on manufacturers, test laboratories, consumers, governments, regulatory authorities, and standard developing organizations. I am interested in learning first hand about the harmonization process that is currently taking place within the standards development process in Germany and the EU.
In this high tech era, the importance of interoperability is expanding. As the data and telecommunication sectors become more and more indistinguishable, the standards behind these technologies will become more important. By examining how the process is affecting all parties involved, my goal is to help make better standards policy in the future.
The globalization of business, the rapid implementation of new technology, and the economic and technological convergence of markets are interlocking market forces that are significantly changing global competition. Companies that don't participate in the standards setting process are letting other companies or organizations make decisions about their future product line for them. Such has been the case with the digital cellular telecommunications market. How the third generation of the telecommunications standards plays itself out remains to be seen. A joint statement from the leaders of three of the largest international standards developers stated: "World trade needs world standards…there must be a similar commitment to rely on international standards which enable businesses and customers alike in developing the global market to draw the maximum benefits." The difficulty comes in getting others who are not involved in the standards process to realize the importance of standards and their role in society.
While politics will continue to play a role in the technical standards arena, closer relationships among the players can assist in the creation of the most technically sound standards that promote not only efficiencies in the marketplace but also more importantly protect human health, welfare and the environment. These concepts are the basis for a universal language that will lead to a better future for all of us.
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