Plans for future European Service standardization and Horizontal Service standardization

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1 Plans for future European Service standardization and Horizontal Service standardization Javier GARCIA Chairman CEN Strategic Advisory Group on Services Standards Director Spanish Association for Standardization and Certification (AENOR) , Helsinki

2 Contents 1. Standardizing Services? 2. Policy supportive environment 3. Standardization Strategy to support the Service sector

3 1. Standardizing Services? No!!!!!! Never!!!!!!!!!!! Innovation?? Differentiation?? Anything but standardized experiences!!!

4 1. Standardizing Services? Spanish Experince last 2 years... Business to Consumer -Services for sports activities -Service stations (gas stations and add. services) -Animal health and welfare management -Veterinary clinics (pets) -Motor vehicle repair workshops Business to Business -ESCOs -Value added purchasing management -Protocol for oral and body behaviour analysis -Deposits for containers repair -Management system for crime prevention in organizations. Requirements. Health care - Liver transplantation programs - Nutritional management in hospitals -Surveillance, prevention and control of infections related to health care in hospitals Social care -Management of residential homes

5 1. Standardizing Services? 1. Standardizing Services?

6 1. Standardizing Services? European & National Services Directive 2006/123/EC: Services contribute to almost 70% of EU GDP Only sector of net job creation in the EU Objective: to release the untapped growth potential of services markets in Europe Cross-border service provision in the EU: 6% to 20% Cross-state trade in services in the USA: 27% to 32% Measure: development of voluntary European standards High Level Group Report on Business services (2014) Business services account for 11,7% of the EU economy Industrial outsourcing Servitization of manufacturing Trend continue grow: 4th industrial revolution Industry 4.0 Key measure: supportive standards framework

7 1. Standardizing Services? European & National European service standards: 3% of all standards : 24 European service standards 453 national service standards Risk of new barriers to intra-eu trade in services European policy on European standards for the b2b market Mandate M/517 for the programming and development of horizontal service standards

8 1. Standardizing Services? Why??? (1/2) Motivation & intended use of Standards Guidance for the development of agreements and other documentation; Supporting crossborder-trade in services; Performance benchmarking; Consumer protection; Support to national legislation; Guidance for training and qualifications of service providers; Certification; Supply chain management; Provision of glossaries of terms / definitions; Public procurement Study on the implementation of service standards and their impact on service providers and users. Technopolis Group (2011)

9 1. Standardizing Services? Why??? (2/2) Benefits relate to improvements in Demonstration of service quality to customers: 95% Service quality: 95% Use of common definitions/terminology: 86% Contractual relationships: 83% Customer satisfaction: 89% Transparency of the services provided: 86% Ability to compare different service offers/providers: 77% Ability to export services: 50% Increased market share: 52% Increased profitability: 51% Study on the implementation of service standards and their impact on service providers and users. Technopolis Group (2011)

10 1. Standardizing Services? Business to Business Service Sectors Outsourcing affect the performance of downstream sectors. rapid growth of business services in value chains of manufacturing and service industries Facility Mangement Call Centers Market research Energy-related services Managements consultancy Information asymmetry in the interaction with the client can, in principle, be reduced by using standards. Study on business-related services: EC DG Enterprise and Industry 2012

11 1. Standardizing Services? Servitization of Manufacturing Digitized industrial value chains with new business models Smart robots and machines, additive manufacturing Connectivity, big data, internet of things, cloud, advanced analytics Virtual industrialization, human machine interactions Energy efficiency, production storage and decentralization

12 1. Standardizing Services? Business Models Trends: Technology and brokerage Platforms, e-commerce Data based either selling collected data or use of collected data to create value Intellectual Property Rights revenue models and as new addition to products As a Service: pay by use, not the asset but the service

13 1. Standardizing Services? Impacts manufacturing & traditional services and public administration MCKINSEY value this impact for Industry 4,0 in billion dollars globally by 2025 and a collective increase of 15% in operational efficiency Value drivers can amount to up 15% overall operation efficiency in the following dimensions: Resources / processes +3%-5% productivity Asset utilization -30%-50% total machine downtime Labour 45%-55% increase productivity technical professions Inventories 20%-50% cost Quality 10% -20% cost Supply / demand match + 85% accuracy Time to market -20%-50% reduction Maintenance -10% -40% cost reduction

14 Contents 1. Standardizing Services? 2. Policy supportive environment 3. Standardization Strategy to support the Service sector

15 2. Policy supportive environment Directive on Services in the Internal Market (2006/123/EC) art encourages development of voluntary ENs facilitating compatibility between services supplied by providers in different Member States, information to the recipient and the quality of service provision. An Integrated Industrial Policy for the Globalisation Era (COM (2010) 614) Business related services essential to modern manufacturing HLG on Business Services Single Market Act (COM(2011) 206) Revision of the legislation on the European standardisation system, to extend it to services

16 2. Policy supportive environment Several EC initiatives: Internal Market Package Services EC Mandate M/517 Horizontal Service Standards High Level Group on Business Services

17 2. Policy supportive environment Horizontal Service standardization TS FV approved CEN/TC DIN Service excellence Creating outstanding customer experiences through service excellence From a satisfied client to a DELIGHTED client Trully horizontal model on service provision Client delight is at the center of the model For organizations providing services (any size, any activity)

18 2. Policy supportive environment Horizontal Service standardization Phase I: Programming Phase II: Development M/517 Mandate for the programming and development of horizontal service standards Increase the cross border provision of services: Facilitate compatibility between services supplied by providers in different Member States Improve the information to the recipient Raise de quality of services offered in the EU

19 2. Policy supportive environment Horizontal Service standardization Phase I:Dec 14-Nov 15 EU approval Phase I: May 2015 M/517 Mandate for the programming and development of horizontal service standards Phase I Identification of six or seven proposals for standardization: Horizontal B2B Based on: Opinions/needs of stakeholder organizations Anticipated market acceptance Legal constraints which could limit acceptance Take the public interest into account Be consensus-based Be market-driven

20 2. Policy supportive environment Horizontal Service standardization Deadline Nov 24th BSI Phase II of M/517 New CEN/TC Services Procurement, contracts and performance assessment Standardization related to the supply of services, particularly of a b2b nature Priority Performance measurement Service contracts Service procurement Supplementary set of standards Service terminology Provision of information to customers Customer satisfaction measurement

21 Contents 1. Standardizing Services? 2. Policy supportive environment 3. Standardization Strategy to support the Service sector

22 3. Standardization Strategy Principles Voluntary Industry leadership A tool to support achieve their strategies Based on experience Project portfolio, & National, European & International Horizontal & Sector-specific

23 3. Standardization Strategy CEN Guide 15 Provides support and guidance to all socio-economic actors of any service sector, whether B2B, B2G, B2C or G2P, whether sector specific or generic, in the process of drafting a standard about a certain activity, irrespectively of the reasons to do so or in the pre-normative stage; The methodology provided facilitates the identification of potential contents to be included in a service standard. It considers essential aspects such as structure, interface management system standards and legislation, or measuring customer satisfaction.

24 3. Standardization Strategy Service Lifecycle Thinking

25 Summary Homogenizing Services.?... No! Standards to support the provision of services! Market lead: Bottom Up Servitization of Manufacturing Business Services

26 Thank you for your attention Javier GARCIA Standards Director Spanish Association for Standardization and Certification (AENOR)