Economic Benefits of Standardization - Result of a German Scientific Study-

Transcription

1 Technische Universität Datum Technical Sessin Octber 2006 Ecnmic Benefits f Standardizatin - Result f a German Scientific Study- Agenda Intrductin Benefits fr Business Benefits fr the Ecnmy as a Whle Cnclusins:EUR 15.9 billin a year Standards pay ff The ecnmic benefits f standardizatin are wrth EUR 15.9 billin a year. Hans Knp, Germany Fraunhfer Institut Systemtechnik und Innvatinsfrschung Results f the first cmprehensive study f the benefits f standardizatin: Standards aid and accelerate technical prgress Standards create new markets Survey f businesses Data frm three cuntries Switzerland 29.1 % Austria 11.9 % Germany 59.0 % Survey f businesses 680 f the 4,000 businesses in Germany, Switzerland and Austria which were selected fr the survey submitted detailed respnses (49 questins with mre than 340 separate sectins). Standards are wrth the investment 1

2 Fcus f survey Aerspace Cnstructin Engineering Manufacture f metal prducts Manufacture f rubber and synthetic prducts Chemical industry (ecluding pharmaceuticals) Autmbile industry Electrical engineering Characteristic: high level f standards activity 80 % f the businesses surveyed in these sectrs wrk with standards. Differentiated research All significant differences were studied in relatin t: Cuntry Active invlvement in standards wrk Sectr Size f cmpany Standardizatin department Management level Interviews with representatives f the public interest, business and the state: Bundesverband der Deutschen Industrie, BDI Bundesverband der Unfallkassen Carl Zeiss, Aalen Deutscher Gewerkschaftsbund, DGB Deutscher Industrie- und Handelstag, DIHT Deutscher Städtetag Hauptverband der gewerblichen Berufsgenssenschaften Stiftung Warentest Umweltbundesamt Verbraucherrat, DIN Wirtschaftswachstum Gd reputatin Industry-wide standards are highly regarded are cnsidered t be accurate facilitate entry t new markets imprve quality stimulate technical and ecnmic prgress Ecnmic grwth* greatly influenced by standards Standards 27.3 % Licences 15.2 % Patents 3.0 % Labur 6.0 % Capital 48.5 % * During the perid frm 1960 t 1990, the average annual ecnmic grwth in the Federal Republic f Germany was 3.3 %. 2

3 Standardizatin netwrk We distinguish between: Internatinal Standards Eurpean Standards Natinal Standards Natinal preliminary standards What businesses epect f industry-wide standards: Up-t-date Cncrete slutins Transparency and fleibility Self-impsed quantitative limits Standards a strategic tl: Half the businesses surveyed are actively invlved in standards wrk. One in fur has a designated standardizatin department. CEN Wrkshp Agreements Publicly Available Specificatins Awareness f standards Standards fr a head start Standards fr a head start DIN's way f wrking meets with apprval Think ecnmics, d business: Standards turn gd ideas int successful business strategies Standards wrk is dne by selected specialists. Standards are effective, standards mean prfit. Passive benefit: Standards wrk uses mdern electrnic cmmunicatin methds. Standards wrk is carried ut during a defined perid. Its clear bjective: Less bureaucracy mre efficiency It is useful t use standards Active benefit: It is twice as useful t develp standards and t use them 3

4 Standards fr a head start Part A Benefits fr business Part A: Overview Hw standards help lwer csts n adjustment csts fr eprts 46.3 %... easier cllabratin 38.9 %... mre ptential suppliers 35.7 %... harmnizing fficial requirements 32.3 % The benefits f standards fr business Results and eamples 1. Standards a majr factr in successful business strategies 2. Standards mean a ptential cmpetitive advantage 3. Standards are glbal 4. Standards lwer csts 5. Standards imprve market psitin 6. Standards facilitate cperatin between businesses 7. Standards reduce risks 8. Standards and prduct life cycles 9. Standards mean mre security 10. Standards are in the public interest... increased prductin vlume (eprt grwth) 19.6 % 0 % 25 % 50 % 11. Standards by cnsensus r by majrity vte? 12. Standards bdies are indispensable Standards are strategically imprtant Standards are strategically imprtant Standards are glbal 1. Standards a majr factr in successful business strategies 1.1 Gain influence 3. Standards are glbal Mre influence in Eurpean and internatinal Cnfrmance as a strategy Businesses actively invlved standardizatin requires mre active natinal in standardizatin... Standards pen up paths wrldwide invlvement.... have mre influence... have many ther advantages... pre-empt legislatin 4

5 Standards are glbal Standards lwer csts Standards imprve market psitin 3.2 Standards pen up paths wrldwide 4. Standards lwer csts Lwer transactin csts Unifrm Eurpean and Internatinal Standards: facilitate agreements (62 %) reduce trade barriers (54 %) In shrt: they reduce the csts f trade. Lwer prductin csts Mre efficient cmmunicatin 5. Standards imprve market psitin Mre market pwer in dealing with suppliers Market grwth at the best pssible level Standards facilitate cperatin Standards facilitate cperatin Standards facilitate cperatin 6. Standards facilitate cperatin 6.1 Mre pprtunities fr 6.2 Synergies lwer csts and between businesses strategic alliances increase prfits Increased pprtunities fr strategic alliances Synergies lwer csts and increase prfits "Cding" knwledge can make it easier fr businesses t cllabrate and establish strategic alliances. Industry-wide standards facilitate cperatin between businesses at the same value-added level. Cperatin at a nrmative level can enable businesses t fully eplit cst-saving ptential. Hwever: T much cperatin culd result in mnplistic business structures. 5

6 Standards and prduct life cycles Standards mean mre security Standards are in the public interest 8.1 Relevance f standards increases with length f prduct life cycles Standards are a stabilizing factr, ften accmpanying a prduct fr decades. Standards are particularly imprtant in markets with prduct life cycles lnger than five years. 9. Standards mean mre security Standards help reduce the number f accidents Invlvement in standards wrk increases awareness f the imprtance f prduct safety 10. Standards are in the public interest Standards reduce the risk f liability Standards ease the burden n the state Detail Detail Standards are in the public interest Standards wrk Standards bdies are indispensable 10.2 Standards ease the burden n the state 11. Standards by cnsensus r by majrity vte? 12. Standards bdies are indispensable Standards ease the burden n the state because they are prepared using the epert knwledge f the stakehlders. Current legislatin refers t 20 % f DIN Standards. Businesses prefer a majrity vte Minrity grups prefer cnsensus Standards wrk has t use mdern management and cmmunicatin methds They cllate epert knwledge They help businesses save mney They are authrized t represent interests They have internatinal influence 6

7 Standards bdies are indispensable Standards bdies are indispensable Ecnmic benefits Part B 12.2 Standards bdies help businesses t save mney 12.3 Authrized representatives DIN/ON/SNV Withut the natinal standards bdies - represent the interests f their wn cuntry DIN/ON/SNV, 80 % f businesses wuld face additinal csts averaging EUR 276,000 a - keep businesses infrmed abut current year. standards wrk Ptential savings wuld nly amunt t abut EUR 77,000 a year. - translate Eurpean and Internatinal Standards int their wn language The ecnmic benefits f standardizatin Results Ecnmic benefits Part B: Overview Ecnmic benefits Freign trade needs standards Ecnmic benefits Freign trade needs standards 1. Every cmmunity needs standards 2. Cmmunicatin needs standards 3. Grwth needs standards 4. Innvatin needs standards 5. Prductin needs standards 6. Freign trade needs standards Cnclusin: Standards are indispensable 6.1 Standards mean cst and quality advantages Standardized prduct characteristics increase cnsumer cnfidence and safety. Standardized prduct quality pens up new markets. 6.2 Standards are an indicatr f natinal ecnmic perfrmance An efficient ecnmic system draws much f its strength frm its ability t respnd and adapt t technical change. German standards keep pace with technical develpments, and als set the pace fr them. 7

8 Ecnmic benefits Freign trade needs standards Ecnmic benefits Standards are indispensable Ecnmic benefits Standards are indispensable German standards benefit imprts and eprts Standards are a technical necessity which makes ecnmic sense Mdern ecnmies cannt d withut up-t-date standards The Eurpean and Internatinal Standards adpted by Germany give German manufacturers a cmpetitive advantage. The German cntributin t Internatinal Standards bsts the German freign trade surplus. They prvide a dependable platfrm fr technical prgress. They create ideal cnditins fr an ecnmically effective strategy. T cnclude: The verall ecnmic benefit f standardizatin is greater than the sum f the individual ecnmic advantages. Types f benefits Categrizing standards Beneficial effects f standards Direct and indirect effects Direct effects: e.g. Ratinalizatin Indirect effects: e.g. Impact n third parties Quantitative and qualitative effects Quantitative effects: e.g. Savings n material and energy (in mnetary units) Qualitative effects: e.g. Custmer satisfactin, imprved image Internal and eternal effects Internal effects: e.g. Impact n a business Eternal effects: e.g. Impact n the market 2005 DIN Deutsches Institut für Nrmung e. V. 1. Substance and applicatin Service standard Perfrmance capability standard Basic standard Delivery standard Dimensin standard Prduct standard Test standard Material standard Prcess standard 2. Effect f standards Ratinalizatin Interperability Quality Security Infrmatin 2005 DIN Deutsches Institut für Nrmung e. V. Neutral Minr effect Majr effect Ratinalizatin standard Interperability and interface standard Quality standard and minimum requirements Safety standard Infrmatin and prduct designatin standard prduct price prduct vlume (increase in amunt prduced) (increase in demand) (increase in demand) (increase in demand)) prductin csts custmer behaviur transactin csts 2005 DIN Deutsches Institut für Nrmung e. V. Figure 2: Beneficial effects f standards 8

9 Factrs Cntributing t Ecnmic Grwth Standardizatin Benefits Thank yu! Ecnmic grwth Standards Licences Patents Wrk Capital % 3.3 Ecnmic Benefits f Standardisatin - Summary f results - The benefit t the natinal ecnmy amunts t mre than US $ 15 bn per year Standards cntribute mre t ecnmic grwth than patents and licences Cmpanies that participate actively in standards wrk have a head start n their cmpetitrs in adapting t market demands and new technlgies. Transactin csts are lwer when Eurpean and Internatinal Standards are used. Research risks and develpment csts are reduced fr cmpanies cntributing t the standardizatin prcess. Questins & Discussin Hans Knp hans.knp@gm.de hans.knp@t-nline.de phne fa mbile 9