Electronic Controls and Communications

The Global Challenge Of Strategic Standardization Management

Alec McMillanRockwell Automation

Director , Global Standards & Trade

February 1st 2000

3

Agenda

• Standards Market Profile

• Standards & Technology Management

• Rockwell Automation Standards Roadmap Templates

• Impact Of Culture On Standards

4Key:

Standards Market ProfileStandards Market ProfileStandards Market ProfileStandards Market Profile

5

Enhancing Market Share Opportunities

What standards should the

product comply with?

What technology meets the standard?

What standards should the process

follow?

What tests are required to self-

certify per conformity rules?

What regional marks are needed?

What are the safety-related

system standards?

Are there region specific regulations?

Prefers a safe, reliable, high-quality, cost-

effective product that meets industry

standards !

Marketing

DesignEngineering

Manufacturing CommercialServices

Quality Assurance System

Integrators

RegulatoryEnvironment

Customer

6

Standardization Across the Supply Chain

Safety, Environmental, and Quality Standards

Material, Component, Design, Manufacturing, and Distribution

Standards

Electronic Commerce, Customs, Marking, and Other Regulatory Standards

Product, System, Application, and

Industry Standards

Component & EquipmentSuppliers to Automation

Vendors

Materials &equipment

Components & Services

Automation Vendor

Products& Services

CustomerProducts

& Services

Raw materials, fuels & equipment

Raw materials& fuels

Utilities, Equipment &

MaterialsSuppliers

Supplier of

Automation

Products

Consumers

Users ofIndustrial

AutomationProducts

7

Typical Market Requirements e.g Functional Safety Standards

System Requirements

System

Hazard Identit. &Risk Assessment

OSHAANSI TR 3ANSI TR 4ISA SP 84UL 1998 ANSI B11

ISO 13849IEC 61508IEC 62061IEC 60204

Machine SafetyEN 1050EN 1050EN 954EN 954EN 292EN 292DIN 19250DIN 19250VDE 801VDE 801 EN 692

Converging standards are changing the rules

8Key:

Standards & Technology Standards & Technology ManagementManagementStandards & Technology Standards & Technology ManagementManagement

9

Technology Road Map Relationships

• Industry Roadmaps– What are the anticipated developments in Government

Regulations ?– What are the expected specifications on which these regulations

will be based ?– How can a business harness a technology in a form to exceed

anticipated regulatory requirements and provide competitive advantage ?

– How can business participate in the regulatory/standards process to gain advantage for their technology/business solutions ?

• Product Roadmaps– What standards will apply to the products under development ?– How can standards be met with competitive value add to lead the

competition in the market place ?

10

Standards Management

• Global Standards Require– International Consensus– Multiple Geographies– Multiple Industries – Multiple Applications– Multiple Vendors within an Integrated Supply Chain

• Where are the standardization Opportunities ?

• What are the company management processes that enable the opportunities to be leveraged ?

• How are the voice(s) of the customer(s) in an integrated technology supply chain coordinated to achieve non conflicting and mutually beneficial standards ?

11Key:

Rockwell Automation Standards Rockwell Automation Standards Roadmap TemplatesRoadmap TemplatesRockwell Automation Standards Rockwell Automation Standards Roadmap TemplatesRoadmap Templates

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6 Most Critical Standards - Group

# Standard Group Lead Impact

1 IEC61234

2

3

4

5

6

13

Industry Norm Industry Norm

Standards Competitive Influence - GroupLeading Leading Following Following

Standard 1

Standard 1

Standard 1

Standard 1

14

Business Group Interdependencies - Group

Group1 Group2 Group4Group3 Group5

Critical Standards

Standard 1

15

Regional Standards Focus - Group

Key:Commercial Competitive Position Leading Industry Norm Following

North AmericaStandard 1

Standard 2

Standard 3

Standard 4

EuropeStandard 1

Standard 2

Standard 3

Standard 4

South AmericaStandard 1

Standard 2

Standard 3

Standard 4

Asia-Pacific

Standard Summary - Summary of current competitive position - where with regard to the rest of industry.

Standard 1

Standard 2

Standard 3

Standard 4

16

10 Most Critical Standards

# Standard BG Lead1

Standard

2

3

4

5

6

7

8

9

10

17

Business Group Interdependencies - Top 10

Critical Standards

Committee Influence

Participation Level

Standard1

2 Standard

3 Standard

4 Standard

5 Standard

Potential Opportunities

18

Business Group Interdependencies - Top 10

Critical Standards

Committee Influence

Participation Level

6

7

8

9

10

Potential Opportunities

19Key:

Impact Of Culture On StandardsImpact Of Culture On StandardsImpact Of Culture On StandardsImpact Of Culture On Standards

20

Standards Is a Participation Process

• Leadership based on Sponsored (Funded) Participation

• Consensus based on majority of participating individuals– International, Regional, National Interests– Employee, Professional, Individual Interests– Government, Industry, Organization Interests

• Participation Strategies– Lead, Participate, Monitor– Promote, Permit, Protest

• Success is usually a compromise between participants– Win 80:20:00 where 20 does not impact negatively– Win 70:20:10 where 10 impacts negative– Loss 70:10:20 where 20 represents negative impact– Other shades of gray in between

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Individual Goals/ Views / Actions

• Dependant upon their sponsor

• Dependant upon their national culture– Government, Education, History, Language

• Dependant upon their own Character

• Standards……a single process; multiple scenarios– Voluntary Standards created by Industry adopted by Government– Regulations specified by Government , adopted by Industry