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© 2009 IBM Corporation

Open Standards driving Interoperability, Innovation and Competitiveness

Briefing of the European Internet Foundation on The Role of Standards in Promoting InnovationDr. Jochen Friedrich – Technical Relations Europe Executive – jochen@de.ibm.com 27 October 2010

2 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Standardisation – High on the Political Agenda

Digital Agenda

ICT White Paper

Innovation Union

IMCO Report

Express

Com Standardi-sation and Innovation

Others...

3 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Innovators Story – Part I: Jo(sephine) the Innovator

STANDARD

➔Jo has invented a new innovative technique/method in some area

➔Jo brings in her innovation into a standard, which she has identified as key for her business case

➔This way she pushes her new technique/method and facilitates access to a global market

4 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Innovators Story – Part II: Fred the Innovator

STANDARD

➔Fred has developed new, innovative applications/processes/services/products

➔Fred implements and combines standards for his innovations and benefits from available technologies that have implemented standards

➔Standards allow Fred to make use of available data/methods and to be competitive with his innovative offerings

5 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Standardisation – Innovation Lifecycle

Basic research and technology development

Integration and combination of technologies

mar

ket a

cces

s

explo

itatio

n

Innovative act: In the invention and development of new basic technologies

Critical: Contribution of technology

Innovative act: In the implementation, use and combination of standards

Critical: Availability of standards

STANDARD

6 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Open Standards as Key Facilitators for Innovation

1995Pre-web

Telephones, faxNewspapers, books, magazines, etc.EncyclopediasInternet, ftpOffice suite desktop Local disk storage Floppies

2003Web 1.0

HTML, CSS, XML … StandardsBrowsers, Plug-insE-commerce, web-based formsDynamic but not very interactive web pagesMostly inbound informationMore and more open

2010Web 2.0

“The read/write web”Standards combined for technology integrationInteroperabilityGlobal integrationBlogs, wikis, social networks, virtual worldsWeb-based email, office applications, etc. SOA, SaaS, Cloud

2020???Increased global integrationPre-dominance of “Digital Natives”Constant transfor-mations for smarter solutions

=> Room for new wave of innovation

➔Open Standards from global fora/consortia provide base for boost of innovation

➔High potential for innovation in combination of standards and integration of technologies

➔Open Standards ensure software interoperability, are freely available for innovative use by anybody – large or small enterprises, open source technology developers – and promote competitiveness and growth

7 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Innovation Types

“Ignite innovation through business and technology integration – Use technology as an innovation catalyst by combining it with business and market insights.”

[IBM Global CEO Study 2006, p 4. (Research with 765 CEOs worldwide)]

• Business model – Innovation in the structure and/or financial model of the business

• Operational – Innovation that improves the effectiveness and efficiency of core processes and functions

• Products/services/markets – Innovation applied to products or services or “go-to-market” activities

“To innovate, High-growth CIOs actively integrate business and IT across the organization 94 percent more often than Low-growth CIOs. “There is no innovation in my organization without the involvement of IT,” said a Government CIO in Brazil.”

[IBM Global CIO Study 2009, p. 14.(Research with 2,500 CIOs Worldwide)]

8 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Open Standards Promote Innovations for a Smarter Planet

“Leverage innovation to deliver "green" infrastructures that are highly efficient and overlay the physical infrastructure with digital intelligence. [...]

Embrace intelligent systems that use open standards to provide near realtime information for better management of the infrastructure, water quantities, or, even, entire transportation systems.”

[Results from the IBM Eco-efficiency Jam 2010. (51 hour Jam with 1600 experts in lead roles from more than 60 countries)]

SMARTER IS … GreenAppliances, meters and sensors adjusting consumption dynamically based on usage – cutting cost and avoiding brown/black outs

SMARTER IS … WorkingReduce cost and development time, increase agility and flexibility and improve access to design information

SMARTER IS … InsightEnable innovative services in response to customer requests and a changing business environment

➔SOA technology enables flexible connection of information, computing resources and people.

➔SOA technology allows for innovative technologies and solutions to be integrated into open infrastructures.

9 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Reforming the EU ICT Standardisation Policy

Covered by the European standardisation system of today

Outside of the scope of European standardisation –

therefore not available for use

CENELEC

National Bodies

ISOISO

CEN

ITUIEC

ICT Forum

J T C 1

W 3

C

O A

S I

S

I E T

F

O G

FO

ther

s...

I E E

E

National Bodies

ETSI

National Committees “P

riva

te/ c

lose

d”

fora

an d

con

s ort

ia

➔Without the standards from fora/consortia no ICT system can be built. Fora/ consortia don't see an added value in transposing all their relevant standards into formal ones.

➔ In the White Paper of July 2009 the Commission presented an innovative proposal for modernising the EU ICT Standardisation Policy so that standards from fora/consortia can be used in EU policies and public procurement. This is reconfirmed in the EU Digital Agenda.

➔The implementation of these recommendations is urgent for promoting interoperability and innovation in Europe.

10 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Open Innovation – Operating in a New Equilibrium

“... the application of innovations like Web 2.0 to business and public life is changing the way in which innovation happens. It is becoming more open and collaborative. Once the preserve of a select elite, it now involves a much wider range of actors. […] crowd-sourcing and co-creation are now the order of the day!We need a new policy that reflects these changes. This means that we will have to, well, innovate!”

[President Barroso, European Innovation Summit 2009. Source of photo: EU Commission: Audiovisual Services.]

Proprietary Innovation

Advantages- Control- Uniqueness- Focus

OpenInnovation

Advantages- Community- Common foundation- Cost

Collaboration

11 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Aspects for an Innovation-Friendly Standardisation Ecosystem

Reference standards in public procurement.

Require “Open Standards” for software interoperability in public policies.

Implement necessary changes to EU ICT standardisation policy

Public authoritiesClear commitment to standards.

Technical leadership in standards organisations.

Clear support for Open Standards for software interoperability.

Industry

Provide flexible and dynamic platform for standardisation including wrt IPR policies.

Ensure openness and transparency.

Look at best practices applied worldwide as basis for constant improvement.

Standards Bodies

12 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation

Thanks very much ...

… Happy to be contacted for any follow-upjochen@de.ibm.com

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