This document summarizes a case study on Germany's standardization strategy. It identifies 5 key goals of Germany's strategy: 1) securing its position as a leading industrial nation, 2) using standardization as a strategic instrument to support economic and societal success, 3) using standardization for deregulation purposes, 4) promoting technological convergence, and 5) providing efficient standards bodies procedures and tools. It then analyzes which goals would be most appropriate for Indonesia given its status as a developing country, prioritizing standardization as a strategic instrument, efficient procedures and tools, and as an instrument for deregulation. Reasons for selecting these goals and their priority order are provided.
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Case Study - The Germany Standardization Strategy
1. UJIAN TENGAH SEMESTER
QUALITY MANAGEMENT AND
STANDARDIZATION
MINI CASE
The Germany Standardization Strategy
Disusun Oleh:
NATALIS CHRISTIAN
NIM : 222160514
Dosen:
Prof. Ir. SYAMSIR ABDUH, MM, PhD
DOKTOR MANAJEMEN STRATEGIK
FAKULTAS EKONOMI
UNIVERSITAS TRISAKTI
2017
UJIAN TENGAH SEMESTER
QUALITY MANAGEMENT AND
STANDARDIZATION
MINI CASE
The Germany Standardization Strategy
Disusun Oleh:
NATALIS CHRISTIAN
NIM : 222160514
Dosen:
Prof. Ir. SYAMSIR ABDUH, MM, PhD
DOKTOR MANAJEMEN STRATEGIK
FAKULTAS EKONOMI
UNIVERSITAS TRISAKTI
2017
UJIAN TENGAH SEMESTER
QUALITY MANAGEMENT AND
STANDARDIZATION
MINI CASE
The Germany Standardization Strategy
Disusun Oleh:
NATALIS CHRISTIAN
NIM : 222160514
Dosen:
Prof. Ir. SYAMSIR ABDUH, MM, PhD
DOKTOR MANAJEMEN STRATEGIK
FAKULTAS EKONOMI
UNIVERSITAS TRISAKTI
2017
2. Quality Management & Standardization – Doctor in Strategic Management Program UTS
Natalis Christian - 222160514 Page 1 of 4
Q1: Is quality and standardization as a strategic tool?
Case: The Germany standardization strategy: an update goals points in focus:
a. Goal 1 : Standardization secures Germany's position as a leading industrial nation.
b. Goal 2 : Standardization as a strategic instrument supports a successful society and economy.
c. Goal 3 : Standardization is an instrument of deregulation.
d. Goal 4 : Standardization and standards bodies promote technological convergence.
e. Goal 5 : Standards bodies provide efficient procedures and tools.
Direction:
1. Select 3 goals from 5 available.
Answer:
a. Goal 1 : Standardization secures Germany's position as a leading industrial nation. (not selected)
Reasons
Indonesia as a developing country, not as a developed country, does not need to secure its position as
a leading industrial nation. This goal maybe suitible for other Southeast Asia country, such as
Singapore, since they have already developed and has been recognized as leading industrial nation in
the Southeast Asia. On the other hand, Indonesia should focus on goals that inprove its
competitiveness to transform itself from developing country to become developed country.
b. Goal 2 : Standardization as a strategic instrument supports a successful society and economy.
(selected)
Reasons
Figures 1
Number of Enterprises in Indonesia 2013
3. Quality Management & Standardization – Doctor in Strategic Management Program UTS
Natalis Christian - 222160514 Page 2 of 4
Based on the data retrived from Ministry of Cooperatives and SMEs of Indonesia in the ILO/OECD
Workshop for Policy Makers on Productivity and Working Conditions in SMEs held at Jakarta on 13
June 2017, most of the enterprises in Indonesia were small medium enterprises (SMEs). Since almost
99.91% of enterprises in Indonesia were SMEs, so the only logical way to improve Indonesia’s
economic is to utilitize SMEs to become more competitive. Setting the standardization as a strategic
instrument may provide a framework to increase the competitiveness of SMEs in Indonesia.
c. Goal 3 : Standardization is an instrument of deregulation. (selected)
Reasons
One of the bottlenecks that discourage the economic development in Indonesia was the complex and
over lapping regulation process between each government regulatory bodies. The standardization
could simplify this process that lead to deregulation to improve both the domestic investments dan
foreign investments. Deregulation also can reduce the burden of the government by reducing or
combining the overlapping regulatory bodies in the government that lead to increase governments’
budget efficiencies.
d. Goal 4 : Standardization and standards bodies promote technological convergence. (not selected)
Reasons
The main concern should be put on how to attract both domestic investor and foreign investors (as
discussed in Goal 3), because Indonesia has not been able to create advance technology by its own.
So i suggest that the more realistic goal should be increase the investors with advance technology to
investing (maybe direct or indirect investments) in Indonesia. Several advantages could be gain in
this way, such as transfer knowledge of advance technology from developed countries to Indonesia
and increase of Indonesian work force competencies and experiences.
e. Goal 5 : Standards bodies provide efficient procedures and tools. (selected)
Reasons
Adapting quickly to current market conditions is absolutely necessary for success. New technologies,
their further development and their broad application in various sectors increasingly shorten
innovation cycles. Standards bodies are meeting this challenge by continually optimizing their work
processes, with quality, time restraints and costs being key factors. A market-oriented business policy
and optimized instruments will meet the growing demands on modern standards bodies.
2. Create the appropriate priorities for Indonesian situation.
Answer:
Goal 2
Strategic
Instrument
Goal 5
Efficient Procedures
and Tools
Goal 3
Instrument of
Deregulation
4. Quality Management & Standardization – Doctor in Strategic Management Program UTS
Natalis Christian - 222160514 Page 3 of 4
Goal 2: Standardization as a strategic instrument supports a successful society and economy.
Firstly, there must be a strategic framework as a foundation for future economic development in
Indonesia. Therefore the framework must include following details:
Promoting the competitiveness of SMEs.
Making greater use of networks and platforms.
Integrating standardization in higher education.
Standardizing management systems on an as-needed basis only.
Making greater use of standards in public procurement.
Goal 5: Standards bodies provide efficient procedures and tools.
Second, efficient procedures and tools must be added in order to help SMEs to implementing the
framework in Goal 2. The procedures and tools must include following details:
Intensifying quality assurance and expanding services.
Reviewing business models.
Ensuring the participation of everyone.
Improving access for SMEs.
Optimizing the marketing of specifications.
Ensuring the coherence of the set of standards.
Goal 3: Standardization is an instrument of deregulation.
Lastly, since the efficient procedures and tools already provided, then the deregulation can be realized.
The deregulation process must included following details:
Creating optimal framework conditions.
Exerting a greater influence on the drawing up of New Approach mandates.
Expanding the New Approach.
Incorporating specifications in full-consensus standardization.
Promoting the global harmonization of technical regulations.
3. Give reasons/justifications to ensure that quality and standardization as a strategic tools.
Answer:
Standardization is also extremely relevant for the individual participants in economic processes, since
whoever makes the standards controls the market. In times of increasing globalization and rapid
technological development, the role of standardization in opening up new markets will become
increasingly important. In order to satisfactorily play its role in an economic environment shaped by
ever shorter product lifecycles and development phases and with emerging economies entering the
marketplace, the standardization system will need to adapt to changing conditions. The right decision
has already been taken to undertake a systematic analysis of the environment in which standardization
has an effect, and to use this as a basis for a strategic reorientation of the standardization system.
5. Quality Management & Standardization – Doctor in Strategic Management Program UTS
Natalis Christian - 222160514 Page 4 of 4
Q2: Why standards are needed?
Answer:
Standards form the fundamental building blocks for product development by establishing consistent protocols
that can be universally understood and adopted. This helps fuel compatibility and interoperability and
simplifies product development, and speeds time-to-market. Standards also make it easier to understand and
compare competing products. As standards are globally adopted and applied in many markets, they also fuel
international trade.
It is only through the use of standards that the requirements of interconnectivity and interoperability can be
assured. It is only through the application of standards that the credibility of new products and new markets
can be verified. In summary standards fuel the development and implementation of technologies that influence
and transform the way we live, work and communicate.
Governments welcome standards, because they:
Standardization improves the domestic and international flow of goods and services, and removes
technical barriers to trade by harmonizing the requirements for both material and immaterial goods.
Standardization helps the rapid dissemination of technical knowledge and innovation, increasing the
business competitiveness.
Standardization has a deregulatory effect and eases the burden on the state, because its stakeholders
have the expertise to develop technical standards rapidly and flexibly for legislation to refer to.
Manufacturers and retailers welcome standards, because they:
Provide clear guidelines on targets that reflect best practice.
Protect manufacturers against poorer rivals who might otherwise damage an industry's reputation.
Provide an excellent selling point.
Provide a benchmark that can be used for communicating the specification and characteristics of the
product, process or system, and from which improvement/innovation can be easily explained.
Provide competitive advantage by making it easier, cheaper and more efficient to produce and sell
things in the UK and internationally.
Consumers welcome standards, because they:
Inform us about the reliability and fitness for purpose of the goods and services we buy and use.
Enable us to use more things more widely giving us greater choice.
Bring peace of mind.