This document discusses how open standards can promote innovation. It provides examples of innovators ("Jo" and "Fred") who contribute new techniques to standards or develop innovative applications using standards. This allows their innovations to reach a global market or make use of available technologies. The document argues that open standards from standards bodies and consortia provide the base for combining technologies in new ways and boosting innovation. When public policies and procurement require open standards, it creates an innovation-friendly ecosystem.

1. © 2009 IBM Corporation
Open Standards driving
Interoperability, Innovation and
Competitiveness
Briefing of the European Internet Foundation on The Role of Standards in Promoting Innovation
Dr. Jochen Friedrich – Technical Relations Europe Executive – jochen@de.ibm.com
27 October 2010

2. 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. 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. 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. 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
m
arketaccess
exploitation
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. 6 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation
Open Standards as Key Facilitators for Innovation
1995
Pre-web
Telephones, fax
Newspapers, books,
magazines, etc.
Encyclopedias
Internet, ftp
Office suite desktop
Local disk storage
Floppies
2003
Web 1.0
HTML, CSS, XML …
Standards
Browsers, Plug-ins
E-commerce, web-
based forms
Dynamic but not very
interactive web pages
Mostly inbound
information
More and more open
2010
Web 2.0
“The read/write web”
Standards combined for
technology integration
Interoperability
Global integration
Blogs, wikis, social
networks, virtual worlds
Web-based email, office
applications, etc.
SOA, SaaS, Cloud
2020
???
Increased global
integration
Pre-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. 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. 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 … Green
Appliances, meters and
sensors adjusting consumption
dynamically based on usage –
cutting cost and avoiding
brown/black outs
SMARTER IS … Working
Reduce cost and
development time, increase
agility and flexibility and
improve access to design
information
SMARTER IS … Insight
Enable 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. 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
W3C
OASIS
IETF
OGF
Others...
IEEE
National
Bodies
ETSI
National
Committees
“Private/closed”
foraandconsortia
➔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. 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
Open
Innovation
Advantages
- Community
- Common foundation
- Cost
Collaboration

11. 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 authorities
Clear 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. 12 Dr. Jochen Friedrich - IBM Technical Relations Europe 27 October 2010 © 2010 IBM Corporation
Thanks very much ...
… Happy to be contacted for
any follow-up
jochen@de.ibm.com