How Technical Standards Drive Global Economic Growth

CEO Corner : Article

Technical standards are the invisible foundation of modern progress. Most people couldn’t identify a protocol or an API, but they are instantly aware and nonplussed when the internet suddenly freezes. Standards-based services are like electricity: you use it, your life depends on it, but you never think about it until it’s gone.

Thank goodness global standards organizations are filled with engaged stakeholders who tirelessly share in the thankless job of “keeping the lights on.”

For example, this week the interests of 30 million professionals and 270,000 companies and organizations globally will get center stage at the ANSI World Standards Week. ANSI is a private, non-profit organization that administers and coordinates the U.S. voluntary standards and conformity assessment system. The work of ANSI is important because technical standards and regulations impact up to 93% of global trade.

The Rise of Technical Standards

ANSI was founded in 1918 amidst the most profound economic growth in world history, according to some economists. It was a golden era of new standards development, such as a system of weights and measures to enable production and commerce among cities, states, countries, and the entire world. Just as the internet lives or dies by interoperability of complex protocols, so too does the world of tangible “things” need standard sizes of nuts and bolts, wood boards, vehicle tires, and plumbing parts.

Another example of how standards globally fuel growth is the intermodal container, or shipping container. The average person-on-the-street suddenly became aware of the absence of those big metal boxes as global supply chains choked in the rise of Covid-19. They became the boogeyman for Amazon or Wal*Mart being “out of stock” of your favorite stuff. But we have short memories, for shipping containers did not exist until after World War II. Previously, loading and unloading shipments required an army of manual workers. International standardization of these boxes radically cut the costs of global trade and simplified moving cargo on ships, trains, trucks, and aircraft. Today nearly all non-bulk cargo is transported in five common standard sizes of containers.

Standard frameworks like these also underpin digital technology. Our company, Virtual, Inc. helps to operate and grow standards organizations and technical associations whose collaborative work drives global growth in digital and information services. Examples include:

Payment Card Industry Security Standards Council (PCI SCC)

Money makes the world go ‘round but payment channels are how the money actually moves between accounts. The PCI SSC is about securing payment channels. It’s the point of fusion for global collaboration on the technologies, processes, and best practices for creating secure payment environments and protecting cardholder data. The PCI SSC manages more than a dozen standards for payment security, including the PCI Data Security Standard (PCI DSS).

Near-Field Communications Forum (NFC Forum)

The NFC Forum manages a set of communication protocols for short-range wireless connectivity. The NFC standard uses “proximity card” or “contactless card” technology, which simplifies making close-range transactions, exchanging digital content, and connecting electronic devices with a touch. NFC is compatible with hundreds of millions of contactless cards and readers deployed worldwide.

Alliance for Open Media (AOMedia)

AOMedia is about streaming video. It manages standards and tools that allow stakeholders to offer open, royalty-free, and interoperable solutions for the next generation of media delivery. AOMedia’s vision is: “To make media technology more efficient, cost-effective and of superior quality for all users, on all devices, and on all platforms using AOM standards & tools.”

 

Health Product Declaration Collaborative (HPD Collaborative)

The HPD Collaborative manages an open standard for providing accurate, reliable, and consistent reporting of building product content and associated health information. HPD is used by architects, designers, building owners, communities, manufacturers, consultants, tool developers, standards programs and others and harmonized with rating and certification standards in the building industry.

 

Enterprise Ethereum Alliance (EEA)

EEA The Enterprise Ethereum Alliance champions the use of Ethereum blockchain technology as an open standard for business operations. It provides a standards-based architecture and specification to accelerate the adoption of Enterprise Ethereum, particularly in enterprise-ready solutions. The Alliance also manages testing and certification programs to ensure interoperability, multiple vendors of choice, and lower costs for its members.

While most people are unaware of technical standards and other behind-the-scenes efforts to propel global interoperability of goods and services, everyone values the benefits of modern conveniences and prosperity flowing from new productivity and economic growth. Virtual, Inc. is proud to be an integral part of global technical standards development and adoption.

 

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