Dec 13, 2017 in Computer Technology

Standardization

Standardization became a necessity upon the advent of the era of industrial revolution which was characterized by mass production (Symcox & Wilschut, 2009). This was also characterized by the need for the interaction of products of different companies which acted as complimenting each other. This necessitated the need for different actors within similar industries to interact in efforts to get into agreements in order to develop products that had on agreed upon shapes and specifications into what has come to be referred to as network effect. This is not to mean that the convergence of technologies was non-existent prior to this era. Notably, standards had been set prior to this era, but they were not given as much importance.

Standardization is, thus, vital for the customers who are supposed to adopt new technologies that may be available in the market. In the facilitation of the concept, the parties that seek to adopt a standardization procedure must ensure that the standardized technology has the ability to be utilized in a wide range of functions by the target consumers. In order to achieve this, the targeted customers to benefit from the standardization and the patentees should ensure that the patents are set up in a pool of patents. The consumers can, thus, be able to identify the patents from their pool, despite the fact that the end product is a pool of different patents.

One of the areas that standardization has been credited and in which the existence of technical standards and customer adoption has been proven, is that they have been imputed for the network externalities (Jakobs, 2006; Cheng, Liu and Tang, 2011). Standardization also assists in the reduction and the elimination of the switching costs and the lock-in effects that have been over time been allied to the proprietary technologies. The assimilation has been another area of improvement, and it has been developed by standardization between the buyers and the sellers (Chen and Serfes, 2012).

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