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Economic Benefits of Standardization

Economic Benefits of Standardization. Makoto ISHIKAWA Associate Professor of Education Kyoto University of Education. Why is standardization important?. Compatibility Network externality Network externality can be positive or negative.

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Economic Benefits of Standardization

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  1. Economic Benefits of Standardization Makoto ISHIKAWA Associate Professor of Education Kyoto University of Education

  2. Why is standardization important? • Compatibility • Network externality Network externality can be positive or negative. In the case that a positive effect is big, standardization can produce many economic benefits. Workshop on Standardization in E-health

  3. Network Externality Scale of market Excess momentum Critical mass Excess inertia Time In this case, in order to diffuse a new product, the number of user shall be over the critical mass in some way. Therefore, standardization is important and necessary. Workshop on Standardization in E-health

  4. Who benefits from Standards? • Businessesbenefit from standards. (In this case, “businesses” means the companies which produce E-health products and systems.) • Users benefit from standards. (In this case, “users” means doctors and their staffs, and hospitals using E-health products and systems.) Workshop on Standardization in E-health

  5. Benefits of Standards for Business • Potential Competitive Advantage through Standards • Cost Reduction through Standards • Effects of Standards on the Supplier/Client Relationship • Effects of Standards on R&D Activities • Benefits for Intellectual Property Holders through Standardization Workshop on Standardization in E-health

  6. Decision on Rate of Licensing Fee Rate of licensing fee Which factor does give weight to? Factor in rising rate (1) Contribution to standard (2) Scale of investment for R&D high Factor in lowering rate (1) Effect on public benefits (2) Marketability (3) Convertibility low Effect by each factor small big Workshop on Standardization in E-health

  7. Benefits of Standards for Users • Price reduction of products/services • Facilitates the selection of sellers in the market • Facilitates training for machine/system operation • Facilitates the acquisition of complementary goods in the market Workshop on Standardization in E-health

  8. Standardization of E-health in Japan • Japan Association of Healthcare Information System Industry (JAHIS) promotes the standardization of E-health in Japan. • Its major members are computer manufactures, system integrators, software houses, such as Toshiba Corp., NEC Corp. Workshop on Standardization in E-health

  9. Standardization Activity of JAHIS • JAHIS develops models (JAHIS standard), e.g. Hospital Information Model, Elderly Care Model. • Nine models developed by JAHIS are available in Japan. • JAHIS participates in WG of ISO/TC215(Health Informatics) as a Japanese representative, and it contributes the promotion of international standards. Workshop on Standardization in E-health

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