Navigating the Digital Future: Standards-led Digital Economy (BSI)

Arguments

Digital transformation involves focusing on the government, economy, and society

Supporting facts:

• Digital transformation is central to the development of inclusive, responsible, and sustainable digital economy.

Topics: Digital Transformation, Economy, Government

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Digital transformation should also be sustainable, considering environmental and climate change aspects

Supporting facts:

• The process of digitalisation has direct environmental costs, including energy use and the extraction of raw materials.

• Digital tools can support local communities in becoming more adaptive and resilient to climate change challenges.

Topics: Digital Transformation, Sustainability, Climate Change

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The government supports the Safe Digital Access Program which promotes inclusive digital access for underserved communities.

Supporting facts:

• The program has been running since 2017-18 and operates in five countries: Kenya, Nigeria, South Africa, Brazil, and Indonesia.

• As of June 2023, it has reached 3,282 communities and over 10.2 million people direct beneficiaries.

Topics: Safe Digital Access Program, Digital Access

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A country needs a detailed diagnostic to understand their baseline capacity in cybersecurity.

Supporting facts:

• Programmes and projects with a focus on cybersecurity capacity building are carried out by the Foreign Commerce and Development Office.

• Oxford University developed a self-assessment tool known as the Cybersecurity Capacity Maturity Model (CCMM) that helps countries understand their baseline capacity in cybersecurity.

Topics: cybersecurity, Digital Access Programme

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Engaging with key stakeholders, especially within the private sector, is crucial for addressing cybersecurity challenges.

Supporting facts:

• Stakeholders that contribute significantly to cybersecurity are not only in government.

• The private sector, including industries, can help to identify the challenges they face and therefore the areas where initiatives are necessary for improvement.

Topics: private sector engagement, cybersecurity

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FCDO’s approach to digital development includes a flagship initiative called the digital access programme, along with 70-plus other programmes that have a digital component.

Supporting facts:

• The team owns those programmes that work on the foundations of digital development including digital identity.

• This approach allows FCDO to understand the needs of firms and enterprises from a digital perspective.

Topics: Digital Development, Digital Access Programme, FCDO

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E-commerce is a crucial part of FCDO’s digital development framework.

Supporting facts:

• FCDO has had a trade and development programme supporting UNCTAD in working with partner countries to develop e-commerce strategies.

• An example is the one developed with Rwanda.

Topics: E-commerce, Digital Development, FCDO

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Report

Digital transformation is crucial for developing an inclusive, responsible, and sustainable digital economy. This process involves focusing on the government, economy, and society. Inclusivity is a key aspect, as approximately 2.6 billion people currently do not have online access, with women facing greater barriers.

Sustainability is also important, considering the environmental costs of digitalization and the potential for digital tools to help communities adapt to climate change. Additionally, digital standards play a central role in driving the development of a more inclusive and responsible digital economy.

The Safe Digital Access Program, supported by the government, promotes inclusive digital access for underserved communities. Cybersecurity is another crucial aspect, with a need for comprehensive understanding and engagement with key stakeholders, including the private sector. The Foreign, Commonwealth & Development Office’s (FCDO) approach to digital development, including the Digital Access Program, supports firms and enterprises from a digital perspective.

Furthermore, e-commerce is a critical part of the FCDO’s digital development framework. Understanding the needs and challenges faced by digital enterprises is important for their participation in the digital economy. Overall, addressing barriers to access, considering environmental impact, establishing digital standards, enhancing cybersecurity, and supporting digital enterprises contribute to an inclusive, responsible, and sustainable digital economy.

Arguments

Standards could help countries overcome infrastructure and expertise problems

Supporting facts:

• This could be circular because you would need standards to help them overcome, but at the same time, infrastructure and expertise is also needed to implement standards.

Topics: Standards, Infrastructure, Expertise

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Standards play a crucial role in supporting policy objectives

Supporting facts:

• ISO has launched a toolkit to help guide policy makers

Topics: Standards, Policies, ISO

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Translating complex standards into more accessible formats can engage industries more effectively

Supporting facts:

• A little book of cybersecurity was launched to break down and explain the core principles of the 27001 standard

Topics: Standards, Engagement, Industries

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Report

Standards play a crucial role in helping countries overcome challenges related to infrastructure and expertise. This is particularly evident in areas such as AI technology and cybersecurity, where standards provide a framework and guidelines for ensuring that infrastructure and expertise meet necessary requirements.

By implementing and following these standards, countries can enhance their capabilities and effectively address infrastructure and expertise problems. ISO, the International Organization for Standardization, recognizes the importance of standards in supporting policy objectives. They have launched a toolkit to assist policy makers in aligning standards with their policy goals.

This toolkit serves as a valuable resource, helping policy makers understand how standards can be integrated into policy frameworks and contribute to achieving objectives in areas such as industry, innovation, and infrastructure. One challenge with standards is their complexity, which can make them inaccessible and difficult for industries to understand and implement.

However, when complex standards are translated into more accessible formats, they can effectively engage industries. ISO has demonstrated this by launching the “Little Book of Cybersecurity,” which breaks down and explains the core principles of the 27001 standard. Making standards more digestible and easier to comprehend increases industry acceptance and implementation, leading to better adherence and overall improvement in various sectors.

E-commerce is a significant concern in international trade, with developing countries expressing apprehensions about its impact. This concern has been raised at the World Trade Organization (WTO), highlighting the need for attention to be given to the development of e-commerce policies.

Developing countries recognize the importance of e-commerce in achieving sustainable development goals and are emphasizing its inclusion in trade discussions and negotiations. As part of the digital access program, e-commerce has been identified as a priority, reflecting the recognition of its potential in promoting economic growth and digital connectivity.

While the focus on standards is crucial, it is also essential for organizations like the British Standards Institution (BSI) to pay attention to data and data-driven economies. The last Digital Economy Report from BSI emphasized the significance of data and data-driven economies in the current digital landscape.

With the increasing reliance on data and the growth of data-driven industries, BSI should allocate more resources and efforts towards understanding and addressing the challenges and opportunities associated with data. By doing so, they can further support the development of robust standards that enable efficient and secure data-driven economies.

In conclusion, standards play a vital role in addressing infrastructure and expertise problems, particularly in areas such as AI technology and cybersecurity. ISO’s toolkit for policy makers facilitates the alignment of standards with policy objectives. Making standards more accessible to industries fosters better engagement and implementation.

E-commerce is a crucial trade-related concern, emphasizing the need for its inclusion in trade discussions. Additionally, BSI should focus on data and data-driven economies to effectively navigate the digital economy.

Arguments

Standards and best practices can drive operational efficiencies and quality in organizations

Supporting facts:

• Standards provide best ways of doing things, therefore, even if not certified it will result in improvement

• Lead to removing basic function complexities enabling organizations to build on innovation

Topics: Standards, Best Practices, Operational Efficiency, Service Quality

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Standardization can build trust in new technologies

Supporting facts:

• Standards can help prove the trustworthiness of new technologies such as AI, ensuring their safer and more secure adoption

• Users are more likely to adopt technologies they trust

Topics: Standardization, Trust, New Technologies

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Fragmentation and rapid technological evolution are challenges in standardization

Supporting facts:

• As technology develops rapidly, there is an influx of new standards and best practices leading to fragmentation

• Different jurisdictions have different approaches to regulate new technologies, making it complex to keep up with the standards

Topics: Standardization, Challenges, Technological Evolution, Fragmentation

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BSI is working on international projects to accelerate standards development

Supporting facts:

• BSI is involved in initiatives like the Innovate UK Bridge AI programme, the International Quantum Standards Center, and the Global AI Network Standards (GAINS)

• These initiatives aim to provide a space for innovators and stakeholders to understand and engage in standards development

Topics: BSI, International projects, Standards Development

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Most countries, including the UK, are good at investing GDP into innovation

Supporting facts:

• The UK government is investing in developing market sectors, both nationally and internationally

Topics: Innovation, Investment

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Organizations struggle when they try to scale what they’re trying to develop

Supporting facts:

• The UK government is investing in developing market sectors, both nationally and internationally, but struggles to keep up with the infrastructure needs for scale

Topics: Business scaling, Innovation

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The benefits and outcomes of standardization are often not clear

Supporting facts:

• Penetration rate of cybersecurity standard globally is very low, especially in the UK with only 9 or 10 percent businesses certified

Topics: Standardization, Outcomes

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There’s a need for greater education in promoting the benefits of standardization

Supporting facts:

• Educational toolkit is already in use as a first step towards this education on standardization

Topics: Education, Standardization

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David Cuckow believes in a public-private dialogue for MSME regulation, not just regulators imposing rules.

Supporting facts:

• There needs to be a initiative where all the stakeholders including government, industry and MSMEs get involved

• Cuckow emphasizes this idea through the example of a panel discussion in Nairobi involving various stakeholders

Topics: MSME, Regulation, Public-Private Dialogue

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Cuckow supports the idea of incorporating knowledge of international standards within countries

Supporting facts:

• There’s a proposal for a train-the-trainer approach to make trainers aware of the existence of international standards and hopefully train them in that

• This is seen as necessary for the higher-level educational entities within the country

Topics: International Standards, Education

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Unlocking the value of data is a major challenge due to concerns around law, privacy, and commercial value.

Supporting facts:

• Organizations tend to not share data due to these concerns

• The power of sharing data has been appreciated during the pandemic such as in vaccine development.

• The National Data Strategy for the UK focuses on unlocking the value of data for the economy.

Topics: Data sharing, Data security, Law, Privacy

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Standardization in data presents a complex situation, with around 5,000 to 6,000 different standards.

Supporting facts:

• Many standards exist in areas such as quality, cybersecurity, privacy, AI etc.

Topics: Data sharing, Data standardization, Interoperability

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A data sharing and interoperability framework can simplify the data sharing process.

Supporting facts:

• The framework would guide users through acquiring, protecting, valuing, combining and removing data.

• Such framework can be shared across national standards bodies globally.

Topics: Data sharing, Interoperability, Framework

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Report

The analysis explores the role of standards and standardization in driving operational efficiencies, quality, and trust within organisations. It highlights the importance of standards as best practices and asserts that their implementation can lead to improvement even without formal certification.

Additionally, standards are instrumental in removing complexities from basic functions, enabling organisations to innovate. Standardization is shown to be crucial in establishing trust in new technologies, particularly AI. Adhering to standards ensures the trustworthiness and reliability of AI, promoting secure adoption.

Users are more likely to adopt technologies supported by established standards. Contrary to the belief that standardization stifles innovation, it is highlighted that standards actually facilitate innovation. Streamlining repetitive tasks provides space for innovation, as exemplified by Wi-Fi and power standards that have enabled technological advancements.

While standardization offers numerous benefits, it also faces challenges due to rapid technological evolution and resulting fragmentation. The influx of new standards and best practices, along with jurisdictional differences in regulating technologies, presents complexities in the standards landscape. Efforts are needed to involve small enterprises and startups in standard development processes, helping them scale their products.

The British Standards Institution (BSI) is actively engaged in international projects to expedite standards development and foster innovation. The UK government’s investment in innovation is acknowledged but struggles to meet infrastructure needs for scaling innovations. Comprehensive education and awareness programs are necessary to promote the benefits of standardization.

Lack of clarity regarding the advantages and outcomes of standardization is identified as a hurdle. Public-private dialogue is seen as crucial for MSME regulation, and guideline standards and education are recommended to support MSME growth. Incorporation of international standards within educational systems and promoting knowledge about global standards is proposed.

Standards are shown to promote interoperability in technological infrastructure, particularly in broadband and ITU-based spectrum distribution. Data sharing faces challenges related to law, privacy, and commercial value, despite its recognized benefits. A data sharing and interoperability framework is proposed to simplify the process.

In conclusion, standards and standardization have a significant impact on operational efficiencies, quality, trust, and innovation. However, challenges such as fragmentation and the need for education persist. Efforts are required to ensure that standards keep pace with technological advancements and are accessible to all stakeholders.

Arguments

Role of standards in supporting the transition to a digital economy and facilitating digital trade

Supporting facts:

• Standards help organizations deliver what they promise to their customers

• Standards help build trust and provide stability in the digitalization transformation.

• Standards support policy initiatives and facilitate international and national trade.

Topics: Standards, Digital economy, Digital trade

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Standards need to be more visible to policymakers

Supporting facts:

• Policymakers needs to be aware of the existence of standards to use them

• There needs to be a greater collaboration between the National Standards Bodies and their policymakers to build trust and increase visibility of the Standards Body.

Topics: Standards, Policy making

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Digitalization and e-commerce do not occur in a vacuum and are linked to other sectors and programs

Supporting facts:

• BSI is working with the FCDO on the Standards Partnership Program

• The Standards Partnership Program is a collaborative program with 11 different countries aiming to promote bilateral and international trade

Topics: BSI, FDCO, Standards Partnership Program, Digital Access Program

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Synergies between the Standards Partnership Program and the Digital Access Program can be harnessed for mutual benefit and development

Supporting facts:

• BSI is looking actively to combine these two initiatives

Topics: Standards Partnership Program, Digital Access Program, Trade enhancement

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Report

Standards are crucial to support the transition to a digital economy and facilitate digital trade. They play a vital role in helping organizations deliver on their promises to customers, building trust and stability during the process of digitalization. Standards also support policy initiatives and promote both international and national trade.

However, there is a need to increase policymakers’ awareness of standards and their importance in decision-making. Collaboration between National Standards Bodies and policymakers is necessary to enhance visibility and ensure effective utilization of standards. This collaboration will contribute to the integration of standards into policy frameworks, strengthening their impact on economic growth and development.

In terms of data privacy, digital identification, and interoperability, standards play a critical role. For example, ISO IEC 27001 ensures information security and protects user data. Standards for digital identification and provenance are essential for digital services in different sectors. Interoperability standards, meanwhile, ensure smooth integration of digital systems, promoting efficiency and reducing barriers to trade.

Looking ahead, the significant role of Artificial Intelligence (AI) management systems becomes apparent. The impending publication of the ISO IEC standard for AI management systems will influence international policy initiatives related to AI. Digitalization and e-commerce are not isolated processes, but strongly connected to other sectors and programs.

The Standards Partnership Program, initiated by the British Standards Institution (BSI) in collaboration with the Foreign, Commonwealth & Development Office (FCDO), promotes bilateral and international trade. By partnering with 11 countries, this program highlights the interconnected nature of digitalization and its impact on various industries.

Synergies between the Standards Partnership Program and the Digital Access Program can be leveraged for mutual benefit and development. BSI actively seeks to combine these initiatives to enhance standards, promote digital access, and support trade. In conclusion, standards are vital in supporting the transition to a digital economy and facilitating digital trade.

They build trust, ensure data privacy, promote interoperability, and guide the adoption of AI management systems. Raising policymakers’ awareness and fostering collaboration between National Standards Bodies and policymakers are crucial. The intertwined nature of digitalization and its impact on different sectors emphasizes the need to align efforts and harness synergies.

Embracing standards and collaboration will enable countries to navigate the digital revolution and thrive in the digital economy.

Arguments

Voluntary standards are beneficial to globally diverse organizations

Supporting facts:

• Standards support economy efficiency and productivity gain

• They assist in environmental sustainability and transition to net zero

• They also enhance innovation by uniting stakeholders to agree on best practices

• Standards reinforce global trade and encourage interoperability

Topics: multi-stakeholder consensus-based process, economic growth, environmental sustainability, innovation

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Standards and associated national quality infrastructure can enhance digital services & provision

Supporting facts:

• Standards can enhance digital services and provision

• This can provide a basis for firms to join global value chains

Topics: Standards, digital transformation, national quality infrastructure, digital services & provision

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There is a challenge in terms of the visibility of standards, especially to SMEs and policy makers.

Supporting facts:

• The conversation with policy makers about the role that standards can play to support their own policy objectives is really important.

Topics: Visibility of Standards, SMEs, Policy Makers

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ISO has launched a toolkit which looks at the policy maker piece and the role that standards can play to support different policy outcomes.

Topics: ISO, Policy Makers, Standards

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Engaging with industries is a challenging process.

Topics: Industries, Engagement

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Standards’ core concepts should be disseminated in simpler formats for easy understanding, especially for SMEs.

Supporting facts:

• On cyber security, a little book of cyber security was launched which takes the core principles of 27001 in an 11-page document.

Topics: Standards, SMEs, Ease of Understanding

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Report

The discussion focused on the positive impact of voluntary standards on globally diverse organizations. These standards support economic efficiency and productivity gain, contribute to environmental sustainability, and aid in the transition to net-zero emissions. They also enhance innovation by bringing stakeholders together to agree on best practices.

Additionally, voluntary standards reinforce global trade and promote interoperability. However, challenges were identified, including the globally fragmented digitization journey, which leads to a growing digital divide. This unequal progress in digitization poses challenges in meeting the United Nations Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequalities).

Visibility of standards, especially to small and medium-sized enterprises (SMEs) and policymakers, was identified as another challenge. It is crucial to raise awareness among SMEs and policymakers about the role of standards in supporting their policy objectives to drive adoption and impact.

Standards and associated national quality infrastructure were recognized as essential in enhancing digital services and provision. They provide a basis for firms to join global value chains, contributing to economic growth and innovation, aligning with SDG 9. The International Organization for Standardization (ISO) was commended for launching a toolkit exploring the role of standards in supporting different policy outcomes, emphasizing the significance of standards in partnership building for SDG 17 (Partnerships for the Goals).

The difficulty of engaging with industries in the standard-setting process was acknowledged, recognizing the importance of effective industry engagement for developing robust and relevant standards. Practical implementation can be improved by disseminating the core concepts of standards in simpler formats, especially for SMEs, to ensure broader adoption and compliance, leading to improved business practices and economic growth.

In conclusion, voluntary standards have a positive impact on globally diverse organizations, promoting economic efficiency, environmental sustainability, and innovation. Challenges such as the digital divide, lack of visibility, and industry engagement were identified. The importance of standards in enhancing digital services, supporting policy objectives, and fostering partnerships was highlighted.

Simplifying the dissemination of standards for better understanding, particularly among SMEs, was emphasized. This information is valuable for organizations and policymakers interested in leveraging the potential of voluntary standards to achieve the SDGs and promote sustainable development.