Interorganizational System Standards Development in Vertical Industries

Interorganizational information system (IOS) standards development in industrial groups is proving to be an extremely productive and effective endeavour. With countless stakeholders, varying opinions and firms that are more accustomed to competition than cooperation, many industrial groups have leveraged the use of a non‐profit, voluntary‐consensus, standards development consortium to act as a separate entity and lead agent towards industry‐wide standardization initiatives. We employ common empirical data collection techniques (management interviews, observations in consortia work groups, meeting minutes, consortia charters and others) and provide a comparative analysis of the consortia and the IOS standards development process across nine such industries. The results are summarized and a formal IOS Standards Development Cycle is introduced based on a synthesized understanding from across the industries. The IOS Standards Development Cycle in industrial groups is found to include the following steps: (1) Choreography and Modularity, (2) Reach Consensus and Prioritize, (3) Standardize and Document, (4) Review and Test (5) Implement and Deploy and (6) Certification and Compliance. We define, provide illustrations and highlight effective practices found in each step. Comparisons are made to other development processes and a discussion is provided regarding the value and role of private consortia in IOS standards development.