BUSINESS STANDARDS
is the quarterly magazine of BSI Group, highlighting the vital role that standards play in today's business environment. Regular features include interviews with leading business figures, as well as news on the latest developments in management systems and standards.

Business Standards > Opinions

Viewpoint

Question: We are under increasing pressure to comply with a growing number of regulations and to maintain growth - while under greater scrutiny than ever before. How can this be good for business?

We are all in the risk management business. In the current climate, as consumers we are encouraged to claim compensation or sue for damages for almost any negative incident we encounter. Meanwhile as businesses, manufacturers and service providers increasingly have to gain consumers' acceptance of terms and conditions or provide disclaimers to their products in order to off-set such liabilities. This is quite a different landscape from the traditional product certification model of some years ago which was marketing and not risk management driven.

Notwithstanding, I don't see this as a negative. In this increasingly competitive world, adding value to products and services takes on greater significance as a way to differentiate a business. With greater differentiation often comes greater risk, but testing and certification are significant ways to mitigate the risks.

Whether testing and certification are legal obligations or voluntary certification marks, they confirm that a risk management ingredient is in the mix, demonstrating that products meet certain minimum criteria in terms of quality and safety.

Product testing and certification can add much needed reassurance to businesses and consumers in their choice or specification of products and services.

Arguably the most prestigious of certification marks is BSI's own Kitemark. As a voluntary mark, clearly the manufacturer or service provider has opted to raise their product standard to meet the more substantial quality and safety requirements of a Kitemark scheme. In so doing, they can honestly stand above other non-Kitemark products and services. Is it worth it? Our experience is that it is. Consumers have said they would be willing to pay more for products or services that give this reassurance.

And while there's a wide range of testing and certification marks around the world that address the "risk" elements of business development such as legal, safety and regulatory requirements, testing and certification can offer much more. They can also deliver quantifiable business results - from a helping hand when entering new markets to product differentiation; from overcoming trade barriers to increasing business and competitiveness.

That's all well and good, but business continues to change and companies - including BSI Product Services - have to be adaptable if they are to succeed, if not survive. Recognizing this global shift in emphasis as well as the rise in importance in the UK of the service sector, BSI adapted its famous Kitemark schemes to address service industries.

Through collaboration with industry partners, trade bodies and experts, BSI has developed a range of Kitemark schemes to address specific areas of the service industry that were deemed to provide bad service to consumers.

As a result, there are now Kitemark schemes in the UK for car-servicing garages, and electrical, fire alarm and window installers. Moving the Kitemark into a new industry sector was a radical change for the traditional consumer view of the Kitemark - one which I believe will only enhance its image and reputation and provide consumers with the added reassurance they seek in today's often confusing world.

But why is all of this important for businesses? In a global economy, no company can afford to sit idle if it hopes to succeed. Some manufacturers and service providers find that seeking to extend their market reach or enter new markets involves a lot of product re-design to achieve the necessary standards for their target market.

For this reason, testing and certification bodies are always encouraging and supporting design-led initiatives and consideration of certification requirements at the design stage of product development or specification. If a business can incorporate the needs of worldwide certification, safety and quality standards at the drawing-board stage, then it can lead the way in developing superior products and services that meet business and consumer needs worldwide with very little adaptation.

Spreading this culture and attitude further into the education process will help us to give innovators and designers greater understanding of the market for which they are designing. After all, if the business landscape is changing, businesses themselves have to be prepared to change along with it.

And if testing and certification makes that transition run smoother, then it will continue to be a vital ingredient for business building today and tomorrow.
Alastair Trivett is the global managing director of BSI Product Services.

Kitemark and the Kitemark logo are registered trademarks of BSI.

Business Standards © 2007. Editorial produced by Caspian Publishing in association with the British Standards Institution. Editorial opinions expressed on are not necessarily those of BSI Group or Caspian Publishing. Neither Caspian Publishing nor BSI Group accept responsibility for advertising or editorial content, nor for that appearing on linked third-party websites. Reproduction in whole or in part is forbidden without written permission from BSI Group or Caspian Publishing.

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