As Kimball University`s Margy Ross argues, the ability to differentiate a company from its competitors depends to some extent on the company`s “intellectual capital” – that is, companies won`t get an advantage if they do what everyone else in the industry does and aren`t truly innovative. Industry standard models are incompatible with innovation, but are based on what is already established. Also, the language or jargon associated with some industry standard models doesn`t translate well into normal colloquial language, sometimes making it difficult for people outside the company to understand how the model works or what it offers. Industry standard models can be difficult to change once established. This means that when industry standard models change, the impact on an industry is significant. Only the best processes, designs, and products become industry standards, and these standard models don`t evolve overnight. It often takes years for a model that becomes an industry standard to move from an initial concept to widespread adoption, as markets are constantly fluctuating, and initial versions of the model may have problems or fail to solve unforeseen problems. An industry standard model is a set of “one-size-fits-all” business process methods or tools applicable to most companies in a particular industry. It identifies the basic dimensions, materials and methodologies that these companies can use and supports business practices. The language or style of the model is widely accepted.
Alternatively, the term refers to a specific product that is used more than any other for a specific purpose, such as: The most commonly used software for word processing or inventory tracking. According to both definitions, the industry standard model is considered reliable, secure and stable. As businesses grow, they look for ways to run their businesses as efficiently as possible. One option that contributes to business efficiency in many cases is to use an industry standard model. These models can be found in virtually any industry, so it should be fundamental for anyone with entrepreneurial interests to understand exactly what they are and what function they serve. By using an industry standard model, companies have the potential to save resources, especially time and money. This is because the industry standard model is familiar to many workers in the industry and therefore often requires less effort. The industry standard has also proven itself through testing, so companies know that the risk of loss or disruption is lower with the industry standard model and less maintenance or changes are likely. Industry standard models also mean that employees can easily switch from one employer to another because the same processes, tools, or basic elements are used consistently.
Wanda Thibodeaux is a freelance writer and writer based in Eagan, Minnesota. She has been published in print and web publications and has written about everything from fly fishing to parenting. Currently, she is working on her professional Takingdictation.com website, which works worldwide and welcomes new customers.