Success codes - NTUC FairPrice CEO : " International Standards are very important to us." Fujitsu innovates with ISO standards
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Volume 2, No. 4, April 2011, ISSN 1729-8709
Success codes
• NTUC FairPrice CEO : “ International Standards
are very important to us.”
• Fujitsu innovates with ISO standards
a
Contents
Comment
Karla McKenna, Chair of ISO/TC 68
Code-pendant – Flourishing financial services ......................................................... 1
ISO Focus+ is published 10 times a year
World Scene
(single issues : July-August,
November-December) International events and international standardization ............................................. 2
It is available in English and French.
Bonus articles : www.iso.org/isofocus+ Guest Interview
ISO Update : www.iso.org/isoupdate
Seah Kian Peng – Chief Executive Officer of NTUC FairPrice ............................... 3
Annual subscription – 98 Swiss Francs
Individual copies – 16 Swiss Francs
Special Report
A coded world – Saving time, space and energy........................................................ 8
Publisher
ISO Central Secretariat
From Dickens to Dante – ISBN propels book trade to billions.................................. 10
(International Organization for Uncovering systemic risk – Regulators push for global Legal Entity Identifiers...... 13
Standardization)
1, chemin de la Voie-Creuse
No doubt – Quick, efficient and secure payment transactions................................... 16
CH – 1211 Genève 20 Vehicle ID – ISO coding system paves the way for a smooth ride............................ 17
Switzerland
Keeping track – Container transport security and safety........................................... 19
Tel. : +41 22 749 01 11
Fax : +41 22 733 34 30 A global success – ISO country codes ....................................................................... 24
E-mail : isofocus+@iso.org
Centre-fold
Manager : Roger Frost
Editor : Elizabeth Gasiorowski-Denis Coded world .......................................................................................................... 22-23
Assistant Editor : Maria Lazarte
Communication Officer : Sandrine Tranchard Planet ISO
Artwork : Xela Damond, Pierre Granier
News of the ISO system ............................................................................................. 28
and Alexane Rosa
Translation : Translation Services,
ISO Central Secretariat CDC
Benefits of standards – ISO workshop for South Asian countries ............................ 32
Subscription enquiries : Sonia Rosas Friot
ISO Central Secretariat CEO Forum in Asia .................................................................................................... 32
Tel. : +41 22 749 03 36 ISO 26000 non certifiable........................................................................................... 33
Fax : +41 22 749 09 47
E-mail : sales@iso.org Targeting capacity building for ISO 26000................................................................ 33
Building linkages for export success.......................................................................... 34
© ISO, 2011. All rights reserved.
ISO training 2011 ....................................................................................................... 34
The contents of ISO Focus+ are Setting national standardization strategies ................................................................ 35
copyrighted and may not, whether in whole
or in part, be reproduced, stored in a Management Solutions
retrieval system or transmitted in any
form or by any means, electronic, “ Security is paramount ” – Indian terminal implements ISO 28000......................... 36
mechanical, photocopying or otherwise,
without written permission of the Editor. Standards in Action
The articles in ISO Focus+ express the Carbon footprint initiative – Fujitsu innovates with ISO standards ......................... 38
views of the authors, and do not
necessarily reflect the views of ISO or 360°
of any of its members.
Breathe easy – Global solutions for respiratory protective devices .......................... 40
ISSN 1729-8709
New Releases
Printed in Switzerland
Fair and transparent – Construction procurement ..................................................... 43
Cover photo : ISO, 2011
Radiation exposure – New ISO standard will improve protection of workers ......... 44
Coming Up 45
Comment
Code-pendant
Flourishing financial services
Secure message exchange is essential in transactions among financial recognized by standards professionals,
institutions, their clients and other firms. These parties demand pre- reference data experts and compliance
specialists. Code/identifier-based stand-
dictable, reliable data for message transfer and transaction processing.
ards have received considerable attention
from financial services organizations and
To put this challenge in context, let’s environment by using codes to identify regulators in the USA and the European
consider just one type of transaction – counterparties to financial transactions. Union. Movement toward consistent data
credit card payments – and one financial Another example is the market identi- content standards, largely based on codes
institution. In 2007, this single card issuer fier code (contained in ISO 10383:2003, and identifiers, will receive new urgency
had 20 000 member banks with 1.59 billion Securities and related financial instru- given pending mandates.
cards in circulation generating 59 billion ments – Codes for exchanges and market ISO/TC 68 plans to meet this challenge
transactions per year, with peaks of more identification (MIC)), that ensures smooth as an opportunity for expanded adoption of
than 6 800 transactions per second. These and efficient communication of pertinent its standards. At a 2010 meeting of financial
credit cards are accepted in 170 countries, trade information. The standard will support services experts in Tokyo, Japan, ISO/TC 68
and annual transaction volume amounts to regulatory analysis of a bank’s exposure, resolved to form a dedicated group to assess
USD 4.8 trillion. particularly if the revision incorporates the strategic direction of its standards used
Without consistent and reliable message “ dark pools ” (trading volume created by within financial transactions, with the aim of
exchange, none of this would have been institutional orders that are unavailable to expanding standards for regulatory reporting
possible. Data components within mes- the public). and adoption. In addition, a workshop on
sages must reflect the complete information financial services will be held in conjunction
needed to process each type of financial with the next ISO/TC 68 plenary to review
Secure message current and future needs.
transaction accurately. Consistent data
content standards are crucial to compare exchange is essential While regulatory reform and reporting
and analyse data, as well as for efficient in transactions. requirements are key drivers, implementers
message transfer and processing. can derive benefits internally from the con-
It would not be an exaggeration to say sistent collection and resulting aggregation
The international securities identification and comparison of like data. It is apparent
that robust standards are as important to
numbering system (ISIN) continues to be that standardizing both the means by which
the financial services industry as banking
developed to meet market and regulatory data is collected and the content of the data
is to the global economy.
demands. In addition to ensuring smooth, itself will produce maximum benefits to
ISO technical committee ISO/TC 68,
efficient communication of pertinent finan- both the producers and users of data.
Financial services, addresses both security
cial transaction information, ISIN also can
and data consistency in message exchange. support analysis of securities concentration
Within ISO/TC 68, subcommittee SC 2, risk. Similar benefits can be derived from
Security management and general banking the CFI code [contained in ISO 10962:2001,
operations, focuses on the standardized Securities and related financial instruments
protection of financial services transac- – Classification of Financial Instruments
tions. Active work continues in the areas of (CFI code)].
public key infrastructure (PKI) management Last, but not least, ISO country codes
and cryptographic algorithms for financial (contained in ISO 3166) have long been a
services and security in retail banking. necessary component of financial services
Developing and establishing codes – alone and within other ISO standards.
and identifier-based standards is central Every day, there are millions of opera-
to the work of ISO/TC 68. For example, tions worldwide in which data is inputted,
the business identifier code (contained stored, extracted, or transferred. In all such
in ISO 9362:2009, Banking – Banking operations, country codes can save time,
telecommunication messages –Business space and energy.
identifier code (BIC)), facilitates automated Long before the appearance of regula-
processing of telecommunication messages tion or reporting requirements, the need Karla McKenna
in banking and related financial transaction for consistent data content reporting was Chair of ISO/TC 68, Financial services.
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 1
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World Scene
World Health Day 2011 Guidelines for Multinational
“ Antimicrobial resistance : no action Enterprises
today, no cure tomorrow ” is the theme of A special con-
World Health Day (WHD) 2011, organized sultation between
every year on 7 April by the World Health delegates from the
Organization, which participates as a liaison 42 governments
organization in 61 ISO technical committees. adhering to the
WHD 2011 looks at combatting drug resist- Organisation
ance in an era where we depend on antibiotics, for Economic
and other antimicrobial medicines to treat Creating a global Co-operation
conditions that decades ago, or even a few food safety culture and Develop-
years in the case of HIV/AIDS, would have ment (OECD)
proved fatal. When antimicrobial resistance “ Creating a global food safety culture ” was Guidelines
occurs, it renders these medicines ineffective. the theme of the Global Food Safety Confer- for Multina-
WHD therefore calls for an intensified global ence which took place in London, United tional Enter-
commitment to safeguard these medicines for Kingdom in February 2011. More than 600 prises and
future generations. participants from 40 countries attended the stakeholders
Numerous ISO technical committees bring event which looked at how to better manage representing
together health practitioners and experts from food safety in a global context. business, trade, NGOs
government, industry and other stakeholders to According to the Global Food Safety Initia- and other international organizations took
develop International Standards for facilitating tive (GFSI), organizers of the conference, as place in Paris, France, in December 2010.
and improving healthcare. Some of the topics networks become more complex and expand The Guidelines are recommendations by
addressed include health informatics, labora- globally, it is increasingly difficult for food governments covering all major areas of
tory equipment and testing, medical devices safety professionals to speak the same language. business ethics, including corporate steps to
and their evaluation, dentistry, sterilization Broken links in this supply chain can have obey the law, observe internationallyrecog-
of health care products, implants for surgery, devastating consequences on businesses. And nized standards and respond to other societal
mechanical contraceptives, prosthetics and yet, 50 % of mistakes in food safety procedure expectations.
orthotics, contraceptives and quality manage- relate to management culture failures. Discussions focused on human rights,
ment among others. A holistic approach to food safety means employment and labour, due diligence, supply
going further than the usual testing mechanisms chains and procedural provisions, including
World Consumers Rights Day and recognizing that a company’s corporate those relating to the functioning of national
culture has a vital role to play. contact points.
On 15 March 1963, President John F. Attending the event was ISO Deputy Secre- ISO Deputy Secretary-General Kevin McKin-
Kennedy gave an address to the US congress tary-General Kevin McKinley, who represents ley participated in the event. He says, “ ISO
in which he formally addressed the issue of ISO on the GFSI Advisory Council. ISO’s and OECD have
consumer rights. He was the first world leader participation couldn’t have been more relevant, a long history
to do so, and the consumer movement now since the ISO 22000 series, which includes of cooperation.
marks 15 March every year to raise awareness ISO 22000:2005, Food safety management Currently,
of consumer issues. systems – Requirements OECD partici-
for any organization in pates in over 25
the food chain, and the ISO technical
ISO series of standards committees and
on conformity assess- subcommittees
ment, especially related in a wide vari-
In 2011, the theme of World Consumer to accreditation and certification, make an ety of subjects. OECD in a valuable partner
Rights Day (WCRD) was : “ Consumers for important contribution to GFSI benchmarked contributing to the worldwide dissemination
fair financial services ”. To mark the occasion, schemes and to promoting a global culture of of the best practice included in International
Consumers International (CI) sent recommen- best practices on food safety. Standards.”
dations to the G20 countries on how they can
help, following the countries’ commitment to
address the subject at the Seoul Summit in
November 2010.
CI is one of ISO’s partners on consumer
issues. Their participation in the work of ISO
technical committees and in the ISO Committee
on consumer policy (ISO/COPOLCO) helps
bring the voice of consumers to standardiza-
tion. In 2010 the subject of the ISO/COPOLCO
annual workshop was “ Restoring consumer
confidence in global financial services – Can
standards help? ”. ISO is now reviewing the
recommendations made.
One of the key subjects in the upcoming
2011 CI congress will be ISO 26000 on social
responsibility. CI actively participated in its
development together with other consumers
stakeholders. Consumer issues are therefore
one of the core subjects of the standard.
2 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011
Guest Interview
Seah Kian Peng
NTUC FairPrice
Seah Kian Peng is the Chief
Executive Officer (Singapore) of
NTUC Fairprice Co-operative.
He is also a Member of Parlia-
ment for Marine Parade Group
Representation Constituency, and
the Chairman of the Government
Parliamentary Committee (GPC)
for the Ministry of Community
Development, Youth and Sports.
Mr. Seah has been with NTUC
FairPrice since January 2001.
During this period, he has worked
with the team to transform Fair-
Price into a multi-format retailer,
and increased its market share
and social impact whilst strength-
ening NTUC FairPrice’s brand
equity. The current turnover of
FairPrice is in excess of SGD
(Sinaporean Dollar) 2.2 billion,
with a staff strength of over 8 000
employees.
Since January 2005, he has been
the Vice-President of the Sin-
gapore Compact for Corporate
Social Responsibility (CSR). In
June 2009, he was appointed as
the Co-Chair of the Social Enter-
prise Association of Singapore.
In Sept 2005, he was elected
member of the International
Co-operative Alliance (ICA)
Board of Directors, making him
the first Singaporean to be on this
global board in the 112-year his-
tory of ICA. He was re-elected in
2009 for another four-year term.
A Colombo Plan scholar,
Photo : © NTUC FairPrice
Mr. Seah has attended the Ad-
vanced Management Programme
at Harvard Business School, and
was awarded a Fellow of the
Chartered Institute of Marketing.
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 3
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Guest Interview
ISO Focus+ : NTUC FairPrice has grown well as helping them to save on transport. Singapore Retailers’ Association when we
to become Singapore’s largest retailer, We have catered to various customer seg- were awarded the inaugural “ Green Retailer
with a network of more than 250 outlets. ments while retaining our social mission to of the Year award ” in 2010. We were also
To what key reasons and events do you moderate the cost of living in Singapore. the first supermarket to introduce bar-code
attribute your success ? We strive to stay relevant to our customers scanning technology in 1991.
for example, by evolving with our custom-
Seah Kian Peng : At FairPrice, our first
ers’ changing lifestyles and offering a wide ISO Focus+ : How does standardization
priority is our social mission which is to
moderate the cost of living in Singapore. contribute to the general framework
This is the driving force for our business for supporting the whole supply chain,
International Standards
decisions, and our customers continue including inventory, package shipping,
coming back to us because they recognize
are very important to us. and tracking to allow NTUC FairPrice
and appreciate this. We always strive to be seamless integration of your products
the first supermarket retailer to drop prices range of services and shopping formats. and services ?
and the last to raise prices where possible. Apart from our FairPrice supermarkets, we
Seah Kian Peng : As a trusted supermarket
For example, we recently launched the have FairPrice Xtra, the hypermarket for
retailer in Singapore serving our customers
“ Stretch Your Dollar ” programme which family shopping fun, FairPrice Xpress, a
for more than 30 years, maintaining high
will run until end May 2011. This includes collaboration with ExxonMobil targeting
quality standards and adopting best inter-
a 5 % and 10 % discount on 500 housebrand drivers and riders, and FairPrice Finest,
products until end May. Our FairPrice national practices are integral to FairPrice’s
for the mass affluent who want the finer
Housebrand products set benchmark prices things in life. promise to deliver quality products at best
and are already at least 10 % lower than We are also known to take the first step value and service to our customers. From
comparable national brands. Our House- in implementing many industry firsts. For an operational standpoint, standardization
brands have also won accolades such as example, we were the first in Singapore translates into higher efficiency, process
the Readers’ Digest’s Most Trusted Brand. to launch a pilot eco-friendly supermarket and product consistency and improved
Over the years, we have continued to that incorporates the use of recycled and productivity. Our staff is also trained on
build a wide and large footprint of stores biodegradable materials for store fixtures, our operational standards at our dedicated
all over the island. This is because we want energy-saving equipment and lighting, as FairPrice Training Institute and this helps
to ensure our stores are easily accessible, well as cutting edge “ Green Technology ” them better follow standards and guidelines
making it convenient for our customers as in 2009. This move was recognized by the resulting in enhanced operational efficiency.
Photo : © NTUC FairPrice
As a retailer serving over 350 000 customers everyday, product safety and quality is of paramount importance to FairPrice.
4 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011
countries around the region like Thailand,
Malaysia and Indonesia.
Apart from this, we have also assisted in
the development of the Cold Chain Manage-
ment for Milk and Dairy Products standard
in 2002 which has been implemented and
has extended the shelf life of milk products.
In 2005, we implemented the Cold Chain
Management of Chilled Pork which enabled
us to import chilled pork from distant sources
and maintain safety and quality. This new
process reduced the time for products to
reach our stores.
To customers, this means that FairPrice
Photo : © NTUC FairPrice
is able to increase customer satisfaction by
offering a greater variety of products that
are of high quality and affordably priced.
Implementing these standards ensures that
customers receive safe, high quality products
and services. At the end of the day, it is all
In 1993, FairPrice started the central distribution and warehousing concept to improve our about improving customer satisfaction and
supply chain efficiency and productivity. Grocery Logistics of Singapore (GLS), a fully owned
subsidiary of FairPrice, ensures that over 250 FairPrice supermarkets and convenience stores
increasing customer loyalty and confidence
are stocked and ready for customers. in our products and services.
FairPrice also has various measures in
place to ensure this standardization is fol-
lowed through. We were the first in Singa-
pore to implement the ISO pallet standard
as the only size for a central distribution
centre at Grocery Logistics of Singapore
(GLS), our central distribution and ware-
housing facility. FairPrice’s Food Safety
and Quality Department has put in place
a comprehensive auditing programme and
an integrated risk management system to
ensure the safety and integrity of our food
products throughout the entire supply chain.
Standards ensure that
customers receive safe,
high quality products
and services.
We were also the first supermarket chain
in Singapore to receive Hazard Analysis
Critical Control Point (HACCP) certifica-
tion in 2001. Our cold chain management
system ensures fresh produce is maintained
at optimal temperature throughout the whole
process from farm to shelf. For example,
our implementation of the Cold Chain Man-
agement of Vegetables enabled FairPrice
Photo : © NTUC FairPrice
to directly import leafy vegetables over
long distances, requiring extended journey
times of up to 24 hours, and maintain the
products’ freshness while still being able to
keep costs down and reduce wastage. This
translates to affordably priced vegetables FairPrice operates multi-retail formats to better cater to customers’ needs – FairPrice
which have been sourced from various supermarkets, FairPrice Xtra, FairPrice Finest, FairPrice Xpress and Cheers.
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 5
a
Guest Interview
Photo : © NTUC FairPrice
FairPrice was the first in Singapore to launch a pilot eco-friendly supermarket that incorporates the use of recycled and biodegradable materials
for store fixtures, energy-saving equipment and lighting, a recycling corner to promote recycling, as well as cutting edge green technology.
ISO Focus+ : NTUC FairPrice makes partner with the Agri-Food and Veterinary the reverse vending machine to recycle
extensive use of ISO standards, starting Authority of Singapore (AVA), we have plastic bottles. A Green Committee was
with ISO 9001:2000 for quality manage- established guidelines in place to ensure also set up in-house to look into how we
ment. How do you value these manage- frozen products are stored beneath the can improve environmental management
ment systems standards as components specified load lines in the freezers. Regular as a whole.
of your corporate management practices audits are conducted at every store to ensure
worldwide ? this guideline is in place. ISO Focus+ : As NTUC FairPrice works
Our food safety and quality management for many different sectors and ISO has
Seah Kian Peng : Customers trust that
system complies with International Standards many relevant committees and technical
FairPrice provides safe and quality food.
such as HACCP and ISO 9001 certification. activities, how do you view the role of
Our brand promise is to deliver quality
These systems cover our supermarket outlets, International Standards in promoting the
food at best value and excellent service to
central butchery and warehouses. services you provide to various sectors
our customers. Because of this promise and
Being environmentally friendly is also and the customer-supplier relationship ?
the large number of customers we serve at
our stores every day, we take serious and important to us and we launched the first Seah Kian Peng : International Standards
comprehensive steps to ensure food safety green supermarket at City Square Mall. Our are very important to us. It gives credit to
and quality. Bring Your Own Bag initiative launched in the great lengths that we have gone through
Food safety is of paramount importance 2007, has enabled us to save almost 45 mil- to ensure that the end product delivered to
to FairPrice. As the primary food safety lion plastic bags. We have also introduced all FairPrice customers is both affordable
6 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011
and of the best quality. It also allows our overseas footprint, retail innovations and
intermediaries and partners to trust us, and operational excellence.
to spur them on to deliver their best.
About NTUC FairPrice
We recognize that our business partners ISO Focus+ : What are your views on the
play an important role in our success. For new areas and issues calling for interna- NTUC FairPrice Co-operative
example, we collaborate with our suppli- tional standardization in relation to social Ltd was founded by the labour
ers and the AVA in ensuring that safety responsibility (ISO 26000), business rela- movement in 1973, with a social
standards are met to ensure that we are tions and IT services ? mission to moderate the cost of
able to maintain a high-level of food safety living in Singapore. From one
Seah Kian Peng : As a social enterprise,
standards throughout the entire supply chain. supermarket, it has grown to
social responsibility forms the core of what we
do. Giving back to the community has always become Singapore’s largest retailer,
There are definitely been part of FairPrice’s culture. Indeed, you with a network of more than
economic benefits could say it is part of our DNA. In 2008, we 250 outlets comprising FairPrice
set up the NTUC FairPrice Foundation, to supermarkets, FairPrice Finest,
of standardization. help further FairPrice’s philanthropic efforts FairPrice Xtra, FairPrice Xpress and
in a more systematic, focused and sustain- Cheers convenience stores. NTUC
As one of the leading supermarket retail- able manner. To date, we have given out FairPrice also owns a Fresh Food
ers, FairPrice plays a key role in being an over USD 20 million through the Founda- Distribution Centre and a centralized
early adopter of standards and through tion to help the poor and needy, to improve warehousing and distribution
this we spur other industry players to do workers’ welfare and to support community
company.
the same. Many of the standards we were bonding initiatives. As our social mission
initially involved in during the development drives many of our business decisions, it is Today, with its multiple retail
stages have now become industry standards. important for our partners and stakeholders formats serving the varied needs
FairPrice is looking to explore opportuni- to understand this too. and interests of people from all
ties beyond the domestic market. So this We also recognize the need for excellent walks of life, NTUC FairPrice has
helps to give accreditation in FairPrice’s business relations. It is important to have kept pace with the changing needs
positive and like-minded partners with of its customers while remaining
similar values in order to achieve the best
committed to its social mission
out of this partnership. At FairPrice, we
and its aspiration to be Singapore’s
realize that we cannot act independently
leading world-class retailer with a
and have to depend on partnerships in
order to offer the best products to the heart.
customers in our stores. In 2010, we held For more information on NTUC
our first Partners’ Convention to better FairPrice, www.fairprice.com.sg.
share our service vision and to reinforce a
collaborative approach with our partners.
As a retailer, we work very closely with
partners upstream and downstream, as we
believe these business relations can lead
to co-creating an extraordinary customer
experience.
IT services are imperative to our busi-
ness. As industry leaders, we must embrace
new technology and open our minds to stay
ahead. The ability to innovate and seize
opportunities in new technology will be
key to driving productivity, especially in
the retail sector. IT security standards are
also a key area we are looking into. All these
help in a better management and control of
Photo : © NTUC FairPrice
our entire supply chain including easing
our delivery processes.
There are definitely economic benefits
of standardization. It is a way to help dif-
Photo : © NTUC FairPrice
fuse and propagate innovation through an
industry and ensures that other firms do not
fall behind early adopters. We are pleased FairPrice depends on an efficient logistics
chain to ensure fresh, quality products are
to play our part and be part of initiatives delivered on time to its stores to meet
that help support such efforts. the needs of its customers everyday.
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 7
a 8 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011
Special Report
A coded world
Saving time, space and energy
by Elizabeth Gasiorowski-Denis
Coding systems are among the most fre- (IBAN) are indispensible standards in the
quently used systems for standardization by financial world, after more than 20 years
government, business and the general public of implementation. Thanks to BIC, which
at large. Every day, codes are used in mil- identifies financial and non-financial institu-
lions of operations and items worldwide, in tions, and IBAN, which identifies customer
domains that range from books and passports bank accounts, fewer errors are made while
to freight containers and money transfers. routing financial transactions.
A two-character code like TF for the The financial industry is now looking
French Southern Territories saves time towards developing a standard to identify
(and therefore money) during data entry, legal entities engaged in financial transac-
reducing the number of keystrokes for input tions. Such a standard would bring clear
from 25 to 2. Data storage requirements benefits, including additional transparency
are also reduced proportionally. Codes and regulation to financial markets.
also reduce error rates during data entry Every shipping container in the world
and retrieval, establishing unambiguous must be registered with the identification
and consistent representations for people, code (BIC code) of the container’s own-
places, or things that may go by different ers and operators. The BIC code is used
names or spellings.* In all cases, these codes in 115 countries by about 1 700 owners or
save time, space, and energy. operators representing more than 90 % of
Consider ISO 3166-1, the ISO standard the world container fleet.
for country codes. ISO 3166-1 is one of The code facilitates international move-
the most widely used standards because all ment and temporary admission for customs
national postal organizations throughout purposes, as well as the control of containers,
the world exchange international mail in manually or automatically by computerized
containers bearing its country codes for and/or remote control systems at any stage
identification. In machine-readable passports, of the transportation chain and especially
the three-letter code taken from ISO 3166-1 in intermodal transport.
is used to determine the nationality of the The global automotive industry is yet
user (indicated in ISO/IEC 7501-1). In another sector using a comprehensive
addition, the Internet domain name systems numbering system, called the Vehicle
use ISO 3166-1 alpha-2 codes to define Identification Number (VIN), that uniquely
country-coded top-level domains (ccTLDs), describes a vehicle. This number provides
e.g. France as “.fr ”; Australia as “.au ” ; a coded description of the vehicle including
Brazil as “.br ”, or Japan as “.jp ”. elements such as the manufacturer, the year
The April 2011 ISO Focus+ special report of production, the place of production and
looks at ISO 3166 and its applications in vehicle characteristics. There are vehicle
dozens of sectors, as well as the many other history services in several countries that
ISO standards where “ success codes ” are can help potential car owners use VINs to
making an important impact. find duds and branded vehicles.
The International Standard Book Number And there are many other ISO success
(ISBN), for example, is one of the most code standards ! The April 2011 ISO Focus+
widely used and successful identifiers special report provides a taste of the use-
around the world, with billions of ISBNs fulness and benefits of some of the most
assigned by more than a million publishers well-known ISO success codes.
in over 200 countries. ISBN is the essential
Elizabeth Gasiorowski-Denis is Editor,
enabler of book trade systems, facilitat-
ISO Focus+.
ing the compilation of product databases,
electronic data interchange transactions
* Standards for Archival Description :
and the collection of sales data.
A Handbook, “ Chapter 7 : Codes ”.
The Business Identifier Code (BIC) and Compiled by Victoria Irons Walch with contribu-
the International Bank Account Number tions by Marion Matters.
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 9a
Special Report
Contained in ISO 2108:2005, Information
and documentation – International Stand-
ard Book Number, ISBN is the essential
enabler of book trade systems, facilitating
the compilation of product databases, elec-
tronic data interchange transactions, and
the collection of sales data. Thanks to an
agreement between ISBN, GS1 (at the time
called EAN International) and the Uniform
Code Council (UCC) that allowed ISBN
to be encoded into an EAN-13 bar code
it also has a critical role in EPos systems.
Even as late as the 1960s, ordering or
selling books was a much more confusing
and time-consuming process than it is now.
There was no commonly accepted approach
that publishers could use to identify their
publications, and every bookseller had a
different way of ordering books. Without
an industry-accepted identifier, booksellers
had a difficult job clarifying exactly which
edition of a book they wanted.
Amid all the different versions of each of
the plays of Shakespeare, or of the novels of
Dickens, or even of just a single text such as
Dante’s Divine Comedy, multiple pieces of
information had to be quoted and verified to
make sure that the bookseller received the
correct edition. Publishers and distributors
were faced with a problem – how to intro-
duce necessary automation into their order
processing and inventory control systems
so that they could improve efficiency and
profitability, and avoid having to identify
items one-by-one.
Adapting to changes
In the United Kingdom (UK) , a prototype
From Dickens
(nine-digit) numbering system that included
a final validation character quickly gained
acceptance from 1967. Noting this, ISO
to Dante
technical committee ISO/TC 46, Information
and documentation, established a working
group to investigate the feasibility of adapt-
ing the UK system for international use.
Following review and approval by the
ISBN propels book trade technical committee, ISBN (based on the
original UK system, but now a 10-digit
to billions identifier) was approved as an International
Standard in 1970. The scope and field of
application was defined as, “ the use of book
numbers so that an international standard
by Stella Griffiths book number identifies one title, or edi-
tion of a title, from one specific publisher,
An ISO standard since 1970, the International Standard Book and is unique to that title or edition.”
(ISO 2108:1972)
Number (ISBN) is one of the most used and successful identifiers It has never been a formal condition
worldwide, with billions of ISBNs assigned by more than a million that ISBN only be applied to publications
publishers in over 200 countries. made available for sale. In fact, ISBN was
10 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011intended to encourage “ total numbering ”, A principal benefit of the 13-digit solu- print databases that are used by wholesalers,
irrespective of whether the book was free tion enables the ISBN system to make use retailers and libraries to find and order what
or priced. ISBN assignment should be of a new “ 979 ” EAN prefix which was their customers and patrons want. The title,
made to any publication that is available reserved years ago for the future use of author, publisher and date of publication, of
to the public (as opposed to a restricted or the book trade within the EAN system. course, but also the potential to store price,
private circulation to family, friends or a This dovetails with a move to the EAN. subject classification and target readership,
membership society). UCC system in the North American sup- author biography, reviews, nominations and
The standard has also always mandated ply chain and aligns the ISBN with other prizes, number of pages and more.
that the ISBN be displayed on both the product numbering systems, making trade
title leaf and the outside book cover. As with non-book retailers much easier. ONIX for books
a result, ISBN became visible beyond the
boundaries of the book industry as one of Globally, the communications format
the most widely known and recognized ISBN is the essential most widely used to transmit this metadata
standards in the world. enabler of book trade is ONIX for books, jointly developed by
In addition, the ISBN has maintained EDItEUR, Book Industry Study Group, New
systems.
its relevance by adapting to changes in York and Book Industry Communication,
the book market itself. For example, the London. The ONIX format delivers extensive
explosive growth of electronic publishing In addition to printed books and pam- product information for each ISBN into the
added to the pressure on supply of ISBNs, phlets, ISBN is used to identify audio books, supply chain in a standardized electronic
as publishers took the opportunity afforded e-books, maps and mixed media publications form for wholesalers and distributors, larger
by the Web and e-commerce to sell publica- where the main element is text-based. The retailers, data aggregators and affiliate
tions in different ways. In response to the scope challenge continues as we go more companies. It enables rapid updating of
perceived pressure on available numbers, deeply into a brave new digital landscape. information, whether for internal systems
the ISBN standard underwent a fourth revi- As an identifier for each unique publi- or Internet retail sites.
sion in 2005, changing the length of the cation, the ISBN provides the fulcrum for Based in London, the International
identifier to 13 digits and thereby almost detailed information (known as rich product ISBN Agency is the registration authority
doubling its capacity. metadata) incorporated into the books in appointed by ISO to coordinate and manage
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 11a
Special Report
the ISBN system worldwide, including on each publication that is allocated an The International ISBN Agency still
designing and allocating the group identi- ISBN. The ISBN agencies promote the receives requests from time to time from
fiers for local ISBN agencies, which in turn use of ISBN in their countries (including countries that do not yet have local agen-
dictate the ISBN prefix ranges that will be by compiling books in print databases) and cies about how to join the system. For
available to assign to publishers. It is these are also the source of advice and guidance developing countries in particular, ISBN
local ISBN agencies – generally operating on ISBN application and implementation is the leveller that gives publishers access
on a national basis in a particular country for publishers. to world markets.
– that are really at the heart of ISBN’s As a “ mature ” ISO standard, ISBN has
implementation success. longevity on its side and has steadily been From chaos to order
Local agencies assign ISBN prefixes with adopted across the world. More than 160
the appropriate range of individual ISBNs ISBN agencies serving more than 200 In the early 1970s, ISBN brought order
for each publisher’s anticipated output, countries and territories have collectively where there was chaos and proprietary,
collect and maintain registration details for assigned more than one million ISBN individual solutions. It has since proven to
each publisher and also receive information prefixes to publishers. be an identifier that is easy for publishers
to implement and for other partners in the
supply chain to understand and interpret
quickly, accurately and reliably. Digital
publications – whether e-book versions of
printed publications or multi-media down-
loadable apps – are still a relatively small
percentage of the overall book market, but
are growing fast.
ISBN brought order
where there was
chaos and proprietary,
individual solutions.
The ISBN system is as capable of iden-
tifying each of these different editions as
it can denote a hardback from a paperback.
For publishers, it is a challenge to remain
masters of their own metadata amid the
plethora of format and e-reader device
opportunities; for ISBN it is to remain as
indispensable in the digital paradigm as it
has been in the analogue.
About the author
Stella Griffiths is
Executive Director
of the Internatio-
Keeping up with the times nal ISBN Agency.
After graduating
An online presence – whether to facilitate the discovery of printed publications or from the Univer-
to sell e-books – continues to grow in importance for publishers and retailers alike. sity of Oxford,
she has worked
The DOI system (ISO 26324, Information and documentation – Digital object identifier
in publishing and
system) offers a persistent actionable identifier that can be deployed on digital
International Standards since 1989.
networks.
She has held senior managerial positions
Some local agencies provide an ISBN-A service (the “ actionable ISBN ”) whereby an in both the book and serials sectors. While
existing ISBN can be expressed in the DOI system. Senior Manager of the United Kingdom’s
Users can thereby be directed to a catalogue entry, order the specific publication or ISBN Agency, Ms. Griffiths was a lead
even read the book online. contributor on ISO/TC 46/SC 9/WG 4 for
the revision of the ISBN standard and the
transition to the 13-digit ISBN.
12 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011Uncovering
systemic
risk
Regulators push
for global Legal
Entity Identifiers
by Paul Janssens Regulatory concerns
T
Regulators too have taken a specific
he recent financial crisis has underscored the need for additional interest in LEIs. In the USA, the Dodd-
transparency and regulation in financial markets. Globally, regulators Frank Wall Street Reform and Consumer
Protection Act (DFA) created the Office
are conducting systemic risk analyses aimed at understanding of Financial Research (OFR) with the
the aggregate risks of entities and their counterparties across asset specific task of collecting large quantities
classes and regions. Precise and accurate identification of legal enti- of pricing, position and trading information
ties engaged in financial transactions is important to private markets and analysing it to uncover systemic risks.
Other US regulators will need to perform
and government regulators alike.
similar tasks.
An essential component of enabling Most financial firms have developed In Europe, meanwhile, the European
regulators to conduct such risk analysis is their own LEI solutions in-house, an Securities Market Authority (ESMA) and
the creation and maintenance of a global, approach that creates inefficiencies. the European Systemic Risk Board (ESRB),
standard Legal Entity Identifier (LEI), the Tracking counterparties and calculating which held its inaugural meeting in January
core record attributes which comprise it, exposures across multiple data systems 2011, have been set up to collect transactions
and a utility to support it. In other words, is complicated and expensive, and it can reporting and analyse global systemic risks.
the adoption of a reliable, internationally result in costly errors. Precise identification of financial firms is
accepted LEI solution. ISO technical com- necessary to evaluate whether a firm poses
mittee ISO/TC 68, Financial services, has a systemic risk. This involves assessment
formed a dedicated group to develop a strat- LEI creation should of the relationships among firms operating
egy for identification standards, including adhere to industry across a range of markets and financial
legal entity identifiers. instruments. In addition, securities regulators
best practices.
LEIs are not new to the financial services must often identify parents and affiliates
industry. They are used by financial insti- of broker-dealers manually and by name.
tutions to identify customers and trading Maintaining internal identifier databases Multiple identifiers for participants in
partners. This enables them to trade, know and reconciling entity identification with securities trading make it difficult to create
their customers and conduct internal risk counterparties is expensive. Complete a consolidated order audit trail.
analysis and stress-testing. Commercial automation of back-office activities remains This means that regulators cannot
LEI vendors exist, but there is no widely elusive, in part because of the lack of a adequately analyse systemic risk unless a
accepted LEI standard in the marketplace. universal identifier for legal entities. On common, widely adopted LEI is established
In the absence of a universal system for occasion, the straight-through processing containing basic information that uniquely
identifying the legal entities that participate chain is broken and transactions fail to identifies all the entities involved in reported
in financial markets, private firms and regu- settle because counterparties have not been transactions. Jean-Claude Trichet, President
lators have created a variety of identifiers. properly identified. of the ECB and newly appointed Chairman
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 13a
Special Report
of the ESRB, recently announced, “ The that is established and implemented by pri- • Persist over the life of an entity,
CSDB [Centralized Securities Database vate industry and other relevant stakeholders regardless of corporate actions or other
of the European System of Central Banks] through a consensus process.” business or structural changes
would be best complemented by a public The Office also believes that partici- • Include minimal information about the
reference data utility providing standard- pation of International Standard-setting entity in the identifier itself
ized information on instruments and entities bodies would be beneficial in developing
• Accommodate growth in the num-
that would be operated on the basis of an the standard. If an LEI is established to the
ber of legal entities that need to be
international agreement.” satisfaction of the Office by 15 July 2011,
identified in the full range of reporting
it plans to issue a regulation mandating its
systems, and to potential industry and
Initiatives in the USA use for data reported to the Office.
regulatory innovations
In late 2010, the Commodities Futures • Be available for all eligible market
Trading Commission (CFTC), Securities A consistent overview participants, including, but not limited
and Exchange Commission (SEC), Office of of systemic risk will to, all financial intermediaries, all
Financial Research (OFR) and a consortium companies that issue stock or debt
of US regulators known as the Linchpin
require engagement from listed on an exchange, all companies
group (the US Treasury Department, the the industry. that trade stock or debt, infrastructure
Federal Reserve Board of Governors, the providers, all entities subject to finan-
Federal Reserve Bank of New York, the cial regulation, and firms affiliated
The Office has also set out what it sees as
Federal Deposit Insurance Corporation, the with such entities
the main characteristics of an appropriate
Financial Industry Regulatory Authority, and • Not be contractually restricted in use
LEI. It should :
the Securities and Exchange Commission)
• Be based on a standard developed and • Where possible, be compatible with
all issued proposals for public comment
maintained via an international “vol- existing systems, work across various
that included the LEI concept.
untary consensus standards body”. platforms, and not conflict with other
The Office of Financial Research, for exam-
The Office cited ISO in this regard numbering or identification schemes
ple, issued a statement of LEI policy with a
request for comment at the end of November • Be unique for each legally distinct • Be readily accessible using secure and
2010, where it declared its preference, through entity, where each legal entity is open standards
rule-making, to adopt “ a universal standard assigned only one LEI which cannot • Be reliable and secure against corrup-
for identifying parties to financial contracts be reassigned tion or misuse
14 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011• Be capable of becoming the single
International Standard for unique
identification of legal entities in the
financial sector.
The Office notes that LEIs should be
issued by an entity with expertise in imple-
menting standards for the financial sector
“ organized and operated as a not-for-profit
body and have a formally documented
governance structure with balanced rep-
resentation for relevant stakeholders ”.
A recent discussion paper issued by the
Divisions of Research and Statistics and
Monetary Affairs of the Federal Reserve
Board, “ Creating a linchpin for financial
data : toward a universal legal entity
identifier ”, argues that a universal LEI
would likely provide a “ public good ” in that
it could allow cheaper and more efficient
analysis for all interested parties.
The paper identifies a number of standards
used in industry today to ensure quality
and accuracy in identification assignment.
Regardless of the methodology selected, it
argues, LEI creation should adhere to industry The two industry utilities have proposed Authority for ISO 9362:2009, Banking
best practices in identification assignment to to work jointly in creating a LEI service to – Banking telecommunication messages
ensure high quality and accuracy. assign, maintain and distribute new LEI – Business identifier code (BIC), provides
Several organizations have expressed an codes. Initially, the focus would be on the US it with a highly informed perspective on
interest in providing a global LEI service requirements since these regulators appear to the adoption of a universal LEI standard.
for the financial industry. These include be making their decisions first. The partnership SWIFT is also the Registration Author-
Depository Trust & Clearing Corporation could involve additional players as regulatory ity for ISO 10383:2003 Securities and
(DTCC) and SWIFT, organizations that requirements emerge around the globe. related financial instruments – Codes
have cooperated to study and develop an The wealth of experience that SWIFT for exchanges and market identification
optimal solution to the LEI challenge. has gained in its capacity as Registration (MIC), Part 1 and 2 of ISO 13616:2007,
Financial services –International bank
account number (IBAN), Part 1 and 2 of
ISO 15022:1999, Securities – Scheme for
messages (Data Field Dictionary), and
the six-parts of ISO 20022, Financial
services – UNIversal Financial Industry
message scheme.
About the author
Paul Janssens
joined SWIFT,
the member-
owned cooperative
supporting
standardized
financial
information, in
1988. He has held
the positions of Group Treasurer and Euro
Programme Manager, and is now heading
the Legal Entity Identifier initiative.
ISO Focus + A p r i l 2 0 1 1 © ISO Focus+, www.iso.org/isofocus+ 15a
Special Report
No doubt
In addition, the IBAN standard identi-
fies one – and only one – customer bank
account. It provides assurance to ordering
customers and their banks that the account
structure is technically correct for the
country in which it is used. However, the
Quick, IBAN standard does not guarantee that a
customer bank account exists or is still
efficient open at the precise moment an IBAN is
used, as there is no worldwide central
and secure database for IBANs.
Because these standards bring efficiency
payment and security to transaction processing,
they are widely used today all along the
transactions financial industry’s customer value chain.
This results in fewer routing errors, thanks
largely to BIC and IBAN. A check digit
instantly verifies bank account informa-
by Martine Brachet tion before sending the operation, and the
account holding bank is the only actor
Financial institutions that can safely provide the correct BIC
and IBAN data to its customer. It is then
face steadily growing the responsibility of each customer to
pressure to process payments provide BIC and IBAN identification to
quickly and efficiently while counterparties.
maintaining high safety levels.
Guaranteed independence
Straight-through-processing is a
core requirement today in the financial In Europe, BIC and IBAN are manda-
tory (EU Regulation 924/2009) for Single
industry, heavily supported by regulators.
Euro Payments Area (SEPA) transactions.
These two standards now circulate between
For example, the Payment Services Direc- as an International Standard for the auto- more than 300 million EU citizens and
tive in the European Union (EU 2007/64) matic and unambiguous identification of their counterparties. BIC and IBAN are
– which takes effect on 1 January of 2012 financial and non-financial institutions, the only beneficiary customer account
– provides that the maximum execution time as well as the International Bank Account identifier and bank routing codes accepted
for payments within Europe (in euros), is Number (IBAN: ISO 13616) for customer by banks in the EU/EEA area for all intra-
one day after receipt of the payment order. bank accounts. Union euro cross-border credit transfers.
To make this deadline, it is essential In practical terms, a bank that receives
that financial institutions can post payment a SEPA customer payment without BIC
transactions directly to their customer bank Financial institutions and IBAN is entitled to reject the trans-
accounts using fully standardized bank and must be able to measure action or request additional data before
account identifiers.
their counterparty risk processing it.
At the same time, financial institutions ISO’s independent status is a key ele-
must be able to measure their counterparty efficiently.
ment in maintaining the crucial position
risk efficiently and put in place appropriate held by BIC and IBAN in the financial
controls to help authorities fight money industry.
laundering and terrorism financing. The BIC standard identifies – without
An unambiguous identifier for financial ambiguity – a banking counterparty,
and non-financial institutions is fundamental including its legal and physical location.
to this effort, as is unique identification of This allows the ordering customer bank to
About the author
customer bank accounts. However, it is automatically identify the counterparties and
necessary that these identifiers are recog- institute controls for counterparty risk and
Martine Brachet is
nized by the market and accepted worldwide mandatory anti-money laundering regula-
Head of Interbank
to support the financial industry at large. tions, as well as routing transactions to the
Relationships De-
relevant banking counterparty. The BIC is
partment at Société
universally used in all interbank transactions
Unambiguous identification Générale Group in
as the single identifier for financial institu-
Paris, France.
Twenty years since its implementation, the tions, regardless of domain for payments,
financial world can no longer live without the treasury deals, trade finance or securities
Business Identifier Code (BIC: ISO 9362) transactions.
16 © ISO Focus+, www.iso.org/isofocus+ ISO Focus + April 2011You can also read
