Wireless Power Consortium

Setting the international standard for interoperable wireless charging
The sign of compatibility

Archive for the ‘Standardization’ Category

Network externality

Sunday, October 4th, 2009

Wireless power is adopted easily in some applications. Toothbrushes, for example, and in UV lamps for water desinfection. But penetration in offices and living rooms is limited today, even though consumer tests show that users like wireless power very much.

The problem with wireless power in offices and living rooms is that the perceived value increases with the number of different products that can be charged wirelessly. In other words, only few consumers are prepared to pay US$ 50 for a dedicated charger. That perception changes when a wireless charger services many products.

In economics this effect is called a ‘network externality‘. Products with a  strong network externality benefit from co-operation between companies. Consumers see more value when many companies introduce products that work together.  That’s why companies work together on the standardization of wireless power. They all benefit from  increased sales.

Products with strong a network externality are hard to introduce in the market. On the other hand, once successful, the interface tends to stay around. New products benefit from interoperability with the installed base, and the perceived value of alternative solutions remains low.

When network externalities are strong it is, therefore, risky to invest in products that don’t work with the established standard. It can be surprisingly expensive to go against the flow.

Speed or consensus?

Thursday, September 3rd, 2009

It usually takes a lot of time for an  SDO (Standard Development Organization) to make a standard. Organizations like ISO and IEC aim to create consensus. That is logical, and necessary, because standards need broad support to become successful.

Consensus costs time. Getting a standard developed by an SDO, and approved, typically takes many years.

Suppose you have a great product idea and need to agree an interface with products from other companies.  What do you do? Go to IEC or bring the relevant companies together in an industry consortium?

It depends on the type of standard, obviously. But an industry consortium works well for the wireless power interface. Decision can be made quickly provided (a) the consortium has agreed goals and clear requirements, and (b) the number of voting members in the consortium remains small.

The maximum number of voting members is a delicate balance between the need to involve different stakeholders and the need for speed.  Eight to ten voting members works well in my experience. With the right group of companies that will get you a standard within a year.

The finished result can then be offered to IEC or another appropriate SDO for fast track formal approval.

An industry consortium is fast, predictable, and costs less.