First, standards refer to the documented agreements, which comprise of technical guidelines that make sure processes, products, materials, and services are produced up to par or are fit for presentation. On the other hand, innovation can be described as an introduction to a new method, approach or concept to a product/enterprise to bring about exclusivity in function, behavior or form. It should be understood that innovation and standards are somehow interrelated, whereby a standardized model, will ensure innovation is quickly achieved. By introducing standards on innovations, an organization or a firm will have formed a basis for the introduction of new innovations, and also move a notch higher to ensure the components of the new innovation are mutually compatible. Moreover, standards are critical on innovation, because it is an avenue of having a mutual understanding in an organization, and can be used as a tool to facilitate measurement, communication, manufacturing and commerce. The good aspect of standards is what has made it to be everywhere and also play an important role in the economy. For instance, allowing firms to comply with relevant laws and regulations, offering interoperability between new and existing processes, services, and product.
However, while standards are critical to the success of innovation, it also has its shortcomings if enough care is not put in place. For instance, when standards are used in isolation, it cannot be the best tool to provide evidence for performance, hence providing a leeway for discrepancies. (Gann, & Salter, 2000, pp. 955-972)
As observed from the aforementioned ideas, standards based on innovation can be very beneficial to an organization, through providing a framework for new innovations. Although, for quite some time now, some organizations have always got it wrong when it comes to thinking about innovation and standards.