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ICT Standards in Smart Grid Projects – Between a Standard’s Intended and Factual Role in Complex Technological Developments

  • Sabrina Paustian ORCID logo EMAIL logo and Jannika Mattes ORCID logo
Published/Copyright: February 23, 2024
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Abstract

Digital technologies such as smart grids are associated with new challenges for organizations as both technological and social heterogeneity increase. ICT standards play a crucial role in coping with this growing heterogeneity. However, we have little insight into precisely how ICT standards unfold in innovation projects. Compared to ‘ordinary’ standards, it would be expected that they are more pervasive and binding. However, ICT standards also need to be adopted into formal, corporate rules and be further interpreted and drawn upon in informal routines. This actual implementation, the dealing with inconsistencies and contradictions and if the ICT standard is being conceived as binding, is revealed in day-to-day practices. Conceptually, we differentiate between the formal and informal adoption of the standard and for both cases consider the dimensions decision programs, communication channels and personnel. We empirically investigate the adoption of one ICT standard, the Use Case Methodology (UCM), in a qualitative case study of a smart grid project. Our findings illustrate how the formal implementation of the UCM succeeds while the informal reliance upon this standard is far less pronounced. In this way, ICT standards differ less from ‘ordinary’ standards than might have been expected.

1 Introduction: Smart Grids, Complex Technological Developments and ICT Standards

Smart grids are highly digitalized systems that play a vital role in facilitating the energy transition. In contrast to the current centralized and top-down grid infrastructure, a smart grid has a distributed and networked infrastructure with the aim of integrating digital technologies, new possibilities for energy generation and an efficient monitoring system (e.g. reducing costs and emissions) (Giordano and Fulli 2011). In this sense, smart grids are a combination of energy production, supply and consumption (see among others Erlinghagen and Markard 2012; Trefke, Gonzalez, and Uslar 2012). As automated and intelligent systems, they integrate information and communication technologies (ICT) (Arndt et al. 2015; Farhangi 2010; Giordano et al. 2011). This increasing digitalization (e.g. Bailey et al. 2019) challenges the development of smart grids in two ways: They not only require new technologies, tools and services (Farhangi 2010) but their development is also a cross-sectoral undertaking involving organizations from the energy sector and beyond (Camarinha-Matos 2016; Rohde and Hielscher 2021).

In this paper, we argue that these complex technological developments result in the application of strict ICT standards that are meant to facilitate the required technological integration in the context of heterogeneous collaboration. The relationship between ongoing digitalization (e.g. in the energy sector) and standards is largely unexplored. While the former aspect is frequently investigated (e.g. how digitality affects services, products or organizational processes, cf. Hanelt et al. 2021; Marion and Fixson 2021; Nambisan et al. 2017; Yoo, Henfridsson, and Lyytinen 2010), changes in standards as a consequence of digitalization are often overlooked (Scott and Orlikowski 2022). At the same time, ICT standards differ from ‘ordinary’ standards: ‘Ordinary’ standards, such as quality management standards, refer to all non-technological types of rules, procedures and thresholds. In contrast, ICT standards focus explicitly on breaking down and managing complexity by identifying technological interfaces or requirements and security aspects (Skotnes 2020).

In the area of smart grid standardization, research based on common ICT standards, namely the Use Case Methodology (UCM) and the Smart Grid Architecture Model (SGAM), has primarily focused on the conceptualization of technological aspects (Gottschalk, Uslar, and Delfs 2017; Trefke, Gonzalez, and Uslar 2012; Uslar et al. 2011, 2013). However, there has been little investigation of the application of these standards in innovation projects (Faller et al. 2020; Santodomingo et al. 2014). This paper complements the prevailing technological lens and adopts an organizational studies perspective to explain how the applied ICT standards unfold in complex smart grid projects. Here, ICT standards provide (more or less binding) rules for organizational actions that serve as formal structures in organizations. Since the adoption of these (externally developed) rules is neither smooth nor straightforward, we take a closer look at their formal, but also informal adoption in day-to-day working routines (cf. also Brunsson, Rasche, and Seidl 2012) in the specific context of smart grid projects. Therefore, our aim is to better understand the consequences of the adoption of ICT standards for collaborations. This leads to the following research question:

How are ICT standards integrated into formal structures and to what extent and why are they (not) followed informally in smart grid innovation projects?

Empirically, we draw upon a qualitative case study of a smart grid project in which the UCM and SGAM are applied. Our results show that ICT standards do not automatically imply ‘new’ approaches and structures, since formal rules are not habitually followed. Developments do not automatically take place in accordance with the ICT standard, they rather coevolve with the interpretation of the ICT standard – and may even result in circumventing it. In this way, ICT standards may differ less from ‘ordinary’ standards than expected.

We start by first linking current research on digital technologies with ICT standards. We argue that complex technological developments are often accompanied by standardization (Section 2). Section 3 presents our conceptual approach. We analyze the extent to which ICT standards serve as rules for guiding organizational activities. We differentiate between formal rules and informal routines in the three areas decision programs, communication channels and personnel (among others Kühl 2020; Luhmann 2000). Section 4 presents the empirical case study and its methodological foundations. The empirical findings are presented in Section 5, and the paper closes with a discussion and conclusion (Section 6).

2 Digital Technologies, Their Complex Development and the Role of ICT Standards

Current digital technologies such as AI, digital platforms, smart grids or blockchains herald a new era as “they pose new and significant challenges in organization science that set them apart from prior technologies” (Bailey et al. 2019: 642; see also Hanelt et al. 2021; Murray, Rhymer, and Sirmon 2021). In general, four key characteristics of these technologies stand out: (i) They are intelligent. Through the combination of data and learning processes, they can act autonomously and affect the work in organizations. (ii) The huge data quantity enables novel forms of analysis. In turn, this results in new way of e.g. controlling, measuring or directing (organizational) behavior. (iii) They have an influence on the way organizations collaborate and innovate (e.g. open innovation or science). (iv) Diffusion and adoption are faster than ever before, resulting in constant adaptations to the prevailing technological conditions in order not to be left behind (Bailey et al. 2019). Seen this way, digital technologies are ‘physical’ devices or tools which have an influence on how organizations act since their implicit assumptions are reflected in specific operations or practices (Beyes et al. 2022).

We believe that ICT standards play a vital role in the development of such digital technologies and would argue that such ICT standards are different to ‘ordinary’ standards (cf. Section 2.1.). Nonetheless, ICT standards need to be adopted by organizations. The central question is hence whether and to what extent the adoption process changes with digital technologies and the respective ICT standards and whether these standards succeed in achieving their intended contribution at all (Section 2.2.).

2.1 New ICT Standards for the Development of Digital Technologies

Digital technologies are ushering in a new era of standards that can only be understood by delimiting them from ‘ordinary’ standards. All types of standards aim at structuring organizational processes by reducing flexibility, diversity, interpretation or even chaos. In turn, they should increase safety or efficiency (Timmermans and Epstein 2010). Seen this way, standards are a form of organizing and coordinating (Brunsson, Rasche, and Seidl 2012) as they are formalized rules with the possibility to measure an outcome (Busch 2011; Loconto and Arnold 2022). Given the voluntary nature[1] of standards (Brunsson and Jacobsson 2005a; Timmermans and Epstein 2010), they are often developed by national or international standardization organizations such as the International Organization for Standardization (ISO) or the German Institute for Standardization (Deutsches Insitut für Normung - DIN) (Blind 2020), thus enabling their application by multiple organizations across national borders (Arnold 2019; Loconto and Arnold 2022).

Arnold (2019) distinguishes between three different waves of standardization that can all be summarized as ‘ordinary standards’: (i) technical standards, (ii) quality management standards and (iii) sustainability standards. In the early 20th century, technical standards had a strong social orientation. The introduction of standard measuring units or standards in industrial production was intended to boost trade and economic growth. Following the development of specific quality management standards in some countries, the first international standard (ISO 9000) was established in 1987. With this move, the focus shifted from technical to behavioral aspects. Such standards aim at improving organizational processes for a higher quality of products or services. Finally, sustainability standards aim at fostering socially and economically friendly production, trade and consumption.

All three waves hardly address technological aspects. For example, the quality management standard ISO 9000[2] aims to “increase organizational performance and to secure organizational survival” (Beck and Walgenbach 2005: 843). This standard is well institutionalized and its meaning or effectiveness is rarely questioned – it is regarded as an essential part of organizations. A central reason for ISO certification is to gain legitimacy and to present a modern image (Beck and Walgenbach 2005; Sandholtz 2012), which is why Timmermans and Epstein (2010: 82) assign such standards a “signaling function” instead of anything “material”.

Although there are commonalities between ICT standards and ‘ordinary’ standards in terms of legitimacy, e.g. specific expectations and a defendable, auditable process (Skotnes 2020), ICT standards differ from the standards described above in that their central goal is to break down and manage the complexity of multifaceted digital technological developments such as smart grids:

With the new functionalities, systems, devices and the variety of actors that come along with Smart Grid, the complexity increases. To realize such a complex and time critical system respective IT and automation technologies will have to be put in place. This complex system of systems, which need to be interconnected, demands adequate ICT-standards to enable an efficient integration and communication (Trefke, Gonzalez, and Uslar 2012: 903).

Smart grid development is often associated with a ‘fundamental’ change in the energy sector (Erlinghagen and Markard 2012) because the intended intelligent, self-regulative and communicative network infrastructure needs to incorporate technologies and physical devices from different domains e.g. sensors, software or communication protocols (Cambini et al. 2016). The energy transition is hence also a transformation from an analogue toward a digital sector (cf. also Andersen et al. 2021). The volume of data generated in the course of this digital transformation is increasingly considerably. In addition, more and more different types of data from diverse actors in the energy sector and beyond have to be exchanged, which is why pre-existing data processing and analysis programs reach their limits here (Farhangi 2010; Köhlke 2020). In this context, ICT are meant to facilitate the exchange and use of data and knowledge (Ho and O’Sullivan 2019). Data coordination is directly connected to the coordination of a multitude of actors from different sectors, and ICT standards explicitly address such issues of coordination in technological and organizational terms and are hence particularly suitable for distributing responsibilities and coordinating heterogeneous interests (Rohde and Hielscher 2021; Vial 2021). Finally, since smart grids as part of the energy sector are critical infrastructure and hence particularly dependent on high safety and security requirements, ICT standards are also meant to avert malfunction or attacks (Skotnes 2020).

Drawing this together, ICT standards are designed to be key to success. They enable the development of complex systems in an efficient and cost-effective way (Uslar et al. 2011). There is “an industry-wide consensus on a suite of standards enabling end-to-end command and data exchange between various components of the smart grid” (Farhangi 2010: 26). In this context, standards such as those investigated in the case study in this paper, the Use Case Methodology (UCM) and Smart Grid Architecture Model (SGAM) (Gottschalk, Uslar, and Delfs 2017), explicitly address the creation and documentation of interfaces and interoperability issues. Despite being only a ‘representative’ for external displays of organizational processes, ICT standards lay the ground for the development of and rules for sector activities (Scott and Orlikowski 2022).

Even though they seem to provide a reliable framework for collaboration, ICT standards need to be adopted to their specific setting, a process to which we now turn.

2.2 The Adoption of Standards and ICT Standards

To understand the mechanisms of ICT standards in organizational settings, we focus on the adoption process of ICT standards in innovation projects because complex technological developments such as smart grids tend to be organized as projects (Ryghaug and Skjølsvold 2021). There are different approaches to study how exactly standards are implemented by organizations. The key difference is whether the characteristics of the standard are changed or standards are simply copied. In this paper, we follow Beck and Walgenbach (2005), who refer to a mere adoption of existing institutionalized and structural elements or practices, which does not necessarily result in changes of standards. Other studies, however, extend this perspective by focusing explicitly on these changes, which is called adaptation. Here, standard implementation is understood as process of translating the standard rules into organizational specific rules (e.g. Brunsson, Rasche, and Seidl 2012; Skotnes 2020). Irrespective of these perspectives, the implementation of standards reveals their formal boundaries: “While standards and standardization are typically associated with notions of stability, lately researchers have taken a particular interest in the various dynamics involved in the processes of standardization.” (Brunsson, Rasche, and Seidl 2012: 621) Despite the assumed assimilation of organizational actions, standards may also promote differences (Sandholtz 2012) because non-identical interpretations (Skotnes 2020) result in dissimilar implementation or embedding of standards (Arnold 2019).

Standardization research shows that these differences can be traced back to several aspects. First, due to their external development and the resulting top-down perspective, all standards differ from hierarchically established rules and formalization (Arnold 2019; Timmermans and Epstein 2010; Ahrne and Brunsson 2011),[3] which is why standards face validity and credibility issues.[4] Second, standards are complex, abstract and not free of interpretation (Loconto and Arnold 2022): “[M]any industrial standards are sufficiently complex and ambiguous that they do not provide clear prescriptions for conduct.” (Skotnes 2020: 166) Complexity originates not only on a technological level but also results from the “constituting actors network” (Braa et al. 2007: 397), e.g. users, practitioners or even developers. These two aspects illustrate the need for an adoption to the internal conditions of the organization (e.g. Brunsson, Rasche, and Seidl 2012), which also shifts the focus to the actors who make standards work and give them a specific meaning. “A standard or a regulation does not have any natural force or intrinsic momentum. It requires agents who are prepared to make it in reality.” (Barry 2001: 75).

Empirically, there are numerous studies on the adoption process of ‘ordinary’ standards. What they all have in common is that the action-guiding potential of standards is rather low and contradictory. For example, Sandholtz (2012) highlights that different forms of ‘decoupling’ are one of the most central findings. Here, the usual organizational practices remain unaffected by the adoption. This is especially the “case where firms have a great need for legitimacy but limited internal implementation capacity” (Brunsson, Rasche, and Seidl 2012: 618). Not only the influence on structures is striking, but also the degree to which the original rules and intention of standards are adopted. Higgins, Dibden, and Cocklin (2010: 168) show that adoption focuses on “sectoral and local priorities rather than striving to meet the full requirements of the international ISO 14001 standard.” Deviations from the original intention are common. One and the same standard can therefore be used in completely different ways and contexts, depending on the actors’ interpretations (Arnold 2019; Star and Lampland 2009). Therefore, standards should generally be flexible enough to achieve smooth implementation (Braa et al. 2007). When being introduced, adoption is a balancing act between the “[formal] expectations” and “informal world of practices” or “real-life situations.” (Le Coze et al. 2017: 30)

Taken together, the adoption of ‘ordinary’ standards is neither smooth nor straightforward, and, generally, their coordination function seems to be rather subliminal. However, as outlined above (Section 2.1), ICT standards explicitly aim at managing complex technological developments, which raises the expectation that they are more prone to actually fulfilling this function than ‘ordinary’ standards. ICT standards intervene much more deeply in organizational processes because they govern the development of digital technologies from the very beginning, which could further render them more binding than ‘ordinary’ standards. This question will now be investigated empirically.

3 Conceptual Approach: ICT Standards and Their Formal and Informal Adoption

During their introduction, ICT standards, just like ‘ordinary’ standards, cannot be adopted one-to-one because their application always involves interpretation and decisions about how seriously they are taken in practice. This relates to “the interdependence of how technology organizes, and of how it is organized” (Beyes et al. 2022: 1005). Therefore, it is not the ‘technical handling’ that is characteristic, but rather the implementation, experience or usage (Saifer and Dacin 2022; see also Kane et al. 2015), which shifts the focus to ‘not apparent’ processes and the actors involved (Simon et al. 2022).

In order to analyze both the formal and informal adoption of ICT standards, we follow Besio and Tacke (2023) who suggest that a profound understanding of organizations, particularly in challenging times, can helpfully draw upon Luhmann’s organizational theory. We thereby refer to his early considerations (Luhmann 1964). The adoption of ICT standards for digital technologies involves two sides: one formal and one informal. These are rooted in the formal and informal sides of organizations (Kühl 2018), which we operationalize for the empirical analysis. While formality refers to the a priori specification of the standard, the informal side sheds light on how organizational actions in fact refer to the standard in practice (see also Kette 2019).

Both formal and informal rules are mirrored in the system-theoretical understanding in the three areas of decision programs, communication channels, and personnel (see among others Kühl 2020; Luhmann 2000). These areas classify activities and decisions in organizations. Decision programs relate to actions dichotomously as either appropriate or inappropriate, for example instructions, goals, use of programs and other work equipment. Communication channels define the information flows in organizations, for example hierarchies and competencies. The third area – personnel – points at the fact that job holders shape decisions in the organization in various ways (Kühl 2020).

Luhmann (1999) describes the daily work of organizations as jumping back and forth between formality and informality.[5] Here, informality is understood as routine, reflecting its structuring character (Kühl 2018). Even in a digitalized world, this distinction is still essential and does not lose its importance (e.g. McEvily, Soda, and Tortoriello 2014), because it “highlight[s] the limits of the purely technical-formal controllability of socio-technical systems” (Huchler 2017: 217). Table 1 outlines this perspective on ICT standards which will structure the empirical analysis and allows us to differentiate the empirical observations into their formal and informal aspects.

Table 1:

Characteristics of formal and informal standard adoption.

Formal Informal
Decision programs as a combination of and interplay between purpose programs and conditional programs for reducing complexity ICT standard sets up both the process planning (conditional programs) and targets (purpose programs) of the organizational action Follow or bypass the formal decision programs: Creation of informal approaches and routines (conditional programs) and practical goal attainment (purpose program)
Communication channels to relieve pressure by limiting possibilities ICT standard defines hierarchies, information flows and decision-making power Possible to follow or bypass the defined communication channels: Formation of new informal communication channels
Personnel as a factor influencing decisions ICT standard defines specific qualifications, roles and required knowledge Follow or bypass the defined personnel: Personnel involvement depends on informality

4 The UCM in a Smart Grid Project: Case Study and Methodology

In order to better understand the adoption of an ICT standard in a smart grid project, we draw on a qualitative case study and deductively investigate how the standard is being implemented formally and drawn upon informally. We first outline the ICT standards that are being applied in the case study (4.1) and the investigated case itself before introducing the methodology (4.2).

4.1 Standardization in the Smart Grid Domain: the Example of the Use Case Methodology (UCM)

The ICT standards commonly applied in smart grid projects are the Use Case Methodology (UCM) together with the Smart Grid Architecture Model (SGAM) (Gottschalk, Uslar, and Delfs 2017) that are defined by the International Electrotechnical Commission (IEC) (International Electrotechnical Commission 2015). In this section, we briefly introduce these standards with regard to both its technological range and its expected impact on the organizational aspects of the collaboration.

Starting with the technological range, the UCM aims to describe the main functions of a smart grid and to identify the necessary system components (Trefke, Gonzalez, and Uslar 2012). The central parts – the use cases – of the standard are defined as follows: a “specification of a set of actions performed by a system, which yield an observable result that is, typically, of value for one or more actors or other stakeholders of the system” (International Electrotechnical Commission 2015). The use cases are intended to provide an external overview of systems to be developed. For this purpose, system components are represented in two different ways. On the one hand, their relation to the system is shown and, on the other hand, the dynamics between different actors and systems are described. The objective is to present a set of instructions: What do I want to achieve and how? As some of these aspects are not available at the start of the process, development is carried out in parallel with the development project starting with approximate targets and gradually adding the technical specifications or requirements (Gottschalk, Uslar, and Delfs 2017). Therefore, the ICT standard can be understood as a ‘table of contents’ or ‘blueprint’ (see Table 2) for the future smart grid with a strong focus on the availability and accessibility of knowledge, data and used technologies (Faller et al. 2020).

Table 2:

Contents of the use case templates.

Use case template 1. Description of the use case
2. Diagrams of use case
3. Technical details
4. Step by step analysis of use case
5. Information exchanged
6. Requirements
7. Common terms and definitions
8. Custom information
  1. Source: own presentation based on Gottschalk, Uslar, and Delfs (2017).

The contents of the use cases can then be mapped in the three-dimensional SGAM[6] (see Figure 1). The aim is to create a “conceptual model which outlines the domains of the power system. It enables actors to identify their role in the context of Smart Grids and possible connections towards other actors, components, and used standards.” (Trefke, Gonzalez, and Uslar 2012: 903) By taking a holistic view of the system to be developed, both solutions and relevant technical standards can be identified (Trefke, Gonzalez, and Uslar 2012). In contrast to the UCM, SGAM not only identifies the involved actors but also their mutual relations in the physical distribution (Santodomingo et al. 2014).

Figure 1: 
Smart grid architecture model (SGAM). Source: Gottschalk, Uslar, and Delfs (2017, p. 45).
Figure 1:

Smart grid architecture model (SGAM). Source: Gottschalk, Uslar, and Delfs (2017, p. 45).

On the organizational level, the UCM is meant to structure the joint development process, provide a common understanding and facilitate the accessibility of implicit knowledge (Gottschalk, Uslar, and Delfs 2017; Santodomingo et al. 2014; Trefke, Gonzalez, and Uslar 2012).

The development of use cases, affecting this extensive group of stakeholders, requires participants with equally varying background knowledge and viewpoints. If use case descriptions shall express requirements and system functionality, and support collaboration between actors from different disciplines, like electrical engineers and IT experts, a shared methodology and tool support is required (Trefke, Gonzalez, and Dänekas 2013: 43).

Taken together, UCM and SGAM are ICT standards that aim to provide an action-steering framework for the collaboration by providing a binding rule portfolio with appropriate tool support. At the same time, the adoption of the ICT standards involve negotiation processes and its application is open to interpretation – which will be subject of the empirical investigation.

4.2 Case Study, Data Collection and Analysis

As current smart grid developments mostly take place in (innovation) projects (Boer and Verhaegh 2016; Mah et al. 2013), the empirical research draws on a single case study of such a smart grid project (Yin 2018). Especially in innovation projects, ICT standards are often applied to make tasks manageable, to provide a framework for action and to make concrete plans (Besio 2019). The project under study is inter-organizational and collaborative involving more than 30 organizations from industry, business and research from the energy sector and beyond. Structurally, the participating organizations are relatively heterogeneous and include both young and established organizations. The size of the organizations also varies greatly. During the project, new sample solutions for energy supply were to be developed and field-tested. The focus was on the topics of digitalization, flexibility and control. In addition to technology development of e.g. data platforms, the project also focused on scientific research in the field, e.g. regulations. The project had quite different focal points and not all work packages were closely interlinked. Both the heterogeneous actors and the diverse content are typical for smart grid developments. Further reasons for choosing this project for investigation were that the UCM standard was applied from the very beginning and it was possible to gain nearly full access to all relevant participants due to a high commitment on the part of the project leader.

Between autumn 2020 and spring 2021, we conducted a total of 25 semi-structured expert interviews (Gläser and Laudel 2010) with 26 project partners from the organizations involved.[7] Roughly equal numbers of interviews were conducted with project participants from research and industry. Many of the interviewees were involved in more than one work package or held different functions in the project. Therefore, different hierarchical levels, project methodology experts and associated partners were covered. As a broad spectrum is well represented in the interview sample, we were able to gain insights into almost all sub-projects and the overall context. In the end, we were able to obtain a relatively complete picture of the project that also acknowledged heterogeneous ways of dealing with the UCM standard.

Due to the coronavirus pandemic, the interviews were conducted via an online conference tool.[8] Compared to telephone interviews, this format was considerably closer to face-to-face interviews, since the use of a webcam also supports non-verbal communication (O’Connor and Madge 2017; Janghorban et al. 2014; Deakin and Wakefield 2014; Lobe, Morgan, and Hoffman 2020).[9] The interviews lasted between 25 and 75 min, with an average duration of around 50 min. The main topics related to the application and use of the UCM as well as its effects on the overall project and the internal project communication. All of the interviews were recorded, transcribed and coded with the qualitative analysis software MAXQDA.

The interviews were analyzed using a combination of theoretical and analytical categories (see among others Kuckartz 2018). The starting point for the theoretical categories was the characteristics of the formal and informal decision premises (see Table 1). These were supplemented with analytical categories that emerged during the coding. We coded with particular attention to the main topics described above, formal and informal application. In a second round, we identified empirical instances related to the three theoretically derived areas: (i) Decision programs: structural adoption of the UCM in the project, (ii) Communication channels: creation of functions and roles to handle the UCM and (iii) Personnel: division of responsibilities and labor. The analysis presented in Section 5 is based on this triad and outlines formal and informal aspects of adopting an ICT standard.

5 How ICT Standards Are Adopted in a Smart Grid Innovation Project: Case Study Results

Our empirical analysis highlights stumbling blocks, pitfalls and the reality of formal and informal aspects in each of the three dimensions of standard adoption, which we discuss in turn.

5.1 Decision Programs: Structural Adoption of the UCM in the Project

Decision programs concern the planning of the process and the project targets. The UCM is explicitly intended to impact its structure. To understand how the ICT standard[10] impacts decision programs, we first look at the project context and then turn to the resulting structures that were created to implement the ICT standard.

A priori, the UCM was an external requirement of the project’s funding program. It was hence assumed that the UCM would be used internally to identify dependencies and cross-relationships at an early stage in order to centrally manage data and technological developments (e.g. I_22_energy provider, I_07_research institution). This especially concerned the leading technological development, a comprehensive data platform, internally called the “spider in the web” (I_22_energy provider). On the organizational side, the UCM should act as a conjoint fixed starting point without the need to further negotiate other forms of coordination (I_16_ research institution, I_05_ research institution).

Despite these clear aims, the adoption of the UCM drew heavily upon formal power: The consortium leader was entrusted with the task to “get this methodology rolling” (I_22_energy provider) and reminded the partners of their obligation to use the UCM (I_07_research institution). Being a “relatively weak form of organizing” (Brunsson, Rasche, and Seidl 2012: 624), standards in general can hardly impose an action-guiding framework. In the present case, this ‘weakness’ was balanced out via authority. Therefore, one interviewee expected that, if powerful roles had not stood behind the UCM, its application would have been virtually impossible (I_05_research institution).

In contrast to this formal side, the partners enjoyed a great deal of freedom in implementing and planning their sub-projects, as only general guidelines were implemented (I_21_service organization, I_12_research institution). This implies that while it was clear that the UCM had to be applied, the contents of the sub-projects were underspecified (I_24_energy provider). This approach exhibits parallels to Rammert’s (1988) concept of “controlled autonomy”, according to which innovation processes are usually detached from rigid requirements and thus cannot be subjected to an economic-rationalistic approach. Instead, the focus is on the “organization of informal and professional self-management and control of the infrastructure framework conditions” (Rammert 1988: 215). In some cases, this intervention was viewed critically, as one interviewee describes by drawing an analogy to cutting down a tree:

[B]ut whether it is done by hand, […] a chainsaw or a crampon or whatever [ …]. Good management is also characterized by the fact that this does not happen. That I do not have to say how the work needs to be done, but rather when. (I_24_energy provider)

These tensions resulted in deviations and informal ways of handling the ICT standard. Many of the partners perceived the UCM as an onerous chore and did not follow its rules. Some partners were even unable to follow its rules as their development project was not sufficiently specified: “You could only model a system and not a process […] and this is why [the UCM] is difficult at this point.” (I_25_service organization). One interviewee highlighted a variety of open questions regarding the rigid requirements of the UCM: “We cannot answer that yet. Especially ‘Who is talking to whom? What interfaces are there?’” (I_22_energy provider).

Even at a later stage, the UCM was not used for identifying technological interfaces or considered the basis for collaboration – which is surprising given that exactly this was the expectation: “There were these promised gigantic and strategic operational implications [of the UCM].” (I_24_energy provider) In reality, the partner adopted other approaches: “But then it turned out that the people we needed the data from were not thinking in that [UCM] perspective themselves. So, we then completely bypassed that process and went to the partners to get the data.” (I_09_research institution) Interfaces and dependencies were identified in the course of face-to-face discussions rather than via the formal ICT standard. This aspect shows that the informal approach is almost contrary to the formal intention: the concrete developments hardly made any reference at all to the UCM. Instead, experiences and opinions were exchanged and further steps were discussed individually. Instead of having a “multidimensional view” (I_22_energy provider) of the project, which should be one of the central achievements of the UCM, the developments rather happened in isolation. As a result, the use cases involved were disconnected from each other (see e.g. I_22_energy provider).

As the UCM’s reach hence remained limited to formalities and did not succeed in impacting informal processes, it is not surprising to find a similar duality for the resulting project structure. While traditional project management (with work packages) would have been possible without drawing on the UCM, the UCM in turn relied upon traditional management instruments to control economic aspects such as the budget (I_24_energy provider). This was resolved by formally implementing both the UCM and the work packages.

However, planning and implementation again diverged greatly in practice. The UCM’s utility for project management remained purely on paper as a classic project structure with work packages quickly took over. This can be partly attributed to the attitude of the partners towards the UCM: Work packages as a structure were more common, as it “[is] what you know, what you use” (I_09_research institution).

Nevertheless, the UCM structure also had to be maintained. The resulting dual structure led to confusion, “because it was more or less 1:1 the same thing” (I_12_research institution). Questions of boundaries between the UCM and work packages arose and the partners could not fulfill both requirements equally.

If you have work packages on the one hand and [UCM] on the other, […] you inevitably have to orient yourself somehow more towards one or the other. For me it was the work package structure, because it better followed these individual project years and the person-months. […] With the [UCM], you kind of had the line of the whole project, […] but the structure wasn’t really there. (I_12_research institution)

The dual structure was dealt with pragmatically. The working steps were written down as traditional work packages and the project partners transferred the results into the UCM structure (I_09_research institution):

In other words, all the preparatory work for the [UCM] actually happened beforehand in the work package structure. […]. The only thing that required additional work was the specification of the data requirements. Everything else was largely copy and paste. (I_09_research institution)

What is interesting here is not only the informal approach but also the ‘misuse’ of the UCM. While the UCM rather shows an overview of the project than individual work steps (I_12_research institution), in practice, it was primarily used for the latter. This modified use implied that the UCM content was less up to date as the project proceeded: Early documentation with the ICT standard was often quickly outdated as the project progressed, new features emerged or even plans changed (I_04_research institution). Therefore, the UCM would have needed to have been updated – “a never-ending story” (I_14_ technologies software and/or hardware) – throughout the project, which was hardly possible due to a limited project budget. For many partners, the focus was on the concrete development project and not on documentation (see e.g. I_23_service organization): “It could be adjusted, but the benefit is not proportional to the effort and there are other things that are higher prioritized.” (I_07_research institution). This went along with increasingly downgrading the importance of the UCM: Drawing on the dual structure, the project partners used the greater degree of freedom to structurally marginalize the UCM. The UCM turned more and more into an onerous duty (I_04_research institution).

5.2 Communication Channels: Creation of Functions and Roles to Handle the UCM

Regarding communication channels, formal implementation of the ICT standard involved defining two new functions that were explicitly intended to facilitate communication within the project. These functions were (i) methodology experts and (ii) the people responsible for the UCM.

The methodology experts channeled communication by supporting the implementation of the UCM in the overall project, particularly in its initial stages (I_14_technologies software and/or hardware). They held introductory sessions and workshops and oversaw the creation process and the reworking of the UCM. The people responsible for the UCM were accountable for both its content and administration. They were also seen as drivers for the UCM because they collected the required information and liaised with the methodology experts (I_03_research institution). Formally, both functions were meant to create linkages, channel the communication and also relieve the project partners by providing assisting expert functions.

However, informally, the importance and significance of the two formally created functions in the project deviated from the original plan and centered more on the traditional function of work package coordinators, as one interviewee describes:

The work package coordinators actually had a more important job than originally intended. The original intention was that the work package coordinators would only be important for the communication and organizational matters and that control over implementation would be held by […] [people responsible for the UCM] […]. They were supposed to be leading the way. […] [T]he [methodology experts] were only important at the beginning of the project when it came to documentation. After that, the [person responsible for the UCM] was meant to be more important but their significance decreased because the methodology was no longer applied and then the work package coordinators became important. (I_23_service organization)

One of the reasons for this informal deviation was the temporal positioning of the UCM in the project: The methodology experts were particularly relevant at the beginning when the UCM was being created. Their close contact with the project partners gave them an enormous amount of knowledge about the overall project and its inner workings. In this mediating function, they acted as an ‘informal network’ (cf. I_03_research institution). As the project progressed, however, this knowledge advantage diminished and communication channels reverted back to the more established structures based on work package coordinators.

Another reason for reverting back to structures outside the UCM standard was the lack of a formal description of the meant-to-be communication roles. There was neither a formal description for these functions, nor were the explicated activities outlined (I_19_energy provider). The general design of the work packages was also the responsibility of the respective partners (I_24_energy provider), which underlined their high degree of importance in day-to-day communication.

Finally, the people responsible for the UCM could often not be clearly distinguished from the work package coordinators – partly one and the same person – which is why increasingly pragmatic assignments of functions were made:

I think a pragmatic view was then taken there: OK, so who covers this use case best and then the [people responsible for the UCM] were defined on that basis, but I think the project structure actually existed independently of appointing the [people responsible for the UCM]. (I_21_service organization)

Overall, compared to the work package coordinators, the newly created function of being responsible for the UCM, which was meant to be central, was reduced to a “virtual construct” (I_24_energy provider) in terms of communication. Instead of drawing on them for channeling communication, informal communication resulted from content-oriented decisions and reverted to the more familiar role of work package coordinators. While the function of the methodology expert was briefly important at the beginning of the project, it later lost importance; and those responsible for the UCM did not gain a higher degree of importance at all. Once again, this highlights the pitfall that the UCM was not seen as a basis for collaborative working. Instead of having a comprehensive view of the overall project, the responsibilities were distributed in a classical way. As a result, everyone worked on their own work package without thinking outside the box (I_23_service organization; I_22_energy provider). The lack of formal descriptions of the functions as the project progressed further contributed to undermining the functions and ultimately rendering them marginal.

5.3 Personnel: Division of Responsibilities and Labor

Looking at the personnel and their specific qualifications, roles and knowledge, it is particularly striking that the extent to which the project partners were confronted with and involved in the UCM differs highly. A key instrument for clearly assigning expertise and responsibility to certain people is the creation of a special work package. One interviewee describes it as a “home port” (I_22_energy provider), implying that they could be sure that it intensively focused on the UCM, “so I didn’t get any stomach pains worrying that something would be left out or whatever” (I_22_energy provider). This reflects the clear formal adoption of this work package that involved a handful of partners – mostly from the IT sector and those who were familiar with the UCM.

The result of this was, however, not only a clear responsibility structure, but also a further reinforcement of the previously outlined marginalization. This led to a differentiated prioritization of the UCM and discrepancies between the work packages, and the other project participants no longer had any clear points of contact with the UCM at all.

In reality, some of the partners were already done with the UCM shortly after the start of the project (I_24_energy provider). As of this date, they focused on the content-related outcomes and development projects and not on documentation according to the UCM (I_07_research institution), which rendered the UCM standard unimportant for them.

This represented a challenge because it divided the project partners into two camps. For those who had studied the UCM in depth, its purpose was clear; for those who had not, it seemed irrelevant:

But we […] had the advantage that as users of the […] [UCM], we also had an insight into what happens with them. I can also understand though if someone […] who only had to initially create the [UCM], if they see the point of them less. (I_08_technologies software and/ or hardware)

By the same token, this finding highlights that attempted standardization by no means applies to the entire project. In addition to the negligible relevance of the UCM for many partners, they also did not understand it and thus did not consider it helpful. One interviewee sums it up as follows:

I think that it remained a small clique who had thought about it intensively [ …]. But I think that the potential that would have been there could not (…) [be] fully exploited simply because too few people understood what it involved and what kind of tool it could have been. (I_22_energy provider)

The strategy of formally tasking a work package with managing the UCM had simplified the entire project. Informally, however, this had the effect that the other partners increasingly withdrew and paid even less attention to documenting their activities in accordance with the UCM. The project participants thus ranged from those who were intensively involved with the methodology (and saw it as useful) to those who treated it as a minor point (and saw it as an onerous chore).

6 Discussion and Conclusion: ICT Standards Between Their Intended and Factual Role in Smart Grid Development

This paper asks how ICT standards are integrated into formal structures and to what extent and why they are (not) followed informally in smart grid projects. ICT standards are designed to play a crucial role for technological developments as they break down the existing complexity by identifying technological interfaces and necessary requirements. However, our empirical case study revealed pitfalls and deviations when applying ICT standards such as the UCM. First, regarding decision programs, we found that the UCM defines clear rules and sets the general conditions – while explicitly leaving a certain leeway. Informally, this leeway reduced the binding nature. We found only minimalistic compliance and, in many aspects, the actors bypassed the UCM completely. The formal implementation in regard to communication channels led to the creation of functions that were meant to channel communication. However, as these functions were highly under-defined, actors instead drew upon established structures, mainly upon work packages, and thereby marginalized the specific UCM functions. Finally, regarding personnel, the project defined a specific work package to clarify the responsibility for the UCM in order to make it manageable. Informally, however, this was interpreted as a relieving function for all the other project partners who in turn withdrew from responsibility for the UCM and left its (non-) application completely up to those who were formally responsible – and who of course could not achieve the ICT standard’s full implementation alone. This makes us conclude that ICT standards by no means guarantee an action-steering framework. Rather, their adoption has many pitfalls, resulting in bypassing procedures and a wealth of informal practices. Taken together, our analysis provides a nuanced picture of how an ICT standard is spelled out in the formal and informal dimensions.

Although organizational sociology explicitly deals with the interplay of digital technologies and organizations as well as the processes involved (e.g. Hanelt et al. 2021 Marion and Fixson 2021), we still need further insights into the (changing) role of standards in a digitalized world. In this sense, our paper contributes to a better understanding of the interplay between digital technologies and ICT standards. In the following, we will highlight our findings regarding (i) the ICT’s intended and factual role, (ii) how this might trigger the modification of ICT standards, (iii) the manifold reasons for the informal deviation from the UCM and (iv) the challenges of ICT standards in comparison to those of ‘ordinary’ standards.

First, the analysis gained insights into the relation between the ICT standard’s intended and its factual role. ICT standards are being introduced to achieve technological interoperability in technologically complex smart grid projects, for example. They hence fulfill a crucial function in the development of innovative solutions towards a more sustainable society (cf. Andersen et al. 2021). At the same time, ICT standards face difficulties in living up to this promise, even at the technological level. A key question is therefore what they can really achieve, including driving and supporting digital transformation. While we empirically find serious limitations in the degree to which actors factually apply the ICT standard, it nonetheless fulfills a crucial role. The UCM defines common ground at the beginning of the project, and even though not all actors cohere to this ICT standard during the project’s progress, it serves as a common point of reference for the project.

Second, the outlined gap between the ICT standard’s intended and factual role could also be interpreted as a trigger for its modification and further adaptation. Standards are generally not static. Regarding the UCM, recent contributions have suggested to additionally consider a social level in the SGAM model which might help to increase its applicability (cf. Paustian et al. 2022). We also find current adjustments to trends and technological progress: For example, the UCM standard offers flexibility to integrate other digitalization developments such as artificial intelligence or big data (Leiva Vilaplana et al. 2022), which will also play a role in supporting and managing smart grid development in the future. This implies that instead of dismissing the role of ICT standards, we rather conclude that ICT standards for digital technologies are still in an ‘emerging phase’. Compared to ‘ordinary’ standards, ICT standards are not yet taken for granted and not well institutionalized in organizational processes. Just as for standardization in general, ICT standardization is dynamic and the (successful) standard implementation follows a reciprocal premise. Here, constant feedback is needed between different phases of standardization: formation and also diffusion (Botzem and Dobusch 2012). As a result, ICT standards are starting to adapt to organizational needs and are expected to undergo further processes of change in the future (see also Faller et al. 2020).

Third, we find several reasons why the application of the UCM standard deviates from its formal intention. Various factors such as incomplete requirements, management practices and false decisions play a role (Hanseth et al. 2006). As in other investigated cases (Faller et al. 2020; Schütz, Uslar, and Clausen 2022), two central reasons stand out: First, the different sectors involved in smart grid development bring their own established tools and methods for technology development with them. For many actors, the UCM presents a new way of working and even thinking that is far more challenging than simply drawing upon the familiar tools. Second, the ICT standard is designed to structurally link different organizations, sectors and systems beyond day-to-day business. In reality, however, structural connections are not a shared priority of the partners involved. Instead, smart grid projects often build upon different individual solutions and fragmented knowledge. In this sense, the main weakness of the ICT standard is its holistic approach that was intended to impact many organizational processes and levels, but did not succeed to do so.

This leads, fourth, to the relation between ICT and ‘ordinary’ standards. While the aspect outlined above underlines a central difference between ICT and ‘ordinary’ standards, i.e. that ‘ordinary’ standards tend to focus on single organizational aspects while ICT standards explicitly adopt an overarching perspective, there are also major similarities. The gap between formal definition and factual implementation is also highlighted in ‘ordinary’ standardization literature: “Very few standards work as intended by the designers of standards because they are tinkered with, whether slightly or fundamentally.” (Timmermans and Epstein 2010: 81) Likewise, Sandholtz (2012) shows that the initiative to introduce standards in general usually stems from organizational authorities, i.e. the management level, and does not lead to success informally at the operational level. All types of standards have to be integrated into daily work routines, which is far more challenging and regularly results in failure. Otherwise, standards “become decoupled from technical work” (Sandholtz 2012: 671). The same is true for ICT standards: Our data shows that the cross-system and holistic UCM standards cannot simply be imposed by management. Therefore, it is organizational practice that impacts how powerful an ICT standard will be.

In conclusion, the adoption of ICT standards is a challenging process that takes place in constant interplay between formal organizational structures and their informal adoption. The triad of decision programs, communication channels and personnel can serve as a useful analytical tool to differentiate between the formal and informal aspects in the adoption of ICT standards. Although the duality between formality and informality is nothing new in organizational studies, our paper explicates the adoption process of new ICT standards in a detailed manner for current digital technologies such as smart grids.

As the findings of this paper are based on a single case study, it has some limitations. Organizational practices are as unique as the ICT standards themselves, which would initially speak against the generalizability of the empirical findings: “[O]rganizational practices [may] differ despite implementation of the same standards” (Arnold 2019: 15). However, the chosen context of a case study is typical for smart grid developments, which supports the theoretical generalizability of the observations. Further research should nevertheless conduct comparative case studies, for example by adopting a multiple case study approach (Yin 2018). Such studies could also investigate how and where the ICT standard is rooted in organizations and how this affects its adoption. Another open question is how important it is to cognitively understand the function of the ICT standard to be able to interpret it and adopt it as intended. Finally, organizations themselves change in the course of digitalization which affects the way any standard can guide and coordinate the associated activities (Scott and Orlikowski 2022). Thus, the study on hand provides a starting point for further research.

With an increasing degree of digitalization and the introduction of ever new digital technologies in organizations, the importance of ICT standards, their adoption into organization-tailored rules and their informal integration into daily routines are critical aspects that will even become more important in the future. Understanding these processes hence becomes a core interest of organization scholars with still a lot of work to do.


Corresponding author: Sabrina Paustian, Institute of Social Sciences, 11233 Carl von Ossietzky Universität Oldenburg , Oldenburg, Germany, E-mail:

Acknowledgments

This research took place in the research training group SEAS (Social Embeddedness of Autonomous Cyber Physical Systems) in the graduate program ‘Modelling of Social Embeddedness through Use Cases and Architecture Models in the Context of Innovation Processes of ACPS’ financed by the University of Oldenburg. We thankfully acknowledge this funding. We also thank our interview partners for their time and openness as well as the participants of the organizational sociology colloquium (TU Berlin) and our working group for helpful comments on a previous version of this paper. We would also like to thank the editor and two anonymous reviewers for their comments which significantly improved the paper.

Appendix

Appendix 1: Overview expert interviews

Identifier Sector/field of activity
I_01 Research institutiona
I_02 Research institution
I_03 Research institution
I_04 Research institution
I_05 Research institution
I_06 Research institution
I_07 Research institution
I_08 Technologies (software and/or hardware)
I_09 Research institution
I_10 Energy provider
I_11 Service organization
I_12 Research institution
I_13 Technologies (software and/or hardware)
I_14 Technologies (software and/or hardware)
I_15 Service organization
I_16 Research institution
I_17 Research institution
I_18 Research institution
I_19 Energy provider
I_20 Energy provider
I_21 Service organization
I_22 Energy provider
I_23 Service organization
I_24 Energy provider
I_25 Service organization

a“Research institution” is a collective term for both private and public research institutions.

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Received: 2023-02-22
Accepted: 2024-02-01
Published Online: 2024-02-23

© 2024 the author(s), published by De Gruyter, Berlin/Boston

This work is licensed under the Creative Commons Attribution 4.0 International License.

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