Production Process vs. End Product Focus
The primary difference between standard industrial classification systems lies in their structuring philosophy. The North American Industry Classification System (NAICS) groups establishments based on their production processes (how they work) [1]. In contrast, the legacy Standard Industrial Classification (SIC) system groups them by end product or market destination (what they produce) [2].
The International Standard Industrial Classification of All Economic Activities (ISIC) is the United Nations standard that acts as a global baseline concordance [3]. While NAICS is used primarily in North America (US, Canada, Mexico), ISIC is used globally by international bodies to compare macroeconomic activity across continents.
Worked Example: System Mapping Comparison
| Classification System | Code | Name |
|---|---|---|
| U.S. NAICS (2022) | 541511 | Custom Computer Programming Services |
| Legacy U.S. SIC (1987) | 7371 | Computer Programming Services |
| UN ISIC (Rev.4) | 6201 | Computer programming activities |