1 Slide 1 Ontolog Conference Call – 20 April, 2006 Ontologizing the ONTOLOG Body of Knowledge W hat In It for Me? – Engineering the Value Proposition for the ONTOLOG Community Patrick Heinig (Panelist) Senior Enterprise Architect, US Environmental Protection Agency, on detail from the Department of Commerce Interactive Panel Discussion: 130 – 330 PM, EDT,

2 Slide 2 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content Value Value Delivery System Choose the Value Create the Value VALUE PROPOSITION … is the output of this phase … Established the needed results … Established the existence of the capabilities for the targeted communities The Value Delivery System Communicate the Value

3 Slide 3 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content A value proposition is defined as a promise made by a supplier of goods and services to a customer about the benefits (Whats in it for me) that the supplier will deliver (and the price it will charge in the case of a business operating for profit.) Consider two examples of value propositions relative to a small car mechanic: 1. High Quality repair work, done when promised, at a slight premium, or 2. Decent repair work at a low price. Or consider these approaches in the context of library services: 1. Up to date competitive information provided daily in an easy to read format at the users desktop for a competitive price, or 2. Top notch information services provided on a regular basis designed to increase productivity in users in their data gathering efforts and reduce overall costs to the organization. In a good value proposition, the benefits will be explicitly stated and specific to the targeted customers. The value proposition shold be linked to the user results required. The Value Proposition – What is it?

4 Slide 4 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content A four step process is used to develop a value proposition: 1. Segment the market. 2. Select Target Segments 3. Develop alternate value propositions 4. Decide on a value proposition This is an interactive process. In order to select target segments, the value proposition that will most appeal to these target segments and the ability to deliver on this value proposition must be understood Developing a Value Proposition

5 Slide 5 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content Segmenting the market is simply dividing the market into smaller specified groups based on parameters such as 1. Demographics 2. Product Service Benefits desired 3. Audience sophistication Regardless of the approach, segmentation should be based on the answers to both of these questions: 1. What does the segment want ? 2. Can you effectively reach this segment with the desired benefits? Value-based segmentation describes segments based on levels of benefit to be provided – Users choose products and services based on their perception of value. Care should be taken to determine exactly what segments can be supported successfully (There may have to be some judicious choosing to meet identified constraints). Segmenting the Market

6 Slide 6 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content Develop an hypothesis of what is important to the user. Through: 1. Discussions with users 2. Interviews, Surveys, focus groups 3. Demo of proposed capabilities The data collected should be analyzed with a view toward similarities or clusters. Attributes can be rated and ranked according to the desired outcomes for the segment. Once this analysis is complete, then effective criteria can be identified can be used to refine the profile of a segment to be served with some feature of Ontolog content services. Selecting Target Segments

7 Slide 7 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content Based on the value-based segments selected and the benefits (and costs to provide these benefits) relative to each of these segments, alternative value propositions will need to be developed. A variety of factors need to be assessed in order to consider trade offs to be made in the solution space fitting the segments desired end benefits. The appeal of alternate value propositions should be determined for each major segment for which we seek to provide ontolog knowledge base products or services. This is done by determining the top attributes that are required by our offerings and then to create a value proposition that promises exceptional performance on them. In these discussions, it is important to note whether the organization is in a position to deliver on the capabilities identified to match a value proposition. The goal is to determine the appeal of alternative value propositions for each target segment and then to determine which value proposition will be the most successful for as many of the segments as possible. Developing Alternative Value Propositions

8 Slide 8 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content Once segment overlap is determined, the value proposition that best addresses overlapping attributed can be determined by answering such questions as: 1. What kind of volume/user mix are we likely to experience 2. Which leads to the best return, e.g., the best economic value for users, measured not just in terms of dollars but in time savings, higher productivity, better decisions 3. At what cost and investment can we deliver on the promise? What changes will be need to be made to the current environment to deliver the products/services effectively? 4. How sustainable/viable is the approach likely to be? Deciding the Best Value Proposition

9 Slide 9 Ontolog Conference Call – 20 April, 2006 Ontologizing ONTOLOG Content Once the value proposition has been determined, the value delivery must be implemented to ensure the ongoing success of the chosen value proposition. The deliver is composed of three basic components: 1. Choosing the value: The process of deciding what you will deliver to the ser population – in effect the process of developing the value proposition 2. Creating the Value: The process of designing, producing (or procuring), delivering and servicing a product (including a service) at a certain price 3. Communicating the Value: The process of telling the target user segment what is promised through marketing, mission statements, promotions, training, messages. The Value Delivery System