BOWKER . . . We Power the Business Of Books Global Data Synchronization Network (GDSN) A Program to Assess the Book Industry’s Potential 6 November 2007

BOWKER . . . We Power the Business Of Books GDSN . . . What Is It? - Data Synchronization is the electronic transfer of standardized product and location information between trading partners and the continuous synchronization of that data over time – data is always up-to-date. - Product information including: Item attributes controlled by the supplier e.g., Global Trade Item Number (GTIN), size, weight, height, brand, UPC code. - Location information including: Global Location Number (GLN) locations involved in trade such as company headquarters, billing departments, and ship to addresses Continuous synchronization means that it is not one and done – it is intended to be an ongoing business process

GDSN Overview . . . How it works BOWKER . . . We Power the Business Of Books GDSN Overview . . . How it works GS1 Global Registry: A single repository where basic data is registered, identifies the data pool location of source data. Bowker/ 1SYNC Data Pool Services provide source and recipient data pool services. Services provide data that is standards conformant, interoperable in the GDSN and is validated for brand owner accuracy. The data pool performs the transactions of sending and receiving validated product information between partners inside or outside the 1SYNC Data Pool. Step 1: Load Data Step 2: Register Data Step 3: Subscription Request Step 4: Publish Data Any Supplier or Retailer selects one data pool as a single point of entry to the GDSN.

BOWKER . . . We Power the Business Of Books GDSN . . . What Are the Benefits? Generally: - Improves market share by increasing speed to shelf for new items. - Reduces out-of-stocks. - Reduced shelf-tag and checkout errors in stores. - Builds foundation for future applications. - GDSN has the potential to reduce dramatically the number of delivery errors and lost sales resulting from the use of inaccurate and outdated data in invoicing and purchasing orders.

BOWKER . . . We Power the Business Of Books GDSN . . . What Are the Benefits? For Booksellers: - Single source solution. - Receive title information from multiple publishers. - Receive item information across multiple product lines. - More accurate and timely data, including product update records. - Less likelihood of duplicate records with a single-source approach.

BOWKER . . . We Power the Business Of Books GDSN . . . What Are the Benefits? – Cont’d For Booksellers: - Subscribe to updates on specific items only /Or, subscribe to updates on all items from a supplier. - GDSN permits robust search capabilities across all data and allows retrieval by only the GTINs that are of interest.

BOWKER . . . We Power the Business Of Books GDSN . . . What Are the Benefits? For Publishers: - Easier communication of data. - Reduces the number of data feeds needed by type, version or customer. - Potential to increase the number of customers taking electronic updates of title information. - Better data integrity.

BOWKER . . . We Power the Business Of Books GDSN . . . Why It Matters - “Big Box” retailers are using GDSN data pools and will demand book data be available in the near future. - Big Box distribution is an increasingly growing share of publishers’ revenue. - Book retailers also showing interest: “One Stop Shopping”as book retailers sell more than books, and some of the other products they sell are already in, or being tested in, data pools. - As GDSN grows to incorporate more attributes, it could one day supplant ONIX.

BOWKER . . . We Power the Business Of Books GDSN . . . What’s New - Annual Certification – August Timeframe. - No major modifications to messaging; however, specific enhancements include: new attributes, addition of price. - Multi-Source, Sales & Marketing attributes and images are the 3 biggest enhancements scheduled for next year but no change to messaging protocol. - Addition of GPC codes, new attributes happen quarterly. - Big Box mandate.

BOWKER . . . We Power the Business Of Books GDSN . . . Keys to Successful GDS - Clean source data: Back-end data sources commonly contain duplicate and erroneous information. - A single statement of record: Data accuracy improves by having a ‘single statement of record. - Systematic item management: Trade item information is commonly “owned” by different constituents within an organization, and thus, managed by means of fragmented processes. - Communication with data pools: Trade item data must be synchronized between manufactures and retailers before transactions can occur. Data pools function as the central repositories for instantly communicating standardized data.

Proposed Bowker GDSN Solution Publisher Bowker Middleware Publisher Internet 1Sync AS2 Connection TIE Hosted Onboard Support Publisher Capabilities 1Sync validations performed in hosted database Staging environment for aggregating data Web GUI to… Manage Customer GLNs and MarketGroups Reviewing & editing data Query product status at 1Sync Advantages Bowker converts data to required format No development needed by publishers Simplify data sync for publishers Automate process for publishers Publishers control what to sync to who 1Sync Certified

BOWKER . . . We Power the Business Of Books Bowker’s GDSN Pilot Program Particulars - The purpose of this pilot is to demonstrate GDSN can support the Publishing Industry and lay a roadmap for future implementation. - As such, there is no financial commitment to participate in the pilot, and no obligation post-pilot to subscribe to Bowker’s GDSN offering.  - Advantage of Pilot Participation: Gain GDSN process knowledge; understand capital and resource commitment; understand planned Bowker offering.  

BOWKER . . . We Power the Business Of Books Pilot Program Particulars   Pilot Program Participants: Bowker / 1SYNC / TIE COMMERCE 2-3 publishers to participate – Random House has committed. 1-2 distributors to participate – Anderson Merchandising has committed. 2-3 retailers to participate (Wal-Mart / Wegman’s /AAFES have committed.

BOWKER . . . We Power the Business Of Books Pilot Program Particulars Pilot Program Commitments: - All pilot participants agree to full disclosure of results and business impact experienced during pilot phase. - Participants also agree to dedicate a resource to this initiative to participate in all meetings and activities and who’s primary focus will be on completing a successful pilot. Estimated Pilot Program Time Frame: Overview (Dependent on Participant Activity) - Project Planning: 2-4 weeks - Publisher Setup & Testing: 3-4 weeks - Item Publication and documentation: 3-4 weeks

BOWKER . . . We Power the Business Of Books Pilot Program Particulars   Pilot Program Process: - Publishers will supply ONIX file of 25 – 50 items (GTINS) to be synced. - Bowker/TIE/Pubs will convert ONIX files (mapping established). - Bowker/TIE/Pubs will forward converted data for each pub to 1Sync. - Bowker/TIE/Pubs will review and fix any errors that prevent item uploading. - Bowker/TIE/Pubs will enter GLNs of retailers and distributors that products will be synched with and publish items to those recipients.

BOWKER . . . We Power the Business Of Books Pilot Program Process: Cont’d - Retailers/distributors/1SYNC will confirm receipt of published items, review and provide qualitative feedback. - Retailers/distributors/1SYNC will test messaging by rejecting some items for each publisher, accepting others, and testing other response types. - For subset of items per publisher that retailer or distributor responded with “sync” to, Publisher/Bowker/TIE will make changes to those items and upload to 1SYNC. - Retailer/distributor will confirm receipt of changes as result of sync. - Same two above steps for some items that the publisher will delete /withdraw. - When all above are completed, pilot will be considered a success!         

Bowker Pilot Program Partners BOWKER . . . We Power the Business Of Books Bowker Pilot Program Partners www.1sync.org www.tiecommerce.net

BOWKER . . . We Power the Business Of Books Any additional questions pertaining to the pilot should be addressed to: Ian Singer / Vice President, Data Services – Bowker (o) 908.219.0238 (c) 917.886.0718 ian.singer@bowker.com