1. Strategies LLC Taxonomy November 19, 2009Copyright 2009 Taxonomy Strategies LLC. All rights reserved. Taxonomy Best Bet ROIs Joseph A Busch, Founder & Principal

2. 2 Taxonomy Strategies LLC The business of organized information My best bet ROI’s v Merchandising, cross-selling, up-selling v Aggregation, syndication, RSS feeds, alerts v Compliance, transparency v Business rules

3. 3 Taxonomy Strategies LLC The business of organized information Merchandising: A case study Conversion rate for product findability$8M per year v $80M web sales net income v 10% conversion rate increase Lift in order size from satisfaction$8M per year v $80M web sales net income v 20% lift Faceted searching & shopping Redesigned site architecture, search engine + Taxonomy

4. 4 Taxonomy Strategies LLC The business of organized information Findability = Cross-selling product categories: Some examples v Locate categories in multiple Departments for cross- merchandising. Tools > Air Compressors, Air Tools & Accessories > Air Compressor Accessories > Tire Gauges Vehicle Maintenance & Accessories > Tires > Vehicle Tire Repair > Tire Gauges Parts > Tires > Vehicle Tire Repair > Tire Gauges Livestock > Livestock Buckets & Tubs > Buckets & Pails Home Improvement > Hardware > Cleaning Equipment & Accessories > Buckets & Pails

5. 5 Taxonomy Strategies LLC The business of organized information A cross-selling product category strategy: Subcategories vs. attributes Pros  Easier to categorize products into sub-categories.  Easier to change product sub- category when there is a mistake or when merchandiser requests.  Cross-marketing is by category. Cons  Difficult to get consistent attributes at the SKU level.  SKU level Type attributes are especially difficult to apply consistently.  Cross-marketing is SKU-by-SKU.

6. 6 Taxonomy Strategies LLC The business of organized information Syndication: A case study 10-50% premium for precise content$240K to $1.2M/yr v 100 customers v $2,000 monthly subscription 50-100% more customers$1.2M to $2.4M/yr v 100 customers v $2,000 monthly subscription Precise, dynamic content packaging Enterprise Syndication System + Taxonomy

7. 7 Taxonomy Strategies LLC The business of organized information Aggregation, RSS feeds, alerts

8. 8 Taxonomy Strategies LLC The business of organized information Compliance, transparency: Keeping the metadata with the data v IMF time series  World Economic Outlook (WEO) in October 2009: Organization of Petroleum Exporting Countries includes Angola (which joined OPEC in January 2007) and Ecuador (which rejoined in November 2007, after suspending its membership from December 1992 to October 2007).  WEO in October 2006: OPEC does not include Angola and Ecuador. AttributeValue GroupOPEC PeriodAug 2009 MBD Reduction 2.8

9. 9 Taxonomy Strategies LLC The business of organized information Compliance, transparency: Keeping the metadata with the data Data disaggregated from its source Cool weather, flagging imports and a surging oil market are driving up natural gas prices as the US enters the summer cooling season, the Energy Information Administration said Tuesday as it raised its projected second-quarter Henry Hub spot price by 16% to $10.20.

10. 10 Taxonomy Strategies LLC The business of organized information Information collaboration: Taxonomy business rules v Taxonomies can do more than sell vacations, cars, and cruises. v Taxonomies can help us decipher complex issues  Help citizens select health insurance policies.  Help parents find advice on handling with under-age drinking.  Help high school juniors find colleges with particular programs.  Help pharmacists find generic drugs to substitute for brand names.  Help nurses identify side-effects of medication or medical devices.  Help telephone sales reps correctly describe packaged products.  Help procurement professionals purchase computer equipment.  Help managers share better management practices.

11. 11 Taxonomy Strategies LLC The business of organized information Business rules: Drug example v Model  Drug IS_TREATMENT_FOR Medical Conditions  Trade Name IS_TRADE_NAME_FOR Drug v Identify drugs that could be used to treat high cholesterol.  Statins IS_TREATMENT_FOR High cholesterol  Lipitor IS_TRADE_NAME_FOR Statins  Lipitor IS_TREATMENT_FOR High cholesterol v Link to:  Technical details such as the chemical compound.  Other resources on how to control cholesterol.

12. 12 Taxonomy Strategies LLC The business of organized information Taxonomy “best bets” ROI summary v Improve findability. v Enable dynamic publishing and alerts. v Link structured data and less structured information. v Discover relationships.

13. Strategies LLC Taxonomy November 19, 2009Copyright 2009 Taxonomy Strategies LLC. All rights reserved. Questions? Joseph A. Busch, +1-415-377-7912, jbusch@taxonomystrategies.com www.taxonomystrategies.com jbusch@taxonomystrategies.com www.taxonomystrategies.com