1. A Brief Examination of the Strategic Plan for the U.S. Integrated Earth Observation System (IEOS) Earth & Ocean Observing Business Model Capitol Hill Oceans Week 2006 From Vision to Venture: The Business Case for Ocean Observation June 14th, 2006 Scott J. McFarland, P.E. Business Development The Boeing Company

2. Oceans Ice Land Atmosphere Solid Earth Biosphere Earth System Models Remotely-sensed In-Situ Earth Observation Systems High Performance Computing. Communication & Visualization Predictions Decision Support Ongoing Feedback to Optimize Value and Reduce Gaps Standards & Interoperability DATA Observations Assessments Decision Support Systems Business-Model / Operational-Model from the U.S. Strategic Plan for IEOS U.S. Strategic Plan - Model Existing Management Decisions Societal Benefits Policy Decisions Start Here From the: Strategic Plan for the U.S. Integrated Earth Observation System, (IEOS), Page 15 (25 of 84), by the Inter-Agency Working Group on Earth Observations (IWGEO), 2004

3. Management Decisions Oceans Ice Land Atmosphere Solid Earth Biosphere Earth System Models Remotely-sensed In-Situ Earth Observation Systems High Performance Computing. Communication & Visualization Predictions Decision Support Ongoing Feedback to Optimize Value and Reduce Gaps Standards & Interoperability DATA Observations Societal Benefits Policy Decisions Assessments Decision Support Systems Suggested Business-Model for the U.S. Integrated Earth Observing System (IEOS) Private Sector End-Users Private Sector Businesses that Generate Profit & Taxable Revenues Raw Data & Value-Added Information Ingest & Use of Valuable Knowledge & Information Actionable, Wealth Creating & Revenue Generating Data U.S. GDP Increased Tax Revenues Increased American Competitiveness Enhancement Impactual Solution for US Gov't Economic Priorities Private Sector moves Requirements/Needs Data to optimize Earth Observing Systems and Models, to enhance output value and taxable revenues Increased U.S. Tax Revenues as Consequence of Accelerated Value-Added Revenues UST & OMB $ $ Rigorous & Tangible Financial "Valuation" of System Performance, From Private Sector Integration U.S. Strategic Plan - Model Suggested Start Here

4. Management Decisions Oceans Earth System Models Earth Observation Systems Predictions Decision Support DATA Observations Societal Benefits Policy Decisions Critical Model Areas To Address Private Sector End-Users Private Sector Businesses that Generate Profit & Taxable Revenues Raw Data & Value-Added Information Private Sector uses outputs to generate U.S. GNP Growth & U.S. Taxable revenues UST & OMB $ $ U.S. Strategic Plan - Model Areas to Address Private Sector "Needs" to Drive Ocean Observations That Create Wealth (Demand-Pull) Grand Canyon between Gov't & Industry Bridge Existing Economic Valuation Tools Fail. Replace with New, Effective Metrics Tools Use Public-Private Partnership Architecture to Integrate Ocean Observing in Gov't & Private Sectors. Integration enables financial valuation determination Gov'tIndustry ?

5. Back-Up Slides

6. 1.Research 2.Research -to- Operations 3.Research -to- Operations -to- Value $MM Spent Time$ 0 $MM Gained Breakeven ROI $MM Spent Time$ 0 $MM Gained Breakeven ROI $MM Spent Time$ 0 $MM Gained Breakeven ROI $ Valuatable? No $ Outcome ? Possible $ Outcome ? $ Valuatable Outcome Ocean Observing Systems - Value Chain Outcome Variations

7. NOAA - Business Model (Current) LEADERSHIP

8. NOAA - Business Model - (In-Process)