Maria Eugenia Beltrán (INMARK) EARLY ADOPTERS WORKSHOP Jun 22 nd , 2010

1. The Business of Semantics Maria Eugenia Beltrán (INMARK) EARLY ADOPTERS WORKSHOP Jun 22nd, 2010

2. Summary of Value-IT activities Our work is yielding both data and techniques to generate business activity 1 • Our Task: Demand Analysis • What apps does the industry want? • What’s are the barriers? • What are the hot opportunities? 2 • Our Method: Strategic analysis • What categorizes the market and its opportunities? • How do we communicate this simply? • Our Task: Roadmap and Awareness • Roadmap: Map Supply and Demand Together now and in the future • Raising awareness among industry players 4 • Outcome: Business Development • Bridging the language gap between Demand / Supply, Executives and IT • Where do we focus our efforts? On what companies, what applications? 3 • Roadmap: Map Supply and Demand Together now and in the future • Raising awareness The Value-IT Project is a resource for you – it is designed to help suppliers meet the Demand in the market

3. Background • General need to accelerate EU innovation impact • producing socio-economically relevant RTD results • foster integration of ongoing RTD efforts • Specific need and opportunity to foster market transformation for STE • development of business oriented solutions • implement more integrated - multidisciplinary and cooperative - approaches

4. Objectives • To identify key needs, expectations and constraints for innovation where STE based applications could provide advanced while mature and usable technological solutions. • To identify and rank “fertile” market segments • To raise awareness among decision makers in targeted industries • To promote dialogue between STE suppliers and future users • To identify channels and activities aimed at maximising the impact of STE on businesses, accelerating take-up of STE solutions

5. Expected Impact • Better understanding of paths, channels, allies and opponents for “crossing the chasm” • Better chances for improving socio-economic relevance of future RTD • STE players in better shape for travelling along the Research > Innovation > Business > Profit trails. Source: based on the Crossing the Chasm Curve – Moore 1991

6. Target Group Industries • High Economic Value • Data Volume/Complexity • Sizeable International Markets • Sophisticated ICT base DEMAND Obtain 50 in-depth interviews & 625 quantitative interviews • Applied RTD Players • STE Vendors • Integrators • Embedders • ICT Catalysts & Multipliers SUPPLY

7. Demand Analysis:The Research Process Rest of Europe included: Austria, Belgium, Portugal, Czech Republic, Poland and Netherlands.

8. Awareness – Good & Bad News Yes, have heard about Semantic Technology (41%) • High Awareness and increasing • General lack of awareness about the STE applicability in the Enterprise • There is not a clear view of how it could be implemented in their companies

9. Priority Enterprise Needs : • Interoperability • Searching/linking info. • Collaboration • Biggest gap: • Decision support • KM Top for +60% Applications Priority “Most companies already have solutions implemented for needs”

10. Key Findings Variations by Company Size & Geography • Application priorities vary considerably according geography • No single application is ranked a top priority in all countries • Application priorities are consistent across company sizes • Small Co.  high on knowledge management and business intelligence • Large Co. high on decision support and interoperability • The need/implementation gap higher in large companies for business intelligence, knowledge management, managing “big data”, and R&D applications.

11. Priority Need - Interoperability • Enterprise Interoperability • 64% have implemented interoperability solutions • Half already share knowledge extensively across the Enterprise • 9% who rate interoperability as a strong need have no implementations • Approaches to Knowledge Integration • Most common  Building interoperable databases  - 50% mature projects • 1/3 mapping business processes  1/4 mature initiative SOA (16% no SOA) • Rules Engines & Tagging for knowledge is uncommon (80% no projects)

12. Priority Need - Interoperability • 60% rate interoperability as a strong need • 39% need interaction among many departments different geo-locations Data Interaction between departments

13. Priority Need – Search & Linking • Most mature applications • 71% have deployed some kind of search and linking solution • 56% rated it as a strong need - Only 7% as not important at all • 6% who rate search and linking as a strong need have no implementations • No main differences by company size • By geography – Italy rated the importance much lower than average but has highest reported cross-Enterprise knowledge sharing • Media & Entertainment reported gap twice of the average • Life Sciences companies, are more likely to have solutions for this need STEs will need to add value to the systems that already exist rather than attempting to replace them

14. Priority Need – Collaboration • Companies of all sizes rate collaboration as a strong need • 55% rate collaboration as a strong need • 11% rate collaboration as not important at all • 44% look toward consumer-oriented applications, such as Web 2.0, for innovation in collaborative systems • Gap = 9% who rate collaboration as a strong need have no implementation • France and Italy considered Collaboration more important need • Germany and the UK considered Collaboration less important need

15. Priority Need – Biggest Gaps DECISION SUPPORT KNOWLEDGE MANAGEMENT • 48% it is a strong need • 46% have KM implementations • 12% rate it as not important at all • All sizes rate KM similarly • Gap= 14% • 49% it is a strong need • 47% have implemented solutions • 14% rate it as not important at all • Larger give more value than smaller • Gap= 15%

16. Priority Enterprise Needs : • Interoperability • Searching/linking info. • Collaboration • Biggest gap: • Decision support • KM Top for +60% Applications Priority “Most companies already have solutions implemented for needs”

17. Capabilities Map • Interoperability of heterogeneous data sources or services (x axis): Data are tagged, according to their meaning, in a machine-processable way • Conceptualisation of raw data (y axis): Data is upgraded to conceptual level allowing extended capabilities: artificial intelligence, new information inference, consistency checking, natural language understanding or generation, etc.

18. Corporate IT activitiesin Business Contexts Certain firms require applications to bridge diverse business contexts Accounting Marketing Global Manufacturing Company: Diverse Knowledge Resources and Business Processes Marketing terms Financial System and processes Sales, France R&D CRM Accounting Supply Chain (SAP) 1 office, Financial Database Sales Process (France) Sales, UK Supplier, China Local Accounting Firm: Single Knowledge Resource and Business Process Sales Process (UK) Not Diverse Business ContextsDiverse Business Contexts

19. Utilities Process

20. Where in the capability map?

21. Findings: Requirements and Barriers Various requirements and barriers imply a tactic: how to approach the market Opportunity: Consulting Services Essential For Adoption • Enterprise skill-sets/personnel: Essential for adoption • Addressing change-management issues and gaining buy-in: Essential for adoption Barriers to Adoption • Enterprise buying habits, available channels: limiting adoption • Confidence in the technology as a category (ontologies):limiting adoption • IPR sensitivity and/or inhibitors to open data: deterrent to adoption • Hype curve sensitivity: terminology is a moderate deterrent • Security still a concern Opportunity: Channel Development Points for Improvement Opportunity: Business Development / Strategic Selling • Confidence in the sustainability of the supply-side: STE products not to be productised and separately branded • Market messages from the supply-side: not very convincing • Many IT decision-makers have little knowledge of STEs applicability BUT want to know more

22. Main Conclusions Is there a market? And if so, where? • The components of an STE market exist • There is evidence of both market growth and supplier consolidation • No Technological dominance, by particular companies or regions • All economic sectors (vertical) permeable for STE. • Functional areas being immediately addressed by STE include: • Business Intelligence, Human Resources, Marketing (indeed all customer-facing applications), Product Development and Innovation • Drivers: Linking and relating data and content (I&K) data growth • Opportunities are likely to be progressive rather than disruptive We will cover Specific Targets in the Business Development Section…

23. STE Product Market Potential STE Product Market Potential by Vertical Sector – Base Case 2014 (millions of Euros) Total Market 2014: 260,2 millions € Provisional estimate of product market potential, Ovum/Datamonitor We will cover Specific Targets in the Business Development Section…

24. Project Status PUBLISHED • STE TechnoVision Report • Interim Demand Driven Mapping Report • A Use Case Scenarios Collection • Final Demand Driven Mapping Report • Final Roadmap Report • Final Report PUBLISHED PUBLISHED PUBLISHED FORESEEN SUMMER 2010 FORESEEN SUMMER 2010

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