Transcript Taxonomy ROI - Taxonomy Strategies

Taxonomy Strategies LLC
Taxonomy Best Bet ROIs
Joseph A Busch, Founder & Principal
November 19, 2009
Copyright 2009 Taxonomy Strategies LLC. All rights reserved.
My best bet ROI’s
 Merchandising, cross-selling, up-selling
 Aggregation, syndication, RSS feeds, alerts
 Compliance, transparency
 Business rules
Taxonomy Strategies LLC The business of organized information
2
Merchandising: A case study
Redesigned site architecture,
search engine
+ Taxonomy
Faceted searching & shopping
Conversion rate for product findability
$8M per year
 $80M web sales net income
 10% conversion rate increase
Lift in order size from satisfaction
$8M per year
 $80M web sales net income
 20% lift
Taxonomy Strategies LLC The business of organized information
3
Findability = Cross-selling product categories: Some
examples
 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
Taxonomy Strategies LLC The business of organized information
4
A cross-selling product category strategy: Subcategories vs.
attributes
Pros
Cons
 Easier to categorize products into
 Difficult to get consistent attributes
sub-categories.
 Easier to change product subcategory when there is a mistake or
when merchandiser requests.
 Cross-marketing is by category.
at the SKU level.
 SKU level Type attributes are
especially difficult to apply
consistently.
 Cross-marketing is SKU-by-SKU.
Taxonomy Strategies LLC The business of organized information
5
Syndication: A case study
Enterprise Syndication
System
+ Taxonomy
10-50% premium for precise content
Precise, dynamic content
packaging
$240K to $1.2M/yr
 100 customers
 $2,000 monthly subscription
50-100% more customers
$1.2M to $2.4M/yr
 100 customers
 $2,000 monthly subscription
Taxonomy Strategies LLC The business of organized information
6
Aggregation, RSS feeds, alerts
Taxonomy Strategies LLC The business of organized information
7
Compliance, transparency: Keeping the metadata with the
data
 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.
Taxonomy Strategies LLC The business of organized information
Attribute
Value
Group
OPEC
Period
Aug 2009
MBD
Reduction
2.8
8
Compliance, transparency: Keeping the metadata with the
data
<p>
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 $10.20.
Taxonomy Strategies LLC The business of organized information
<meta name= “source” content =
“EIA Short-term energy outlook”
date = “200911 10” URI=
“http://www.eia.doe.gov/emeu/steo
/pub/contents.html#Natural_Gas_M
arkets”>
Cool weather, flagging imports and a
surging oil market are driving up
natural gas prices as the US enters the
summer cooling season, the
<organization>Energy Information
Administration</organization> said
Tuesday as it raised its projected
second-quarter <location>Henry Hub
</location><price type>spot price
</price type> by 16% to <currency>$
</currency><price>10.20</price>.
</p>
9
Information collaboration: Taxonomy business rules
 Taxonomies can do more than sell vacations, cars, and cruises.
 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.
Taxonomy Strategies LLC The business of organized information
10
Business rules: Drug example
 Model
 Drug IS_TREATMENT_FOR Medical Conditions
 Trade Name IS_TRADE_NAME_FOR Drug
 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
 Link to:
 Technical details such as the chemical compound.
 Other resources on how to control cholesterol.
Taxonomy Strategies LLC The business of organized information
11
Taxonomy “best bets” ROI summary
 Improve findability.
 Enable dynamic publishing and alerts.
 Link structured data and less structured information.
 Discover relationships.
Taxonomy Strategies LLC The business of organized information
12
Taxonomy Strategies LLC
Questions?
Joseph A. Busch, +1-415-377-7912,
[email protected]
www.taxonomystrategies.com
November 19, 2009
Copyright 2009 Taxonomy Strategies LLC. All rights reserved.