A presentation by Dr. Jay Ven Eman, CEO of Access Innovations, Inc., on measuring the financial benefits of taxonomies. First presented at the 2009 Data Harmony Users Group meeting.
<ul><li>1.ROI & Impact: Quantitative & Qualitative Measures for Taxonomies Wednesday, 11 February 2009 12:00 12:30 PM MST Presented by Jay Ven Eman, Ph.D., CEO Access Innovations, Inc. / Data Harmony 505.998.0800 / www.accessinn.com / www.dataharmony.com email@example.com DHUG 2009 </li></ul>
<p>2. First, some questions Do you know what a taxonomy is? Does your bosss boss know? Care? What are YOU trying to accomplish? What are your objectives? What isnt working? What is? How badly? How much? Who? Where? Copyright 2007 Access Innovations, Inc. 3. First, some questions - 2 Who are your searchers? Internal? Intranet? External? Web? Fee based (commercial)? How many? What do they do? How do they do it? What are they seeking? Why? Copyright 2007 Access Innovations, Inc. 4. First, some questions - 3 Where are they looking? How many searching environments? Physical? Internal resources? External resources? Search interfaces? And so on Copyright 2007 Access Innovations, Inc. 5. Copyright 2007 Access Innovations, Inc. Meaning starts with a knowledge organization system (KOS) Uncontrolled list Name authority file Synonym set/ring Controlled vocabulary Taxonomy Thesaurus Not complex - $ Highly complex - $$$$ LOTS OF OVERLAP! Topic MapOntology SKOS 6. The Pain of Search Copyright 2007 Access Innovations, Inc. The Pain of Search Percent Number of Employees Search & Use Timel Per Week Time Searching Per Week Time Analysing Per Week Average Loaded Salary Annual Cost of Looking Search Time Reduction Difference Mission critical 1000 Hours Hours Hours $ Per Hour 10% High 10 100 14 8.4 5.6 200 8,736,000 7,862,400 873,600 Medium 80 800 12 7.2 4.8 150 44,928,000 40,435,200 4,492,800 Low 10 100 10 6 4 100 3,120,000 2,808,000 312,000 $56,784,000 $51,105,600 $5,678,400 7. ROI - Segments Cost of taxonomy system Indexing costs Cost of getting system ready Ongoing maintenance Increased efficiency Increased quality of retrieval Cost of legacy system maintenance 8. Copyright 2005 Access Innovations, Inc. Taxonomy construction Process Terms/hr # of terms Cost/hr Cost From scratch 4 5000 $75 $93,750 License 0 - 100K License & customize 6 5000 75 62,500+ 5,000 Auto- generate/cleanup + tool 6 5000 75 62,500+ 100,000 Mapping 8 5000 75 46,875 9. Indexing & Search Metrics Hit, Miss, Noise Subjective Relevance Aboutness Statistical Precision Recall Level of effort 10. Hit, Miss, Noise Hit exactly what a human indexer would use Miss human indexer would use but system did not assign Noise system assigned but human did not Relevant noise could have been assigned Irrelevant noise just plain wrong 11. Subjective Relevance Reflects how akin it is to the users request Aboutness Reflects the topical match between the document content and the term How well the topic describes what the document is about Varies with level of conceptual terms vs. factual terms in the thesaurus 12. Subjective There is now a 92% accuracy rating accuracy on accounting and regulatory document search based on hit, miss and noise or relevance, precision and recall statisticsAccess Innovations. USGAO IEEE had their system up and running in three days, in full production in less than two weeks. Institute of Electrical and Electronics Engineers (IEEE) The American Economic Association said its editors think using it is fun and makes time fly! American Economic Association (AEA) ProQuest CSA have achieved a 7 fold increase in productivity thus they have four licenses. ProQuest CSA Weather Channel finds things 50% faster using Data Harmony. A significant saving in time. The Weather Channel 13. Statistical Precision Correct retrieval / Total retrieval Hits / hits + noise Recall Correct retrieval / Total correct in system Hits / Hits + misses Level of effort Hits / Hits + misses + noise 14. Cost Goals Cost Savings Software/hardware More efficient delivery systems Retirement of legacy systems Cost Avoidance Additional staff not needed to scale Lower training costs 15. Productivity Goals Productivity gains Employee productivity fourfold Get up to speed faster Learn vocabulary faster Able to capture peoples knowledge in the rule base Staff savings / redeployment Elimination of new hires 16. Additional Benefits Revenue Generation Higher hit rates More purchases off the site Competitive advantage Shorter product / sales cycles Faster implementation Better search experience Ability to meet regulatory requirements 17. Go No Go Reach 85% precision to launch for productivity - assisted Reach 85% for filtering or categorization Sorting for production Level of effort to get to 85% Integration into the workflow is efficient 18. Benchmarks 15 20% irrelevant returns / noise Amount of work needed to achieve 85% level How good is good enough? Satisfice = satisfaction + suffice How much error can you put up with? 19. Example ROI Calculation Assume 5,000 term thesaurus 1.5 synonyms per terms 7,500 terms total Assume 85% accuracy Use assisted for indexing Use automatically for filtering Assume $75 per hour for staff Assume 10,000 records for test batch 20. Indexing costs with Data Harmony 80% of rules built automatically 7,500 x .8 = 6,000 20% require complex rules Average rule takes 5 minutes (Actually MUCH faster using M.A.I. GUI) 5 x 1,500 = 7,500 minutes 125 hours x $75 = $9,375 21. Indexing Costs Base cost of MAIstro EE - $60,000 Cost of getting system ready Programming support and integration Estimated at 2 weeks programming $125 / hour = $10,000 Rule building Estimated at 125 hours $75 / hour = $9,375 Possible need to re-run training set several times Ongoing maintenance Estimated at 15% of purchase price for license = $9,000 Rule building for new terms 50 terms per quarter 200 terms x .8 = 160 automatic 40 at 5 minutes per term = 200 minutes /60 = 3.33 hours x $75 = $250 Targeted initial accuracy at 85% 22. Indexing costs Year one $60,000 + $10,000 + $9,375 = $79,375 Years thereafter 9000 + 250 = $9250 85% accuracy 23. ROI Taxonomy costs = $67,500 Indexing costs = $79,375 Pain of search difference = $5,678,400 If off by factor of 4, then a positive ROI of 241% Copyright 2007 Access Innovations, Inc. 24. ROI & Impact: Quantitative & Qualitative Measures for Taxonomies Wednesday, 11 February 2009 12:00 12:30 PM MST Presented by Jay Ven Eman, Ph.D., CEO Access Innovations, Inc. / Data Harmony 505.998.0800 / www.accessinn.com / www.dataharmony.com firstname.lastname@example.org Thank you! </p>