market scan- knowledge management portals 1999

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Vertical Portals:Market Opportunity Analysis

A custom research project for Aeneid

Collaborative MarketingCollaborative Marketing399 Main Street399 Main Street

Los Altos, CA 94022Los Altos, CA 94022650-949-4882650-949-4882

www.collaborativemarketing.comwww.collaborativemarketing.com

May 1999May 1999

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RoadmapRoadmap

IntroductionIntroduction

High Level FindingsHigh Level Findings

ConclusionsConclusions

Detailed FindingsDetailed Findings

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ObjectivesObjectives

• Market Requirements - Identify the relative spending and investment levels for

portal creation and operation and determine what these portals require from

Aeneid in the way of product, services and sponsorship participation

partnerships.

• Concept Testing - Present and discuss Aeneid product concepts with

respondents to capture feedback.

• Market Segmentation - Determine an overall market segmentation ranking for

portals and size the relative opportunity value of each of the most attractive portal

market segments.

• Market Sizing - Determine the size and rate of growth of Internet portals. Size

the portal opportunity with respect to Aeneid's product & service offerings.

• Business Models - Determine the business models available to Aeneid

• Pricing Models - Determine the possible price models that Aeneid may consider

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MethodologyMethodology

Briefing session with

Aeneid Team & Management

Briefing session with

Aeneid Team & Management

Secondary ResearchSecondary Research

Conduct Primary Research:In-depth interviews

Conduct Primary Research:In-depth interviews

Analysis & SynthesisAnalysis & Synthesis

Recommendations and

Conclusions

Recommendations and

Conclusions

•Identify OpportunitiesIdentify Opportunities•Discuss StrategyDiscuss Strategy

•Secondary electronic researchSecondary electronic research•Relevant PeriodicalsRelevant Periodicals•Existing StudiesExisting Studies

• 50 Interviews with Vertical Portals50 Interviews with Vertical Portals• Joint and In-person interviewsJoint and In-person interviews• 5 Portal Vendor Interviews5 Portal Vendor Interviews

Building Fact BaseBuilding Fact Base

Weekly Status Meetings

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Why was qualitative research used?Why was qualitative research used?

Qualitative Research Quantitative ResearchMotive • Exploratory

• To identify issues and to defineright questions

• For discovering underlyingmotivations, feelings, values,attitudes and perceptions

• Deterministic• To answer specific questions such

as how many? How much?

Who conducts theinterviews?

• Led by senior research analyst • Low level analyst or e-mail

What is the structureof the interview?

• Open ended discussions • Preset questions and definedsurvey responses

How deep are theinterviews go?

• In depth interviews • Quick, cursory interviews

What are thestrengths?

• Open to new insights (surprises)• Allows for refining of areas of

exploration as study progresses

• Completely representative• Statistically valid

What are thelimitations?

• Not statistically projectable• Small sample sizes

• Inflexible• Tests only established

understandings and hypotheses.May miss important insightsoutside of general hypothesis

• Relies upon asking the rightquestions

When is the projectcomplete?

• When our understanding of theissues are such that we knowhow the next interviewee willanswer questions before we askthem

• When sample size reached todeliver results accurate to a perdetermined margin of error

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Contact ListContact List

Company Contact Title Phone24/7 Media Inc. Goeff Judge Senior VP, Affiliate Relations 212-231-7100Accountingnet.com Shane Gillispie VP Business Dev. & Marketing 206-441-8285 x204Accountingnet.com Monica Fischer Senior Web Editor 206-441-8285Achoo.com Adam Kriszynski Website Administrator 905-826-6030AICPA.org Kevin McGuiness Web Content Manager 212-596-6200American Accounting Assoc. Beverly Harrelson Online Community Coordinator 941-921-7747American Lawyer Media Inc. Steve Aronson Site Manager 800-888-8300Ameristock.com Nick Gerber Website Content Manager 800-394-5064BankInfo.com Mary Beth Guard Content Manager 405-521-0773beFree Ellen Brezniak VP Product Marketing 508 357 8888 x4013BigFoot.com James Hoffman CEO/co-founder 212-262-1118BioSpace Tim Friedel CEO 415-977-1600BizProLink Steve Sponder CEO & President 561-367-8900Celiac.com Scott Adams Site Manager 415-956-2828Clear Station Doug Fairclogh Founder & CTO 415-283-2590ClickzNet Ann Hadley Editor-in-chief 978-749-3737CNET Martin Green VP Business Development 415-395-7800Computer Currents Michael McDonnell Online Manager 510-527-0333CPANet.com & MBAZone.com Brenda Mizgorski President/Founder 215-851-0612CyberInvest.com Jonathan Squire VP Bus. Dev. 619-295-5408Doctor’s Forum Nelson Kopyt Web Manager & Senior Editor 610-258-3608Forrester Mary Modhel VP New Media Research 617-497-7090Genealogy.com Hagith Katsanasus Web Editor 510-528-4942Goldman Sachs Financial Workbench Leslie Tortora Managing Dir, Tech 212-902-1000Harbinger.net Eric Christ Senior Director 404-467-3031

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Contact List (continued)Contact List (continued)

Company Contact Title PhoneHealthCentral.com John McCoy VP Strategic Marketing 415-789-8885Hoover’s Online Patrick Spain CEO & President 512-374-4545iAtlas Jason Titus VP of Engineering 703 739 9434Inmaze.com Walt Podgurski CEO 888-282-1765Intuit Mark Goines Sr. VP Consumer Finance Div. 650-944-6000Legal dot Net George Gunnels Director of Sales/Marketing 949-719-6050 x13Lexis-Nexis Trish Monaco Marketing Mgr. of Technical Initiatives 937-865-6800 x7481Mayo Health Clinic Richard Dietman Editor-in-Chief 507-284-2511Mediconsult.com Anne Rose Director of Content & Community Dev. 916-725-4347MicroSurfer Corporation David Bernstein CEO 206 284 2229MoneyPage Karon Spear Editor 214-361-1498Network Computing Christopher Hart Senior Online Production Editor 516-562-5751OnHealth Network David Ansley Editor-In-Chief 212-760-3100Online Banking Jim Bruene Founder/Editor 206-517-5021PC World Thomas Gewecke Publisher PC Online Service Group 415-978-3153PortalHQ.com Stephen Cook President & CEO 505-239-1819Powerize Michael Gallagher VP Marketing 703 438 3500 x8111PSL Group Michael Harries Medical Content Editor 524-938-2606PurePDF (Glyphica) Christine Guenther Editor 650-428-1800Sitematic Steve Mitgang Sr. VP Marketing & Business Dev. 619-455-3602SJ Mercury News Center Blaise Castern Online Editor, MC 408-920-5539Tax Prophet Robert Sommers President/Founder 415-788-2553The Industry Standard Matt McAllister Web Producer 415-733-5481TrialNet Ron Young VP of Information Services 757-340-2030Upside Media (Upside.com) Aaron Bunnell CEO & Director of Internet Dev. 415-489-5600

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Respondent ProfileRespondent Profile

Portal Respondents by Vertical

Financial18%

Healthcare16%

Hi-Tech44%

Legal8%

Tax & Accounting14%

Vertical Markets

# Interviews

Financial 9

Healthcare 8

Hi-Tech 22

Legal 4

Tax & Accounting 7

Total 50

50 Repsondents- Job Titles

CEO/Pres/VP46%

Editor/Publisher28%

Dir/Mgr20%

Content Admin6%

Vertical MarketTotal

RespondentsInternal Search

CapabilitiesExternal Search

CapabilitiesFinancial 9 18% 2 22% 5 55%

Healthcare 8 16% 4 50% 4 50%High-Tech 22 44% 10 45% 17 77%

Legal 4 8% 3 75% 3 75%Tax &

Accounting 7 14% 2 29% 4 57%

Cumulative Total 50 21 33 Percentage 42% 66%

Search Capabilities of Respondents

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Project RoadmapProject Roadmap





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To win Aeneid must expand its capabilities while emphasizing its experienceTo win Aeneid must expand its capabilities while emphasizing its experience

• High Tech, Financial, Healthcare, • Aeneid is 6 months ahead of the market• Opportunity to “Portalize” non-portal sites


The Competition

Best Opportunities for Aeneid Market Trends

Recommendations for Aeneid

The Aeneid Value Proposition

• Portals need new revenue streams: Open to revenue sharing but not customer information sharing

• Number of Vertical portals is increasing - more than doubling• Verticalization (professional)• Content Explosion: Need management tools • Banner Revenue is down



• Tool feature - site differentiation• Increase user time on site • Enhance user self profiling.• Portal’s Researcher productivity• Make $$$ for portals• Relationship with Inktomi• Ability to work within Search Community


Search Competitors•Excite, Lycos, InfoSeek, Inktomi

Information Retrieval/Business Intelligence•Verity, Sqribe/Brio, Excalibur, iAtlas



• Aeneid needs to distribute basic news and business information research centers from its own mega-portal site for High Tech, Finance and Healthcare.

• Aeneid should consider getting into the portal business itself. • Broaden target market by including E-commerce sites, publishing and financial sites as prospects.• Adopt a partnership business model that lets portals retain customer knowledge and lets Aeneid develop

ad/sponsorship revenue stream• Develop business partnership with content productivity toolmakers like Vignette• Create research information alliances to form a Dialog like service that generates $$$• Drive sales from four primary values - portal differentiation, longer visits,

increased profiling and personalization• Entertain sales to portal companies that improves their researchers’

productivity as a way to develop relationships.






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How should Aeneid enter the Vertical Portal Marketplace?How should Aeneid enter the Vertical Portal Marketplace?

ProductProduct ServiceServiceAeneid’s Offering ContinuumAeneid’s Offering Continuum

Search ToolSearch ToolResearch Research

CenterCenterMyResearch MyResearch

CenterCenterMega-Mega-PortalsPortals

Research/Research/Content Content

SyndicateSyndicate

Objective:Objective: Brand Brand

Awareness &Awareness &UbiquityUbiquity

Model:Model:Freeware Freeware

Revenue:Revenue:NoneNone

Objective:Objective: Brand Brand

Building & Building & Pedigree Pedigree BuildingBuilding

Model:Model:SharewareShareware

Revenue:Revenue:LowLow

Objective:Objective:Profiling, Profiling,

Personalization & Personalization & Content ExpertiseContent Expertise

Model:Model:Monthly Monthly

Subscription feesSubscription fees

Revenue:Revenue:MediumMedium

Objective:Objective: Portal Player Portal Player PositioningPositioning

Model:Model:Affiliate Affiliate

Network &Network & Vertical Vertical

Site-of-sites Site-of-sites

Revenue:Revenue:Ads-MediumAds-Medium

Affiliates-HighAffiliates-High

Objective:Objective: Positioning as Positioning as

ContentContent/Research /Research SyndicatorSyndicator

Model:Model:Content Content

SyndicationSyndicationAnnual Annual

Subscription Subscription

Revenue:Revenue:HighHigh

TodayToday 3Q 19993Q 1999 4Q 19994Q 1999 1Q 20001Q 2000 1Q 20001Q 2000

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Top Market RequirementsTop Market Requirements

• Generating new revenue streams beyond ad revenues

• Evaluating partnerships for revenue-sharing alliance programs

• Providing Personalization and Customization: a la “My Yahoo”

• Providing Productivity Tools for professional and occupational groups and communities

• Managing and sourcing online content

• Cataloging and indexing content through automated internal search tools and taxonomies

Respondents told us that external (web) search tools are not a priority at present. Portal sites are firm in their belief that their Brand is their Content. These sites will not give up their human content expertise easily.

Respondents told us that external (web) search tools are not a priority at present. Portal sites are firm in their belief that their Brand is their Content. These sites will not give up their human content expertise easily.

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Portal operators rank personalization and profiling above other advanced capabilities.Portal operators rank personalization and profiling above other advanced capabilities.

54

3

9

6

8 87

98

18

16

12

21

13

2 2 2

4

1

6

3

1

7

3

0

5

10

15

20

25

Nu

mb

er o

f M

enti

on

s

Financial Healthcare Hi-Tech Legal Tax & Accounting

Vertical Markets

Comparison of features by segment

Profiling Advanced Search Filtering Personalization Research Aggregation

50

39

3331

25

0

5

10

15

20

25

30

35

40

45

50

Nu

mb

er

of

Me

nti

on

s

Personalization Profile/Tracking Advanced Search ResearchAggretation

Filtering

Whole Product Features

Portal Operators' Desired Functions Ranking

5

8

18

2

6

4

8

16

2

3 3

7

12

2

1

9 9

21

4

7

6

8

13

1

3

0

5

10

15

20

25

Nu

mb

er

of

Me

nti

on

s

Profiling Advanced Search Filtering Personalization Research Aggregation

Whole Product Requirment Features

Functions Compared Across Markets

Financial Healthcare Hi-Tech Legal Tax & Accounting

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How do Respondents view Personalization & Customization on V-Portals?How do Respondents view Personalization & Customization on V-Portals?

Personalization Customization

•Push-orientedPush-oriented

•Enterprise FocusEnterprise Focus

•Mass MarketingMass Marketing

•Mail & Email-centricMail & Email-centric

•Standardized Content to Standardized Content to Specific SegmentsSpecific Segments

•Creation of Cookie-cutter Creation of Cookie-cutter DocumentsDocuments

•Profile-drivenProfile-driven

•Involves automation of bad Involves automation of bad direct marketing processesdirect marketing processes

•Push-orientedPush-oriented

•Enterprise FocusEnterprise Focus

•Mass MarketingMass Marketing

•Mail & Email-centricMail & Email-centric

•Standardized Content to Standardized Content to Specific SegmentsSpecific Segments

•Creation of Cookie-cutter Creation of Cookie-cutter DocumentsDocuments

•Profile-drivenProfile-driven

•Involves automation of bad Involves automation of bad direct marketing processesdirect marketing processes

•Pull-orientedPull-oriented

•Customer FocusCustomer Focus

•Targeted and 1:1 MarketingTargeted and 1:1 Marketing

•Web-centricWeb-centric

•Variable Content to an Variable Content to an Audience of OneAudience of One

•Creation of Made-to-Order Creation of Made-to-Order DocumentsDocuments

•Database-drivenDatabase-driven

•Involves on-the-fly order Involves on-the-fly order processing processing

•Pull-orientedPull-oriented

•Customer FocusCustomer Focus

•Targeted and 1:1 MarketingTargeted and 1:1 Marketing

•Web-centricWeb-centric

•Variable Content to an Variable Content to an Audience of OneAudience of One

•Creation of Made-to-Order Creation of Made-to-Order DocumentsDocuments

•Database-drivenDatabase-driven

•Involves on-the-fly order Involves on-the-fly order processing processing

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Portals are very receptive to revenue sharing and affiliate programsPortals are very receptive to revenue sharing and affiliate programs

OfferingTier1

(UV in the Millions)Tier 2

(UV in the 100Ks)Tier 3

(UV in the 10Ks)

Product

Limited opportunitywithout ROI messageor pedigree

Developed Internally Staunch about editorial

control over content andlinks

Limited interest in IRCbecause Disinclined to share

user information Aeneid is an unknown

quantity: needsresearch pedigree

Editorial control isperceived as paramountand site believe theyare best suited toaggregating content

Site insist on proprietarybrand and solution

Emerging Interest inIRC as a means ofproviding stickiness tosite

Site operators neededucation about searchtechnology and 1:1marketing opportunities

Interest in extendingsearch and researchcapabilities

Receptive topartnership and allianceprogram opportunities,especially for E-commerce

Service

Limited opportunity Developed Internally Staunch about editorial

control over content andlinks

Early, but emergingmarket

Site operators neededucation about searchtechnology and 1:1marketing opportunities

Adoption will require“proof of concept ” ROImessage

Service considered“cool, but not a priorityright now”

InternalApplication/Servicehosting favored

Moderate receptivity to“portalization” tools

Moderate interest incustom solution,however, somedisinclination to haveIRC productized as itmight give competitorportals a leg up

Limited funds on mostof these sites, usuallyfavor affiliate programs

Receptive topartnership and allianceprogram opportunities,especially for E-commerce

High receptivity to“portalization” tools

However, if adoption of Aeneid’s solutions is to proceed beyond early adopter opportunities, portals require

1) proof of the ability of “customized, targeted searching” to increase visitor commerce activity & loyalty

2) proof of the ROI value of Internet Research Centers

However, if adoption of Aeneid’s solutions is to proceed beyond early adopter opportunities, portals require

1) proof of the ability of “customized, targeted searching” to increase visitor commerce activity & loyalty

2) proof of the ROI value of Internet Research Centers

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Brand Building Drives Investments in Content Quality!Brand Building Drives Investments in Content Quality!

Aeneid needs to demonstrate to the portal market:

1. How its Internet Research Centers differ from the content core competencies of sites.

2. How its engine’s search results return highly relevant and pertinent content to site users and

3. How it implements portal market maker tools on its own portal sites for Hi-Tech, Financial & Healthcare

Aeneid needs to demonstrate to the portal market:

1. How its Internet Research Centers differ from the content core competencies of sites.

2. How its engine’s search results return highly relevant and pertinent content to site users and

3. How it implements portal market maker tools on its own portal sites for Hi-Tech, Financial & Healthcare

Brand::ContentBrand::Content

Core Core CompetencyCompetency==

Content Content AggregationAggregation

Articles/Links/Articles/Links/FeaturesFeatures

Aeneid Value Add: Aeneid Value Add:

Research CentersResearch Centers

Custom & Packaged Custom & Packaged Research CenterResearch Center

OrganizationOrganization& Taxonomy& Taxonomy

SiteSiteServicesServices

Information & Data Information & Data ArchitectureArchitecture

EmailEmail

CalendarCalendar

EventsEvents

List Mgmt.List Mgmt.

MyPortalMyPortal

SearchSearch

CommerceCommerce

DiscussionDiscussionForumForum

BookmarksBookmarks

NewslettersNewsletters

AddressAddressBooksBooks

Ma

rke

t M

ak

er

To

ol

Se

tM

ark

et

Ma

ke

r T

oo

l S

et

Ne

ws

& B

us

ine

ss

N

ew

s &

Bu

sin

es

s

Info

rma

tion

To

ols

Info

rma

tion

To

olsChatChat

DirectoryDirectoryLinksLinksPagePage

ReviewsReviews

FileFileStorageStorage

Incumbent portal players see themselves as already providing the content their users need and

want. Some education about Aeneid’s technology and value proposition is needed to prime the pump for more extensive

market penetration.

Incumbent portal players see themselves as already providing the content their users need and

want. Some education about Aeneid’s technology and value proposition is needed to prime the pump for more extensive

market penetration.

As applications and services get closer to a portal site’s core competencies , brand and

content integrity become paramount.

As applications and services get closer to a portal site’s core competencies , brand and

content integrity become paramount.

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What does the Vertical Portal Landscape look like? What does the Vertical Portal Landscape look like?

2525

350350

25002500

Tier 1:Tier 1:Tier 1:Tier 1:

Tier 2Tier 2Tier 2Tier 2

Tier 3Tier 3Tier 3Tier 3

Examples:Examples: Yahoo, Netscape, Altavista, Lycos, Yahoo, Netscape, Altavista, Lycos, Excite, MSNExcite, MSNCharacteristics:Characteristics: Incumbent Players with longstanding Incumbent Players with longstanding search, news and directory services, focused on search, news and directory services, focused on general web usergeneral web user

Examples:Examples: Accountingnet.com, Hoover’s, Bizprolink, Accountingnet.com, Hoover’s, Bizprolink, Clickz.net, CMP WebClickz.net, CMP WebCharacteristics:Characteristics: Competitive Players with offline Competitive Players with offline publications and strong vertical focus moving to publications and strong vertical focus moving to establish professional communities and trading establish professional communities and trading networknetwork

Examples:Examples: Celiac.net, Sitematic, Celiac.net, Sitematic, PortalHQ, BankInfo.com, Biospace.comPortalHQ, BankInfo.com, Biospace.comCharacteristics:Characteristics: Highly specialized Highly specialized content for narrow interest group; moving content for narrow interest group; moving toward enabling vertical trading hubstoward enabling vertical trading hubs

CM estimates the number of CM estimates the number of vertical portal to grow to vertical portal to grow to

3,000 by the end of 4Q 1999.3,000 by the end of 4Q 1999.

CM estimates the number of CM estimates the number of vertical portal to grow to vertical portal to grow to

3,000 by the end of 4Q 1999.3,000 by the end of 4Q 1999.

CM estimates the number of vertical

portal today at <3000.

CM estimates the number of vertical

portal today at <3000.

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Vertical portals have gone through an explosive growth year but this growth may eventually be limited Vertical portals have gone through an explosive growth year but this growth may eventually be limited as e-commerce, publishing and financial sites adopt portal characteristics.as e-commerce, publishing and financial sites adopt portal characteristics.

Portal Growth Projections

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1997 1998 1999 2000 2001P

ort

al

Co

un

t

Tier 1

Tier 2

Tier 3

Portals 1997 1998 1999 2000 2001Tier 3 85 230 2625 3775 4975Tier 2 50 100 350 700 1000Tier 1 15 20 25 25 25Total 150 350 3000 4500 6000

PortalsPortalsPortalsPortalsE-commerceE-commercePublishingPublishingFinancialFinancial

E-commerceE-commercePublishingPublishingFinancialFinancial

SiteSiteVisitorsVisitors

SiteSiteVisitorsVisitors

Both groups care about personalization,

profiling and stickiness

Aeneid’s value propositions are “universal” in that they also appeal to e-commerce, publishing and financial services sites.

Aeneid’s value propositions are “universal” in that they also appeal to e-commerce, publishing and financial services sites.

CM believes this growth ratein Tier 2 portals won’t keep upas other sites take on portal properties.

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Search EnginesSearch EnginesSearch EnginesSearch Engines

Gateways/DirectoriesGateways/DirectoriesGateways/DirectoriesGateways/Directories

PortalsPortalsPortalsPortals

Virtual CommunitiesVirtual CommunitiesVirtual CommunitiesVirtual Communities

Industry Trading HubsIndustry Trading HubsIndustry Trading HubsIndustry Trading Hubs

Phase 1Phase 1

Phase 2Phase 2

Phase 3Phase 3

Phase 4Phase 4

Phase 5Phase 5

E-com

merce A

ctivity

Incre

ases

E-com

merce A

ctivity

Incre

ases

The evolution of web-based The evolution of web-based information servicesinformation services

The evolution of web-based The evolution of web-based information servicesinformation services

The Evolution of PortalsThe Evolution of Portals

Vertical PortalsVertical PortalsVertical PortalsVertical Portals

InformationInformationResortsResorts

InformationInformationResortsResorts

Phase 6Phase 6

Phase 7Phase 7

Source: CM Team

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TechnologyTechnologyTechnologyTechnology

• Portals with offline publications re-purpose Portals with offline publications re-purpose content for online viewing and reformat content to content for online viewing and reformat content to provide context-sensitive hyperlinks and provide context-sensitive hyperlinks and resourcesresources

• Non-publishing portals rely on web-based search Non-publishing portals rely on web-based search engines and information services like engines and information services like BusinessWire and Bloomberg for contentBusinessWire and Bloomberg for content

• 1 Editor1 Editor• 2 Web Technologists2 Web Technologists• 2 Information/Research Specialists2 Information/Research Specialists• 60% of sites reported that Graphic Design and 60% of sites reported that Graphic Design and

Web hosting are outsourcedWeb hosting are outsourced

PeoplePeople

ProcessProcess

Portal sites are moving towards takingcontrol over their rapidly exploding content in an effort to better manage their site visitors’ online experience

Portal sites are moving towards takingcontrol over their rapidly exploding content in an effort to better manage their site visitors’ online experience

Surprisingly, sites are run and operated with small staffs, usually a an editor and team of 4: 2 web technologist and 2 information/research specialists

Surprisingly, sites are run and operated with small staffs, usually a an editor and team of 4: 2 web technologist and 2 information/research specialists

How are Vertical Portals Operating Today?How are Vertical Portals Operating Today?

Source: CM Interviews

• In publishing portals, Vignette’s StoryServer 4.0 In publishing portals, Vignette’s StoryServer 4.0 holds pride of place for content management and holds pride of place for content management and personalization servicespersonalization services

• In non-publishing portals, MS FrontPage, Adobe In non-publishing portals, MS FrontPage, Adobe GoLive 4.0 and Net Objects Fusion are used GoLive 4.0 and Net Objects Fusion are used extensively along with a MS IIS Site Server and MS extensively along with a MS IIS Site Server and MS SQL 7 Database or AccessSQL 7 Database or Access

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Co

nte

nt

Sp

eci

aliz

atio

nC

on

ten

t S

pe

cial

izat

ion

LowLow

HighHigh

Small Small (1)(1)

HighHigh(10+)(10+)Size of Editorial Staff SizeSize of Editorial Staff Size

Hi-TechHi-TechHi-TechHi-Tech

FinancialFinancialFinancialFinancialHealthcareHealthcareHealthcareHealthcare

ManufacturingManufacturingManufacturingManufacturing

TaxTax&&

Acctg.Acctg.

TaxTax&&

Acctg.Acctg.

LegalLegalLegalLegal

Rapidly Emerging MarketRapidly Emerging Market Opportunity that will Opportunity that will require partnershipsrequire partnerships

Rapidly Emerging MarketRapidly Emerging Market Opportunity that will Opportunity that will require partnershipsrequire partnerships

What are the Portal Market Segments?What are the Portal Market Segments?Immediate MarketImmediate Market

OpportunitiesOpportunitiesImmediate MarketImmediate Market

OpportunitiesOpportunities

Hi-TechHi-Tech

HealthcareHealthcare

Tax & Accounting

Legal

FinancialFinancial

All-PurposeAll-Purpose

TechnicalTechnical

SpecialtySpecialtyAll-PurposeAll-Purpose

Technical/Technical/AnalystAnalyst

SpecialtySpecialty

GeneralGeneral

Regulatory/Regulatory/TechnicalTechnical

SpecialtySpecialty

GeneralGeneral

ProfessionalProfessional

ChronicChronic

GeneralGeneral

Regulatory Regulatory /Technical/Technical

SpecialtySpecialty

Consumer Shopping PortalsConsumer Shopping PortalsConsumer Shopping PortalsConsumer Shopping Portals

Industry Industry Trading Trading

HubsHubs

Industry Industry Trading Trading

HubsHubs

General SurferGeneral Surfer

Professional Professional BrowserBrowser

Motivated UserMotivated User

Web Site Visitor Web Site Visitor TaxonomyTaxonomy

$$$$$$

$$$$

$$

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Market Snapshot - Healthcare, Publishing, Investment and High Tech DominateMarket Snapshot - Healthcare, Publishing, Investment and High Tech Dominate

0

5

10

15

20

25

30

35

Healthcare

Publishing/M

edia - Prin

t

Investm

ent/Financial

Hi-Tech

Retail

Process Manufacturin

gBank

Education

InsuranceLegal

Consulting

Real Estate

Publishing/M

edia - Music

Personal Servi

ces

Wholesale D

istributors

AutoTrave

l

Accounting and Tax

Transportatio

nUtili

ty

244 Top Portals by Vertical Market

Source: CM Team from Selected Portal DB for project

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Financial, Healthcare and High Tech Portals showed the most interestFinancial, Healthcare and High Tech Portals showed the most interest

Product Interest Level Radar Matrix

0.00.2

0.4

0.6

0.81.0

1.2

1.4

1.6

1.8Financial

Healthcare

Hi-TechLegal

Tax & Accounting

Packaged Research Center

Custom Research Center

Vertical MarketPackaged Research

Center

Custom Research

Center

Financial 1.5 1.6Healthcare 1.2 1.3

Hi-Tech 1.6 1.7

Legal 1.1 1.1Tax & Accounting 1.1 1.1

Cumm. Avg. 1.4 1.5

Level of Interest in Concepts(Scale--Low=1 and High=5)

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Portals Operators Preferred the Custom ApproachPortals Operators Preferred the Custom Approach

Definintion

Judgement Willingness to give up editorial judgement ofsite selection.

Value Value of Aeneid’s solution

Branding Willingness to share Brand

Size Market Opportunity Size

Proprietorship Willingness to allow resale of solutions toothers

Content Fresh Daily crawlings and information velocity andspeed.

Finding

Need No current need expressed: too early formarket according to respondents

Value If Aeneid can demonstrate how product canincrease revenue/clicks it will have value

Volume Top 100 (max) within each vertical

WholeProduct

Brand Equity=content

Channel Direct Sell

Positioning Open, few established players

Judgement Value Branding Size Proprietorship Content FreshHi Tech High Medium Low High Low HighHealthCare

Low High Medium Medium Low Medium

Legal Low Low Low/ Medium Medium Low/ Medium MediumTax/Acctg Low Medium Low Low Medium LowFinancial High/ Medium Medium Medium High Medium High

Custom Research Center Product generated interest

Concept A - Canned Version Concept B - Custom Version

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Who Should Aeneid Target within the Portal Who Should Aeneid Target within the Portal Organization?Organization?

Who are theWho are the Decision Makers? Decision Makers?

⇒PublisherPublisher

⇒President/CEOPresident/CEO

⇒Site EditorSite Editor

⇒Content MangerContent Manger

Who are the Influencers?Who are the Influencers?

⇒VP of VP of MarketingMarketing

⇒VP of VP of Business Business DevelopmentDevelopment

AeneidAeneid

Strategic Options

Relationship Selling

Direct Sales Customer Pilot Projects

Publish ROI Case Studies

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Golden NuggetsGolden Nuggets

Definitions...• Crawler: automated tool to discover new and changed pages, feeds data to…• Indexer: builds and maintains an index, concordance-style• Search engine: the actual tool end-users employ when searching…but in popular usage, all

together = “search engine”

On How Well Do Today’s Engines Meet Real Users’ Needs...• Most engines cannot yield high precision, high recall hit list with only one search term• But most users don’t compose or refine their searches carefully• Boolean operators virtually unused• Therefore most users probably fail to get desired results

On the Role of Meta-Crawlers...• Experts agree that spider coverage varies across services• No two services cover the same sites for a given search• Therefore searching across multiple indexes yields more results• Therefore metacrawlers can be useful

On Cross-Language Searching...• Internet is biased towards English• But it is a World Wide Web• Tools to allow searching in one language, against a universe in other languages, are evolving• Challenges of understanding meaning, resolving ambiguities multiply • But effective tools are coming

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Golden Nuggets (continued)Golden Nuggets (continued)

Beyond Text: Still Images, Digitized Speech, Video...• We tend to think of search engines as limited to text• But increasingly we will face digital content• Thanks to scanners, digital cameras, digital sound cards, digital video cameras• These digital collections will be corporate assets• But to use, and re-purpose, these assets, we will need search engines

The Future: Promises and Limits• IR scientists say engines may be approaching fundamental limit• Koll: typical gigabyte of searchable space holds 25,000 occurrences of typical search term• “With a lot of work, maybe we can get to 50% recall and 50% precision”• But combination of approaches can yield greater power

New Job Title: The Info Snout• Like an Info Scout...only nosier• Similar job as cataloging librarian...more like a pathfinder builder• Daily routine:

• Look at search logs• Find new terms, add to thesaurus• Also look at company newsletters, newspaper, trade journals, etc

How Vertical Portal Operators View The Future• Much more intelligent engines• Not much more intelligence in users• The linear, undifferentiated hit list will die• Cross-language• Text, image, sound, video• The “Star Trek” or Voice Recognition computer model of searching

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Aeneid Should Develop ROI Case Studies for 1:1 MarketingAeneid Should Develop ROI Case Studies for 1:1 Marketing

Personalization and Customization increase Personalization and Customization increase customer lifetime value and order volume.customer lifetime value and order volume.

CapV 1998 DM study reports increases in the following sales CapV 1998 DM study reports increases in the following sales metrics as a result of 1:1 message targeting:metrics as a result of 1:1 message targeting:

Repeat Orders Repeat Orders 47.6%47.6%Response Rate Response Rate 36.0%36.0%Overall Revenue Overall Revenue 31.6%31.6%Average Order Value Average Order Value 24.5%24.5%

1:1 Marketing improves customer service, promote customer 1:1 Marketing improves customer service, promote customer loyalty and reduce costs of communicating with customers loyalty and reduce costs of communicating with customers and sales leads and sales leads

Personalization and Customization increase Personalization and Customization increase customer lifetime value and order volume.customer lifetime value and order volume.

CapV 1998 DM study reports increases in the following sales CapV 1998 DM study reports increases in the following sales metrics as a result of 1:1 message targeting:metrics as a result of 1:1 message targeting:

Repeat Orders Repeat Orders 47.6%47.6%Response Rate Response Rate 36.0%36.0%Overall Revenue Overall Revenue 31.6%31.6%Average Order Value Average Order Value 24.5%24.5%

1:1 Marketing improves customer service, promote customer 1:1 Marketing improves customer service, promote customer loyalty and reduce costs of communicating with customers loyalty and reduce costs of communicating with customers and sales leads and sales leads

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Concept Test Matrix: “Level of Interest” Responses 1Concept Test Matrix: “Level of Interest” Responses 1Concept A: Packaged

Resource CentersFeatures: Level of Interest

Concept B: CustomResearch Centers

Features: Level of InterestWhole Product RequirementsPortal Company

Ver

tica

l

F1 F2 F3 F4 G F1 F2 F3 F4 G P/T A/S FT P/C RATAmeristock.com FIN 1 2 1 1 1 1 2 1 1 1 √BankInfo.com FIN 1 2 1 1 1 1 2 3 1 2 √ √ √Clear Station FIN 1 1 1 2 1 1 1 3 1 1 √ √CyberInvest.com FIN 1 1 1 2 1 1 1 2 1 1 √ √ √Goldman Sachs FinancialWorkbench

FIN 1 2 1 2 2 1 2 1 1 1 √ √ √ √ √

Hoover’s Online FIN 1 2 1 1 1 1 2 2 1 1 √ √ √ √ √Intuit FIN 1 1 1 1 1 1 1 2 1 1 √ √ √ √MoneyPage FIN 1 1 1 2 1 1 1 1 1 1 √ √Online Banking FIN 1 1 1 1 1 1 1 3 1 1 √ √Achoo.com HC 1 1 1 2 1 1 1 3 1 1 √ √Celiac.com HC 1 1 1 2 1 1 1 1 1 1 √ √ √Doctor’s Forum HC 1 1 1 1 1 1 1 3 1 1 √ √ √ √Forrester HT 1 1 1 2 1 1 1 2 1 1 √ √ √ √Genealogy.com HC 1 1 1 1 1 1 1 1 1 1 √ √ √ √HealthCentral.com HC 1 2 1 1 1 1 2 1 1 1 √ √ √ √Mayo Health Clinic HC 1 2 1 2 2 1 2 3 1 2 √ √ √ √ √Mediconsult.com HC 1 1 1 2 1 1 1 3 1 2 √ √ √ √ √OnHealth Network HC 1 1 1 2 1 1 1 1 1 1 √ √ √ √ √24/7 Media Inc. HT 1 1 1 2 1 1 1 3 3 3 √ √ √ √beFree HT 1 2 1 1 1 1 2 3 1 2 √ √ √ √BigFoot.com HT 1 2 1 1 1 1 2 3 1 2 √ √ √ √BioSpace HT 1 1 1 2 1 1 1 1 1 1 √ √ √ √ √BizProLink HT 1 1 1 2 1 1 1 1 1 1 √ √ √ √ClickzNet HT 1 2 1 1 1 1 2 1 1 1 √ √ √ √CNET HT 1 2 1 1 1 1 2 1 1 1 √ √ √ √Computer Currents HT 1 2 1 1 1 1 2 1 1 1 √ √ √ √

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Concept Test Matrix: “Level of Interest” Responses 2Concept Test Matrix: “Level of Interest” Responses 2

Concept A: PackagedResource Centers

Features: Level of Interest

Concept B: CustomResearch Centers

Features: Level of InterestWhole Product RequirementsPortal Company

Ver

tica

l

F1 F2 F3 F4 G F1 F2 F3 F4 G P/T A/S FT P/C RATHarbinger.net HT 1 1 1 2 1 1 1 1 1 1 √ √ √ √ √iAtlas HT 1 1 1 2 1 1 1 2 1 1 √ √ √ √MicroSurfer Corporation HT 1 1 1 2 1 1 1 3 1 1 √ √Network Computing HT 1 1 1 1 1 1 1 1 1 1 √ √ √PC World HT 1 2 1 2 2 1 2 3 1 2 √ √ √ √PortalHQ.com HT 1 2 1 2 2 1 2 3 1 2 √ √ √Powerize HT 1 2 1 1 1 1 2 1 1 1 √ √ √ √PSL Group HT 1 2 1 2 2 1 2 2 1 2 √ √ √PurePDF (Glyphica) HT 1 2 1 2 2 1 2 2 1 2 √ √Sitematic HT 5 4 4 4 4 4 5 4 5 4 √ √ √ √ √SJ Mercury News Center HT 1 2 1 2 2 1 2 2 1 2 √ √ √ √ √The Industry Standard HT 1 2 1 1 1 1 2 1 1 1 √ √ √Upside Media (Upside.com) HT 1 2 1 1 1 1 2 1 1 1 √ √ √ √American Lawyer Media Inc. LEG 1 2 1 1 1 1 2 1 1 1 √ √Legal dot Net LEG 1 1 1 1 1 1 1 1 1 1 √ √ √Lexis-Nexis LEG 1 2 1 2 2 1 2 2 1 2 √ √ √TrialNet LEG 1 2 1 2 2 1 2 2 1 2 √ √ √Accountingnet.com TA 1 2 1 1 1 1 2 3 1 2 √ √Accountingnet.com TA 1 1 1 2 1 1 1 3 1 1 √ √AICPA.org TA 1 2 1 1 1 1 2 3 1 2 √ √ √ √American Accounting Assoc. TA 1 2 1 1 1 1 2 1 1 1 √ √ √CPANet.com & MBAZone.com TA 1 1 1 2 1 1 1 2 1 1 √ √ √ √ √Inmaze.com TA 1 2 1 2 2 1 2 3 1 1 √ √Tax Prophet TA 1 2 1 2 2 1 2 2 1 2 √ √

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Definitions for the Aeneid Product Concept Test MatrixDefinitions for the Aeneid Product Concept Test MatrixVertical

Item DescriptionFIN Finance, Banking and InvestmentHC HealthcareHT High Technology: Computing, Internet, Technology

LEG Legal & LawTA Tax and Accounting

Whole Product RequirmentsItem Description

P/T Profiling and Tracking toolsA/S Advanced and Extended Search toolsFT Robust Filtering toolsP/C Personalization and customization toolsRAT Research Aggregation tools

Concept A: Packaged Research CenterItem Description

F1 Complete research centers providing focused content and functionality that will increase repeat visits, sessiontime and page views.

F2 Choice of research libraries representing the site's market and/or interests. Each library contains researchdepartments, housing information organized by type.

F3 Ease and speed of deployment. Research center content and user-interface are pre-defined by Startup. Co-branded search results pages are hosted by Startup.

F4Content: Freshest, Most Coverage (Widest), Most Comprehensive (Deepest), Highest Quality, Content Tuned tomarket pace (changes can be made immediately), Mission Critical Availability (7x24)

G Average Total Grade

Concept B: Custom Research CenterItem Description

F1 A Complete : combines extensive high-transaction research infrastructure, with web site development tools, on-lineinternet information catalog editing applications, provide an entire technology suite for deploying vertical portals.

F2 Customizable development tools and a published API allows vertical portals to deploy research centers that aretightly integrated into existing web properties.

F3Ability to apply editorial expertise: Site editors and producers organize industry information such as search andnews feed to create focused Internet content catalogs that act as a guide to high-quality business content on theNet.

F4

Minimal development effortSample code and several pre-built components for building businessresearch centers, which allow vertical portals to quickly deployresearch features across its site

G Average Total Grade

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How Big is the Information Retrieval Market Worldwide? How Big is the Information Retrieval Market Worldwide?

435

684

1,073

1,530

2,110

2,747

3,362

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1996 1997 1998 1999 2000 2001 2002

CAGR25.7%

(in

mill

ion

s $

)(i

n m

illio

ns

$)

Source: AIIM Industry Trends 98

Forrester forecasts that web delivery of business information will be an $11 Billion

market worldwide by 2004.

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Internet B2B Marketplace Dynamics favor Aeneid’s focus on PortalsInternet B2B Marketplace Dynamics favor Aeneid’s focus on Portals

0.7 1.32.2

5.8

14.4

21.8

29.7

43.2

0

5

10

15

20

25

30

35

40

45

50

Jan 1992 Jan 1993 Jan 1994 Jan 1995 Jan 1996 Jan 1997 Jan 1998 Jan 1999

Time

Nu

mb

er

of

Sit

es

in M

illio

ns

$

Where web surfers spend time

Source: Jupiter Comm.

50

15

10 97

3 3 3 3 2 1 1 10

5

10

15

20

25

30

35

40

45

50

Bill

ion

of D

olla

rs $

Co

mp

uti

ng

/Ele

ctr

on

ics

Uti

litie

s

Pe

tro

ch

em

ica

ls

Mo

tor

Veh

icle

s

Ae

ros

pa

ce/

De

fen

se

Pa

per

/Off

ice

Pro

du

cts

Sh

ipp

ing

/Wa

reh

ou

sin

g

Co

ns

um

er

Go

od

s

Fo

od

/Ag

ric

ult

ure

Co

ns

tru

ctio

n

He

avy

Ind

us

trie

s

Ind

ust

rial

Eq

uip

men

t

Ph

arm

ace

uti

ca

l/Me

dic

al

Vertical Industry

B2B On-Line Spending

Source: Forrester

Growth of Internet Sites

Source: Industry Standard

1.3 2.6

400.0

0.710.0

0

50

100

150

200

250

300

350

400

Nu

mb

er

of

Site

s (T

ho

usa

nd

s)

DoubleClick 24/7 Media Microsoft Network Flycast Network ValueClick

Network Advertising Company

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Send/Read E-mail

Use Search Engines

Research Products/Services

Gather Local Information

Visit News Sites

Visit Online Directories

Visit Online Stores

Download Software

Read Magazines/Newspapers

Visit TV/Movie Sites

Enter Contests/Sweepstakes

Visit Music Sites

Investigate Travel Options

Visit Personal Web Pages

Use Chat Rooms

Regularly

Occassionally

Number of Sites at Internet Ad Network

Source: Industry Standard

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To win Aeneid must expand its capabilities while emphasizing its experienceTo win Aeneid must expand its capabilities while emphasizing its experience



The Competition

Best Opportunities for Aeneid Market Trends

Recommendations for Aeneid

The Aeneid Value Proposition





















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AppendixAppendix

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38

Vertical Market Selection MatricesVertical Market Selection Matrices

Vertical Market AttractivenessVertical Market AttractivenessVertical Market AttractivenessVertical Market Attractiveness

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High Internet Reliance is the Primary Differentiator.Knowledge Knowledge Workers are Workers are

Ripest MarketRipest Market

• Accounting & Accounting & Consulting share Consulting share similar needs: similar needs: timely relevant timely relevant and actionable and actionable informationinformation

• Require Require Relatively Relatively Generic Tools Generic Tools and Servicesand Services

• Health, Health, Investment, and Investment, and Legal require Legal require more specialized more specialized content and content and servicesservices

PC Penetration

Accounting

Low High

Low

High

Internet Reliance

Publishing

A/E/C

Consulting

Financial

Legal

Health

IncreasedInternetReliance

How were the How were the Most Attractive MarketsMost Attractive Markets distinguished from the rest? distinguished from the rest?

Increased

Internet

Reliance

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40

50

60

70

80

90

100

110

Consultin

g

Acc

ounting

Publis

hin

g

A/E

/C

Inve

stm

ent

Legal

Heal

th

Educa

tion

Man

Insura

nce

Whole

/Dis

tr.

Real

Esta

te

Reta

il

How did the markets rank for attractiveness?How did the markets rank for attractiveness?

This chart summarizes the relative attractiveness of the segments studied This chart summarizes the relative attractiveness of the segments studied

18 Month Opportunities18 Month Opportunities



Markets where evaluatedagainst 7 success factors to grade the opportunity:1. Volume (# businesses)2. PC penetration into segment3. Internet reliance4. Segment growth rate5. Emphasis on Web/ EC hosting6. Unity of channel7. Unity of vertical

OpportunityGrade

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Which Professions, Occupations & Markets Should Aeneid Target?Which Professions, Occupations & Markets Should Aeneid Target?

6 month opportunities

12 mo. opportunities

18+ mo. opportunities

ConsultingAccounting

A/E/C

Investment

Legal

Healthcare

Education

Manufacturing

Insurance

Wholesale

Real Estate

Retail

Publishing

Ripest Market Ripest Market Opportunities Opportunities

within the next within the next 6 months6 months

•Hi-TechHi-Tech

•FinancialFinancial

•HealthcareHealthcare

Ripest Market Ripest Market Opportunities Opportunities

within the next within the next 6 months6 months

•Hi-TechHi-Tech

•FinancialFinancial

•HealthcareHealthcare

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Market Selection MatrixMarket Selection Matrix

SelectionCriteria

Volume (# biz)

PC Pen. InternetReliance

SegmentGrowth rate

(95-98)

Emphasison Web/ECHosting (2)

Unity ofChannel

Unity ofVertical

(SIC Codes)

SegmentGrade

FactorWeighting

3 3 3 2 2 1 1 Max Grade150

Consulting 10 9 8 7 5 5 10 120Accounting 4 9 8 1 10 10 10 105

Publishing 2 8 3 1 10 10 9 80A/E/C 9 4 2 2 10 1 9 79

Investment 1 9 7 5 1 5 10 78Legal 2 8 2 1 10 10 10 78Health 3 8 7 1 1 10 9 77

Education 2 7 4 1 5 10 9 70Man. 4 9 5 1 5 1 1 68

Insurance 2 7 3 1 5 10 10 68

Whole./Distr. 5 7 3 1 5 1 7 65Real Estate 3 7 4 1 5 1 9 64

Retail Shops 10 4 1 1 1 1 8 58(1) Excluded in Phase 1: Agriculture, Non-Profit & Personal Services.

(2) "Emphasis on Web/EC Hosting" was used as a proxy for potential Aeneid penetration

The following table shows how the markets were evaluated and graded

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Selection Criteria and Information SourcesSelection Criteria and Information Sources

Definition of Criteria Information SourcesVolume: Each segment volume is weighted relative tothe others.

US Statistical Abstract & D&B

PC Penetration: This reflects the degree of PCpenetration in the segment for businesses.

Today’s Realtor (vol. 31), U.S. Department of Agriculture (8/97), Drug andCosmetic Industry (vol. 160), Computer Intelligence (1/1998), IDC, “Market ReviewForecast” (3/98), Journal of Business Logistics (vol. 18), Journal of ManagementConsulting (3/98), Stores Magazine (vol. 79), Engineering News Review (vol. 238),Cost Engineering (3/98), Review of Economics and Statistics (2/97), Computer-Aided Engineering (3/98), Health Care Management Review (11/97), Journal ofFamily Practice (8/97), American Medical News (7/97), Journal of the ADA (1/97).)

Internet Reliance: The yardstick is the degree ofpenetration of e-mail applications in a given segment,since a reliance on email requires a reliable andfrequently-accessed connection to the Internet

National Association of Realtors, Computer Intelligence (1/98), IDC “Market ReviewForecast.”, Dataquest, “Sizing the SB Market” (2/98), Journal of Business Logistics(vol. 18), Electronic Accountant (11/97), Accounting Today (2/98), Home FurnishingExecutive (10/97), Engineering News Review (vol. 238), Health Care ManagementReview (11/97), Journal of Family Practice (8/97), The Society of the Internet inMedicine

Segment Growth: This is intended as a foil to volume,i.e. perhaps the segment is currently small butsignificant and rapid growth is predicted.

D&B comparison of 1995 to 1998

Emphasis on Web/E-Commerce Hosting: This isintended as a proxy for potential Aeneid penetration.

Computer Business Review (8/97), Computer Retail Week (5/98), US Chamber ofCommerce(2/1998), Computer Intelligence (1/98), and CM Estimates.

Unity of Channel: A low rating would indicate thatthere is no clear channel into a particular smallbusiness segment. A high rating would indicate a clearchannel into the segment.

CM Secondary Research (Tables in Supplement)

Unity of Segment: A low rating would indicate that aparticular segment is highly fragmented making it amore difficult segment to target. A high rating wouldindicate a low number of sub-specialties within asegment, thus making it an easier target for contentand services.

D&B (Number of 4-digit SIC Numbers)

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The Facts Behind the Ratings (Aggregated)The Facts Behind the Ratings (Aggregated)

This table represents state-of-the-knowledge information on U.S. businesses.

SelectionCriteria

Volume(# biz)

PCPen.

InternetReliance

SegmentGrowth

Rate

Emphasison Web/

ECHosting

Unity ofChannel

Unity ofVertical

(siccodes)

FactorWeighting

3 3 3 2 2 1 1

A/E/C 1,772,249 37% 15% 15% Low Low 26Accounting 771,818 94% 75% 3% Low High 1Consulting 1,930,514 86% 80% 70% Medium Medium 6Education 211,596 72% 40% 2% Medium High 8Health 631,800 76% 70% 12% Low High 19Insurance 212,282 74% 25% -3% Medium High 1Investment 186,487 89% 70% 52% High Medium 5Legal 235,069 75% 20% 13% Low High 1Man. 885,945 85% 5% 3% Medium Low 470Publishing 396,651 83% 30% 13% Medium High 15Real Estate 476,872 73% 40% 8% Medium Low 10Retail 2,247,919 35% 10% 10% High Low 61Whole/Dist 903,573 68% 25% 3% Medium Low 69

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Strategic Recommendations: Enterprise Information PortalsStrategic Recommendations: Enterprise Information Portals

Corporate Portal Customer:Corporate Portal Customer:

Findings on market trends and corporate Findings on market trends and corporate

information managementinformation management

Corporate Portal Customer:Corporate Portal Customer:

Findings on market trends and corporate Findings on market trends and corporate

information managementinformation management

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Estimaed Total EIP Market Revenues (in $ millions)

0

2000

4000

6000

8000

1998 1999 2000 2001 2002

ContentManagement

BusinessIntelligence

Data Warehouse &Marts

Data Management

1998 1999 2000 2001 2002 CAGRContent Management $1225 $1650 $2300 $3250 $4700 40%% of Total 28% 28% 29% 30% 32%Business Intelligence $2000 $2700 $3700 $5180 $7250 38%% of Total 45% 47% 47% 48% 49%Data Warehouse & Marts $992 $1235 $1562 $1993 $2555 27%% of Total 23% 21% 20% 19% 17%Data Management $184 $220 $261 $309 $360 18%% of Total 4% 4% 3% 3% 2% TOTAL $4401 $5805 $7823 $10732 $14865 36%

What is the size of the portal market?What is the size of the portal market?

Source: Merrill Lynch

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EIP Market PlayersEIP Market Players

• Content Management systems organize unstructured data into a useable collection to search, manipulate, analyze and share information.

- Companies: Documentum,Open Text, NovaSoft Vignette

• Business Intelligence Applications are used across an entire enterprise to uncover patters in historical data. They also allow the user to consider external conditions and assumptions for forecasting purposes.

– Companies: Actuate, Business Objects, Cognos, MicroStrategy, Hyperion Solutions HNC Sfotware, AlphaBlox, SAS Institute WhiteLight, SQRIBE

• Data Warehouses and Marts are a database where information is stored managed and analyzed.

– Companies: Oracle, IBM, Showcase Software, Hyperion Solutions, SAS,Sagent, Silvon Software, Fiserv, Informatica

• Data Management systems perform the ETL (Extract, Transform and Load) to enable the the administration of Data Warehouses and Marts.

– Companies: Platinum Technology, Evolutionary Technology, IBM, SAS Institue, Prism Solutions, Onemeaning, Hewlett-Packard, Viasoft, Platinum Technology, Prism Solutions

Source: CM Team & Merrill Lynch

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Who are the EDMS vendors?Who are the EDMS vendors?

� The incumbent EDMS vendors are in the driver’s seat for providing their installed bases with webpublishing systems.

� EDMS vendors have been slow to add this functionality but this is expected to change by Summer 1999

Vendor Web Publishing Solutions Portal AvailabilityIBM EDMS Contentconnet In the marketDocumentum Web Publisher 2Q 1999Filenet Web Publisher 2Q 1999Xerox Personalizer X In the marketOpen Text Live Link In the marketLotus Domino In the market

What may happen in the Portalware market over the next 24 months

� Incumbent EDMS vendors successfully introduce Portal enabling additions

� Web publishing becomes a horizontal capability

� Enterprise standardization on a single solution

� The business model moves toward significant systems integration components, especially in those areas where unstructured content must be included

� eCommerce integration will be important

� Hosted Portals will combine functionality with integration

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Competitive Analysis: Comparison of 12 companiesCompetitive Analysis: Comparison of 12 companiesFEATURE Glyphica Autonomy Brio/Sqribe Documentum Epicentric FileNET Open Text Plumtree Portera Verity Viador VingnetteAnalysis x x x x x x xAPI (Application Programming Interface) x x x x x xAuthoring x x x x x x x xAutomated Classification x x x x x x x x x x xAutomated notification x x x x x x x x x x x xBots/ Agents x x x x x x x x x xConent Summary x x x x x x x xContent Management x x x x x x x x x x xCustomization (look and feel) x x x x x x x x x x xDocument Repostory x x x x x x xDocumentation Cycle Management x x x x x x x x xemail x x x x x xFiltering x x x x x x xHeadlines x x xHTML x x x x x x x xIndexing x x x x x x x x x x xInternet Publishing x x x x x x x x x x x xIntranet Publishing x x x x x x x x x x x xJava x x x x x x xMeta Tagging x x x x x x x xNT x x x x x x x x x x xObsolescence Management/ Circulation Cntrl x x x xOffice Support x x x x x x x x xPDF Conversion x x x x x x xPersonalization x x x x x x x xProject Tracking/ Management x x x x x x xQuery translation x x xReporting with intelligence x x x x xResearch xResult Ranking x x x xScheduling x xSearch x x x x x x x x x x xSummaries x x x x x xTaxonomy x x x x xTraffic/ User Reporting x x xUnix x x x x x x x x xWork flow management x x x x x x x x xXML x x x x x x

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Analysis of Corporate Information Portals OpportunityAnalysis of Corporate Information Portals Opportunity

Corporate Portals

Definition

Site designed as an information gateway delivering access to a range of information and datarepositories on a network to employees, value chain stakeholders and other interested parties.Corporate portals combine the information management capabilities of a storage system, the searchcapabilities of a text-search engine, and the publishing capabilities of a web application.

Key AdoptionDrivers

• Improved access to corporate knowledge. How to leverage the growing store of data fromenterprise applications.

• A piece of the knowledge management puzzle• Competitive advantage• Providing controlled access to supply or demand chain via Extranet• Self service• Respondents were looking for an efficient way to organize and deliver information in their

environment

Breadth ofApplication

• Horizontal.• Portals require high degree of content management as content grows.

Source: CM Team & Merrill Lynch

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Elements Required for Corporate Information PortalsElements Required for Corporate Information Portals

Corporate Corporate Information Information

PortalsPortals

EDMSEDMS WorkflowWorkflow MessagingMessaging PublishingPublishingIntranetIntranetInternetInternet

Extranet Extranet Conversion Tools Conversion Tools for PDF & HTMLfor PDF & HTML

Compound Compound Document AssemblyDocument Assembly

Web Content Web Content ManagementManagement

Source: CM Team

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A Vision for Web-based, Integrated Information ManagementA Vision for Web-based, Integrated Information Management

DataDataStoreStoreDataDataStoreStore




Internet & WWWInternet & WWW

Corporate IntranetsCorporate Intranets Corporate IntranetsCorporate Intranets

The Wired Enterprise is The Wired Enterprise is moving towards web-based moving towards web-based

self-service information self-service information management solutionsmanagement solutions

The Wired Enterprise is The Wired Enterprise is moving towards web-based moving towards web-based

self-service information self-service information management solutionsmanagement solutions

• Integrated access to content Integrated access to content from the desktopfrom the desktop

• All information and data is All information and data is captured as knowledge through captured as knowledge through the use of a Corporate Index or the use of a Corporate Index or TaxonomyTaxonomy

• Extensive Knowledge Re-useExtensive Knowledge Re-use• New meta-data and knowledge New meta-data and knowledge

capture tools are required capture tools are required • Focus is placed on ‘sense-Focus is placed on ‘sense-

making” and “knowledge making” and “knowledge sharing” through the provision sharing” through the provision of universal access to contentof universal access to content

Corporate Knowledge PortalCorporate Knowledge PortalBrowser-based Cataloguing, Searching & Indexing User InterfaceBrowser-based Cataloguing, Searching & Indexing User Interface

Corporate Knowledge PortalCorporate Knowledge PortalBrowser-based Cataloguing, Searching & Indexing User InterfaceBrowser-based Cataloguing, Searching & Indexing User Interface

Source: CM Team

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TechnologyTechnologyTechnologyTechnology

• Knowledge loss when teams disband Knowledge loss when teams disband • Content Management of external content Content Management of external content

and new kinds of data and new kinds of data • TrainingTraining• Automation of front office for self serviceAutomation of front office for self service• Lack of standards for best practicesLack of standards for best practices• Going beyond SOPsGoing beyond SOPs

• Inexperienced usersInexperienced users• Rising expectations about web accessRising expectations about web access• Resistance to sharing informationResistance to sharing information• Employee turnover due to retirement and Employee turnover due to retirement and

rightsizingrightsizing

• Legacy Integration & “the paper glut”Legacy Integration & “the paper glut”• Web based publicationWeb based publication• Cost of deploymentCost of deployment• Rapid change in ITRapid change in IT• Replication latencyReplication latency• Insufficient bandwidthInsufficient bandwidth• Insufficient storage for ballooning dataInsufficient storage for ballooning data

PeoplePeople

ProcessProcess

Companies Companies are moving are moving

towards towards takingtakingcontrol control

over their over their rapidly rapidly

exploding exploding contentcontent

Companies Companies are moving are moving

towards towards takingtakingcontrol control

over their over their rapidly rapidly

exploding exploding contentcontent

Pain results from efforts to leverage use of content across large constituenciesPain results from efforts to leverage use of content across large constituencies

Where’s the Pain in Enterprise Information Management?Where’s the Pain in Enterprise Information Management?

Source: CM Interviews

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Business Conditions Driving Portal DevelopmentBusiness Conditions Driving Portal Development

Seven Emerging Trends:

Aggressive growth objectives-Companies struggle to hire and effectively educate new employees who are unaware of keyresources and have little contact with a network of experienced peers.

Distributed personnel-Employees in different offices or groups remain unaware of their peers' innovations, andoften repeat others' work.

Specialization-Increasing specialization creates dependencies on individual employees' expertise that traditional means of communication fail to overcome.

Increased product complexity-Companies rapidly bringing to market complex, high margin goods and services are limited by their ability to educate personnel.

Increased competition-Increased competition has placed a premium on detailed competitive information, for more effective selling and customer service.

More publication systems and information repositories cause information overload-New desktop and Web publishing tools have empowered users to publish content, and companies continue to accumulate legacy systems over time and via acquisition, hampering users' ability to find relevant information quickly and be productive.

Employee resistance to change-Users react against the increasing volume of on-line content by limiting their sources of new information, insulating the company as a whole from market demands, competitive forces, strategic shifts, and other agents of change.

Source: Plumtree & CM Team

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Business Factors Driving Corporate Portal DemandBusiness Factors Driving Corporate Portal Demand

The chart summarizes the results of a market research poll asking sponsors of The chart summarizes the results of a market research poll asking sponsors of corporate portal projects to identify the business reasons for pursuing a portal.corporate portal projects to identify the business reasons for pursuing a portal.

Source: Plumtree

Aggressive Growth

37%

Leverage Investment

8%

Information Overload

8%

Increased Competition

5%

Product Complexity

7%

Other5%

Employee Resistance to

Change3%

Increased Specialization

2%

Distributed Personnel

22%

Cross Organizational

Boundaries3%

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Characteristics of the Corporate Portal Characteristics of the Corporate Portal

Characteristic Description

Comprehensive

A corporate portal integrates access to information in awider variety of formats than a Web portal, including datastored in relational and groupware databases,mainframes, and enterprise resource planning systems.

Organized

A corporate portal organizes access to information forusers to browse. Simply indexing information for text-search requires users to issue queries, which often returnextraneous results.

PersonalizedA corporate portal assembles personalized views of keyinformation, notifying users of new material's availabilityvia electronic mail and other media.

Location-Transparent

A corporate portal organizes access to data, but does notactually store that data. Groupware and documentmanagement systems that store content are not portals.

Extensible

A corporate portal supports extensions for catalogingnew types of information, enabling the system to adapt toexisting heterogeneous corporate infrastructures as wellas to the standard protocols of the Web.

Automated

A corporate portal automatically identifies and organizesaccess to new content, keeping the portal up-to-datewithout requiring dedicated resources to manuallyorganize and publish content.

SecureA corporate portal is secure, selectively brokering accessto sensitive internal information, often for users outsidethe company.

Source: Plumtree

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Access to Document RepositoryAccess to Document RepositoryAccess to Document RepositoryAccess to Document Repository

Compound Document Creation/AssemblyCompound Document Creation/AssemblyCompound Document Creation/AssemblyCompound Document Creation/Assembly

Intranet Publishing & CollaborationIntranet Publishing & CollaborationIntranet Publishing & CollaborationIntranet Publishing & Collaboration

Integration to Locally Stored ContentIntegration to Locally Stored ContentIntegration to Locally Stored ContentIntegration to Locally Stored Content

Integration to EnterpriseIntegration to Enterprise Applications Applications

Integration to EnterpriseIntegration to Enterprise Applications Applications

Phase 1Phase 1

Phase 2Phase 2

Phase 3Phase 3

Phase 4Phase 4

Phase 5Phase 5

Web-b

ased Activ

ity In

creases

Web-b

ased Activ

ity In

creases

Respondents express a strong preference for web-Respondents express a strong preference for web-enabled, browser-based DM solutions that are scalable enabled, browser-based DM solutions that are scalable

and extendable.and extendable.

Respondents express a strong preference for web-Respondents express a strong preference for web-enabled, browser-based DM solutions that are scalable enabled, browser-based DM solutions that are scalable

and extendable.and extendable.

CM has Identified 5 Phases of Adoption in Web-based PortalsCM has Identified 5 Phases of Adoption in Web-based Portals

Source: CM Team

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Corporate Portal ApplicationsCorporate Portal Applications

Source: Plumtree

Corporate Portal Applications

Other 2%Competitive

Inteligence20%

General Knowledge

Management31%

Field Support 13%

Sales Support 13%

Best Practices Propagation

11%

Research & Development

10%

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Knowledge Workers with access to Enterprise ServersKnowledge Workers with access to Enterprise Servers

55

4845 45

4340

35 3432

02

04

06

0

Fin

an

cia

lS

erv

ice

s

Ba

nk

ing

Info

rma

tio

nT

ec

h

Ph

arm

ac

eu

tic

al

He

alt

h C

are

Te

lec

om

Co

ntr

uc

t &

En

gin

.

Uti

litie

s

Ma

nu

fac

utr

ing

Industry

% o

f w

ork

ers

th

at

ha

ve

ac

ce

ss

to

En

terp

ris

e

Se

rve

rs

Source: InformationWeek 9/14/98 Industries at a Glance

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Vertical Market MetricsVertical Market Metrics

Now is the

Segment Number of Companies ProfessionalsAccounting 2,123

(HQ + Single Locations) 100,5591,538,000

Consultants – Management 7,644 231,000Entertainment (movies/videos,recreation & amusements)

7,050 (Authors, Actors, Entertainers & Athletes) 2,188,000

Finance (banking, brokerage,holding cos)

22,236 (Financial Managers) 636,000(Securities & Financial Services Sales) 406,000

Health Services 23,779 (Physicians & Dentists) 960,000(Nurses, Assts, Pharmacists, Therapists) 2,812,000

(Administrators) 713,000Insurance (Carriers ) 2,759

(Carriers & Agents) 184,843 (Sales) 551,000

(Adjusters & Investigators) 1,598,000Legal Services 4,715

(HQ +Single Locations) 234,865(Lawyers & Judges) 911,000

Manufacturing (incl. High Tech) 51,925 (Employees) 18,098,000Real Estate 24,215 (Sales) 570,000Retail 86,492

(HQ +Single Locations) 1,848,960(Supervisors & Proprietors) 4,501,000

(Sales Retail) 6,728,000(Sales Related Occupations) 87,000

(Employees) 20,320,000

Transportation & Utilities 23,348 (Airplane Pilots) 114,000(Mechanics & Repairers) 4,521,000

(Transportation) 5,302,000(Communications Operators) 177,000

Wholesale Trade 53,676 (Employees) 6,366,000

Sources:Number of Companies – D&B MarketPlace Jan-Mar 1999Professionals – Statistical Abstract of U.S. 1997 (1996 statistics

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Search Engine Companies’ “Value Per User” (Mecklermedia Dec. 1998)Search Engine Companies’ “Value Per User” (Mecklermedia Dec. 1998)

VALUE INDEX UsersMarket

Value ofCompany

Value PerUser

(sorted by valueper user)

(millions) (millions)

Yahoo 32.5 $ 5,273 $ 162.38Microsoft.com 18.0 $ 1,850 $ 102.68Excite 19.3 $ 1,488 $ 76.96Lycos –Tripod 15.1 $ 992 $ 65.58Netscape.com 23.4 $ 1,500 $ 64.09Infoseek – WBS 16.2 $ 964 $ 59.50AltaVista 7.5 $ 260 $ 34.75TOTAL $ 179 $ 14,982 $ 730AVERAGE $ 18 $ 1,498 $ 73

market scan- knowledge management portals 1999

Documents

portal opportunity

market sizing

portal creation

aeneid pricing models

confidential1vertical

internet portals

overall market segmentation

vertical portals joint