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Information Intelligence: Content Classification and the Enterprise Taxonomy Practice
June, 2004

111 Huntington Avenue, Suite 2750, Boston, MA 02199

©2004, Delphi Group, a Perot Systems Company All Rights Reserved

Publication and distribution of this report is partially underwritten by the technology suppliers who have engaged with Delphi Group in the Spring, 2004 Taxonomy Research &Education Program.This program is part of an ongoing series of Delphi Group studies, publications, educational programs, and conferences which seek to establish thought leadership perspectives and best practices in the area of information intelligence. Profiles of these suppliers’ technologies are included in this report. Intended for the sole use of DelphiResearch® customers. Reproduction of thispublication without prior written permission is prohibited. Information is based on best available sources. Opinions reflect Delphi Group judgment and are subject to change. For reprints of this document, contact

Information Intelligence:

Content Classification and the Enterprise Taxonomy Practice

June, 2004Information Intelligence Information intelligence refers to an emerging data and semantic infrastructure which will enable organizations to create a new generation of business applications. This new class of applications will build on the rich set of assets already available inside the organization. In facing up to the challenge of managing the organization’s increasingly merged data, content, andknowledge operations, executives in government and industry are beginning to re-engineer informationbased business process. The key to their success lie s in learning the capabilities and practices of the information intelligence platform. Taxonomy and classification provide a key new practice—an opportunity to change the investment return profiles for current IT assets as well as to deliver rapid returnson new application investment.

Report Scope
This Delphi Research report is one of an ongoing series examining the state of the technology and the level of business practice in the critical and related areas of information architecture, taxonomy/classification, and search and retrieval. In particular, this report focuses on recent research in the areas of taxonomy and classification. Theobjectives of this report are to: • • • • • Define taxonomy and classification and position their functionality within an integrated information architecture Analyze trends of taxonomy software technology development and implementation, based on a survey of over 300 organizations Provide examples of how these technologies are applied to tangible and pressing business problems Provide an education onexamples of technology approaches to taxonomy generation and automated classification Describe a set of current example technology offerings to provide an overview of variety of approaches available in today’s taxonomy and classification software market.

It is clear from the information presented in this report that taxonomy and classification provide a key new area of business practice—an opportunity tochange the investment return profiles for current IT assets as well as to deliver rapid returns on new application investment.

111 Huntington Avenue, Suite 2750, Boston, MA 02199
©2004 Delphi Group • 111 Huntington Ave, Suite 2750, Boston, MA 02199 • 617-247-1511 •


“Many companies have become locked into the view that IT can reduce transaction costs but then thinkof transaction costs as encompassing only the transfer of bits and data from one place to another. Viewed more broadly, transaction costs encompass such challenging business issues as the creation of meaning, the building of trust, and the development and dissemination of knowledge. These dimensions of transaction costs often represent significant bottlenecks to performance improvements and...