Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

ABM/FIPP Conference

Rich Data – Mining the Hidden Treasures

Tim Weller

Founder and Group Chief Executive Incisive Media

2 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

Data is a key area of growth

Source: OC&C; Management

“… The real opportunity that we're grasping now is to move up the value chain with customers by leveraging sophisticated technology in terms of driving content-driven solutions, driving workflow solutions that are much more embedded in customer workflows and, of course, give us new revenue streams, pricing leverage, and longer term relationships…”

Crispin Davis, CEO Reed Elsevier

Relative market size and b2b growth rates by information type (US)

% CAGR

3 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

Data adds significant value

Workflow Solutions

Online b2b media

Trade and Consumer shows

Print Media, Research and Conferences

Custom Events and Publishing

Source: JEGI

Media Valuation Pyramid Typical Multiple Ranges

EBITDA multiple

Revenue multiple

4 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

What is Data?

Source: Veronis Suhler Stevenson

Growth Opportunities

Static Content

Dynamic Content

Tools

End-to-EndSolutions

Value-AddedOpportunities

l Books

l Flat file data

l CD-roms

l Database products

l Online products

l Workflow tools

l Compliance products

l Integrated product suites of data and applications

Data growth / value-added opportunities

Examine/Search/Analyse Personalize Transact

5 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

Evolution of a typical Rich Data Business: (1) Build Proprietary Information Assets

l Proprietary information that has been collected from non-public or difficult-to-reach sources is the core of the PBIS market. This data can be either:

­ Based on a focused effort to develop a unique content offering

­ Generated as a result of other commercial activities (e.g., insurance claims data)

l Companies often rely on acquisitions to rapidly build deeper content sets, creating comprehensive information offerings to core customer segments

l Once collected, this information typically provides long-term barriers-to-entry to industry incumbents

­ Limited risk of me-too strategies as ROI is unattractive and archival content is high value

­ Some risk of “game-changing” methods of accessing data (e.g., online property information databases developed by local governments)

l Other traditional PBIS information includes analytical content based on industry expert commentary, such as reference works, journals, etc.

Build ProprietaryInformation Assets

Leverage Online Distribution

(continuous data)

Embed in Customer Workflow

Expand to Services /

Transaction

Source: OC&C; Management

6 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

l Online platforms sparked a significant business shift away from static information to continuously updated, dynamic content sets, resulting in significant productivity improvements via advanced and suggestive searching / database integration

l Online has been a significant driver of growth:

­ Pay premium for increased productivity

­ Frequently dual buy print and online for many years

­ Enables significant price segmentation opportunities

l Increasingly, product value and revenue generation driven by analytical information within datasets (e.g., taxonomies, content interconnections, etc.) vs. raw content

Source: OC&C; Management

Evolution: (2) Leverage Online Distribution (continuous data)

Build ProprietaryInformation Assets

Leverage Online Distribution

(continuous data)

Embed in Customer Workflow

Expand to Services /

Transaction

7 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

l Publishers frequently develop software applications that automate the pre and post information gathering processes

­ Often these modules incorporate customer-specific content sets (e.g., financial data, drug development research, legal case fact management)

­ Additionally, they automate common non-research work tasks and pre-populate data fields

l As these workflow solutions directly impact business / research performance via productivity gains, customer willingness to pay for strong solutions is high

­ Success dependent on deep knowledge of customer and willingness to make vertical-specific investments

l Significant growth opportunities remain for workflow solutions

­ Investment provides incremental competitive barriers that reduce strategic risk

Source: OC&C; Management

Evolution: (3) Embed in Customer Workflow

Build ProprietaryInformation Assets

Leverage Online Distribution

(continuous data)

Embed in Customer Workflow

Expand to Services /

Transaction

8 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

l Based on their core information assets publishers will offer:

­ Services to conduct research and analysis for customers

­ Consulting services (low level) to help customers fully utilize data (e.g. public records marketing information)

l In addition, some publishers have begun to offer non-information related services to their customer base in order to exploit distribution relationships or other assets

­ Technology management

­ New customer development

­ Enable the transaction

Source: OC&C; Management

Evolution: (4) Expand to Services / Community

Build ProprietaryInformation Assets

Leverage Online Distribution

(continuous data)

Embed in Customer Workflow

Expand to Services /

Transaction

9 Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

Typical Challenges for Professional and Business Information Services

l Value of proprietary information assets erodes without continual investment

l Traditional publishers often have significant content assets but have not structured them in a saleable way

l Data has to be accurate easy to access and structured

Source: OC&C; Management

l Many organizations fail to capture full pricing potential as transition to usage-based pricing

l Print opportunities remain yet revenue optimization strategies often unclear

l One shot at credibility-trial and error doesn’t work

l Requires significantly greater technology development expertise

l IT takes driving seat need technical sales people

l Need to reorganize the way company is aligned

l Convergence between data companies, software companies and even Investment companies aiming at the same opportunity

l Have you the people who understand the technology

Mindset Commitment Longer sales cycle Technology leads Competition

Build ProprietaryInformation Assets

Leverage Online Distribution

(continuous data)

Embed in Customer Workflow

Expand to Services /

Transaction

10

Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

Newspapers:­Daily­current­awareness,­news,­cases,­commentary,­judicial­information,­court­calendars

Newsletters:­Monthly­articles­written­by­experts­keep­attorneys­current­on­niche­areas

VerdictSearch:­Court­award­and­settlement­information­used­in­valuing­injuries­in­specific­regions­and­to­find­expert­witness­information

Practice Forms:­Model­documents­for­drafting­agreements­and­for­each­phase­of­litigating­a­case

Books:­Deep­analytical­content­explains­legal­issues;­starting­point­for­research

Citators:­Summaries­of­decisions­organized­by­topic­or­statute;­Quick­case­finder

Experts:­Advertising­directory­of­expert­witnesses­marketed­to­attorneys

Case Study: Substantive Law Current Product Overview

11

Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

“NYLJ Litigator”

New­York­Law­Journal­News­and­Columns

New­York­Verdicts

Court­Central:Judicial­services

Litigation­Treatises­&­Citators

Litigation­Newsletters

New­York­Cases­&­Statutes

New­York­Forms­&­Checklists

New­York­Expert­Directory

New­York­“How-to”­Analysis

Trial­Videos

Blogs­&­Forums

Webinars

New York Litigation Initiative: Site Components

12

Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating

“NYLJ Litigator”

New York Litigation Initiative: Ancillary By-products Generate Additional Revenue Stream

New­York­Practice­Guides­&­Form­Books

New­York­Judicial­Guide

New­York­Litigation­Webinars

New­York­Trial­Videos

NYLJ­Litigation­Live­Events

New­York­Annotated­Code