After more than a decade of active efforts towards establishing Semantic Web, Linked Data and related standards, the verdict of whether the technology has delivered its promise and has proven itself in the enterprise is still unclear, despite the numerous existing success stories. Every emerging technology and disruptive innovation has to overcome the challenge of “crossing the chasm” between the early adopters, who are just eager to experiment with the technology potential, and the majority of the companies, who need a proven technology that can be reliably used in mission critical scenarios and deliver quantifiable cost savings. Succeeding with a Semantic Technology product in the enterprise is a challenging task involving both top quality research and software development practices, but most often the technology adoption challenges are not about the quality of the R&D but about successful business model generation and understanding the complexities and challenges of the technology adoption lifecycle by the enterprise. This talk will discuss topics related to the challenge of “crossing the chasm” for a Semantic Technology product and provide examples from Ontotext’s experience of successfully delivering Semantic Technology solutions to enterprises.

1. WaSABi’2014
Crossing the Chasm with Semantic
Technology
Marin Dimitrov (CTO)

2. Contents
• Semantic Technology – Fad or Future?
• Innovation, Hype & Chasm
• Lessons Learned
#2Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014

3. About Ontotext
• Provides products & solutions for content
enrichment and metadata management
• Major clients and industries
– Media & Publishing
– Health Care & Life Sciences
– Cultural Heritage & Digital Libraries
– Government
– Recruitment
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4. SEMANTIC TECHNOLOGY – FAD OR
FUTURE?
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5. Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Life Sciences

6. Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Cultural Heritage

7. Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Publishing

8. Showcases & Talks at SemTechBiz Since 2010
• Accenture, AFP, Alcatel-Lucent, Autodesk,
BestBuy, Boeing, CapGemini, Cisco, Daimler,
Disney Media, DoD, eBay, EC, Elsevier, EMC,
Fujitsu, Gartner, Getty, Google, IBM, Library of
Congress, Lockheed Martin, Mayo Clinic, Merck,
Microsoft, NASA, Novartis, Oracle, Press
Association, Renault, Salesforce, SAP, Siemens,
Statoil, Teradata, TIBCO, Walmart, Wells Fargo,
Yahoo, Yandex
Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014

9. Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Knowledge Graphs

10. Top Information Management Trends 2013 (Gartner)
#10Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Semantic Technologies
Semantic technologies extract meaning from data, ranging from
quantitative data and text, to video, voice and images. Many of these
techniques have existed for years and are based on advanced statistics,
data mining, machine learning and knowledge management. One
reason they are garnering more interest is the renewed business
requirement for monetizing information as a strategic asset. Even more
pressing is the technical need. Increasing volumes, variety and velocity
— big data — in IM and business operations, requires semantic
technology that makes sense out of data for humans, or
automates decisions

11. A Different Point of View
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12. Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Big Data Hype Cycle 2012 (Gartner)

13. INNOVATION, HYPE & CHASM
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14. Technology Hype Cycle (Gartner)
Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014

15. Time-to-value Gap (Gartner)
Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014

16. Time-to-value Gap (Gartner)
• Performance
– Consistent reliability, availability, quality
• Integration
– Innovation must fit into existing environments &
constraints
• Penetration
– Critical mass of adopters required
• Payback
– Deriving business values, cost savings, ROI
– Amounts and/or timing usually difficult to estimate
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17. Big Data Hype Cycle 2012 (Gartner)

18. Semantic Technologies on the Hype Cycles 2013
(Gartner)
• Hype cycles for Web Computing, Information
Infrastructure, Enterprise Information management,
etc.
• Related technologies
– Graph databases, Semantic Web, metadata management,
content/text analytics, taxonomy & ontology
management, entity resolution & analysis
– Positioned in the early phases: on the rise / at the peak /
sliding into the trough
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19. Technology Adoption Lifecycle
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Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Technology
enthusiasts
Pursue new
technology
aggressively
Risk tolerant
Not too
concerned
about ROI
Visionaries
Pursue new
benefits
Over-
estimate ROI
Risk tolerant
No need for
well-
established
references
Easily handle
new
technology
Pragmatists
Practical
Risk averse
Need to
maintain
existing
infrastructure
Need well-
established
references
Can handle
new
technology
Conservatives
More risk
averse
Not
comfortable
with
technology

20. Technology Adoption Lifecycle & Gartner Hype Cycle
#20Crossing the Chasm with Semantic Technology (WaSABi’2014) May 2014
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%

21. Gaps in the Technology Adoption Lifecycle
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Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%

22. The Chasm (Geoffrey Moore)
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Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Gaps: each group
differs significantly
from the previous one

23. The Chasm (Geoffrey Moore)
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CHASM
Early Market Mainstream Market
Low risk tolerance
Early Market success stories are not a good reference
Need a “whole product” (complete solution) to a
business-critical problem
Prefer to buy from market leaders
More concerned about existing product infrastructure
Technology companies unable to deliver
the “whole product” because they lack
focus – get stuck on the “chasm”

24. Crossing The Chasm (Geoffrey Moore)
• Identify one attractive mainstream market customer
(niche)
• Focus on providing the “whole product” for their
problem
– Partnerships with other providers may be required
– A reference “success story” for other mainstream buyers
• Become the market leader in the niche & move into
adjacent niches
– Bowling alley effect
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25. The Competitive-Positioning Compass (Geoffrey
Moore)
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Architecture
Trials & demos
Technology press
Guru endorsement
Benchmarks
Product reviews
Sales volume
Trade press
Visionary
endorsement
Market share
Standards &
certification
3rd party support
Industry press
Industry analyst
endorsements
Revenues
Partners
Top customers
Full product line
Business press
Financial analyst
endorsements

26. LESSONS LEARNED
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27. Lessons Learned
• Innovations go through ups and downs before
reaching the productivity phase
– Customer: experimentation and patience often required
before value is delivered
– Customer: TCO often higher than expected
– Provider: target the value gaps early: Performance,
Integration, Penetration, Payback
• Understand the technology adoption challenges
– Early market success does not translate to mainstream
market success
– Different strategies for delivering value to Enthusiasts,
Visionaries, Pragmatists & Conservatives
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28. Lessons Learned
• Follow the “chasm crossing” principles
– Focus on an attractive mainstream customer / niche
– Find partners & deliver the “whole product” (complete
solution) that solves a business-critical problem
– Use the success story as a 1st reference point
– Move into adjacent niches (bowling alley effect)
• Clearly convey the benefits of your solution
– Not via a product feature list or benchmarks
– Speak the language of the customer
– How is your solution better than the current one?
– Measurable returns and timeframe for achieving them
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29. Clearly Convey the Benefits of Your Solution
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Ontotext
brochure 2012
FAIL

30. Clearly Convey the Benefits of Your Solution
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WIN

31. Recommended Reading
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32. Q & A
Thank you!
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