Taxonomy is foundational to the Semantic Layer. A taxonomy establishes the essential semantic building blocks upon which everything else is built, starting by standardizing naming conventions and ensuring consistent terminology. From there, taxonomy concepts are enriched with additional context, such as definitions and alternative terms, and arranged into hierarchical relationships, laying the foundation for the eventual establishment of other, more complex ontological relationships. Taxonomies provide additional value when used to categorize and label structured content, and enable metadata enrichment for any use case. 

Just as a semantic layer passes through degrees of maturity and complexity as it is developed and operationalized, so too does a taxonomy. While a taxonomy comprises only one facet of a fully realized Semantic Layer, every incremental increase in its granularity and scope can have a compounding effect in terms of unlocking additional solutions for the organization. While it can be tempting to assume that only a fully mature taxonomy is capable of delivering measurable value for the organization that developed it, each iteration of a taxonomy provides value that should be acknowledged, quantified, and celebrated to advocate for continued support of the taxonomy’s ongoing development.  

 

Taxonomy Maturity Stages

A taxonomy’s maturity can be measured across five levels: Basic, Foundational, Operational, Institutional, and Transformational. Taken as a snapshot from our full semantic layer maturity framework, the following diagram illustrates each of these levels in terms of their taxonomy components, technical manifestation, and what valuable outcomes can be expected from each at a high level. 

 

Basic Taxonomy

A basic taxonomy lacks depth, and is essentially a folksonomy (an informal, non-hierarchical classification system where users apply public tags). At this stage, a basic taxonomy is only inconsistently applied across departments. 

As an example, a single business unit (Marketing) may have begun developing a basic taxonomy that other business units (Sales) may be starting to integrate with their product taxonomy. 

Components and Technical Manifestation at this Level

• Basic taxonomies are only developed for limited, specific use cases, often for a particular team or subset of an organization.
• At this stage of maturity, a taxonomy expresses little granularity, and may have up to three levels of broader/narrower relationships. 
• A basic taxonomy is likely maintained in a spreadsheet, rather than a taxonomy management system (TMS). The taxonomy may be implemented in a rudimentary form, like being expressed in file structures. Taxonomy concepts are not yet tagged to assets. 
• At this stage, the taxonomy functions primarily as a proof of concept. The taxonomy has not yet been widely validated or socialized, and is likely only known by the team building it. It may represent an intentionally narrow scope that can then be scaled as the team builds buy-in with stakeholders. 

Outcomes and Value 

• The basic taxonomy provides an essential foundation to build upon. If it is well-designed, the work invested in this stage can serve as a model for other functional areas of the organization to adopt for their own use cases. 
• At this stage, the value is typically limited to providing a proof of concept to demonstrate what taxonomy is, and working towards establishing consistent terminology within a department.

   

Foundational Taxonomy

The foundational taxonomy is not yet wholly standardized, but growing momentum helps to drive adoption and standardization across systems and business units. The taxonomy can support simple data enrichment by adding semantic context (like relevant location data, contact information, definitions, or subcategories) to an existing data set. Often, a dedicated taxonomy management solution (TMS) is procured at this stage, and it may be unscalable to proceed to the next level of maturity without one. 

Components and Technical Manifestation at this Level

• The taxonomy is imbued with semantic context such as definitions, scope notes, and alternative labels, along with the expected hierarchical relationships between concepts. A foundational taxonomy exhibits a greater level of granularity beyond the basic level. 
• The taxonomy is no longer only housed in a spreadsheet, and is maintained in a Taxonomy Management Solution (TMS). This makes it easier to ensure that the taxonomy’s format adheres to semantic web frameworks (such as SKOS, the Simple Knowledge Organization System). 
• The addition of this context serves the fundamental purpose of supporting and standardizing semantic understanding within an organization by clarifying and enforcing preferred terms while still capturing alternative terms.  
• Some degree of implementation has been realized – for instance, the tagging of a representative set of content or data assets.
• The taxonomy team actively engages in efforts to socialize and promote the taxonomy project to build awareness and support among stakeholders. 
• A taxonomy governance team has been established for ongoing validation, maintenance, and change management. 

Outcomes and Value

• At this stage, the taxonomy can provide more measurable benefits to the organization. For instance, a foundational taxonomy can support content audits for all content that has been auto-tagged. 
• The taxonomy can support more advanced data analytics – for instance, users can get more granular insights into which topics are the most represented in content. 
• The foundational taxonomy can be scaled to incorporate backlog use cases or other departments in the organization, and can be considered a product to be replicated and more broadly socialized.
• The taxonomy can be enhanced by adding linked models and/or concept mapping.

 

Operational Taxonomy

The operational taxonomy is standardized, used regularly and consistently across teams, and is integrated with other components or applications. 

At this stage, the taxonomy is integrated with key systems like a content management system (CMS), learning management system (LMS), or similar. Users are able to interact with the taxonomy directly through the system-powered apps they work in, because the systems consume the taxonomy.

Components and Technical Manifestation at this Level

• At this level of maturity, advanced integrations have been realized – for instance, the taxonomy is integrated into search for the organization’s intranet, or the taxonomy’s semantic context has been leveraged as training data for generative AI-powered chatbots.
• At the operational level, the taxonomy acts as a source of truth for multiple use cases, and has been expanded to cover multiple key areas of the organization, such as Customer Operations, Product, and Content Operations. 
• By this stage, content tagging has been seamlessly integrated into the content creation process, in which content creators apply relevant tags prior to publishing, or automatic tagging ensures content is applied to current and newly-published content. 
• A TMS has been acquired, and is implemented with key systems, such as the organization’s LMS, intranet, or CMS. 
• The taxonomy is subject to ongoing governance by a taxonomy governance team, and key stakeholders in the organization are informed of key updates or changes to the taxonomy.

Outcomes and Value 

• The taxonomy is integrated with essential data sources to provide or consume data directly. As a result, users interacting with the systems that are connected to the taxonomy are able to experience the additional structure and clarity provided by the taxonomy via features like search filters, navigational structures, and content tags. 
• The taxonomy can support enhanced data analytics, such as tracking the click-through rate (CTR) of content tagged with particular topics. 

 

Institutional Taxonomy

The institutional taxonomy is fully integrated into daily operations. Rigorous governance and change management capabilities are in place. 

By now, seamless integrations between the taxonomy and other systems have been established. Ongoing taxonomy maintenance work poses no disruption to day-to-day operations, and updates to the taxonomy are automatically pushed to all impacted systems.

Components and Technical Manifestation at this Level

• The taxonomy, or taxonomies, are fully integrated into daily operations across teams and functional areas – for instance, the taxonomy supports dynamic content delivery for customer support workers, the customer-facing product taxonomy facilitates faceted search for online shopping, and so on. 
• The organization’s use cases are supported by the taxonomy, which supports core goals such as ensuring a shared understanding of key concepts and their meaning, providing a consistent framework for the representation of data across systems, or representing the fundamental components of an organization across systems. 
• Governance roles, policies, and procedures are fully established and follow a regular cadence. 

Outcomes and Value

• At this stage of maturity, the taxonomy has been scaled to the extent that it can be considered an enterprise taxonomy; it covers all foundational areas, is utilized by all business units, and is poised to support key organizational operations. At this stage, the taxonomy drives a key enterprise-level use case. 
• Data connectivity is supported across the organization; the taxonomy unifies language across teams and systems, reducing errors and data discrepancies. 
• Internal as well as external users benefit from taxonomy-enhanced search in the form of query expansion. 

 

Transformational Taxonomy

The transformational taxonomy drives data classification and advanced analytics, informing and enhancing AI-driven processes. At this stage, the taxonomy provides significant functionality supporting an integrated semantic layer. 

Components and Technical Manifestation at this Level

• The taxonomy can support the delivery of personalized, dynamic content for internal or external users for more impactful customer support or marketing outreach campaigns.
• The taxonomy is inextricably tied to other key components of the semantic layer’s operating model. The taxonomy provides data for the knowledge graph, provides a hierarchy for the ontology, categorizes the data in the data catalog, and enriches the business glossary with additional semantic context. These connections help power semantic search, analytics, recommendation systems, discoverability, and other semantic applications. 
• Taxonomy governance roles are embedded in functional groups. Feedback on the taxonomy is shared regularly, introductory taxonomy training is widely available, and there is common understanding of how to both use the taxonomy and provide feedback. 
• Taxonomies are well-supported by defined metrics and reporting and, in turn, provide a source of truth to power consistent reporting and data analytics.  

Outcomes and Value 

• At this stage, the taxonomy (within the broader semantic layer) drives multiple enterprise-level use cases. For instance, this could include self-service performance monitoring to support strategic planning, or facilitating efficient data analytics across previously-siloed datasets. 
• Taxonomy labeling of structured and/or unstructured data powers Machine Learning (ML) and Artificial Intelligence (AI) development and applications. 

 

Taxonomy Use Cases 

Low Maturity Example

In many instances, EK partners with clients to help develop taxonomies in their earliest stages. Recently, a data and AI platform company engaged EK to lead a taxonomy workshop covering best practices in taxonomy design, validation activities, taxonomy governance, and developing an implementation roadmap. Prior to EK’s engagement, the company was in the process of developing a centralized marketing taxonomy. As the taxonomy was maintained in a shared spreadsheet, lacked a defined governance process, and lacked consistent design guidelines, it met the basic level of maturity. However, after the workshop, the client’s taxonomy design team left with a refreshed understanding of taxonomy design best practices, clarified user personas, an appreciation of the value of semantic web standards, a clear taxonomy development roadmap, and a scaled-down focus on prioritized pilots to build a starter taxonomy. 

By clarifying and narrowing their use cases, identifying their key stakeholders and their roles in taxonomy governance, and reworking the taxonomy to reflect design principles grounded in semantic standards, the taxonomy team was equipped to elevate their taxonomy from a basic level of maturity to work towards becoming foundational. 

 

High Maturity Example 

EK’s collaboration with a major international retailer illustrates an example of the evolution towards a highly-mature semantic layer supported by a robust taxonomy. EK partnered with the retailer’s Learning Team to develop a Learning Content Database to enable an enterprise view of their learning content. Initially, the organization’s learning team lacked a standardized taxonomy. This made it difficult to identify obsolete content, update outdated content, or address training gaps. Without consistent terminology or content categorization, it was especially challenging to search effectively and identify existing learning content that could be improved, forcing the learning team to waste time creating new content. As a result, store associates struggled to search for the right instructional resources, hindering their ability to learn about new roles, understand procedures, and adhere to compliance requirements. 

To address these issues, EK first partnered with the learning team to develop a standardized taxonomy. The taxonomy crystallized brand-approved language which was then tagged to learning content. Next, EK developed a tailored governance plan to ensure the ongoing maintenance of the taxonomy, and provided guidance around taxonomy implementation to ensure optimal outcomes around reducing time spent searching for content and simplifying the process of tagging content with metadata. With the taxonomy at a sufficient stage of maturity, EK was then able to build the Learning Content Database, which enabled users to locate learning content across previously disparate, disconnected systems, now in a central location. 

 

Conclusion

Every taxonomy – from the basic starter taxonomy to the highly-developed taxonomy with robust semantic context connected to an ontology – can provide value to its organization. As a taxonomy grows in maturity, each next level of development unlocks increasingly complex solutions. From driving alignment around key terms for products and resources, supporting content audits, enabling complex data analytics across systems, or powering semantic search, the progressive advancement of a taxonomy’s complexity and semantic richness translates to tangible business value. These advancements can also act as a flywheel, where each improvement makes it easier to continue to drive buy-in, secure necessary resources, and achieve greater enhancements. 

If you are looking to learn more about how other organizations have benefitted from advanced taxonomy implementations, read more from our case studies. If you want additional guidance on how to take your organization’s taxonomy to the next level, contact us to learn more about our taxonomy design services and workshops.