How “E” is Changing the Way People Work

1. How “E” is Changing the Way People Work Improving the productivity of Engineers through interactive tools and integration into workflow. Grant W. Hunter VP, Product Management February 6, 2009

2. How “E” is Changing . . . • Understand the Market Opportunity • Analyze the Needs of the Market • Address the Needs

3. How “E” is Changing . . . • Understand the Market Opportunity • Analyze the Needs of the Market • Address the Needs

4. Understand the Market Opportunity • The Association of German Engineers estimates that the lack of engineers in Germany (estimated at 23,000 in 2007) has led to the loss of €3.5B of value add in 2006 alone. • Cambridge Energy Research Associates estimated in 10/2007 that there would be a 10-15% people deficit in the global oil industry by 2010. • According to SPE, nearly 40% of the Petroleum Engineers in the US are over 50, compared with 30% in 1997. • Half of Conoco’s employees will be eligible for retirement within five years.

5. Understand the Market Opportunity Information Productivity Index (IPI) *National Department of Labor **Outsell’s Publishers and Information Providers Database

6. Understand the Market Opportunity Scientists and Engineers Market Potential *Based only on Chemists and ACS revenue

7. How “E” is Changing . . . • Understand the Market Opportunity • Analyze the Needs of the Market • Address the Needs

8. Analyze the Needs of the Market Information Needs of Engineers: • Engineers spend 15% of their working hours (8) working with external information 1 • Reference materials are relied upon in print more than any other information source 2 • The process of sourcing and working with print information and static content saps efficiency 1 Outsell Inc, Engineering FGU Segment Report 2 Knovel / ASME User Study

9. Analyze the Needs of the Market Major Functions of Engineers (In Decreasing Emphasis on Science): Research Using mathematical and scientific concepts, experimental techniques, and inductive reasoning, the research engineer seeks new principles and processes. Development engineers apply the results of research to useful purposes. Creative application of new knowledge may result in a working model of a new electrical circuit, a chemical process, or an industrial machine. Development Design In designing a structure or a product, the engineer selects methods, specifies materials, and determines shapes to satisfy technical requirements and to meet performance specifications. Construction The construction engineer is responsible for preparing the site, determining procedures that will economically and safely yield the desired quality, directing the placement of materials, and organizing the personnel and equipment. Production Plant layout and equipment selection are the responsibility of the production engineer, who chooses processes and tools, integrates the flow of materials and components, and provides for testing and inspection. Operation The operating engineer controls machines, plants, and organizations providing power, transportation, and communication; determines procedures; and supervises personnel to obtain reliable and economic operation of complex equipment.

10. Defining Market Needs Generic Engineering Value Chain. Stages do not necessarily reflect job titles or distinct roles. Depending upon the organization the VP of engineering may be responsible for all of these functions. Research Use Applied Use Research Development Design Manufacture/ Construction Operations Establish required the science Select methods, materials and shapes to satisfy requirements Ensure production environment is working safely efficiently and effectively Apply science usefully to conceptualize product or process Create / Produce/ Build the product

11. User ProfileCut by Research vs Application • Application: 61% of tasks are related to real time issues; 31% are related to Education / Training, and 8% are related to Equipment/Manufacturer selection • Research: 67% of tasks are related to real time issues; 28% are related to Education / Training, and 5% are related to Equipment/Manufacturer selection Q: When you turn to reference sources, what specific tasks are you trying to complete?

12. Reference Products, Software Products, & Analytical ToolsAggregate Survey Results • Technical Reference, Journals, Trade Magazines, Standards, and Abstracts are most frequently used reference sources Q: Please indicate frequency of use across each of the following reference product categories

13. Knovel ASME End User StudyReference Products Frequency of Use – Aggregate Q 4 - Frequency Q: Please indicate frequency of use and format across each of the following information sources.

14. Reference Products, Software Products, & Analytical ToolsAggregate Survey Results Q: In the course of your day, what other products, software programs, and / or analytical tools do you frequently use?

15. ASME End User SurveyUse of Other Products, Software Programs, Tools Q 7 Q: In the course of your day, what other products, software programs, and / or analytical tools do you frequently use?

16. How “E” is Changing . . . • Understand the Market Opportunity • Analyze the Needs of the Market • Address the Needs

17. Optimized engineering search • Finds data in tables, graphs, & equations • Automatic unit conversion • Search for numeric ranges • Extensive property searching

18. Find data – not just text! 26 categories and over 200 numeric fields • Physical constants • Boiling points, melting points, density, vapor pressure • Tensile & comprehensive properties • Allowable stress, fatigue strength, elongation • Thermodynamic properties • Heat capacity, thermal conductivity, enthalpy • Hazard related properties • Explosion limit, flash point, toxicity, exposure limit

19. Optimized search – corrosion rate Material Substance: Steel Corrosion rate <= 20 mil per year (mpy) Use with citric acid

20. Results with precision Steel <20 mpy Citric acid 5 matching records from a table of 1183 rows

21. Substance Plot points Delivers X and Y values

22. Mathcad links in Knovel enable Engineers to directly apply the data they need in Mathcad, increasing productivity.

23. Findings from practicing engineers • Engineers turn to reference for time consuming problems • Material selection, Process improvement, Design improvement • ASME users: • 80% felt Knovel increased their productivity by more than 10% • 36% used at least once per week • AIChE users: • 92% felt Knovel increased their productivity by more than 10% • 52% used at least once/week

24. Thank You! Grant W. Hunter (646) 747-8633 – Office (908) 456-3871 – Mobile ghunter@knovel.com – E-mail