Let's make sure we are all starting from the same baseline as it relates to Ontology and its value.
It is important to comprehend that ontology enables knowledge sharing and reuse. In that context, ontology is a specification used to define and formalize industry-specific vocabularies. It has some nice properties for knowledge sharing among AI software (e.g., semantics independent of reader and context). Practically, an ontological commitment is an agreement to use a vocabulary (i.e., ask queries and make assertions) in a way that is consistent (but not complete) with respect to the theory specified by an ontology. Once implemented for a specific industry domain, it can dramatically improve the chances of finding the needle in the haystack as it relates to Big Data initiatives. This discussion then will focus on the financial industry; the umbrella for this activity has been designated the Financial Industry Business Ontology (FIBO). An update on where FIBO stands follows:
Financial Industry Business Ontology
The Enterprise Data Management Council (EDM) is the author and steward of the Financial Industry Business Ontology (FIBO). FIBO is a collaborative effort among industry practitioners, semantic technology experts and information scientists to standardize the language used to precisely define the terms, conditions and characteristics of financial instruments; the legal and relationship structure of business entities; the content and time dimensions of market data; and the legal obligations and process aspects of corporate actions.
FIBO is being released as a series of standards under the technical governance of the Object Management Group (OMG), with the direct involvement of EDM Council membership. FIBO is based on the legal structures and obligations contained within the myriad of contracts that form the foundation of the financial industry.
Key FIBO Benefits
FIBO presents knowledge about financial instruments, business entities, market data and corporate actions in a technology-neutral format, along with formal definitions and defined business relationships. FIBO standardizes the language of financial contracts and promotes unambiguous shared meaning among all participants in the financial industry. Use cases and benefit areas include:
Common reference standard for aligning multiple repositories of data: FIBO provides the mechanism for data consistency and comparability. It facilitates data integration, supports business process automation and enables consolidated views across the financial industry.
Standardized language for internal and external communication: FIBO is a business language and facilitates precise communication (in place of ad hoc spreadsheets and technical models) about data requirements between business stakeholders and IT developers of applications, message schemas, etc.