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Business Planning and Strategy Board of Directors Briefing Phoenix, Arizona 1/22/2010 V2 Current as of: 1/21/2009 Open Health Tools

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Topics The Challenge Environmental Considerations OHT Strategic Business Model Return-based Funding Concept 2013 Funding Profile Priorities / Next Steps Discussions For OHT Board Member Use Only Not for Distribution2

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The Challenge FROM Organization sustained largely on buy in to the concept, commitment to the achievement of public good and related good will For OHT Board Member Use Only Not for Distribution3 TO Organization with a viable and sustainable business model, fully enabled to fulfill its vision and mission over the long term 2010 20112014 and beyond

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Environmental Considerations For OHT Board Member Use Only Not for Distribution4 The landscape and perspectives regarding open development continue to change OHTs collaboration-based model requires a combination of new, different and diversified funding strategies National / Major Enterprise Perspectives Vendor Companies and Developer Perspectives Projects PlatformServices Consulting Public Good + Vendor Profit Increased Capability Increased Effectiveness OHT Opportunity Space

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OHT Strategic Business Model For OHT Board Member Use Only Not for Distribution5 Business Model ElementBudget (notional) StrategyStatus Core Organizational Operations $1.7m - $5.0m p/a Memberships, Endowments, Grants, Sponsored Events Open / Priority Project-based Initiatives (e.g., Exemplary Applications) $40-60m currently identified Member contributions (indirect cost assessments) On-going Platform / Core Infrastructure (e.g., UI, Distribution, etc.) Approx $40m over 3 yrs Grants, Return- based Funding Open / Priority Services / Consulting (performed by members) $3-5m p/a in 3-5 yrs Voluntary Contributions Open / Emergent Open / priority areas are key to full realization of the OHT vision

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Return-based Funding For OHT Board Member Use Only Not for Distribution6 Concept Summary OHT will be seeking approx $40 in grant and return-based funding from a consortium of sources The goal is to organize funding for the full scope of Platform / Core Infrastructure requirements Funds would be made available in 3 annual increments Platform / Core Infrastructure development would proceed in accordance with a defined plan OHT would provide regular reporting of progress When applicable, OHT would execute notes committing return of funding over years 4-10, plus interest Return of funding will be accomplished through revenues derived mainly from the Distribution Platform

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2013 Funding Profile (Notional) SourcePercentage Contributions5.0 Memberships7.0 Event Sponsorships8.0 Licenses / Services / Consulting 10.0 Projects (indirect cost assessments) 50.0 Packaging / Distribution 20.0 For OHT Board Member Use Only Not for Distribution7 Target Revenue $1.5m $2.1m $2.4m $3.0m $15.0m $6.0m Total $30.0m Budget: Core Operations - $5.0m; Continuous Improvement of Platform - $6.0m; Projects - $15.0m; Return-based Funding - $4m;

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Priorities / Next Steps Business structure 501(c)3 or (c)6 Membership structure / development approach Charter, National, Organizational, Vendor, Individual, Developer Focus on increasing participation while keeping the barriers to entry low Detailed Business Plan Spanning core operations, Platform/Core Infrastructure development, key personnel, financial considerations / pro forma with 3, 5 and 10 year views Comprehensive Platform / Core Infrastructure Development Plan Covering full SDLC and associated management elements, by capability / product Note: select members and organizations have already expressed interest Funding of core operations Angel / interim / endowment Foundation / Endowment / Investor targeting Presentations Applications Negotiations / Closure For OHT Board Member Use Only Not for Distribution8

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Discussions Initial thoughts / reactions Questions Ideas How might you help? For OHT Board Member Use Only Not for Distribution9