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Business Model Project Team – Draft document 1.2

August 2009

 

TABLE OF CONTENTS

1. Introduction

2. What the Global Accessible Library does

2.1 Vision of the Global Accessible Library
2.2 What the Global Accessible Library is
2.3 What the Global Accessible Library is not

3. Business model departure points

4. Business model description

5. Existing Global Accessible Library model samples

5.1 World Digital Library
5.2 Europe Digital Library
5.3 Bookshare

6. Global Accessible Library business model options

6.1 Business model 1: The centralized model
6.2 Business model 2: The decentralized model
6.3 Business model 3: Hybrid business model
6.4 Recommendation

7. Description of the Global Accessible Library’s hybrid business model

7.1 Business offer
7.2 Resource requirements
7.3 Set-up & maintenance cost
7.4 Funding model
7.4.1 Funding model options
7.5 Governance structure
7.5.1 Governance content
7.6 Membership: Terms & conditions
7.7 Management information
7.8 Risk Management
7.8.1 External factors
7.8.2 Internal factors
7.9 IT infrastructure/platform
7.10 Communication channels

8. Timeline

9. Sources

10. Contributors


1. Introduction

The success of the Global Accessible Library (GAL) initiative is dependent on a variety of factors and the participation of a multitude of role-players. The elements of the GAL are described in various reports. The GAL is not regarded as a physical entity located in a central location with a fixed management and staff structure to administer its affairs. Although the GAL may consist of many parts it still requires a specific business model to serve as guide for all involved in terms of expectations and responsibilities. The purpose of this report is to propose a business model that may be considered to achieve the vision and ideals of the Global Accessible Library.

2. What the Global Accessible Library does

2.1 Vision of the Global Accessible Library

The vision of the overall Global Accessible Library initiative is to enable people with print disabilities worldwide to locate and access accessible library materials, anytime, anywhere.

The description of the Global Accessible Library (4) provides an overview of what it does and forms the basis of the business model.

A Global Accessible Library service for persons with print disabilities is:
        -   A network of online collections of digital objects,
-   Collaboratively created/collected according to internationally
     accepted principles for collection development,
-   made available digitally in a coherent, accessible and
 sustainable manner,
-   supported by services to allow authorised users worldwide to
     retrieve and exploit global resources, and
-   all subject to copyright. 

2.2 The Global Accessible Library is:

2.3 The Global Accessible Library is not

3. Business model departure points

Abovementioned provides the following points of departure when considering a business model for the Global Accessible Library:

  1. That the Global Accessible Library consist of a number of international participating organizations willing to share their digital collections;
  2. That participating organizations have agreed on:
    1. Internationally accepted collection development principles;
    2. Standards to make these collections available in a coherent, accessible and sustainable manner;
    3. Internationally accepted mechanisms to authorize users to be able to access these collections;
    4. Administering National and International Copyright agreements or License Agreements they are responsible for in order to make their collections available in an accountable and secure manner;
  3. That the Library is user focused offering access to digital reading and information content which may include the rendering of a reference service.
  4. That the Library’s collections, services, governance and funding are decentralized.
  5. That the Library may have a commercial element as a secondary concern.

 

4. Business model description

A business model is a representation of what an organization does and how it makes (or intends to make) money (1; 3).  A business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams. (2)

In the GAL context the emphasis will be less on making money but more on expanding access to literature and information products and services for people with visual disabilities.

For the purposes of the GAL the business model will be defined as a simplified description of how the GAL will be governed and funded without going into the complex details of all its strategies, processes, units, rules, hierarchies, workflows, and systems.

Summary of business model principles:

  1. What an organization does
  2. How it intends creating a benefit
  3. Describes the value it offers to various clients
  4. Describes the capabilities of partners
  5. Describe responsibilities of partners to create, market and deliver this value
  6. Describe what will ensure sustainable service delivery

 

5. Existing Global Accessible Library model samples

The initiative to establish a Global Accessible Library is a variation of an existing concept.  There are numerous examples of the “Global Accessible Library” based on the principles referred to earlier. The examples are mentioned briefly to serve as guide and reference in the development of the Global Accessible Library for the Blind.

5.1 World Digital Library (6)

The ideal of the World Digital Library is to make available on the Internet, free of charge and in multilingual format, significant primary materials from cultures around the world, including manuscripts, maps, rare books, musical scores, recordings, films, prints, photographs, architectural drawings, and other significant cultural materials. The objectives of the World Digital Library are to promote international and inter-cultural understanding and awareness, provide resources to educators, expand non-English and non-Western content on the Internet, and to contribute to scholarly research.

The project was initiated by the Library of Congress (LC) during 2005 and currently has 34 partners contributing content to the website. Funding for the project is obtained through nonexclusive, public and private partnerships, of which Google was the first to support the project in 2005. Google became involved because it shares a common mission with the LC of making the world’s information universally accessible and useful.

5.2 Europe Digital Library (7)

The concept of a European Digital Library (Europeana) started in 2005 and was launched during 2008. It is an initiative of the European Commission and their goal for Europeana is to make European information resources easier to use in an online environment. It will build on Europe's rich heritage, combining multicultural and multilingual environments with technological advances and new business models. It currently has more than 100 partners contributing content and the interface in multi-lingual. The EDL Foundation is responsible for oversight functions and the project driver is a core team based in the national library of the Netherlands, the Koninklijke Bibliotheek.The project is partially funded by the European Commission.

Members of this project are committed to (8)

5.3 Bookshare (9)

Bookshare is an initiative of Benetech, a nonprofit organization. Bookshare is an online library of digital books for people with print disabilities. It operates under an exception to U.S. copyright law which allows copyrighted digital books to be made available to people with qualifying disabilities. In addition, many publishers and authors have volunteered to provide Bookshare with access to their works. By requiring individuals to register as members and provide a Proof of Disability, Bookshare ensures that only qualified individuals use the service.

Bookshare members download books, textbooks and newspapers in a compressed, encrypted file. They then read the material using adaptive technology, typically software that reads the book aloud (text-to-speech) and/or displays the text of the book on a computer screen, or Braille access devices, such as refreshable Braille displays.

The books scanned and produced by Volunteers or in-house staff follows an efficient and well-developed process:

The three organizations mentioned are not meant to be an exhaustive example of possible Global Accessible Library models. It is important that in developing a business model for the Global Accessible Library for the Blind one does not “reinvent the wheel” when it comes to certain well establish business model principles. It may also be possible that the Global Accessible Library for the Blind partner with an existing Global Accessible Library model to fast track service delivery and the achievement of objectives.
Considering the three models the following broad principles may be applicable when considering the business model of the Global Library for the Blind.
a. One organization taking and leading the initiative
b. Multiple partner and International involvement
c. Funding from various sources
d. Adherence to technical and other requirements to participate
e. Access is free or available under certain conditions
f. Accessibility to variety of material is paramount
g. Optimal use of technology to create and access resources

6. Global Accessible Library business model options

Three business models are proposed. The following criteria were used to assess each business model:

 

6.1 Business model 1: The centralized model

Although the centralized model has been ruled out in sub-section 2.3 and section 3 of this document it should still be assessed in order to make an informed decision.

The main source of funding will be annual member fees paid by participating libraries. Funds will be utilized to support the Governance structure and to allow further research, development and to support initiatives of the Global Accessible Library. Selling products and services and fundraising for specific projects may be an alternative source of income.

6.2 Business model 2: The decentralized model

 

6.3 Business model 3: Hybrid business model

This model will be a combination of some of the elements mentioned in model 1 and 2.

6.4 Recommendation

Business model 3 is recommended as the model that will support the achievement of the ideals of the Global Accessible Library. A detail description of the model follows in the next section.

7. Description of the Global Accessible Library’s hybrid business model

The successful implementation of the Hybrid Business Model depends on the following elements. (2)

7.1 Business offer
The Global Accessible Library offers:

Each member library of the GAL will be entitled to decide to what extent that library will make available their digital collections. These decisions may be based on copyright requirements, cost, content, infrastructure and logistical implications.
7.2 Resource requirements

In order to make the Global Accessible Library a viable entity partner organizations must have the following resources in place:

  1. Staff to render support services and to participate in the Governance of the Business model;
  2. Funds to sustain the services and participation in the GAL initiatives;
  3. Equipment to enable networking and sharing;
  4. Collections in digital format to share;
  5. Infrastructure to sustain service delivery and contribution.

 

7.3 Set-up & maintenance cost

 

7.4 Funding model

Individual member libraries of the GAL are responsible to budget for their participation. The GAL Business Model does not make provision for a central fund to support participation. A central fund may only be in place for membership fees and funds received to investigate service delivery improvement mechanisms, infrastructure and strategies. The Governance Structure may fund raise on behalf of members for a specific project. Members may assist in this effort.

It is not anticipated that the GAL would required continuous revenue streams in order to deliver services. Where there is a requirement to acquired additional resources to enhance the GALs service delivery capabilities joint fundraising will be put into place. Funds could be raised from members or from sources outside the GAL environment.
The services of the GAL will be free of charge to individuals making use of it. Cost associated to make the service possible will be carried by GAL members. It is possible to have a pay-as-you-use component. The nature of the content for this component of the GAL will have to be determined by the members. Payment for these services may not be discriminatory and it should not create a barrier to those who cannot afford to pay for it. In such cases the GAL should have special provisions in place in order look after the interest of the user and the supplier of the information.

7.4.1 Funding model options

Funding requirements may be met by any one or a combination of the following options:

  1. Working with the Governance group to determine fundraising and/or 3rd party partnerships to address funding requirements to establish, promote and to render GAL services
  2. Budget provisions made by stakeholders either to pay a membership fee or as part of their operational cost to make material available and to have the necessary infrastructure in place to allow access.

The following funding models may be considered:

  1. Free model
    1. Clients do not pay for any products/services used
    2. Partners budget/raise funds to support the service
  1. Funded model
    1. Clients pay for products/services used at a subsidized rate
    2. Partners fund a percentage of products/services
  2. Fee based model
    1. Clients pay 100% of the cost for all products/services used
    2. Partners only fund their own administrative expenditure
  3. Combination model
    1. Nature and cost of service will determine this model

 

A basic principle to consider with any funding model is simplicity. It should be easy to administer by partners and easy to understand by clients.

7.5 Governance structure

The governance structure of the GAL should ensure management, growth and sustainability of the Global Accessible Library.

Libraries or organizations interested to join and develop the GAL concept will come together and develop the terms of reference of a GAL structure responsible for the overall function and coordination of the GAL. The TOR will include things such a term of office, eligibility of membership, governance issues to be addressed, reporting lines, monitoring responsibilities, etc. Interested parties will select a Governing body. This may be called the Secretariat, GAL Committee, Coordinating Committee, etc. Members of this structure will reside in their country and will not relocate to a central location. They will be part of a virtual structure. Members of the structure will select specific office bearers which may rotate form time to time. Each member of this structure will be responsible for their own financial expenditure. Each participating member of the GAL will bear their own cost to be a member of the GAL. The governance structure will report to members during AGMs in terms of the finances and general and specific affairs of the GAL. The Governance Structure may meet twice a year with all members to discuss strategic and operational and service delivery matters.

 

The Governance content will be determined by the final reports of the three working groups, i.e. Collection and Sharing; Discovery and Access and the Partnership Development Team. Proposals made and accepted by all GAL members will constitute the basis of what will be governed.
Matters to be addressed and agreed upon by GAL members are (5):

The Terms of Reference is also relevant here. Since it has been mentioned in the previous section it will not be repeated.

7.6 Membership: Terms & conditions
Two sets of terms and conditions should be determined for participation in the Global Accessible Library.

The terms and conditions for the two groups may not be mutually exclusive but any arrangement should be dealt with in accordance with a signed Memorandum of Understanding or Contract.
The contract or agreement will be the result of decisions made about issues mentioned in section 7.5. Members will also have to adhere to:

  1. Minimum standards where applicable, e.g. quality of records, cataloguing, response time, etc.
  2. Compliance matters, e.g. copyright clearance
  3. Participation in projects, surveys, etc to improve the GAL model
  4. Payment of fees where applicable
  5. Mechanisms to guarantee individual members as bona fide blind or visually impaired people and the management thereof
  6. Monitoring and control measures to prevent abuse and to act in such cases

7.7 Management information

The Governance structure of the GAL may require management information from time to time. Members may be required to submit information on request or as a standing requirement. This information will be used for a variety of reasons including assessing how the GAL is performing and to plan ahead.

 

7.8 Risk Management

Risk Management will be responsibility of participating GAL members. The Governance Structure responsibility will be to collate this information in order to develop responsive strategies. Risk management will focus on external and internal factors that may have a positive or negative influence on the GAL.

7.8.1 External factors

    1. Political factors: This refers to the political climate in a specific country which may affect the participation of a library in the GAL. Political interference may make it impossible to continue as a member. It also refers to sector politics, i.e. if the organized visually impaired sector of a country begins to dictate, interfere or withdraw support in member participation.
    2. Economic factors: The current Global economic situation is a relevant example of how it may be difficult for a member library to be part of the GAL due to economic realities. If membership of the GAL requires various economic commitments to further its ideals it may be challenging for certain members to find the necessary funding. The rise in operational cost in a country may also affect participation.
    3. Social Cultural factors: What is acceptable in once country may be offensive in another. The GAL will have to be sensitive to this and make the necessary provisions to address this. The GAL will have to be neutral in what is made available and not be used as a propaganda tool for any cause.
    4. Technological factors: Various countries are on different levels of technological development. For some countries technological cost is a restrictive factor but not for others. Some countries are leading technological development whilst others remain users of technology. Various countries use different IT platforms, hard and software which will have to be considered to ensure connectivity.  Some libraries have resident technology staff and others may not. This may influence responsiveness.
    5. Informational factors: The information content of the GAL will be one of the key success factors of this initiative. Copyright, censorship and other restrictive measures may negatively influence the scope of information accessible to users of the GAL. The service mix of the GAL may include services offered by other Information providers and aggregators who offer their service for a fee or free of charge.

 

7.8.2 Internal factors

A variety of factors may exist that will influence a participating GAL members contribution in a negative or positive manner. Some of these factors are:

7.9 IT infrastructure/platform

The Access and Discovery project team considered four options that might lead to achieving the GAL vision(5)

 

Option 1 is preferred, but options 2 and 3 are also recommended given the time it will take to implement option 1 fully.

The above options should consider the

  1. Connectivity and bandwidth challenges to open access to the GAL (3)
  2. Device availability and affordability
  3. Device compatibility and DRM

 

The Governance Structure of the GAL will have to determine the most appropriate communication channels depending on what needs to be communicated and who the target audience is. Communication between members will be through existing tele-communication means, e.g. e-mail, fax, video conferencing, Skype, etc. Communication with users of the GAL may be through the same media but may include print media and marketing material to raise awareness or introduce services. .

8. Timeline

The GAL Steering Committee will first consider this report and the reports of the other working groups. Once accepted by the Steering Committee it will put forward a recommendation to the two sponsors of the initiative, i.e. IFLA (Libraries Serving People with Print Disabilities) and the Daisy Consortium for final approval.  The mandate of the Steering Committee may be expanded by the two organizations to call a meeting of interested parties together to formalize the structure and operations of the GAL.

9. Sources

  1. http://business-model-design.blogspot.com/2005/11/what-is-business-model.html

 

  1. Osterwalder, A.  http://business-model-design.blogspot.com/2006/11/business-model-template-designing-your.html
  1. http://process.mit.edu/Info/eModels.asp

 

  1. Global Accessible Library Project: A ‘Virtual Library for the World community of Print Disabled Persons’ Phase 1 – The Strategy. Project Plan.  Release version 0.04. Date: 13-11-08. Project Owner: IFLA/LBS & Daisy Consortium. Project Leader: Julie Rae
  1. Lor, P.J. Digital Libraries and archiving knowledge: some critical questions. South African Journal of Library and Information Science, Vol.74(2), 2008, p.116-128

 

  1. http://project.wdl.org/project/english/index.html
  1. http://www.europeana.eu/portal/aboutus.html#background

 

  1. http://dev.europeana.eu/about.php
  1. http://www.bookshare.org/about/howBookshareWorks

 

10. Contributors

This document was drafted by the collective input of the following people:

Francois Hendrikz – SALB (SA) - Chair
Stephen King – RNIB (UK)
Fransisco Martinez – Once (Spain)