1	International Consortia and the Information Industry: Recent Developments and Future Prospects Arnold Hirshon Executive Director
2	Overview
3	about NELINET
4	NELINET Services
5	Why & How Consortia Form
6	Consortia: Breadth of Purpose
7	Consortia: Business Models
8	Consortial Organizations Possibilities?
9	How the Business Model Affects Consortial Decisions Example: E-Resource Licensing
10	Funding/ Purchasing Models
11	Funding/Purchasing Models
12	Funding/Purchasing Models
13	Coordinated Purchasing: E-Resource Cost-Sharing Strategies Size of institution (e.g., based upon FTE count) Actual usage (e.g., based upon the previous year’s activity) Ability to pay (e.g., based upon each member’s annual expenditures for library materials) Equal-share (e.g., each pays an identical amount regardless of budget or size)
14	General Characteristics of Successful Consortia
15	Sustaining the Consortium: Revenue Models Typical Sources of Consortial Funding Volunteer organization (no funding) Centrally funded (fully or partially) Fully government funding Self-funded (dues, fees, grants, etc.) Advantages of different funding mechanisms Dues/fees quadrant
16	Application of Different Revenue Sources
17	Implications of Dues vs. Fees
18	Relationship of Mission to Funding
19	Commercial Information Industry: Trends & the Effect on Consortia
20	Trends Affecting Consortia Continuing weak economic conditions Merger mania Is “The Big Deal” dead? Survival of small publishers Rapid movement to e-only E-books in transition General consortial responses
21	1. Economic Outlook: Causes & Prospects College endowments dropped State funding dramatically cut
22	Short-term Economic Outlook: Brighter? Long-term Outlook: Doom and Gloom?
23	The Economy: Consortial Responses Closely monitor revenues & expenses Reassess existing services Weed the e-resources lists of marginal products Launch fewer major new initiatives Refine existing programs, not launch new ones Engage in more membership outreach
24	2. Mergers & Acquisitions
25	Merger Mania: Reed Elsevier
26	Reed-Elsevier: Overview The world's fifth-largest media group * 2003 rise in operating profits: * 5% in science and medical publishing 17% in legal publishing Spent $6 billion (USD) on acquisitions in the past four years Plan to add 2-3 more small 'bolt-on' acquisitions this year Cost: $500 million (USD) from free cash flow* Not considering any big deals or adding a fifth division*
27	Merger Mania: Kluwer
28	From Bertlesmann/Springer to Kluwer July 30, 2003: The EU approved Candover & Cinven plan to acquire Bertelsmann Springer Approval contingent upon C&C sale of the French medical publishing unit (Groupe Impact Medecine) to alleviate competition concerns. Cost: $1.21 billion (USD)
29	Potential Result: Two Scenarios
30	3. The “Big Deal” Originated with Academic Press Cross-access for all consortium members to titles held Reinforced by OhioLINK experience Greater use of titles not held than to subscribed titles
31	The Big Deal: For Whom? What’s Next? Best for large publishers with large core title lists Libraries like the cross access Elsevier retreating from the Big Deal Consortial response Continue to apply pressure to retain cross access Consortia will only be successful if one or more “big libraries” refuse to sign agreements that lack the B.D.
32	4. Survival of Small Publishers Problem Lack of sufficient core content Publisher solution Aggregated content Small publishers forming their own consortia Consortial response Generally favorable to helping the underdog
33	5. The Move to E-Only Elsevier reports Sharply increased online usage promises higher margins than print publishing E-only generates lower revenue than print plus electronic sale, but has a positive impact on operational efficiency Implications for member libraries Hard to turn back after going e-only Web access only for current subscriptions No live archives (archival copies provided on CD with no access software) Dark archives don’t solve immediate problems Immediate savings later eaten-up by other costs
34	E-Only: A Band-Aid for a Heart Attack?
35	E-Books: Whose Territory?
36	E-Book Prosects = Portability: Transitors & E-Ink
37	Consortial Response: Adding Value for Member Libraries
38	Consortial Response: Bring Value to the Purchasing Process
39	The Changing Imperatives Affecting Consortia E-resource licensing is not new or sexy, but just another task Increased competition among consortia to provide offers Eroding library purchasing power Many libraries are seeking to cancel current e-resources Market saturation: too many new e-resource products Reduced profit margins for aggregators means decreased discounts or lower net revenue for consortia
40	Consortial Challenge: How to Add Value in a Mature Field Consider if the consortium should collaborate or merge with another consortium, or whether to discontinue the licensing program entirely Negotiate terms and conditions, not just discounts Create a licensing service for individual member libraries or consortium subgroups Explore local loading or other means to create trusted shared live archives
41	Consortium E-Resource Collection Development Purpose of the E-Resources Plan To help the consortium predict and cope with higher user expectations, rapid change, and competitive pressures Consortium needs & plans will vary Must be based upon the nature of the consortium The reality Many individual institutions have written policies Few consortia have written policies or plans Often opportunistic approaches or chaos management Select by opportunities and look backward to intuit the pattern
42	Typical Scope of E-Resource Development Policies
43	Example: E-Journal Licensing Principles
44	E-Resource Plans Strategic Plan Environmental scan SWOT analysis Market research Gap analysis Market segmentation Mission, vision, values of the program Goals and objectives Business Plan Projected net revenue Implementation strategies Criteria for new or renewing offers Pricing & revenue strategies Actions required Staffing assignments Metrics for success
45	Consortial Statistics of E-Resource Usage Useful statistics are essential for collection management, budgeting, and marketing Statistical analysis can be a unique consortial service Locally loaded databases enable greater flexibility for gathering data than web-accessible databases Multiple efforts underway to define statistical reporting standards for e-resources, e.g., ICOLC (rev. 2001) <www.library.yale.edu/consortia/2001webstats.htm> Project Counter <www.projectcounter.org> ARL e-metrics <www.arl.org/arl/pp2002/pp522.html> NISO <www.niso.org/emetrics/emetrics.cfm>
46	Value of E-Resource Statistics
47	Developments in Non-Commercial Content
48	Non-Commercial Publishing Trends
49	Open Access and Alternative Publications Lund University Libraries Directory of Open Access Journals (http://www.doaj.org) 350 quality-controlled, scholarly scientific open access e-journals Can be harvested using the Open Archives Initiative-Protocol for Metadata Harvesting (http://www.openarchives.org/)
50	Consortium Role in Alternative Publishing
51	2. Institutional Repositories: What Are They? For digital scholarship created on a campus, an information repository can provide a method to Capture the information Store the information Access the information Distribute the information An access and distribution mechanism can be Local Universal Can provide persistent access May serve as an integration tool for the various functions
52	Institutional Repositories: MIT Dspace Federation Probably the most prominent institutional repository initiative System is open-source and openly available MIT is working with other research institutions to federate the model, but has also indicated that further development at MIT will be MIT-specific
53	Institutional Repositories: Spill down Effects “The institutional repository movement, more than any other factor, appears to have set off the alarms that led a division of the Association of American Publishers to launch a public relations campaign … These initiatives, however valuable and necessary, may further destabilize the troubled serials market in the short term.”
54	Institutional Repositories: Potential Consortial Roles
55	Consortial Globalization
56	ICOLC
57	Issues for Countries-in-Transition
58	eifl
59	eifl
60	eifl
61	Planning the Consortial Future
62	Opportunities: Content
63	Opportunities: Collaborative Technology Shared library information systems E-journal and linking management systems Virtual union catalog and patron-initiated circulation systems Collective portal management Shared authentication systems Collaborative virtual reference
64	Arnold Hirshon: Contact Information