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11© 2008 Outsell, Inc. All rights reserved.
ROI for Digital ContentCONCERT 2008 Conference
Cindy Hill12-13 November 2008
22© 2008 Outsell, Inc. All rights reserved.
Overview
• About Outsell• Metrics and strategic assessment• ROI (Return on Investment) model• Imperatives for information managers
33© 2008 Outsell, Inc. All rights reserved.
About Outsell• Outsell is the only worldwide research and
advisory firm that delivers advice and information industry research to information managers, librarians and publishers.
• We provide consultation and custom research in all areas of library management
• Outsell invests significantly in original research to guide clients in optimizing their strategies, plans, and performance.
44© 2008 Outsell, Inc. All rights reserved.
Research Methodology
Outsell regularly researches behavior of information users in Corporate, Government, Education and Healthcare settings.
55© 2008 Outsell, Inc. All rights reserved.
Academic Information Seekers Go To the Internet• 56% Internet search engine• 15% Institution’s intranet/portal• 15% Colleagues inside the institution• 12% Colleagues outside the institution• 3% Institution’s physical library• 4% Other
Source: Outsell’s Information About Markets and Users Database (Q18)
66© 2008 Outsell, Inc. All rights reserved.
Where Information Seekers Go
56% 53% 59% 52% 54% 47%56% 56%
42% 41%
14%22% 15% 24%
11%30%
8%
15%
24%32%
11%
9%9%
8%
12%
7%
13%
12%
17%
11%7%
3%7%
3%
10%
2%
7%
3%3%
4%6% 3% 6% 3%4%
2%
6%
6%8%
4%6% 5% 3% 4% 9% 6% 11%
4% 7% 4%
Then Now Then Now Then Now Then Now Then Now
Other
My organization'sphysical library
Colleagues outsidethe organization
Colleagues insidethe organization
My organization'sintranet/portal
Internet searchengine
Total Corporate Healthcare Education Government
“Then” = 2004; “Now” = 2007Source: Outsell’s Information About Markets and Users Database (Q18)
77© 2008 Outsell, Inc. All rights reserved.
Academics Prefer E-mail Alerts
• 85% E-mail alerts• 55% Blogs or weblogs• 27% Intranet postings• 32% Podcasts• 19% RSS Feeds• 11% Video casting• 6% Audio blogs• 5% Other• 5% Virtual humans• 5% Vlogs
Source: Outsell’s Information About Markets and Users Database, 2007 (Q20d)
88© 2008 Outsell, Inc. All rights reserved.
Preferred Delivery MediaTotal Corporate Healthcare Education Government
Base 3,515 2,044 153 741 283
% % % % %
E-mail alerts 85 85 88 85 84
Blogs or weblogs 47 46 37 55 39
Intranet postings 41 43 45 27 56
Podcasts 24 22 25 32 15
RSS Feeds 20 22 13 19 19
Video casting 16 15 21 19 16
Audio blogs 6 7 6 6 6
Other 5 4 3 5 7
Virtual humans 4 4 5 5 5
Vlogs 4 3 5 5 3
Source: Outsell’s Information About Markets and Users Database, 2007 (Q20d)
99© 2008 Outsell, Inc. All rights reserved.
Top 5 Problems for Academics
• Not enough budget
• Not enough time
• Too much information• Lack of staff support• Not knowing what’s available/
Full text is not available
Source: Outsell’s Information About Markets and Users Database, 2007 (Q30)
1010© 2008 Outsell, Inc. All rights reserved.
Problems Getting InformationTotal Corporate Healthcare Education Government
Not enough time Not enough time Not enough time Not enough budget Not enough time
Not enough budget Not enough budget Not enough budget Not enough time Not enough budget
Lack of staff support Lack of staff support Hard to determine quality
Too much information Lack of staff support
Information is too hard to find/Not know what’s available
Information is hard to find
Lack of staff support
Lack of staff support Not knowing what’s available
Too much information/ Hard to determine quality
Not knowing what’s available/Too much information/Hard to determine quality
Full text is not available
Not knowing what’s available/Full text is not available
Hard to determine quality
Source: Outsell’s Information About Markets and Users Database, 2007 (Q30)
1111© 2008 Outsell, Inc. All rights reserved.
Top Six Info Pro Roles Academics Value• Making information available to the
desktop• Providing competitive intelligence
information • Helping locate information and experts • Managing a physical library and print
collection • Providing training and advice about
searching and effective use of information sources
• Evaluating and purchasing content sources
1212© 2008 Outsell, Inc. All rights reserved.
Info Pro Roles Valued by ExecutivesValued Roles Corp Edu Gov Health
Making information available to the desktop
Providing competitive intelligence information
Conducting research on your behalf
Helping locate information and experts
Analyzing research results on your behalf
Managing a physical library and print collection
Providing training and advice about searching and effective use of information sources
Research staff working on project teams
Evaluating and purchasing content sources
Consultation on organizing information
Providing an alerting service on selected topics
Source: Outsell’s Information Management Benchmark
1313© 2008 Outsell, Inc. All rights reserved.
Content Management Activities Valued by Academics• 49% Client inquiry service
• 56% External electronic content• 64% Physical library/records center
• 40% Document delivery/ordering services• 16% Secondary research• 15% Current awareness/alerting services• 38% Content purchasing• 34% Web site/portal• 43% Training• 17% Primary research• 8% Analysis/synthesis of information/data
mining
1414© 2008 Outsell, Inc. All rights reserved.
Most Valuable Content Management Activities
Total Corporate Healthcare Education Government
Base 795 446 56 129 144
% % % % %
Client inquiry service 47 44 55 49 56
External electronic content 46 43 45 56 51
Physical library/records center 41 31 59 64 44
Document delivery/ordering services 40 32 66 40 57
Secondary research 37 47 36 16 24
Current awareness/alerting services 32 37 29 15 31
Content purchasing 28 26 36 38 26
Web site/portal 25 23 21 34 25
Training 24 19 21 43 24
Primary research 22 25 18 17 16
Analysis/synthesis of information/data mining 21 28 7 8 15
Source: Outsell’s Information Management Benchmark, 2007 (Q10b)
1515© 2008 Outsell, Inc. All rights reserved.
Academic Issues and Challenges
• Budget constraints
• Keeping up with technology
• Staff reduction/ shortage
• Physical space and facilities
• Customer awareness of services• Source: Outsell’s Information Management Benchmark (Q11c)
1616© 2008 Outsell, Inc. All rights reserved.
Top Issues or Challenges by SectorTotal Corporate Healthcare Education Government
Then Now Then Now Then Now Then Now Then Now
Budget constraints
Budget constraints
Budget constraints
Keeping up with technology
Not asked Budget constraints
Budget constraints
Budget constraints
Budget constraints
Budget constraints
Staff reduction/ shortage
Keeping up with technology
Staff reduction/ shortage
Budget constraints
Not asked Customer awareness of services
Staff reduction/ shortage
Keeping up with technology
Staff reduction/ shortage
Staff reduction/ shortage
Keeping up with technology
Staff reduction/ shortage
Keeping up with technology
Customer awareness of services
Not asked Keeping up with technology
Keeping up with technology
Staff reduction/ shortage
Physical space and facilities
Keeping up with technology
User training
Consumer awareness of services
User training
Staff reduction/ shortage
Not asked Marketing and promoting services
User training Physical space and facilities
Keeping up with technology
Customer awareness of services
Physical space and facilities
Increased workload
Marketing & promoting services
Increased workload
Not asked Staff reduction/ shortage
Physical space and facilities
Customer awareness of services
Marketing & promoting services
Physical space and facilities
“Then” = 2004; “Now” = 2007Source: Outsell’s Information Management Benchmark (Q11c)
1717© 2008 Outsell, Inc. All rights reserved.
Examples of Change Outward-Facing
• Individual-as-client Organization-as-client• Repository Information hub• Responsive Proactive• One-size-fits-all Personalized• Centralized “Embedded”• Staff generalization Staff specialization• Distributed Centralized• One-to-one One-to-many
Others?
1818© 2008 Outsell, Inc. All rights reserved.
Library Management Change ExamplesInward-Facing
• Instinct Fact-based• Word-of-mouth Active marketing &
awareness• Do for Do with• Solo mentality Team mentality
Others?
1919© 2008 Outsell, Inc. All rights reserved.
User Behavior Change ExamplesThat Affect Information Service Delivery
• Dependent Self-sufficient• Authority focused Open to alternative providers• Prefer traditional Like non-traditional sources
media• Just-in-case Just-in-time• Consciously Unconsciously incompetent
incompetent• Patient Rushed
Others?
2020© 2008 Outsell, Inc. All rights reserved.
Example of a Value QuadrantDigital Resources Offered in 2008
Value / Impact
Cos
t / R
esou
rce
Req
uire
men
ts
Low High
High
Electronic Journals
Electronic Books
Database 1
Database 2
Library Website
Faculty Electronic Publications
Faculty Coursework
2121© 2008 Outsell, Inc. All rights reserved.
Metrics Assessment
2222© 2008 Outsell, Inc. All rights reserved.
Importance of Metrics
• Demonstrate value• Support strategic decisions• Measure your impact on the organization• Marketing opportunity
2323© 2008 Outsell, Inc. All rights reserved.
The difficulties…
• Determining metrics that are of interestto stakeholders
• Showing value through metrics• Finding the time
2424© 2008 Outsell, Inc. All rights reserved.
Digital Content: Operational Metrics
• Measure transactional activities• Needed to understand the usage of your
digital content
• But only of interest to your department, NOT your university
2525© 2008 Outsell, Inc. All rights reserved.
Strategic assessment is the first step in defining your metrics.
2626© 2008 Outsell, Inc. All rights reserved.
Strategic Assessment• Provides direction • Examines values and drivers• Assesses competencies and status• Considers external environment• Ensures alignment
• Defines strategic metrics
2727© 2008 Outsell, Inc. All rights reserved.
Strategic Assessment
Stakeholder Management
User Needs Assessment
Strategic Plan
OrganizationalAlignment
Strategic Actions Strategic Metrics
2828© 2008 Outsell, Inc. All rights reserved.
Strategic Metrics
• Links to actions in your strategic plan which is aligned with your larger organization
• Measures your value to the organization• Quantitative and qualitative
• Of interest to your function AND your organization
2929© 2008 Outsell, Inc. All rights reserved.
ROI Overview
• Why ROI?• Sample ROI Questionnaires• ROI Analysis and Reporting
Techniques• Qualitative Research for ROI• Imperatives for Information Managers
3030© 2008 Outsell, Inc. All rights reserved.
Why ROI?
3131© 2008 Outsell, Inc. All rights reserved.
Challenge…
Articulate value to executive decision makers
3232© 2008 Outsell, Inc. All rights reserved.
Strategic Metrics are the Foundation for Useful ROI Analysis
Focus on:
Successes
Outcomes
Efficiencies
3333© 2008 Outsell, Inc. All rights reserved.
ROI Questions Asked
• Time saved• Money saved• Revenues gained or supported• Decision support
3434© 2008 Outsell, Inc. All rights reserved.
Digital Content ROI Questionnaire
3535© 2008 Outsell, Inc. All rights reserved.
Library ROI QuestionnairePursued a new technology _____%Pursued a patent _____%Changed an operational process _____%Made a supplier decision _____% Made project selections _____%
Customize the list to reflect the nature of work and what is considered high-end value.
3636© 2008 Outsell, Inc. All rights reserved.
Library ROI Questionnaire• About how many times have you used the XYZ
Digital Resource in the past 12 months? _____ times
• In approximately what percent of those instances did using the XYZ Digital Resource save you time _____%
• And on average, in each case you saved time by using the XYZ Digital Resource, about how much time did you save (in hours?) _____ hours
• In approximately what percent of instances of using the XYZ Digital Resource did the information help you win a grant or funding? _____ %
3737© 2008 Outsell, Inc. All rights reserved.
3838© 2008 Outsell, Inc. All rights reserved.
ROI Analysis and Reporting Techniques
3939© 2008 Outsell, Inc. All rights reserved.
ROI Analysis & Reporting Techniques
• Report on a digital content-use basis•Multiply the percentage of users who realize a benefit by the actual benefit value.
•Then multiply that figure by the percentage of instances in which they realize the benefit.
4040© 2008 Outsell, Inc. All rights reserved.
Include Cost of Managing the Digital Resource• ROI is the value of benefits MINUS the
cost of the digital resource and the time expended by library staff to manage it
• Add user’s salary to the calculation.
4141© 2008 Outsell, Inc. All rights reserved.
Calculation Example of Time SavedFACTS:• 2,000 uses• 50% say they save time using the digital resource• 75 % of instances time was saved • 8 hours – reported average time saved• $60/hour – salary per hour
CALCULATIONS:(50% of 2000) x (75% x 8 hours) = 6,000 hours($60 x 6,000 hours) = $360,000 cost savings
STATEMENT:“Using the XYZ digital content resource saves $360,000.”
4242© 2008 Outsell, Inc. All rights reserved.
Calculation Example of Time SpentFACTS:• Licensing cost of XYZ digital resource is $125,000• 120 hours – annual staff hours required to manage XYZ
digital content resource• $30/hour – staff salary per hour
CALCULATIONS:($30 x 120 hours) = $3600 cost of staff($125,000 + $3,600) = $128,600 total cost
STATEMENT:“Providing XYZ digital content resource costs $128,600.”
4343© 2008 Outsell, Inc. All rights reserved.
Calculation Example of ROIFACTS:• Savings is $360,000• Cost to provide content is $128,600
CALCULATIONS:($360,000 – $128,600) = $231,400 ROI
STATEMENT:“Providing XYZ digital content resource has an ROI of
$231,400.”
4444© 2008 Outsell, Inc. All rights reserved.
Example of a Value QuadrantDigital Resources Offered in 2008
Value / Impact
Cos
t / R
esou
rce
Req
uire
men
ts
Low High
High
Electronic Journals
Electronic Books
Database 1
Database 2
Library Website
Faculty Electronic Publications
Faculty Coursework
4545© 2008 Outsell, Inc. All rights reserved.
Additional Outsell ReportMore information is available in:
“Crunching the Numbers: Calculating an ROI Statement” section of Outsell briefing:The Value of Libraries: Justifying Corporate Information Centers in the Year of Accountability (April 23, 2001).
4646© 2008 Outsell, Inc. All rights reserved.
Qualitative Research on ROI
4747© 2008 Outsell, Inc. All rights reserved.
Qualitative Research on ROI• The numbers alone do not tell the story• Qualitative feedback from users illuminates
value• Both quantitative and qualitative data are
required for a complete value proposition• ROI for digital content is the value of benefits
MINUS the cost of providing the digital resource and the time expended by library usage
4848© 2008 Outsell, Inc. All rights reserved.
Qualitative Research on ROI
• Input comes from interviews, focus groups, surveys, user groups, emails and more
• Actively solicit user testimonials
• Embed testimonials into reports
• Comments of similar natures can be “coded” or grouped: “Thirty percent of interviewees reported…”
4949© 2008 Outsell, Inc. All rights reserved.
Stragetic Metrics Lead to Successful ROI
• Support continued funding – justify the costs of operating the Library (ROI, cost/benefit analysis)
• Mirror university-wide metrics standards
• Showcase value by focusing on outcomes, cost-savings and user-reported value
• Address the needs and values of users, stakeholders and executives
• Help manage the digital portfolio (usage of products and services)
5050© 2008 Outsell, Inc. All rights reserved.
Imperatives for Information Managers• Start now to collect & analyze. It’s too
late when ….• Mask the complexity of underlying
methodology in ROI reports• Include quantitative and qualitative
elements to show the total ROI picture• Make time to manage your function• Link IM priorities directly to organization
and user priorities
5151© 2008 Outsell, Inc. All rights reserved.
Thank You
Cindy HillVice President
Information Management Service
5252© 2008 Outsell, Inc. All rights reserved.
http://www.outsellinc.com
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Outsell, Inc.
330 Primrose Road, Suite 510Burlingame, CA 94010
Tel. 650.342.6060 Fax 650.342.7135
7-15 Rosebery AvenueLondon, EC1R 4SP
Tel. +44 (0)20 7837 3345 Fax +44 (0)20 7837 8901
5353© 2008 Outsell, Inc. All rights reserved.
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Outsell is the only worldwide market research and consulting company that delivers must-have intelligence and advice to publishers and information providers. We analyze markets, companies, and trends, and provide fact-based recommendations for high-level executives and product development, marketing, and strategy teams. In addition, we work with information managers to benchmark spending and demonstrate best practices. Outsell invests significantly in original research each year to guide clients in optimizing their strategies, plans, and performance.