[OpenGLAM] cost benefit analysis of open digital content

Mon Oct 21 15:52:54 UTC 2013

Craig (et al) - - just back to work here after the shutdown, catching up on email ^..^
I'm happy to hear more about your project and help in any way I can. Ping me off list if you like: edsonm at si.edu.

>From the resources listed on the wiki, you must read Simon Tanner's study, and you should also read the JISC studies of the "V&A Images" line of business (resources #8 and #9 on the wiki.)

The bottom line is that no GLAM that I've heard about has done an honest accounting of the actual cost-to-market for their digital asset licensing/sales activities (though the V&A comes close, and their realism is laudable). Simon Tanner nailed it in 2004: "Everyone interviewed wants to recoup costs but almost none claimed to actually achieve or expected to achieve this…Even those services that claimed to recoup full costs generally did not account fully for salary costs or overhead expenses." (p. 35)

The accounting for costs and overhead is key - -  I've lost track of how many GLAM image managers I've spoken with who said that their image sales/licensing activities were profitable, but who defined "profitable" as earning more in revenue, in some years, than they pay out in salary to the person running the rights-and-repro office: no accounting for office space rent; no utilities; no bandwidth; no computers or software; no concept of opportunity cost.

An executive here has likened this business model to a child's lemonade stand: mom and dad pay for the lemonade and the child gets to keep 100% of the revenue as profit. I wish I could run a business like that!

And I'll add, because I'm feeling testy this morning, that GLAM's do all kinds of wildly expensive things, without a cost/benefit analysis, simply because they feel like doing them: exhibitions, research, publications, education programs, providing computers and phones and heat and light for the staff. . . - - I know one organization that's investing $400m in a new building without anything even resembling a cost-benefit analysis. Projects should have goals and outcomes, they should be managed at the highest degrees of competence, but open access initiatives shouldn't be the only GLAM initiatives that are burdened with creating and defending a cost/benefit projection.

;)

From: <Harkema>, Craig <craig.harkema at usask.ca<mailto:craig.harkema at usask.ca>>
Date: Tuesday, October 8, 2013 9:50 AM
To: Merete Sanderhoff <merete.sanderhoff at smk.dk<mailto:merete.sanderhoff at smk.dk>>
Cc: "open-glam at lists.okfn.org<mailto:open-glam at lists.okfn.org>" <open-glam at lists.okfn.org<mailto:open-glam at lists.okfn.org>>, David Farneth <DFarneth at getty.edu<mailto:DFarneth at getty.edu>>
Subject: Re: [OpenGLAM] cost benefit analysis of open digital content

Very helpful. Thanks so much everyone! I'll let you know if I dig up anything new.

Cheers,
Craig
________________________________

[cid:image001.jpg at 01CDD6B6.8499DB40] Craig Harkema
Digital Projects Librarian
University Library, University of Saskatchewan
Tel: (306) 966-5980 | saskhistoryonline.ca<https://urldefense.proofpoint.com/v1/url?u=http://saskhistoryonline.ca&k=diZKtJPqj4jWksRIF4bjkw%3D%3D%0A&r=OrleOIb4%2FRXNkzweNOIBMA%3D%3D%0A&m=EnARfO%2FYjhJKz2XnKtLMFKc%2B2BO1ztdcoWnz9lTYOy0%3D%0A&s=3861f7cdaead1e5d8fa4cc325856fdeeb214d5ab549ac3894bde42ef829a818b> | twitter.com/saskhistory<https://urldefense.proofpoint.com/v1/url?u=http://twitter.com/saskhistory&k=diZKtJPqj4jWksRIF4bjkw%3D%3D%0A&r=OrleOIb4%2FRXNkzweNOIBMA%3D%3D%0A&m=EnARfO%2FYjhJKz2XnKtLMFKc%2B2BO1ztdcoWnz9lTYOy0%3D%0A&s=18f8ac0252810f5ca548c4b93fa3d23d9b3fafb643bc617d5a110d967aaa44f1>

On 2013-10-08, at 1:47 AM, Merete Sanderhoff wrote:

Great resources shared here!

Another interesting study is Kristin Kelley's survey from this year of 11 American and British museums who have provided open access and have concrete evidence to share of how that affects things like revenue
http://www.clir.org/pubs/reports/pub157/pub157.pdf<https://urldefense.proofpoint.com/v1/url?u=http://www.clir.org/pubs/reports/pub157/pub157.pdf&k=diZKtJPqj4jWksRIF4bjkw%3D%3D%0A&r=OrleOIb4%2FRXNkzweNOIBMA%3D%3D%0A&m=EnARfO%2FYjhJKz2XnKtLMFKc%2B2BO1ztdcoWnz9lTYOy0%3D%0A&s=23d0999ed801bf005e571d8785fb72ad913544cca638a784d9484185939d95d0>

Michael Edson keeps an incredibly valuable list of references to this topic on the Smithsonian Web and New Media Strategy wiki (which is where I found the Kelly report) http://smithsonian-webstrategy.wikispaces.com/Public+Domain+and+Image+Sales+References

Cheers,
Merete

-----Oprindelig meddelelse-----
Fra: open-glam-bounces at lists.okfn.org<mailto:open-glam-bounces at lists.okfn.org> [mailto:open-glam-bounces at lists.okfn.org] På vegne af Proffitt,Merrilee
Sendt: 7. oktober 2013 23:54
Til: David Farneth; open-glam at lists.okfn.org<mailto:open-glam at lists.okfn.org>; Craig Harkema
Emne: Re: [OpenGLAM] cost benefit analysis of open digital content

Here's another one in the "no one gets rich" category, although probably not exactly what you are looking for.

Erway, Ricky. 2008. Seeking Sustainability. Report produced by OCLC Programs and Research
http://www.oclc.org/content/dam/research/publications/library/2008/2008-03.pdf

You might also contact Simon Tanner and see if his research has been updated at all. I believe he still tracks this area.

Merrilee Proffitt, Senior Program Officer
OCLC Research

-----Original Message-----
From: open-glam-bounces at lists.okfn.org<mailto:open-glam-bounces at lists.okfn.org> [mailto:open-glam-bounces at lists.okfn.org] On Behalf Of David Farneth
Sent: Monday, October 07, 2013 1:50 PM
To: open-glam at lists.okfn.org<mailto:open-glam at lists.okfn.org>; Craig Harkema
Subject: Re: [OpenGLAM] cost benefit analysis of open digital content

I look forward to seeing if anyone can point to some current cost analysis.

This older article by Ken Hamma provides some historical context.  See, especially, footnote 6.
http://www.dlib.org/dlib/november05/hamma/11hamma.html#!

David

David Farneth
Assistant Director
The Getty Research Institute
1200 Getty Center Drive, Suite 1100
Los Angeles, CA  90049-1688

office: (310) 440-7076
mobile: (310) 270-5280
dfarneth at getty.edu<mailto:dfarneth at getty.edu>
Assistant: Cassandra Heiser: (310) 440-7433

"Harkema, Craig" <craig.harkema at usask.ca<mailto:craig.harkema at usask.ca>> 10/7/2013 1:27 PM >>>
Hi there,

I'm wondering if any of you have come across anything regarding the cost benefit of opening up digital content? In other words, I'm curious about just how much organization make off of charging for high res files, for example, versus the accounting, general overhead, rescanning, and so forth that is required? Which is not to mention any of the barriers to use charging fees such as this imposes.

Craig
________________________________

[cid:image001.jpg at 01CDD6B6.8499DB40<mailto:image001.jpg at 01CDD6B6.8499DB40>] Craig Harkema Digital Projects Librarian University Library, University of Saskatchewan
Tel: (306) 966-5980 | saskhistoryonline.ca<http://saskhistoryonline.ca> | twitter.com/saskhistory<http://twitter.com/saskhistory>

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