roi for digital content concert 2008...

11© 2008 Outsell, Inc. All rights reserved.

ROI for Digital ContentCONCERT 2008 Conference

Cindy Hill12-13 November 2008


Overview

• About Outsell• Metrics and strategic assessment• ROI (Return on Investment) model• Imperatives for information managers


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.


Research Methodology

Outsell regularly researches behavior of information users in Corporate, Government, Education and Healthcare settings.


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)


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)


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)


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)


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)


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)


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


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


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


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)


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)


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



Budget constraints

Not asked Customer awareness of services








Customer awareness of services

Not asked Keeping up with technology



Physical space and facilities


User training

Consumer awareness of services

User training


Not asked Marketing and promoting services

User training Physical space and facilities




Increased workload

Marketing & promoting services

Increased workload

Not asked Staff reduction/ shortage



Marketing & promoting services


“Then” = 2004; “Now” = 2007Source: Outsell’s Information Management Benchmark (Q11c)


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?


Library Management Change ExamplesInward-Facing

• Instinct Fact-based• Word-of-mouth Active marketing &

awareness• Do for Do with• Solo mentality Team mentality

Others?


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?


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


Metrics Assessment


Importance of Metrics

• Demonstrate value• Support strategic decisions• Measure your impact on the organization• Marketing opportunity


The difficulties…

• Determining metrics that are of interestto stakeholders

• Showing value through metrics• Finding the time


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


Strategic assessment is the first step in defining your metrics.


Strategic Assessment• Provides direction • Examines values and drivers• Assesses competencies and status• Considers external environment• Ensures alignment

• Defines strategic metrics


Strategic Assessment

Stakeholder Management

User Needs Assessment

Strategic Plan

OrganizationalAlignment

Strategic Actions Strategic Metrics


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


ROI Overview

• Why ROI?• Sample ROI Questionnaires• ROI Analysis and Reporting

Techniques• Qualitative Research for ROI• Imperatives for Information Managers


Why ROI?


Challenge…

Articulate value to executive decision makers


Strategic Metrics are the Foundation for Useful ROI Analysis

Focus on:

Successes

Outcomes

Efficiencies


ROI Questions Asked

• Time saved• Money saved• Revenues gained or supported• Decision support


Digital Content ROI Questionnaire


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.


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? _____ %


ROI Analysis and Reporting Techniques


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.


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.


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.”


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.”


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.”


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


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).


Qualitative Research on ROI


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


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…”


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)


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


Thank You

Cindy HillVice President

Information Management Service

[email protected]


http://www.outsellinc.com

Come By and Visit Us

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


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The information, analysis, and opinions (the “Content”) contained herein are based on the qualitative and quantitative research methods of Outsell, Inc. and its staff’s extensive professional expertise in the industry. Outsell has used its best efforts and judgment in the compilation and presentation of the Content and to ensure to the best of its ability that the Content is accurate as of the date published. However, the industry information covered by this report is subject to rapid change. Outsell makes no representations or warranties, express or implied, concerning or relating to the accuracy of the Content in this report and Outsell assumes no liability related to claims concerning the Content of this report.

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.

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