business planning for open access journals

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Scholarly Publishing & Academic Resources Coalitionan initiative of the Association of Research Libraries

Business PlanningFor

Open Access JournalsOpen Access Scholarly

Communication WorkshopVilnius, Lithuania • February 21-22, 2005

Raym Crow • SPARC Consulting Group

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What We’ll Cover

Impetus for open access

Alternative digital publishing channels

Starting a new open access journal

Converting an existing journal

Business models

Resources

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What is Open Access?

Free availability on the public Internet

Research literature that scholars produce without expectation of payment

An access model, not a business model

Requires alternative business models to replace subscription-based models

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Scholarly Publishing SystemScholarly Publishing System

Impetus for Open Access

Journals price crisisMarket pressures on publishers

Enabling Technologies

Journals price crisisMarket pressures on publishers

Enabling Technologies

Benefits to scientists & scholarsSocietal benefits


User-driven pressure

User-driven pressure

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Impetus for Open Access

Scholarly Publishing SystemScholarly Publishing System

Regulatory & policy changesMarket pressures on publishers

Enabling digital technologies

Regulatory & policy changesMarket pressures on publishers

Enabling digital technologies



Market pressure

Market pressure

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Integrated Publishing System

Scholarly publishing comprises four functions:

Current model: integrates these functions in journals

J O U R N A L

ARCHIVINGPreserving research

for future use

AWARENESSAssuring

accessibility of research

CERTIFICATIONCertifying the quality/validity of the research

REGISTRATIONEstablishing intellectual

priority

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Disaggregated Publishing System

Scholarly publishing comprises four functions:

Disaggregated models: Allow functions to be fulfilled independently – by

logically discrete, networked service providers Reveal that academy contributes most of value Lower costs by increasing market efficiency

ARCHIVINGPreserving research

for future use

AWARENESSAssuring

accessibility of research

CERTIFICATIONCertifying the quality/validity of the research

REGISTRATIONEstablishing intellectual

priority

Academic Publishing Value Chain: Functions & Components

Function Component

Capital Investment

Acquisition/Editorial selection

Peer Review/Certification

Substantive Editing

Metadata Creation

Marketing/Promotion/Awareness

Sales

Prepress/Composition/Formatting-Tagging

Print/Print-on-Demand

Fulfillment/Rights Management/DRM

Digital Dissemination/Hosting

Arc

hiv

ing

Digital Archiving/Preservation

Reg

istr

atio

n &

Cer

tifi

cation

Publication/Editorial Management

Aw

aren

ess

Copyediting

Academic Publishing Value Chain—Agents by FunctionFunction Component

Capital Investment



Substantive Editing

Metadata Creation


Sales





Arc

hiv

ing


AgentsA

war

enes

sR

egis

trat

ion &

Cer

tifi

cation

Copyediting


Un

ivers

ity P

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Aca

dem

y &

Soci

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Pu

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Dig

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Rep

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Insti

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Com

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Pre

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External Funding Sources

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Function Component

Capital Investment



Substantive Editing

Metadata Creation


Sales





Arc

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egis

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Aw

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Copyediting

Un

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Socie

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Researc

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Insti

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University ePresses (e.g., ANU); Nat'l Academies Press; BioMed Central;

Biological Procedures Online; PLoS

CDL; EPIC; GAP; HighWire; Igitur; I thaka; Public Knowledge Project;

Scholarly Publishing Office; SciELO;

SciX Project

AnthroSource; Bioline Int'l; BioOne; BPO; Euclid; Project

Muse; Scientific World

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Function Component

Capital Investment



Substantive Editing

Metadata Creation


Sales





Arc

hiv

ing


Agents

Reg

istr

atio

n &

Cer

tifi

cation


Aw

aren

ess

Copyediting

Un

ivers

ity P

resses

Socie

ty P

ub

lish

ers

Dig

ital A

rtic

le

Rep

osit

ori

es

Insti

tuti

on

al R

ep

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Com

merc

ial P

ub

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ers

Op

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Access P

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Acad

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Dis

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ArXiv fronts; G&T; Apps of Superconductivity;

weblogs

ArXiv; RePEc; NCSTRL; CogPrints

ARROW; CDL; DSpace Federation; DARE;

SHERPA; etc.

Su

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(One) Articulated Publishing RouteFunction Component

Capital Investment


Substantive Editing

Copyediting

Metadata Creation


Sales





Arc

hiv

ing


Agents



Reg

istr

ati

on

&

Cert

ificati

on

Aw

are

ness

University Press

I nstitutional Repository

Digital Publishing Service

Direct Funding

Society Editorial

Board

POD

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Starting a New Journal

Market demandAuthors & readers

Barriers to market entryAttracting authorsEstablishing prestige

Regular publication schedule Marketing & awareness

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New Journal Business Planning

Charter or articles of incorporationNonprofit legal entityArticulates mission

BylawsSupport continuity

Financial projection/P&L IncomeCosts In-kind contributions

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Financial projection/P&L IncomeCosts In-kind contributions

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Financial projection/P&LIncomeCostsIn-kind contributions

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Conversion Issues

Innate conservatism Immutability of current structure

Organizational & financial goals Increased emphasis on earned income

Need for active vs. passive modelPublishers don’t sell—libraries buy

Lack of resources for change Insufficient staff & skills

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Conversion Issues

Innate conservatismImmutability of current structure




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Conversion Issues


Organizational & financial goalsIncreased emphasis on earned income



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Conversion Issues





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Conversion Issues




Lack of resources for changeInsufficient staff & skills

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Converting Journal Planning

Financial requirements & statusBreakeven, surplus—or subsidyCurrent performance & over timeChange in cost structure

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Other model indicators & variablesExchange program issuesExisting electronic versionDemand for print editionMember subscription benefitSelf-published vs. contracted

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Alternative Business Models

Self-generated income

Input fees Publication charges or article

processing fees Institutional memberships Digital off-print sales

Affinity relationships Sponsorships Advertising

Alternative distributors Convenience-format licenses or

distributor format fee

Related products & services Journal off-line media sales Differentiated offerings

Electronic marketplace Contextual e-commerce Community marketplace

Subsidies

Internal subsidies Dues allocations

Grants and contributions Foundation grants Institutional grants & subsidies Government grants Gifts & fundraising In-kind contributions

Partnerships/Twinning

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Alternative Business Models

Self-generated income

Input fees Publication charges or article

processing fees Institutional memberships Digital off-print sales

Affinity relationships Sponsorships Advertising

Alternative distributors Convenience-format licenses or

distributor format fee

Related products & services Journal off-line media sales Differentiated offerings

Electronic marketplace Contextual e-commerce Community marketplace

Subsidies

Internal subsidies Dues allocations

Grants and contributions Foundation grants Institutional grants & subsidies Government grants Gifts & fundraising In-kind contributions

Partnerships/Twinning

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Business Model Caveats

Hybrid models often required Discipline- and market-specific Models depend on income hurdle Partial inventory

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Input Fees

Article publication fees—Author proxy pays to subsidize publication Rationale—authors & institutions benefitDiscipline-specific—requires existing

practiceFee amount reflects cost basisExamples: BioMed Central, PLoS

Input Fees

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Input Fees

Discretionary Open Access—Fee secures Open Access—otherwise gated Allows transition over time

Compliance increases as benefits demonstratedSubscription price decreases with compliance

Positioned as offprint equivalentExamples: ASLO, Company of Biologists,

ESA, NAS, OUP, Springer

Input Fees

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Input Fees

Institutional Memberships—Institution pre-pays publication fees for researchers Examples: BioMed Central, PLoS, PNAS

Open Society Institute, Wellcome Trust, JISC, Max Planck, INSERM & CNRS

Input Fees

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Input Fees

Advertising—Extends broadcast media model For journals providing channel to specialized

audience Impression & pay-for-performanceSeldom primary modelExamples: BMC has full ad program

Affinity Relationships

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Input Fees

Sponsorship—Sponsor(s) subsidize Open Access in exchange for recognition Sponsor benefits from halo effect Combines marketing & strategic philanthropy Greater potential than advertising Less labor-intensive than advertising Requires editorial guidelines Examples: OUP’s ecam, J Clinical Investigation

(Merck), Nature (selected articles), TRIZ Journal (Mitsubishi Research Institute)

Affinity Relationships

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Input Fees

Institutional Subsidies—Institution provides infrastructure support Often entails in-kind contributionsCommon model for new journalsMay require re-making case for existing

journalsExamples: Two-thirds of journals listed in

DOAJ

Institutional Subsidies

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Input Fees

Fee-based Print Journal—Fee-based print with free online access Archival print still attractive to someCumulative end-of-year printPrint edition may be differentiatedAdequate for low overhead journalsExamples: BMJ, J of Clinical Investigation,

JMLR, Geometry & Topology, Science

Versioning

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Input Fees

Society partnerships—Resource-rich societies share with other societies Societies with sufficient resources would

help support publishing programs of societies without adequate resources

Avoid dependency of one party on anotherNo surrender of editorial autonomy or controlExamples: Proposed that ICSU & UNESCO

support the concept

Twinning

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Resources

OSI Planning Guides New journals Converting journals

http://soros.org/openaccess/resources.shtml

OA Publishing Platforms Bioline International BioMed Central ICAAP (Athabasca) Igitur (Utrecht) Public Knowledge Project PubMed Central (NIH) Scholarly Publishing Office

(University of Michigan) IR Software Platforms

SPARC Planning Documents

Sponsorship Guide Sample charter & bylaws Information on creating

nonprofit organization SPARC “Create Change”

http://www.arl.org/sparc/core/index.asp?page=h0

DOAJ Increases awareness of journal Article-level access Lots of examples

http://www.doaj.org/

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For More Information

SPARC Web Site—

http://www.arl.org/sparc/

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Raym Crow

Senior Consultant

SPARC Consulting Group

[email protected]

+1.703.536.7447