Changing Business Models for Public Libraries

OLA Superconference 2011K. Dubeau, SDI Chair, Newmarket PL

kwdubeau@yahoo.com

What is a Business Model

• Describes core aspects of a business or organization:– Its purpose– Offerings– Strategies– How it generates revenue

Specifies where the organization sits in the value chain.

Key Thoughts:

• Tradition is not a model• Success in the past does not guarantee

relevancy in the future• Restoring government funding is not a

sustainable solution• Diversification of revenues, but in a

meaningful way

Innovation

• Disruptive innovations – create opportunity• New growth strategies, high value products

and services• How to inspire corporate innovation:– Tracking external trends– Strengthening internal capabilities– Looking beyond the obvious– Instilling a culture of innovation– Disciplined Implementation

Innovation

“If I had asked the public what they wanted, they would have said a faster horse….

Henry Ford

Innovation

Revenue Side of Equation

Today:• Core funding, competing priorities• Revenues from late fees (e-resources)• Competition for scarce resources

Cost Side of Equation

Today:• Labour costs• Increasing ITC costs• Increasing professional development/training• Collection development costs (multiple formats)• 0 Residual Value on subscriptions• Asks to support provincial level resources

Impacts - Revenue

• KPI becomes even more important• Need for creativity, entrepreneurship, innovation• Re-examine and explore relationships with private

sector -> define value / benefit• Capacity for fundraising• Can existing infrastructure be leveraged?• ROI assessments• Organizational structure and culture re-alignment

Impacts - Revenue

• Priority functions and capabilities centred around:– Marketing• Need to get GREAT• Market Segmentation• Multiple Channels

– Customer Relationship Management (CRM)– Business Development/Partner Management– CIO function

Impacts - Costs

• Continual evaluation of core “business”• Drive out non-core related costs• Seek shared investments – beyond other

libraries; think community-wide

The Future

• Scenario – based planning (NSW, libraries 2020)• Not to predict, but to stimulate reflection and

thought on key elements and variables, how we can influence and shape the future

• Thought Challenge: Creating in innovation culture• Thought Challenge: “R&D” for Libraries

Everything in Balance

• Engage in conversation• Recognize extremes, use them to inspire

thinking