Changing Business Models for Public Libraries OLA Superconference 2011 K. Dubeau, SDI Chair, Newmarket PL

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