Sustainability & Business Models Gill Joy – ESYS plc Oscar Struijve – Education for Change

Sustainability & Business Models Introduction Findings from ESYS and EFC studies Models Q&A and Discussion Participants examples of useful models

Sustainability & Business Models Sustainability Study: Common Services and Digital Infrastructure ESYS plc PortAhead Sustainability Study: Portals Education for Change Ltd University of Wales Institute Cardiff

Overview of ESYS study Service assessments Outputs & benefits Stakeholders & linkages Activities & roles IESR/ JOIN-UP DIGITAL ENVIRONMENT Fit with wider IE Likely take-up Project > service transition Impact of new roles Recommendations for projects Recommendations for wider communities Wider IE issues Emerging Framework issues Sustainability models

Sustainability – key issues Routes to sustainability External dynamics Criteria for sustainability Roles, structures, processes Creating value

External dynamics Trends and dynamics of funding modalities Timescale set for funding programme strategic goals Breadth of markets to be addressed Changing external standards Market entry strategies of a range of commercial players Decisions by major players (eg BL, OCLC etc)

Criteria - Primary Competitiveness- Adds value - Cost effective Availability- Ease of access - Simple use/concept Reliability- Consistent quality Scalability Affordability Visibility Open standards Institutional acceptance

Criteria - Secondary Factors such as: Innovation Knowledge transfer Impacts on working practices Staff training Embedding Organisational impacts

Roles, Structures, Processes - PROJECTS PROCESSES Embedding in other IE and JISC services needs support Influencing commercial players is a barrier No funding for scaling up or technology shift ROLES Business/commercial skills Understanding of service readiness Few entrepreneurial leaders STRUCTURES Projects (and institutions?) not geared to service delivery Ownership and risk issues not clear at project level

Roles, Structures, Processes - JISC PROCESSES No overall business/technology management process Need to manage expectations of sustainability Earlier engagement with commercial sector Support to projects for sustainability planning ROLES JISC cannot mandate use of ICT services Tension between R&D role and supporting services Need market/business roles in development groups STRUCTURES JISC is not a business No technology investment/business group No structure to manage project:service transition

Routes to sustainability Interesting project but no continuation of funding Outputs used as training tool Outputs exploited internally by partner institutions By-products continue to be used / are further developed Work leads to follow-on project under separate funding

Routes to sustainability Catalytic effect – project outcomes influence other JISC developments Help make more informed specifications for other products/services Contribution to open source solution

Routes to sustainability Elements of project IPR exploited Software supported but not available as full product or service Publications, surveys Methodologies formalised and further developed Early standards formulation

Routes to sustainability Project becomes a fully funded JISC Service New service in own right Additional component for existing JISC service

Routes to sustainability Project becomes self-supporting service Public/private funding mix Fully commercial Core elements free and premium elements paying

Routes to sustainability: a question … What is it then, that JISC should try to put on the route(s) to sustainability? Grounding in user / stakeholder needs Portfolio mapping / gapping: feasibility studies and risk assessment Cost/benefit analysis Articulate expectations => where is the road supposed to end for specific activities?

Models to support JISC planning JISC Technology/Business planning JISC products/services portfolio Engagement Adoption and Sustainability Project assessment model Classic business model

JISC Strategy Technology Strategy Service Development Strategy Adapt current services/systems Undertake R&D project Develop new service/system Leave to marketplace Maintain current services/systems Investment plan – Technology implementation plan – Business models Procurement (int or ext) Development Programme Service level agreement Service Dev fund MARKET NEEDS Technology & investment planning

Embedding in IE Critical mass of users Low High JISC Service fully funded Self sustaining service Fully funded pilot/demo JISC endorsed service JISC product/service portfolio

Embedding in IE Critical mass of users Low High IESR Zetoc Docusend X-Grain BALSA Open URL Router JISC product/service portfolio

Embedding in IE Critical mass of users Low High IESR Zetoc Docusend X-Grain BALSA Open URL Router JISC product/service portfolio Embed in portals Include commercial targets Increase user base

Engagement Adoption and Sustainability From: Intro to Sustainable Portals - GUIDELINES FOR PORTAL PLANNING

From idea to sustained provision … From: Intro to Sustainable Portals - THE BUILDING BLOCKS TO SUSTAINABILITY Research Learning and teaching Administration Knowledge transfer Other contexts

Project sustainability assessment Competitive advantage Cost to scale- up Leverages other JISC investments Market demand Project sustainability assessment

Classic business model Technical inputs: feasibility performance Business model Market Value proposition Value chain Cost and profit Value network Competitive strategy Economic outputs: value price profit Method of doing business by which a company sustains itself – that is, generates revenue

Discussion topics Needs analysis and business case development How to scope and develop the business case for projects and services - two aspects in particular: do participants believe that the activities funded / explored in these areas address HE/FE needs?; how is / can this be ensured? is the current system of JISC calls and community responses seen as a good and transparent way of focussing development effort in the areas of portals and Common Services and Digital Infrastructure? Alternatives / refinements possible?

Discussion topics Need for new JISC processes and funding mechanisms What new JISC processes, organisational structures and funding mechanisms are needed to manage sustainability and expectations throughout the programme/project lifecycle?