1. 1 www.arl.org/sparc 1 Scholarly Publishing & Academic Resources Coalition an initiative of the Association of Research Libraries Business Planning For Open Access Journals Open Access Scholarly Communication Workshop Vilnius, Lithuania February 21-22, 2005 Raym Crow SPARC Consulting Group

2. 2 www.arl.org/sparc 2 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

3. 3 www.arl.org/sparc 3 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

4. 4 www.arl.org/sparc 4 Scholarly Publishing System Impetus for Open Access Journals price crisis Market pressures on publishers Enabling Technologies Journals price crisis Market pressures on publishers Enabling Technologies Benefits to scientists & scholars Societal benefits Benefits to scientists & scholars Societal benefits User-driven pressure

5. 5 www.arl.org/sparc 5 Impetus for Open Access Scholarly Publishing System Regulatory & policy changes Market pressures on publishers Enabling digital technologies Regulatory & policy changes Market pressures on publishers Enabling digital technologies Benefits to scientists & scholars Societal benefits Benefits to scientists & scholars Societal benefits Market pressure

6. 6 www.arl.org/sparc 6 Integrated Publishing System Scholarly publishing comprises four functions: Current model: integrates these functions in journals J O U R N A L ARCHIVING Preserving research for future use AWARENESS Assuring accessibility of research CERTIFICATION Certifying the quality/validity of the research REGISTRATION Establishing intellectual priority

7. 7 www.arl.org/sparc 7 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 ARCHIVING Preserving research for future use AWARENESS Assuring accessibility of research CERTIFICATION Certifying the quality/validity of the research REGISTRATION Establishing intellectual priority

8. Academic Publishing Value Chain: Functions & Components

9. Academic Publishing Value Chain—Agents by Function

12. (One) Articulated Publishing Route

13. 13 www.arl.org/sparc 13 Starting a New Journal Market demand Authors & readers Barriers to market entry Attracting authors Establishing prestige Regular publication schedule Marketing & awareness

14. 14 www.arl.org/sparc 14 Starting a New Journal Market demand Authors & readers Barriers to market entry Attracting authors Establishing prestige Regular publication schedule Marketing & awareness

15. 15 www.arl.org/sparc 15 Starting a New Journal Market demand Authors & readers Barriers to market entry Attracting authors Establishing prestige Regular publication schedule Marketing & awareness

16. 16 www.arl.org/sparc 16 Starting a New Journal Market demand Authors & readers Barriers to market entry Attracting authors Establishing prestige Regular publication schedule Marketing & awareness

17. 17 www.arl.org/sparc 17 New Journal Business Planning Charter or articles of incorporation Nonprofit legal entity Articulates mission Bylaws Support continuity Financial projection/P&L Income Costs In-kind contributions

18. 18 www.arl.org/sparc 18 New Journal Business Planning Charter or articles of incorporation Nonprofit legal entity Articulates mission Bylaws Support continuity Financial projection/P&L Income Costs In-kind contributions

19. 19 www.arl.org/sparc 19 New Journal Business Planning Charter or articles of incorporation Nonprofit legal entity Articulates mission Bylaws Support continuity Financial projection/P&L Income Costs In-kind contributions

20. 20 www.arl.org/sparc 20 Conversion Issues Innate conservatism Immutability of current structure Organizational & financial goals Increased emphasis on earned income Need for active vs. passive model Publishers don’t sell—libraries buy Lack of resources for change Insufficient staff & skills

21. 21 www.arl.org/sparc 21 Conversion Issues Innate conservatism Immutability of current structure Organizational & financial goals Increased emphasis on earned income Need for active vs. passive model Publishers don’t sell—libraries buy Lack of resources for change Insufficient staff & skills

22. 22 www.arl.org/sparc 22 Conversion Issues Innate conservatism Immutability of current structure Organizational & financial goals Increased emphasis on earned income Need for active vs. passive model Publishers don’t sell—libraries buy Lack of resources for change Insufficient staff & skills

23. 23 www.arl.org/sparc 23 Conversion Issues Innate conservatism Immutability of current structure Organizational & financial goals Increased emphasis on earned income Need for active vs. passive model Publishers don’t sell—libraries buy Lack of resources for change Insufficient staff & skills

24. 24 www.arl.org/sparc 24 Conversion Issues Innate conservatism Immutability of current structure Organizational & financial goals Increased emphasis on earned income Need for active vs. passive model Publishers don’t sell—libraries buy Lack of resources for change Insufficient staff & skills

25. 25 www.arl.org/sparc 25 Converting Journal Planning Financial requirements & status Breakeven, surplus—or subsidy Current performance & over time Change in cost structure

26. 26 www.arl.org/sparc 26 Converting Journal Planning Financial requirements & status Breakeven, surplus—or subsidy Current performance & over time Change in cost structure

27. 27 www.arl.org/sparc 27 Converting Journal Planning Financial requirements & status Breakeven, surplus—or subsidy Current performance & over time Change in cost structure

28. 28 www.arl.org/sparc 28 Converting Journal Planning Other model indicators & variables Exchange program issues Existing electronic version Demand for print edition Member subscription benefit Self-published vs. contracted

29. 29 www.arl.org/sparc 29 Converting Journal Planning Other model indicators & variables Exchange program issues Existing electronic version Demand for print edition Member subscription benefit Self-published vs. contracted

30. 30 www.arl.org/sparc 30 Converting Journal Planning Other model indicators & variables Exchange program issues Existing electronic version Demand for print edition Member subscription benefit Self-published vs. contracted

31. 31 www.arl.org/sparc 31 Converting Journal Planning Other model indicators & variables Exchange program issues Existing electronic version Demand for print edition Member subscription benefit Self-published vs. contracted

32. 32 www.arl.org/sparc 32 Converting Journal Planning Other model indicators & variables Exchange program issues Existing electronic version Demand for print edition Member subscription benefit Self-published vs. contracted

33. 33 www.arl.org/sparc 33 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

34. 34 www.arl.org/sparc 34 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

35. 35 www.arl.org/sparc 35 Business Model Caveats Hybrid models often required Discipline- and market-specific Models depend on income hurdle Partial inventory

36. 36 www.arl.org/sparc 36 Input Fees Article publication fees— Author proxy pays to subsidize publication Rationale—authors & institutions benefit Discipline-specific—requires existing practice Fee amount reflects cost basis Examples: BioMed Central, PLoS Input Fees

37. 37 www.arl.org/sparc 37 Input Fees Discretionary Open Access— Fee secures Open Access—otherwise gated Allows transition over time  Compliance increases as benefits demonstrated  Subscription price decreases with compliance Positioned as offprint equivalent Examples: ASLO, Company of Biologists, ESA, NAS, OUP, Springer Input Fees

38. 38 www.arl.org/sparc 38 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

39. 39 www.arl.org/sparc 39 Input Fees Advertising— Extends broadcast media model For journals providing channel to specialized audience Impression & pay-for-performance Seldom primary model Examples: BMC has full ad program Affinity Relationships

40. 40 www.arl.org/sparc 40 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

41. 41 www.arl.org/sparc 41 Input Fees Institutional Subsidies— Institution provides infrastructure support Often entails in-kind contributions Common model for new journals May require re-making case for existing journals Examples: Two-thirds of journals listed in DOAJ Institutional Subsidies

42. 42 www.arl.org/sparc 42 Input Fees Fee-based Print Journal— Fee-based print with free online access Archival print still attractive to some Cumulative end-of-year print Print edition may be differentiated Adequate for low overhead journals Examples: BMJ, J of Clinical Investigation, JMLR, Geometry & Topology, Science Versioning

43. 43 www.arl.org/sparc 43 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 another No surrender of editorial autonomy or control Examples: Proposed that ICSU & UNESCO support the concept Twinning

44. 44 www.arl.org/sparc 44 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/

45. 45 www.arl.org/sparc 45 For More Information SPARC Web Site— http://www.arl.org/sparc/

46. 46 www.arl.org/sparc 46 Raym Crow Senior Consultant SPARC Consulting Group raym@arl.org +1.703.536.7447