1. Why Isn’t the Library Link Linking to the Library?: Academic Libraries Confront The New Competitive Marketplace Steven Bell, Director Paul J. Gutman Library Philadelphia University bells@philau.edu Educause 2001 October 31, 2001 Copyright Steven Bell,2001. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

2. A New Era for Libraries “ If there is one institution on a college campus that has never faced outside competition, it is the library…the library was the only game in town. Until now.” Ron Feemster “Ready or not here come the digital libraries.” University Business, July-August, 2001

3. Presentation Overview Who are the new information market competitors? Library director responses to new forms of competition Strategies for coping with new competition – business perspective Recommendations for library directors for a new competitive age

4. Consumers Expect More Choice Over the last 30 years there has been an explosion in consumer choice – even the advent of a “choice industry.” 1970s 1990s Product Breakfast Cereal Magazine Titles Levi’s Jean Styles Dental Flosses Questia-Type Services 160 339 41 12 0 340 790 70 64 5+

5. New Information Choices Category One - External Category Two - Internal Questia Media Xanedu ebrary Jones E-Global Library NetLibrary? Blackboard WebCT Campus Pipeline Campus Cruiser

6. What Are Librarian’s Thinking? “We need to look at Questia from a college administrator’s perspective before we dismiss it..Can we prove to the President that the value we add is really worth the difference in cost?” “Questia seems like the future we all knew was coming… Should I discourage students from using it if they find it valuable and are willing to pay?” “I would take a 200,000 volume library created by faculty and librarians, over time, versus a 200,000 electronic text collection created by Questia…the former will come much closer to meeting the needs of a particular institution.” “At a presentation to public and academic librarians I mentioned Questia as a potential competitor…I can’t recall encountering such obvious hostility from an audience.”

7. Survey Of Library Directors Methodology 2,000+ libraries identified from American Library Directory (DIALOG file 460) 300 libraries needed for acceptable level of statistical precision Random number generator used to produce list of numbers between 1-2000 First 300 numbers from list are records selected from DIALOG set Identified 207 usable e-mail addresses; 68 directors completed survey for a 32.8% response rate

8. Survey Objectives Number of libraries where a portal or CMS is in use Activity among users of portal or CMS that create competition for the library Level of library director’s knowledge of new information marketplace competition Director’s attitudes and responses to real or perceived competition to the library

9. Knowledge of Competitors Library Director Knowledge of Commercial Competitors

10. Presence of Competitors Are Any of Theses Competitors Used on Your Campus

11. Faculty Use of Competitors Are Your Faculty Currently Linking to Non-Library or Commercial Information Sources on Their Course Pages

12. Perceived Threat of Competition Are Commercial Information Providers a Potential Threat to the Library’s Status As Primary Information Gateway?

13. Future of Information Competitors Commercial Information Providers Are Just One More Set of Dot.com Enterprises That Will Fail and Go Out of Business

14. Faculty Using Competitors Response to Discovering Faculty Linking to Information Competitors I would contact my faculty33% I would not contact my faculty 67%

15. Competitors on Campus Response to Discovering an Information Competitor Selling Services to Students at a Student Center Ignore Presence of Competitor 73% Act to Have Competitor Removed 27%

16. Challenging the Competition: Business Tactics Knowledge of the Environment Customer Service Strategic Use of Technology Marketing for Competitive Advantage Organizational Self-Assessment Product/Service Differentiation Staff Resources Alliance Building

17. Knowledge of the Environment Recommendations for Directors Few directors knew all or even most of the competitors Must go beyond library literature to “scan” environment (e.g., XanEdu in higher education literature; Questia frequently covered in Houston papers) Find out how competitors work, their offerings and pricing Business Tactics Majority of firms use some form of competitive intelligence Some service firms use “mystery shoppers” If you don’t know the competition you can’t outsmart it

18. Customer Service Business Tactic Become customer-centric or customer-adaptive Resources, marketing and services are based on customers’ needs Create a business customers return to repeatedly Recommendations for Directors Start by asking if patrons would “pay for it” Survey users and assess quality of services Cultivate a customer-driven culture in the library Eliminate poor services and restructure those worth keeping

19. Strategic Use of Technology Business Tactic Use technology to achieve competitive advantage Swatch integrated pagers into its watches and was able to achieve the largest share of the pager market in countries where the watch sold Imaginative use is more critical than cutting edge technology Recommendations for Directors Libraries cannot match technology of competitors Web sites can be improved (e.g., “my library” sites) Databases can be simplified (e.g., SiteSearch, WebExpress) Technology is the great equalizer

20. Marketing for Competitive Advantage Business Tactic Like libraries, electric utilities had no regional competition The advent of deregulation created multiple competitors Key tactic is to market to fears of unreliable service Exposing competitors’ weaknesses works for established player Recommendations for Directors Libraries can’t compete with competitors’ slick marketing Directors have access to demographic data Directors know the curriculum, courses and assignments Marketing can be highly targeted for competitive advantage Libraries should point to competitors’ weaknesses

21. Organizational Self-Assessment Business Tactic Determines where a firm is most prone to a competitor Hartford Hospital used the Malcolm Baldridge self – assessment to identify strengths and weaknesses Hartford developed a model complaint management program Recommendations for Directors Libraries are familiar with satisfaction surveys, but need to go beyond that to self-assessment Could be modeled on self-study for accreditation Identify peer libraries as target competitors Use analysis to shift weaknesses to positions of strength

22. Product/Service Differentiation Business Tactic To succeed in a market with so much choice, a product must be distinctly different and superior Theodore Levitt said any product or service can be differentiated Oral-B created a toothbrush with a wear indicator Recommendations for Directors Not quite as easy as creating a new product Directors have a “built-in” differentiation that can help Resources are unique to the institution Competitors have generic resources for any campus Differentiate by exploiting the differences

23. Staff Resources Business Tactic Business leaders are only as good as their people Productivity growth through people provides the winning competitive edge Advantage goes to companies that communicate and create cultures that are entrepreneurial and liberated Recommendations for Directors Staff can create environment of welcome or hostility Director must develop a staff that is customer driven Weak link is the student worker Director must support development for staff and customer- service training for student workers

24. Alliance Building Business Tactic A rarer strategy but sometimes used to thwart competitors Alliances may form to strengthen one partner; these types are pre-emptive, to block the new competitor More rarely, an alliance is made with the new competitor Recommendations for Directors Can alliances work for libraries to ward off competitors Best bet is to look for alliances with competitors Some competitor’s resources may strengthen collections Library director has to take lead in creating alliances

25. Conclusion Competitors are here to stay! When is acting competitively the right path to follow? This is good – a wake-up call! Can academic libraries adapt to competition without compromises? Directors must adhere to basic values.

26. THE END These slides are on the web at: //staff.philau.edu/bells/webpresent.html