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Objectives of this Business Plan1
- To provide a written guide for starting and growing this unit of the MIT Libraries
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- To provide a strategic framework for a comprehensive tactical marketing plan
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- To provide a structure for pricing the products and services of the unit
Objectives of the Unit
- Leadership. To build communities of practice around the best use of metadata for sharing knowledge and the organized use of information resources in education.
- Cost Recovery. To generate sufficient revenue to sustain the existence of the unit within the MIT Libraries, to provide the resources needed to contribute to the educational objectives of the MIT Libraries and the Massachusetts Institute of Technology.
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Responsive: Tailors solutions to meet clients specific metadata needs.
Weaknesses
Reserve: Needs to accumulate an operating reserve to ensure ongoing success and continued contribution to the MIT community.
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This effort leverages the accomplishments of the other marketing programs to identify and communicate our services towards the Institute’s research initiatives, many of which are amassing large quantities of data. As research projects move towards their information sharing phases, they require sophisticated metadata systems to organize their information and make it available in a way that is useful to fellow researchers and educators.
Services and Service Marketing
Pricing
Costs for metadata services are divided into two pools by deliverable. Consulting Documentation and Training costs are reflective of the labor cost of the Metadata Specialist who will be responsible for that work. Application fees reflect a blend of the labor costs for the Metadata Specialist and Production Assistant who will share responsibility for the project. Application fees will be charged, whenever possible, by the item processed. This involves two calculations, one to provide an estimate and another to charge for realized expenses.
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Charges to external customers will be adjusted in recognition of basic infrastructure contributions by MIT (e.g. space and utilities). These additional charges for external customers also allow for the recovery of outside user income overhead as requested of the Libraries by the Institute. Outside charges will be adjusted in the amount of 20% in addition to the base charges for internal MIT customers.
Consulting, Documentation and Training
The hourly rate for Consultation Documentation and Training is $70 per hour. This figure incorporates labor costs (salaries, wages and benefits), library department overhead (staff salaries and operating expenses) and general library administrative overhead (staff salaries).
Application
The hourly rate for Application will fall within the range from $55-$70 per hour. This figure incorporates labor costs (salaries, wages and benefits), library department overhead (staff salaries and operating expenses) and general library administrative overhead (staff salaries).
Application fees will be translated into costs per item processed by the simple method of tracking an average per item. The minimum rate reflects work done entirely by the Metadata Production Assistant; the maximum rate reflects work done entirely by the Metadata Specialist. This mechanism allows the Metadata Specialist to recover costs for consultation during application projects that require a minimum of this effort. These billable hours will be added to the application total and divided by the number of items processed.
Contracting and Invoicing
Metadata Services will negotiate agreements with digital production projects in advance of performing work. Work agreements will take the form of a letter of intent on the part of Metadata Services to complete a defined list of tasks and will include an estimate of the fees it will charge to complete the tasks. These agreements will form the basis for any further renegotiations of services. Renegotiation will require revision and re-documentation of the work agreement including adjustment to the cost of the services provided. Metadata Services will send the client an invoice for services provided at the completion of work or on another agreed upon schedule.
Financial Plan
Break-even Analysis
To sustain current staffing levels and accomplish its mission, Metadata Services will need to bill approximately $145,000 on average per year.
Projections
OCW contracts will decrease in volume of work and level of support each year as OCW comes closer to accomplishment of the publication of every available MIT course. The final “steady state” of operations will not include expenditures on metadata that will completely support Metadata Services’ current staffing level. Maintenance of current staffing levels will require funding from additional sources.
Continued growth of the Unit will require the securing of at least one major grant funded project and the creation of additional partnerships with major educational technology initiatives.
Controls
Milestones
In September of 2003, initial metadata for the first 500 OCW courses was completed in time for the Fall launch of the site.
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On a schedule of 200 new courses each term, will reach a major milestone with the successful completion of the OCW metadata for the first 1800 courses by the summer of 2007.
Five-Year Projection
In Fiscal Year 2006, OpenCourseWare partnership will adjust to meet reduced production schedule. Staffing level and organization of Unit will be reviewed and adjusted to meet new workload.
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Staffing will adjust to accommodate client needs. With growth, Metadata Services will develop subject expertise in new metadata schemes and standards (e.g., VRA Core, TEI, MPEG-7, MPEG-21, METS). Expansion might include the hiring of a second metadata specialist who would be primarily responsible for application and production efforts. This addition will improve the ability of the current professional to provide administration and consultation. It will also provide continuity through support staff fluctuation and a safeguard against a staffing emergency.
Contingency Planning
The MIT Libraries will support the Metadata Services unit in the case of unforeseen circumstances, at least sufficiently to complete contracted services.
Staffing emergencies
Scenario I: The Production Assistant has an extended leave of absence
In this case, the Unit needs to ensure that the production needs of the clients continue to be met. Possible strategies for dealing with the scenario include: 1) drawing on other Cataloging and Metadata Services personnel to fill immediate obligations, 2) providing funding for temporary labor and/or 3) contacting clients for possible re-negotiation of completion dates.
Scenario II: Metadata Specialist has extended leave
In this case, the Unit needs to maintain contact with current clients for consulting needs and other questions and updates. The Head of Cataloging and Metadata Services would be responsible for maintaining communications with clients and allocating resources to fulfill existing contracts. No new consulting projects would be sought during this scenario. If the leave of the Specialist were anticipated to extend beyond 90 days, the Libraries would consider the feasibility of shifting the responsibilities to another member of the staff or hiring a half time professional on a temporary basis.
Scenario III: Staff vacancy
The Head of Cataloging and Metadata Services will be responsible for allocating resources to fill immediate obligations until a replacement can be hired. Whenever a staff member leaves, expertise and skill needs should always be evaluated as metadata standards quickly evolve.
Exit Strategy
In April of each fiscal year, an analysis of potential revenues and projected expenditures for the next fiscal year will be conducted, and presented to the Libraries’ Steering Committee by the Associate Director of Collection Services. STC will make a decision as to whether to continue the operation of the Metadata Services Unit.
If it is determined that the Metadata Services Unit is unlikely to be able to support a minimum staffing level for another year, a plan for fulfilling existing commitments to existing clients and for discontinuing the Unit will be designed and carried out.
Appendix 1
Income Projections
First Year
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