State-wide Public Library Management System Technology Capabilities. Business Case. Version 2.0

Transcription

1 State-wide Public Library Management System Technology Capabilities Business Case Version 2.0 Public Library Services File Number: PLS 046/2009

2 1 EXECUTIVE OVERVIEW 1.1 Introduction Currently two major reform projects are on the agenda for the SA public libraries network. Those being: 1. Implementation of a State-wide common LMS which is centrally delivered and managed; and the 2. State-wide roll out of RFID technology and capabilities. This business case addresses the first of these projects which has been titled One LMS for SA and investigates the technical capabilities of providing a single integrated LMS for all of the State s public libraries, assessing three alternatives for moving forward. The alternatives considered are: Business as usual; Partial participation consortium approach (with varying degrees of participation); and Full participation over time approach 1.2 Recommendation It is the view of the authors (mhm), engaged as independent consultants to assist PLS in the development of this business case, that the time is right to adopt a Statewide consortia approach in the implementation of a common LMS. Such a system would be centrally delivered and managed. The basis of this recommendation is outlined in detail throughout this document, however, in essence our reasoning can be summed up by the statement One LMS for SA makes logical business sense due to the following key facts: 1. The benefits of a consortia approach are well documented by Australian and global experience. 2. SA already operates in a consortia approach through highly developed practices of the State-wide network and operation of P2. a) 16 metro and 1 country library already using the same LMS (Horizon) - representing 85% of the State s population b) 6 metro and 2 country Councils already working together in two consortia (SWAP and LINK) representing approximately 11% of the State s population c) High level of cooperation already exists across the SA public libraries network and with the South Australian Government 3. P2 is getting close to the end of it s useful life a) Ongoing operating costs for P2 are approximately $600,000 however the system is not effective;

3 b) Need to replace P2 in the future at a cost of approximately $1.4m 4. Market considerations a) 17 libraries using Horizon committed to replacement within 2 to 4 years b) Dwindling support for Horizon demands that action is taken quickly c) Many Councils have budget allocated in 2010/11 for replacement, presenting a window of opportunity for action d) Our approach assumes 30 libraries will update their LMS, however a further 46 libraries have the potential to consider the same e) Ongoing vendor consolidation in the LMS market place provides an opportunity to single source a Tier 1 application Hence the recommendation of the preferred option One LMS for SA. It is further recommended however that in the short term, investigation is undertaken into an interim support arrangement for those 17 libraries using Horizon until a robust procurement cycle can be executed. This should include discussion with the vendor with the aim of negotiating improved service levels at the earliest opportunity. 1.3 Background The State s public library network is supported by two major categories of information system. Firstly, the Library Management Systems (LMS) at each public library (including branch networks) which manage the day to day operations of the library and customer interfaces (in library and web based viewing), and secondly the Statewide P2 application which supports inter-library loans and procurement of books. At present there is limited integration of these systems and business process across the State s libraries yet it is recognised that significant benefits could accrue from improved cooperation across the network. Further, a number of the installed LMS are due for replacement at a time when the market for these systems is disrupted. Likewise P2 is coming to the end of its useful life. 1.4 Project Summary This project will facilitate the capacity for the implementation of a collaborative approach to providing every public library in SA with a common and centrally managed LMS. Critically it is recommended that during the initial stages of the project a governance structure is created that ensures appropriate library representation. Principles and practices established by current State Library governance structures should form the basis for this. Subject to the outcomes of this business case and the decision of stakeholders, the results have the potential to: 1. Provide every public library in SA with a contemporary and sophisticated LMS. Such a system will provide seamless access to the State s collection of library materials, online databases and other various digital resources; 2. Ensure that there is one single LMS delivered and managed centrally by or on behalf of PLS with a unified union catalogue of library holdings and a single customer database; 3. Provide a range of benefits for all library users; and to

4 4. Replace the P2 system as the procurement and ILL system (currently not fully integrated with library LMS) for all SA public libraries (while providing alternative services/arrangements for those libraries not on a common LMS should a partial participation model be adopted). This Business Case presents the options for this collaborative or consortium approach, including a base case business as usual option and proposes a way forward. This Business Case was initiated to explore the potential for a single, Statewide integrated LMS in order to: Create a cost-effective, single integrated LMS that provides greater access to information resources for all South Australians through the public library network; Provide all of the State s public libraries with a 21st century library management solution which ideally has aggregate ongoing costs below those which would otherwise be paid by Councils for the disparate systems they currently operate; and Provide the South Australian community with seamless access to a greater array of information resources and improved levels of service from their local public library. The key deliverables of the proposed project include the following: Selection of a single replacement library management system to be used by all public libraries in SA; The creation of a single database of almost 4 million items and approximately 1 million borrowers, accessible to all customers via a shared website; Secure hosting of the selected application (24/7/365 availability) Disaster Recovery infrastructure provision; Provision of post go live systems support team (including Helpdesk call logging) through the combined resources of PLS staff and the LMS vendor; Design and agreement of common parameters and business rules, policies, procedures and standards; Upgrade telecommunication network to provide sufficient bandwidth to deliver optimal responses (internal and external); and the Establishment of a governance framework to set policy and oversee operations of the consortium, including membership and funding arrangements The benefits of a consortia approach and common LMS are many and include: Ability for small libraries to gain access to a tier one LMS and it s enhanced functionality and useability which they otherwise could not afford Savings in local ICT support Savings in local ICT infrastructure and maintenance Efficiencies to be gained from the tools available in modern LMS

5 Avoidance of double handling once P2 functionality is integrated with the LMS Efficiencies from standardisation of work practices and business processes Access to the State-wide collection by all borrowers; Improved services to library customers; and Improved job satisfaction for library staff 1.5 Project Expenditure The table below provides a high level summary of the financial analysis carried out for the preferred option of a Full participation over time State-wide consortium set against the base case of business as usual. The difference in total expenditure as compared with the Base Case of Business as Usual during the implementation phase of the project (5 years) is estimated to be $2.8 million. Over 5 years this cost is equivalent to $1.68 per head of population or 34 cents per head of population on a per annum basis. As shown by the following table, by year 5 of the project (post implementation) equivalent annual operating costs for the proposed State-wide consortium are estimated to be approximately $633,000 per annum higher than current annual operating costs. This difference in ongoing operating costs is equivalent to 38 cents per head of population (per annum).

6 Cost analysis presented in the tables above is based on assumptions which are considered highly conservative. Furthermore, consistent with this conservative approach adopted, the above analysis does not reflect any of the potential savings which could be realised from implementation of a common and centrally managed/delivered State-wide LMS. These potential savings outlined elsewhere in this business case, have been evidenced in reference sites visited during development of this business case, including at the significant elgar consortium in NZ and the SWIFT consortium in Victoria and NSW, however they have not been formally quantified at this time. 1.6 Key Constraints The key constraint affecting this project will be the lack of clarity at the start of the project around how many libraries will choose to participate. A low inclusion rate may effect the overall cost effectiveness of the solution. An additional constraint relates to the uncertainly of total project funding. The majority of funding for this project will be dependent upon allocations within existing budgetary arrangements between the State and Councils, and within Councils. The availability of additional funding for implementation of this project, which is in excess of current operating budgets is not certain and needs to be further explored. 1.7 Beyond a State-wide LMS The next natural step following implementation of a State-wide common LMS is the roll out of RFID technology and capabilities across all libraries of a size large enough to make the investment viable. Major long term savings are anticipated from such an investment, which will be subject to further investigation and analysis going forward. The governance principles established during the LMS project could be leveraged for initiatives such as this in the future.