Cost-Benefit Analysis of a Shared Digital Long-Term Preservation (LTP) SystemLiber 2011http://bibliotecnica.upc.edu/LIBER2...
Outline<br />Context: the National Digital Library Inititative<br />Tools and basicassumptions<br />Results<br />Lessonsle...
National Digital Library<br />Improvingavailability, usability, and preservation of digitalmaterials in libraries, archive...
The National Digital Library<br />
NDL: Long-TermPreservation System<br />
FutureGovernance of the NDL<br />Ministry of Education & Culture<br />LTP System admin(to bechosen)<br />User Interfaceadm...
NDL givens for the Future LTP System<br />LTP Section Final Report<br />NDL Enterprise Architecture; with the Standards Po...
Why LTP Costsare a Challenge?<br />Digital materialsneedconstantcare<br />Electricity, cooling<br />Protection<br />Digita...
Cost Analysis <br />LTP is aboutbuilding a system of funding and governancethatcanensureusability of materials.<br />The p...
Tools Used in Analysis<br />LifecycleInformation for E-Literature (LIFE)<br />Designed for digitalmaterials<br />Standard ...
LIFE2<br />
Preliminary Surveys<br />Preservation and Use of Digital Materials. Memorandum of the Working Group on Long-TermPreservati...
Assumptions: Amount of Data<br />
Assumptions: Scale and GrowthRate<br />
Amount of data underestimated<br />Surveyswerenotcomprehensive<br />Especiallyresearch data badlyrepresented<br />Particip...
Assumptions: Level of Services<br />Differentorganizations, differentmaterials<br />Organizationsareresponsible to prepare...
Assumptions on Technology<br />Severalcopies – on different media – in separatelocations<br />E.g. One copy on disk (S-ATA...
Assumptions: Costs of Human Resources<br />Averagesalaries for specialists, management, adminstrativesupport<br />Estimati...
CostFactors: Human Resources<br />
CostFactors: Investmens<br />
CostFactors: Fixed & VariableCosts<br />
Characteristics of the hypothetical LTP System<br />200 institutionsparticipate (manyverysmall).<br />Starts with 700 Tera...
EstimatedCosts<br />42 M€ for years 1-12 (planning and implementationstages)<br />Plus 3,4 M€ for a ”darkarchive”<br />Aft...
Costs of a Shared LTP System<br />M€<br />Dark Archive (option)<br />Total Costs<br />Year<br />
Main Division of Costs<br />M€<br />Year<br />Human Resources<br />Investments<br />FixedCosts of RunningOperations<br />V...
QualitativeBenefits of a Shared LTP System<br />
QuantitativeBenefits<br />Translation of qualitativebenefits into money values<br />Types of savings:<br />Savings in perf...
LowerCosts of LTP Systems<br />Implementationstage: 30 million € over<br />Productionstage:  8 million € per annum<br />Ag...
Cheaper Management of Materials<br />In production, 2.5 million € per annum<br />Compared to adminstartion, qualityassuran...
BetterPreservationResults<br />Digitizedmaterials:<br />0.5 million € per annum<br />Compared to <br />2 % of digitizedmat...
Balance of Benefits of a Shared LTP System<br />Benefits<br />Costs<br />Savings<br />
Summary of Costs and Benefits<br />Costs: <br />42 M€ for years 1-12 (planning and implementationstages)<br />Plus 3,4 M€ ...
LessosLearnedaboutCosts and Benefit<br />Increase of costsovertime is tolerable<br />Costsaremanageable in the scenariouse...
LessonsLearnedabout the Process<br />Therearemethodsthatlendthemselves to analysingcosts and benefits of LTP<br />Inexactf...
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Costs and Benefits of a Shared Digital Long-Term Preservation System

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This paper is a presentation of the cost-benefit analysis of digital long-term preservation (LTP) that was conducted as a part of the Finnish Na-tional Digital Library Project (NDL) in 2010.
The analysis was based on the assumption that as many as 200 archives, libraries, and museums will share a LTP system. The term ”system” shall be understood as encompassing not only information technology, but also human resources, organiza-tional structures, policies and funding mecha-nisms.
The cost analysis shows that a LTP system will incur, over 12 first years, cumulative costs of 42 million euros, i.e. in average 3.5 million euros per annum. Human resources and investments on information technology are the major cost factors. – After the initial stages, the analysis predicts an-nual costs of circa 4 million euros.
The analysis compared scenarios with and without a shared LTP system. The results point to remarka-ble benefits of a shared system. In the costs of de-veloping and implementation stages, a shared sys-tem shows an advantage of 30 million euros, against the alternative scenario consisting of 5 independent LTP solutions. During the later stag-es, the advantage is estimated at 10 million euros per annum. The cumulative cost benefit over first 12 years would be circa 100 million euros.

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Costs and Benefits of a Shared Digital Long-Term Preservation System

  1. 1. Cost-Benefit Analysis of a Shared Digital Long-Term Preservation (LTP) SystemLiber 2011http://bibliotecnica.upc.edu/LIBER2011/Esa-Pekka Keskitalo National Library of FinlandPL 26, 00014 University of Helsinkiesa-pekka.keskitalohelsinki.fiwww.nationallibrary.fi<br />@<br />
  2. 2. Outline<br />Context: the National Digital Library Inititative<br />Tools and basicassumptions<br />Results<br />Lessonslearned<br />
  3. 3. National Digital Library<br />Improvingavailability, usability, and preservation of digitalmaterials in libraries, archives, and museums.<br />Common userinterfaceinfrastructure<br />Europeanaaggregation<br />Digitization of culturalheritagematerials<br />Centralizedlong-termpreservationservice<br />Partof the development of national electronicservices and infrastructures. (UbiquitousInformationSociety action plan; GovernmentResolution on the Objectives of the National InformationSocietyPolicy)<br />http://www.kdk.fi/en<br />
  4. 4. The National Digital Library<br />
  5. 5. NDL: Long-TermPreservation System<br />
  6. 6. FutureGovernance of the NDL<br />Ministry of Education & Culture<br />LTP System admin(to bechosen)<br />User Interfaceadmin =The National Library<br />Consortium<br />Consortium<br />CSC (infrastructure)<br />
  7. 7. NDL givens for the Future LTP System<br />LTP Section Final Report<br />NDL Enterprise Architecture; with the Standards Portfolio<br />NDL System of Governance<br />Strongpushtowardsparticipation<br />General acceptance of the concept of the LTP system<br />
  8. 8. Why LTP Costsare a Challenge?<br />Digital materialsneedconstantcare<br />Electricity, cooling<br />Protection<br />Digital materialsneedriskanalysis and preservationprocedures<br />Monitoring<br />Migration, emulation, etc.<br />
  9. 9. Cost Analysis <br />LTP is aboutbuilding a system of funding and governancethatcanensureusability of materials.<br />The path is chosenbybalancingcosts and benefits in the long run.<br />Goodunderstanding of Life CycleCosts is a must.<br />Set criteria, assumptions, limitations<br />Identifycostfactors; estimatecosts; rankalternatives.<br />Building costs, runningcosts, maintenancecosts<br />
  10. 10. Tools Used in Analysis<br />LifecycleInformation for E-Literature (LIFE)<br />Designed for digitalmaterials<br />Standard CostModel (SCM)<br />Life CycleCosts (LCC)<br />Cost – Benefit Analysis (CBA)<br />
  11. 11. LIFE2<br />
  12. 12. Preliminary Surveys<br />Preservation and Use of Digital Materials. Memorandum of the Working Group on Long-TermPreservation and Usability of Digital Materials. Ministry of Education: Reports 2008:2.<br />”IdentifyingBenefits of the LTP Project and IncreasingOrganizations’ Preparedness”, December 2009. Jaakko Asplund (Salivirta & Partners)<br />Digital Materials in Archives, Libraries, and Museums. December 2009. Juhani Koivunen (Netum Konsultointi)<br />
  13. 13. Assumptions: Amount of Data<br />
  14. 14. Assumptions: Scale and GrowthRate<br />
  15. 15. Amount of data underestimated<br />Surveyswerenotcomprehensive<br />Especiallyresearch data badlyrepresented<br />Participantshaverevisedtheirestimationsup<br />
  16. 16. Assumptions: Level of Services<br />Differentorganizations, differentmaterials<br />Organizationsareresponsible to preparematerials for preservation<br />Standardscompliance<br />Metadata minimumrequirementsmet<br />METS packaging<br />LTP System mayprovideadditionalconsultancy and services, e.g. METS packaging software service<br />Level of involvement in LTP decision-making and operationmayvary<br />Advanced disseminationup to the organizations<br />
  17. 17. Assumptions on Technology<br />Severalcopies – on different media – in separatelocations<br />E.g. One copy on disk (S-ATA), two on tapes (backup copy, archival copy)<br />Twofull-servicelocations + oneinternalarchivelocation<br />Materialsaccessible ”in a fewseconds”<br />Fall of priceswillmatchincrease of volume<br />
  18. 18.
  19. 19. Assumptions: Costs of Human Resources<br />Averagesalaries for specialists, management, adminstrativesupport<br />Estimation of annualincreases<br />Employer’scosts (30 % of salary)<br />Costs of premises (750 € / month / person)<br />10 specialistsrequire 1 manager and 0.5 assistant<br />10 % of the sum of salariesused in outsourcedtraining, consultancy, auditing, etc.<br />
  20. 20. CostFactors: Human Resources<br />
  21. 21. CostFactors: Investmens<br />
  22. 22. CostFactors: Fixed & VariableCosts<br />
  23. 23. Characteristics of the hypothetical LTP System<br />200 institutionsparticipate (manyverysmall).<br />Starts with 700 Terabytes, increases to 4,000 Tb in 7 years.<br />Planning and implementationphasedoversixyears.<br />Twogeographicallyseparatemirrorsites with allservicesavailable; plus a ”darkarchive”.<br />Stores materials in severalcopies, in severallocations, on severaltypes of media.<br />Conductsrisk management and preservationoperations<br />10 % of contentsmigratedannually<br />Materialsareowned, and ultimatelycontrolledby the participatingorganizations<br />Differentlevels of service to diferentorganizations<br />
  24. 24. EstimatedCosts<br />42 M€ for years 1-12 (planning and implementationstages)<br />Plus 3,4 M€ for a ”darkarchive”<br />Afteryear 12, runningcostsstable 4 M€ per annum<br />
  25. 25. Costs of a Shared LTP System<br />M€<br />Dark Archive (option)<br />Total Costs<br />Year<br />
  26. 26. Main Division of Costs<br />M€<br />Year<br />Human Resources<br />Investments<br />FixedCosts of RunningOperations<br />VariableCostsof Operations and Systems<br />
  27. 27. QualitativeBenefits of a Shared LTP System<br />
  28. 28. QuantitativeBenefits<br />Translation of qualitativebenefits into money values<br />Types of savings:<br />Savings in performance (goodsproduced)<br />Comparativesavings (againstalternativescenarios)<br />Increasedreturn<br />Othersavings<br />Major savingsby<br />Lowercosts of LTP systems<br />Cheaper management of materials<br />Betterpreservationresults<br />
  29. 29. LowerCosts of LTP Systems<br />Implementationstage: 30 million € over<br />Productionstage: 8 million € per annum<br />Against 5 separate LTP systems<br />Savings in humanresources and investments<br />
  30. 30. Cheaper Management of Materials<br />In production, 2.5 million € per annum<br />Compared to adminstartion, qualityassurance, and disseminationdone in the organizations<br />
  31. 31. BetterPreservationResults<br />Digitizedmaterials:<br />0.5 million € per annum<br />Compared to <br />2 % of digitizedmaterialsbeingdamaged in lack of LTP<br />Digitizationcost: 1.3 € per an object<br />Born-digitalmaterials:<br />”Severalmillioneuros per annum”<br />
  32. 32. Balance of Benefits of a Shared LTP System<br />Benefits<br />Costs<br />Savings<br />
  33. 33. Summary of Costs and Benefits<br />Costs: <br />42 M€ for years 1-12 (planning and implementationstages)<br />Plus 3,4 M€ for a ”darkarchive”<br />Afteryear 12, runningcostsstable4 M€ per annum<br />Savings of a shared LTP system<br />30 M€ duringyears 1-12<br />10 M€ per annumafterthat<br />Cumulativebenefitduringfirst 12 years: 100 M€<br />
  34. 34. LessosLearnedaboutCosts and Benefit<br />Increase of costsovertime is tolerable<br />Costsaremanageable in the scenarioused<br />Digital preservationhasbenefits<br />Sharedsystem is a feasible option<br />
  35. 35. LessonsLearnedabout the Process<br />Therearemethodsthatlendthemselves to analysingcosts and benefits of LTP<br />Inexactfiguresarebetterthan no figures at all<br />Allvaluescan and mustbeexpressed in money<br />
  36. 36. Thankyou!<br />

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