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Innovation – and Journals in the Digital EraRoger ClarkeXamax Consultancy Pty Ltd, CanberraVisiting Professor in Cyberspace Law & Policy, UNSWin eCommerce at Uni Hong Kong, in Computer Science at ANU http://www.anu.edu.au/people/Roger.Clarke/........II/OAR08.html, OAR08.pptOpen Access & Research Conf. – Brisbane26 September 2008
InventionTheconception of a new ideaThe expression of a new idea in an apparatus or methodInnovation The application of knowledge, in orderto manufacture and deploy a new kind of artefact The articulation of an invention The adoption of a new product or process
Codified Knowledge expressed and recorded, in a more or less formal language (text, formulae, blueprints, procedure descriptions) disembodied from individuals communicable information Tacit Knowledge informal and intangible exists only in the mind of a particular person ‘knowing that’ cf. ‘knowing how to’ not readily communicated to others
Codified Knowledge An omelette recipe A combination of structured and unstructured text Tacit Knowledge The expertise to interpret the recipe to apply known techniques and tools to the activity, to recognise omissions and exceptions, to deliver a superb omelette every time, to sense which variants will work and which won't, and to deliver with style
The Roles of Journal Articles in Innovation Prototypes Experimental Applications Empirical Papers and Underlying Data Theoretical Papers
The Future of Journals in the Digital EraAgenda • The Functions of Refereed Journals • Articles in the Digital Era • Journals in the Digital Era • Publisher-Categories • Publisher-Categories' Cost-Profiles • Business Models in the Digital Era
Refereed JournalsThe Core Functions • Quality Assurance / Accreditation • Publication Channel • Discovery Mechanism • Archival Mechanism Clarke R. & Kingsley D. (2008)'e-Publishing's Impacts on Journals and Journal Articles'Journal of Internet Commerce 7,1 (March 2008) 120-151http://www.haworthpress.com/store/product.asp?sku=J179
Refereed JournalsThe Core Functions FunctionEmphasis • Publication Channel Original • Discovery Mechanism Interim • Archival Mechanism Interim • Quality Assurance / Accreditation Contemporary
The Digital Era's Impacts on Articles • Early exposure of PrePrints • 'Living Articles' • Multi-Repository Publishing • Multiple Discovery Mechanisms • Linked 'grey literature' / supporting data • Interactive Publications (animation, video,models supporting 'what-if' analysis) • Open Review'interactive public discussion''electronic letters to the editor' • Central Submission-Points => "a market for articles"
The Digital Era's Impacts on Journals • Process: PrePrint Publication first, Review second, Revision third, Accreditation fourth, Final Publication last • Granularity (Volume, Issue, Article) • Publication-when-ready • Distributed Storage of 'Separates' in multiple repositories (own, employer's, discipline's) • The Virtual Journal as an index-page of links to Separates, each carrying a signed certificate
The Practice of Journal Publishingin the Digital Era • Journal Publishers: • Their Characteristics • A Simplified Classification Scheme • Journal Publishing Cost-Profiles: • Model, Elements, Determinants, 'Answers' • The 'Value-Add' of For-Profit Journal Publishers • Digital Era Business Models for Journal Publishers
Journal-Publisher Characteristics • Formincorporated; business-unit; unincorporated • Motivationa not-for-profit, associated with a community; an outsourced service provider; an entrepreneur • Revenue Modelcross-subsidised; self-funding; cross-subsidiser; for-profit • Scopeone Journal; some Journals; many Journals • Scalelittle cash flow; small business; substantial business
Categories of Journal-Publisher • Unincorporated Mutual An informal association of a modest number of people with a common interest • Not-For-Profit Association A formally constituted not-for-profit association of individuals, usually within a particular discipline, profession and/or geographical region • For-Profit Publisher A for-profit corporation, or a profit-oriented business unit of a not-for-profit association
A Journal Cost-Profile Model • Establishment • Operations • Submission-Related • Article-Related • Issue-Related • Generic • Infrastructure Maintenance • Financial Aspects Clarke R. (2007)'The Cost-Profiles of Alternative Approaches to Journal-Publishing'First Monday 12, 12 (December 2007)
Submission-Related Receipt, Acknowledgement & Management Assessment ProcessConduct & Management Issue-Related Editorial Production-Editing Production Protection Distribution Article-Related Production-Editing Cataloguing Generic Marketing Customer Relationship Management Archive Management Indexing Governance Cost-Elements within Operations
The Primary Factors That Affect Costs ? Submission-Load – Count, Communications Intensity • Articles Accepted and Published • Size, ‘Special Features’ • Issues Published • Size, i.e. article-count, ‘page-count’, special features • Frequency • Competitive Virility • Extent of the Brand Image Investment • Emphasis on Market-Penetration, Revenue Maximisation, Content-Protection and other measures to control leakage of revenue
Unincorporated Mutual Subscription-Based Print Gratis eJournal Association One Print Journal One eJournal Five Journals – P or E For-Profit Publisher Subscription-Based Print Subscription-Based eJnl Open Access Print / eJnl $20,000 pa – $1,000 per art. Fully-Sponsored, hence ‘Nil’ $112,000 pa – $3,750 per art. $22,000 pa – $730 per art. $3,750 per art. or $730 per art. $137,000 pa – $4,600 per art. $112,000 pa – $3,700 per art. $4,200 per art. or $3,400 per art. ‘The Answers’
What Value-Add by For-Profits? • Pre-production, production, distribution,and their management, are no longer difficult • There isn’t just one ‘one-stop shop’; there are many • The Web enables aggregation with ease • The Web enables discovery with ease • The Web enables auto-hotlinking generally, not just across a single publisher’s holdings • Exploitation of market power (entry barriers, switching costs, control of backlists, bundling) is not value-add
Is the Higher Price Worth Paying? • For-Profit Publishers’ higher cost-profiles arise from these additional functions: • Marketing • Brand Management • Customer Relationship Management • Content-Protection • Profit-Making • These do not benefit authors • Nor communities (unless profit is made by Associations, or at least shared with them)
Digital-Era Business ModelsWhat's a 'Business Model'? It’san Answer to the Question: Who Pays? For What? To Whom? And Why?
Customers Providers Third Parties(ads and sponsorship) A Fairy Godmother Subsidy / Patronage Funding from ‘external’ sources Deprecated as a gift, unless ‘market failure’ Cross-Subsidy Funding from ‘internal’ sources Deprecated (but less so), because it’s ‘distortive’ Portfolio Approach Mutual Cross-Funding from ‘internal’ sources That’s how business works –‘cash cows’ fund the rest Digital-Era Business ModelsWHO PAYS? For What? To Whom? And Why?
Goods & Services Value-AddedGoods & Services Complementary Goods & Services Data Information Expertise / Knowledge An Idea in Good Standing Timeliness Quality Digital-Era Business ModelsWho Pays? FOR WHAT? To Whom? And Why?
The Negative Resource Control Switching Costs(capture, lock-in) Grief Avoidance(no lawsuits orguilty conscience) The Positive Perceived Value(‘the genuine article’) Cost Advantage(incl. Time) Quality Advantage(incl. accuracy, security, timeliness, completeness, complementary services) Digital-Era Business ModelsWho Pays? For What? To Whom? AND WHY?
A Confounding FactorEconomic Rationalism in the Tertiary Sector • Much-Reduced GovernmentFunding • Governance from Collegiality to Managerialism • Objectives and Strategies from knowledge advancement through research, instruction and supervision to Profit, and henceto revenue, cost, and market-share • Competitive Exploitation is favoured, and hence Collaborative Research is threatened • Increased Tensions are inevitable between Universities and Scholarly Communities
Innovation – and Journals in the Digital EraCONCLUSIONS • Journals have an Important Role in Innovation, but: • Openness is Vital (libre / 'free as in speech') • Absence of a Cost-Barrier is Vital(not necessarily gratis / 'free as in beer',but no monopoly-enabled super-profits) • Cost-Profiles are now much lower • DIY ePublishing can be sophisticated • eJournals' Business Models are different now • A Transition Period is in train, and monopolies are being savagely defended