A Value Driven Approach to eJournal Acquisition

1. A Value Driven Approach to eJournal Acquisition by Armand Brevig Global Category Leader, Scientific & Business Information armand.brevig@astrazeneca.com

2. Strategy Return on Investment Cost Management Internal AZ Drivers for eJournal Spend Lower Spend Higher Spend Need to boost pipeline User demands M&A and alliances Lack of compelling business case Complexity in making demand decisions Budget pressures Library/IT dept. mergers

3. Alignment to Corporate Strategy Corporate Strategy drives Functional Strategy Functional Strategies drive Information Centre priorities Information Centre priorities drives Information Content Acquisition

4. Example Corporate: “…growth that will place AstraZeneca among the best in the industry” R&D: “Deliver a portfolio of differentiated medicines that meet patient needs..” Increased focus on diabetes research Possible rebalancing of eJournal portfolio

5. Alignment to Corporate Strategy Global Company = Global eJournal Deals

6. eJournal Models that Work Well • Rebalancing without adverse cost implications • Realistic value expectations when converting local print to global “e” • Scientist population • Geographic distribution of scientists • Research Areas • Permission to forward electronic journal articles for Medical Information Purposes

7. Return on Investment • Must demonstrate that extra eJournal spend helps us get from A to Z: • Faster • With fewer incidents of failure • At reduced total cost A Z

8. Return on Investment Without a strong business case the value of eJournals will not be visible to management Publishers can help articulate the business case

9. Return on Investment • Key Components of a Business Case • Alignment with strategic business objectives • Payback profile / NPV • Benefits • Risk Assessment • Total Costs • Acquisition • Resources • On-going support

10. eJournal Models that Work Well • Backfile deals with positive NPV over 3 years • Any other model that can show positive NPV Benefit 1 Benefit 2 Benefit 3 yr2 yr3 yr1 PV(yr1+yr2+yr3) >= Purchase cost Purchase cost

11. Cost Management The New World: • Flat content budgets • Library / IT Department mergers • “Entitlement culture” not accepted outside library • Continued cost management by cancelling print and low use journals

12. Cost Management Why keeping costs low benefits publishers EXAMPLE: 600 end-user requests for articles in one journal not subscribed to by AZ in 2006 Only 120 requests for ad hoc document delivery generated for same journal in 2006 Conclusion: 80% of usage “lost” if journals are too expensive to licence  negatively affects impact factor

13. eJournal Models that Work Well • Reduced price increase in exchange for multi year deal. • No tie-in based on previous year spend. • Seamless transition between pay per view and subscriptions at pre-defined thresholds

14. Conclusion • Mutual benefit from jointly developing compelling business cases • Cost and value are now more important than ever. • Develop new eJournal models to add more value • Publishers capable and willing to work WITH corporates in this new environment will win long-term.