Businessmodel of OCLC

Customer Segments

OCLC has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at anyone who wants library information.

Value Proposition

OCLC offers three primary value propositions: accessibility, performance, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired many organizations since its founding, including NetLibrary, the Research Libraries Group, EZproxy, OAIster, Sustainable Collection Services, Amlib, BOND, and Relais International. This strategy has enabled it to significantly expand its capabilities and diversify its portfolio. Consequently, it offers a broad range of services, including cataloging, digital archiving, virtual reference, and inter-library loan.

The company demonstrates strong performance through tangible results. Specific positive outcomes for clients include the following:

• The Douglas County History Research Center (DCHRC) used OCLC’s CONTENTdm solution to expand its database from 3,000 photos to over 6,000 within a few years
• University of Nebraska Omaha used OCLC’s WorldShare Management Services platform to save $150,000 within its first year and change record-updating time from three days to automatically
• National Academy of Sciences Research Center used OCLC’s WorldShare Management Services platform to increase catalog usage by 58% and electronic resource usage by 33% The company has established a strong brand due to its success. It bills itself as the world’s largest nonprofit cooperative of libraries, with over 27,000 members from over 65 countries and territories. It hosts WorldCat, the world’s largest union catalog of library bibliographic data. WorldCat has 380 million records and 2.4 billion holdings.

Its WorldShare Management Services platform is used by over 500 libraries in 17 countries and six continents, which OCLC claims makes it the fastest-growing library services platform in history. Lastly, it has won a number of honors, including recognition as one of the “Healthiest Employers in Central Ohio” four years in a row by the Healthiest Employers Awards Program.

Channels

OCLC’s main channels are its direct sales and business development teams. The company promotes its offerings through its website, social media pages, and participation in webinars, seminars, podcasts, member forums, and conferences.

Customer Relationships

OCLC’s customer relationship is primarily of a self-service nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website includes a “Librarian’s Toolbox” with useful resources such as system alerts, a compatibility chart, glossaries, bibliographic formats/standards, technical bulletins, and  a directory of OCLC libraries. It also provides access to a weekly e-mail newsletter called “OCLC Abstracts“.

Despite this orientation, there is a personal assistance component. The company provides phone and e-mail support. It also offers training on the use of its services in the form of Web-based tutorials/ demonstrations and live online webinars. Training is conducted by OCLC-certified training partners.

Key Activities

OCLC’s business model entails maintaining and updating a robust platform for its customers.

Key Partners

OCLC maintains the OCLC Research Library Partnership, a program whose members include research libraries and nonprofit organizations with educational, cultural, or research missions.

They share resources and expertise as they work to design programs and services that increase the impact and efficiency of research libraries.

Members come from 12 countries;  specific ones include the American Philosophical Society Library, the British Library, and the California Digital Library.

Key Resources

OCLC’s main resource is its proprietary software platform.

It depends on human resources such as technology employees to maintain and update its platform, sales employees to promote it, training employees to provide instruction, and customer service employees to provide support.

Cost Structure

OCLC has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is employee salaries/benefits. Other major drivers are in the areas of library services, sales/marketing, and administration.

Revenue Streams

OCLC has three revenue streams:

• Subscription revenues
• Software license revenues
• Consulting revenues