Sample metric for cost/benefit of eResources

The metric indicates whether the cost of a resource is reasonable given the benefit being derived from it by knowledge and library services (KLS)' users.

Definitions

• cost of fulltext database ÷ total downloads =  Unit Cost
• total downloads x average interlibrary loan (ILL) cost  = ILL Cost

Process for compiling the metric

Make the measure and time period clear.

Ensure you’re using the same measure and time period if you’re comparing multiple resources.

Establish the average ILL cost using steps 1-5 below:

1. Establish number of ILLs per source.
2. Establish time spent on processing each ILL in staff time by band.
3. Use the Hourly Rate Calculator to establish costs of staff at each band involved in the process.
4. Multiply average time spent on all ILL by average cost of staff time.
5. If cost of obtaining from resource higher than obtaining from ILL, consider benefit of resource. 

How do you interpret this metric?

• the metric indicates whether the cost of a resource is reasonable given the benefit being derived from it by KLS users
• benefit is defined as the usage being made of a resource
• if the unit cost is considerably more than ILL Cost, then you may wish to consider promotion, renegotiation of price, or whether it’s worth renewing
• you may also wish to include intangible considerations, such as immediate v delayed access, in your decision

Desired outcomes

What would improvement look like? Do you have a level you are required to reach or aiming for in a period? You might consider what would be Red, Amber, Green scores for a dashboard.

Unit cost should be less than ILL cost, or showing a falling trend.  If unit cost approaches ILL cost, promote the resource, or investigate users’ experiences of using it.

Improvement plans

How do you plan to make a difference to this metric in a defined period?

Review following feedback.  Think about what your actions will be and make plans to track the change in the metric to measure the effectiveness."

Reporting

Where and how do you plan to share the metric? Is it part of a dashboard or regular service monitoring report? You could embed a sample graph.

The metric could be reported in the LKS annual report, a business case, or in supplier negotiations.