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LIS 582:
Globalization, Diversity and Information
Discussion Paper: Library Automation Systems


What are the economic implications of globalization on
the library automation marketplace and industry?

There is not a lot of literature that directly addresses this topic but that does not mean that its effect (globalization) has not infiltrated the organizational psyche or philosophy of the larger library automation suppliers of the world. Traditionally, library automation systems were developed by those in the field of librarianship or computer science specifically for library environments. The impetus for these developments were driven by academic, government, and library association projects to better facilitate the demands of the library user population. Unfortunately, the current demands of the marketplace are being driven by the corporate motives of the suppliers to increase financial profit, increase market share, and expand customer base.

The attitude of the supplier is often in direct conflict with the interests of the librarian using the technology to further the ideals of the profession: uncensored access to information. Breeding commented in 1994, when NOTIS and Dynix merged to form the Ameritech Library Services company, "It bothers me that the locus of control for the development of library automation software rests increasingly with the large corporate interests" (Breeding, 1994, 8). Breeding's standpoint suggests that libraries are powerless to the dictates of the corporate whims of software production. However, if the librarian truly wants to meet the needs of the library patron, that librarian will indicate to the supplier what the library patron's expectations are and thus, the librarian's. The significance of this is that as suppliers consolidate and as system choices diminish, librarians will have to weigh their options more carefully. "Today the driving forces in software development are coming increasingly from outside the library profession" (Dorman, 1996, 42).

In addition to the market forces of the Internet and library patron expectations, supplier consolidations are also influencing the research capabilities of library automation systems for the future. It is certainly advantageous for libraries that mergers are allowing companies the financial means to develop better software to meet the demands of the marketplace, but in the process it demonstrates how generic these systems may potentially become. Is it possible that one day there may be a monopolistic library automation system on the scale of Microsoft? I doubt it, but the notion that fewer choices in the marketplace is an inevitability concerns me.

Just when development is most needed, it is hard to find it through a sustained high growth rate. At the same time costs are going up, there is a profit squeeze due to the fierce competition for the market share. It will become increasingly hard to for many local system vendors to finance development through new sales. (Dorman, 1996, 42-43)

So far I have touched on the causes for decreased supplier choices because of demands by the libraries for increasingly sophisticated systems and the high cost of developing these more complex systems. There are also other considerations to make when examining the issues of globalization and the library automation market. The difficulty of migrating "mature" or "legacy" systems to new technologies demands resources and highly trained staff that smaller suppliers may not be capable of doing. The organizational philosophy of the smaller supplier may not be able to adjust from an academic model to a commercial model. The size, momentum, and credibility of a smaller supplier may not allow it to achieve the necessary growth that will enable it to continue.

The consequences of consolidation in the library automation marketplace have both advantages and disadvantages. "As we end up with fewer organizations, we can probably assume that, if competitive pressure is maintained, new product developments will be faster and more successful" (Carden, 1998, 33). What I find interesting in this statement is the use of the word "if". I hope that this "if" becomes a reality and not just an optimistic expression by the author.


How is globalization defined in economic terms?
The growing transactions that define globalization tend to draw the nations of the world ever closer while diminishing the importance and potential role of the nation-state. International agreements such as the European Union, the North American Free Trade Agreement, and the international trade agreements such as the General Agreement on Tariffs and Trade, as well as the growth of non-governmental organizations, all seem to be eclipsing the role of the nation. Outside the political arena, the internationalization of corporations and their many transactions between headquarters and subsidiaries also help foster this globalization. (Cordell & Ide, 1997, 44)

In other words, the actions of large transnational corporations, and in this case library automation suppliers, help to define what globalization means in economic terms. Private business and the demands of a successful venture require different objectives versus the public ideal of the library. Special libraries are an exception to this because they are often funded by corporations or associations that demand a return on their investment, a sort of cost recovery model. The institution of the library has historically been designed for public benefit. However, more often than not the principles of the "library mandate" are being influenced by the interests of business. The consolidation and reduction of library automation systems is symptomatic of the greater change that is occurring in societies around the world. Globalization has infiltrated the philosophy of the those corporations who seek to remain competitive and library automation suppliers, if they wish to continue to be profitable, must follow the rules of the new marketplace. What I fear is the notion of a single integrated library automation system run by a large transnational corporation that dictates, rather than listens to the local user community when installing their product. "For a supplier to be truly global it will need to demonstrate a responsiveness and a multicultural sensitivity that may not initially come naturally" (Carden, 1998, 33). If we examine critically the current habits of large transnational corporations and their business dealings with nations, often underdeveloped by "Northern" standards, there is reason to be skeptical of their intentions and willingness to be sensitive to local needs.


In whose interests does the library automation system supplier serve? How many librarians are aware of the globalization of the marketplace and its implications for libraries? If librarians demand and are continually aware of their place in the marketplace will they advocate sensitivity to local needs or simply accept the current trend towards consolidation? Vigilance is crucial if we do not want a "Microsoft" clone in the world of library automation.


Bibliography

Breeding, M. (1994). The evolving library automation business environment: Implications of the Ameritech developments. Computers in Libraries, 14, 9, 6-8.

Carden, M. (1998). The globalization of information system suppliers. Aslib: Managing Information, 98, 5 (1/2), 31-33.

Cordell, A.J. & Ide, T.R. (1997). The new wealth of nations: Taxing cyberspace. Between the lines. Toronto, ON.

Dorman, D. (1996). Observations on the North American library automation marketplace. American Libraries, 27, 9, 40-43.


Copyright © 1999 Sean James Barr. MLIS.

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