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Jeff, an editor with a large engineering consulting firm, asked his fellow information designers and developers for help at a recent conference. He explained that the vice-president of his firm hired him to significantly improve the communication quality of the reports presented to consulting clients, who complained that these reports were unreadable. Unfortunately, the engineers refused to take editorial suggestions and Jeff's boss did not stand up to the engineers.
"You need to assert your ownership over end-user information," suggested one of Jeff's colleagues, who works as an information developer with a software development firm. "But I don't own the information," Jeff replied, "the engineer does."
"You need earlier involvement," suggested another. A third suggested better metrics, and so the conversation went. Unfortunately, none of the suggestions were appropriate. Like the first suggester, the rest worked in software development, where they offer the original contribution of user documentation. Jeff worked in a consulting firm and, although he was told he was supposed to improve the quality of the reports, the engineers saw his primary role as providing production services. In the end, that's all Jeff's boss saw for him, either.
Some might say that Jeff needs to do a better job of demonstrating his value to earn the respect of his co-workers. Before responding to this suggestion, consider this analogous situation. You're checking out of the grocery store. As the cashier moves your items across the scanner, he decides to offer some feedback. You probably would find the suggestion "You should leave those peaches out to ripen for a few days" helpful. "Are you sure that your family is really going to like that cauliflower," is probably beyond the scope of his authority. But his comment about "those deep fried pork rinds" goes over the line. He's the cashier, after all. He's paid to complete the purchase process for you, not offer culinary suggestions or serve as your diet warden.
Similarly, although Jeff is trained to offer feedback on the effectiveness of communication strategies, his co-workers only expect him to provide copyediting and production assistance. Additional assistance, unless requested or the privilege earned, oversteps the bounds of his service, just as the cashier at the grocery store overstepped his bounds by commenting on your pork rinds.
Just as significantly, the advice Jeff received from the other information designers and developers -- although appropriate to their work environments -- was not appropriate to his. The difference is not in the industry--software development versus engineering consulting. Rather, the difference emerges from the business model under which the two groups operate. Those working in the software development industry provide a full range of information development and production services to support a larger product development effort. In contrast, Jeff provides production services only. Not only do the services differ among the two environments, but so do the expectations of co-workers outside of the information design and development group, the types of projects on which people work, the types of skills needed to succeed, the type of power each has within the organization, and the source of funding.
The business press is abuzz with information about business models in the larger business community (such as Afuah & Tucci, 2000). But as just demonstrated, the concept also applies to information design and development. In this article, I explore the concept of business models in information design and development. First, I define the term business model. Next, I relate it to the existing literature on the management of information design and development, especially as it pertains to value of technical communication products. Next, I offer a hypothetical construct of six business models that prevail among information design and development groups. Last, I suggest how practicing information designers and developers and researchers in the field might apply this material.
When considering theory and research in information design and development, we usually approach it from a philosophical viewpoint. Is it feminist? Marxist? Positivist? Empiricist? Critical?
One of the problems for us in dealing with the research and theory in management is that it does not come from any of these perspectives. Rather, the perspectives are almost exclusively economic. And the predominant model within the academic and professional business communities today is the market model. That is, underlying much of the work in business is the affirmation of the capitalism as the most efficient means of delivering goods and services. Some research and theory looks for ways of better understanding how the market works; other research and theory explores ways of intervening in markets to make them work more effectively. That the market fails to distribute resources equally is primary underlying foci of Marxism and socialism. But with the failure of Soviet-style Marxism and China, the world's largest communist country, transforming its economy into a market economy, Marxism and socialism are not receiving broad focus these days, other than during flare-ups at highly publicized meetings on the global economy.
If we could summarize business theory in a single word that would be meaningful to technical communication, the word would be pragmatic. Although many people outside of business assume that most business people are "bean counters" who work "by the numbers," business researchers take a much broader scope of vision. Market researchers, for example, love to use qualitative techniques. Although they have been fond of focus groups, more recently, they've developed a fondness for enthnography. But unlike the social sciences, which sees the qualitative and quantitative research as polar opposites, business researchers often see them as complements: using qualitative research to generate hypotheses and quantitative research to confirm them.
Business researchers focus on a number of issues, from organizational development to the value of communication products. What makes management and economic theories especially important to researchers and practicing professionals in information design and development is that the management and economic theories that make their way from academic think tanks into practice directly affect our work. For example, although the concept of a globally connected economy has existed in theory for decades, the emergence of trading unions (like the European Union) and the World Trade Organization, and the dismantling of state-run economies in Europe, Latin America, Africa, and Asia, has resulted in significant changes in publishing practice, such as a rise in translation and localization, increased competition, and shorter development cycles for user documentation. Certainly developments in technology have supported these changes, but they are just as significantly the result of economic changes. Similarly, as advances in financial theory and practice have led to more sophisticated capital markets, organizations have become significantly more concerned about, and responsive to, shareholder value. The trickle-down of this to the practice of technical communication is increased emphasis on accountability of resources and an increasing interest in measuring the value of technical communication products and services.
In addition to affecting what we do, economic theory and management might also offer insights into how we operate, as well as suggestions about how we can operate more effectively. But because so little of business theory and management has transferred into the theory of technical communication, and because some of it does not yet relate well to theory and research that has been published in our field, articles like this might read a little bit like Greek.
According to Afuah and Tucci (2000), a business model is "the method by which a firm builds and uses its resources to offer its customers.value." A discussion of business model specifically explores:
It is a system, and how well a system works is not only a function of the type of components, it is also a function of the relationships amongst the components. (Afuah and Tucci, p.x.)
Discussions of business models usually focus on the collective external activities of an organization as it provides its products and services to the market. Examples of a business model explore:
At first glance, this discussion might only apply seem to the approximately 25 percent of technical communicators who work as independent technical communicators or in agencies that specialize in technical communication services.
The rest work in organizations whose primary product or service is something other than technical communication. Many of those organizations informally label technical communication as a support service; that is, a secondary service that assists the organization in achieving its core mission. The manner in which these departments are funded, and the manner in which they manage their operations often differ from that of the organizations they support. For example, in a company whose primary mission is selling computer hardware, the company might primarily generate revenue in one of three ways: one-time sales of hardware, one-time sales of parts for replacement and upgrading, and ongoing maintenance contracts. Operations of the organization are designed to minimize inventories of hardware and the time spent on billable maintenance activities. In contrast, the technical communication department might receive funds in a single lump sum when a new product reaches a certain point in its development. This is called an allocation and, in many organizations, is calculated as a percentage of the total development budget. Operations are maximized to provide the maximum amount of information within the budget allocated. In organizations that provide all of the information online, managing inventories has less significance than it would for a computer hardware operation.
Although this example is one used in many organizations, it is note the only business model guiding technical communication departments. Because the business model has a significant impact on the issues to which an organization attends and the issues it values, exploring the different models governing technical communication departments offers an insight into how different types of technical communication departments operate, the issues that each type finds important, the types of skills they will value, and the level of influence they will possess within an organization.
Based on observations of information design and development departments in practice, I propose that six types of models govern information design and development groups. I use the term "groups" rather than departments because some information design and development groups are actually independent corporations and others are two or three individuals working within a larger organization. The term group seems appropriately generic.
| Venture capital | Design | Agency | Development | Contractor | Support |
Independent |
Not independent |
The following sections describe each of these models in detail.
Consider this: you have an idea for a book, website, DVD, website, or some similar product that makes technical information available to the public. You independently receive funding from a funding source, such as a bank, a venture capital firm, to develop the communication product. After you complete development, you sell individual copies of the project, and collect a profit on each one. That profit repays the initial investment, and funds future products. Projects that are funded externally, intended for sale, and led by the information design and development team operate under the venture capital model. In it, a venture capitalist or a similar funding source, and intended for direct sale to the public. Self-funded projects also operate under the venture capital model. The projects are strategic to the organization; that is, the success or failure of the firm rides on the success or failure of the project.
Organizations operating under the venture capital model produce the following types of content:
Groups operating under this model are ultimately accountable to the funders. Some funders take an active role in managing their investment, suggesting strategies for the content and its marketing. Other funds take a hands-off role. Success is measured in the marketplace, especially:
| Revenue generated by the sale of content - | Expenses required to design, develop, and produce the content | Profit |
The skills needed to succeed in an environment operating under the venture capital environment are:
Organizations operating under the venture capital model are funded on a per-project basis. That is, each project is separately funded. To receive funding, the leader of the project must present a compelling business case that not only explains the need for the content, but also projects the revenue and expenses. Only if the projections are deemed realistic, and if the revenue sufficiently exceeds expenses, will venture capitalists fund the project. Funds are sometimes paid in a lump sump. In other instances, funds are paid on a milestone basis. As projects reach certain milestones, funders decide whether to continue funding the project. That also means that projects operating under the venture capital model can be terminated mid-stream.
Groups operating under the venture capital model have three types of power within the organization:
The value of the information design and development effort is primarily measured in terms of the revenue generated by the communication products. Finally, the time frame for projects funded under the venture capital model is long-term, usually 12 to 24 months.
Imagine that you work in a web development organization within a large corporation. Your group has been asked to develop a new website to support the Purchasing group. The site will be used by internal departments to request all purchases, whether paper clips, CAD/CAM software, or technical communication services. The site will also be used by vendors to respond to the requests for quotations, and place a bid. Prospective vendors may also use the system to apply for status as an approved vendor. Your information design and development group will lead the development of this website. You'll identify all of the needs, develop objectives, plan the designs and choose the technologies, oversee development of the content as well as the programming, test the site, oversee its launch, and ensure timely and effective maintenance after the launch.
Projects that are funded internally but led by the information design and development team operate under the design model. In many ways, the design model is like the venture capital model. The primary difference is that groups funded operating under the venture capital model are typically independent or in the business of publishing content. Groups funded under the design model are typically part of a larger organization, often in the business of software development. The projects themselves are strategic to the organization, just as projects funded under the venture capital model.
Organizations operating under thd design model produce the following types of content:
Groups operating under this model report to a software development executive. In some organizations, information design and development teams operating under the design model have their own executive, who reports to the president or CEO of the organization.
The skills needed to succeed in an environment operating under the design model are:
Like organizations funded under the venture capital model, organizations operating under the design model are funded on a per-project basis. That is, each project is separately funded. The funding may be phased; that is, at key milestones, senior executives determine whether to continue funding the project. The information design and development team does not receive blanket funding for all of its projects.
Groups operating under the design model have leadership and referent power. To a small extent, they also have financial power, because these information design and development team prepares and justifies the budget for a project to the senior executives, and determines what services will be funded. The value of the information design and development effort is primarily measured in terms of the revenue generated by the communication products, the ability of the information design and development team to manage the project within cost and budget, and the overall response to the product (both in terms of sales and reviews).
Finally, the time frame for projects funded under the design model is long-term (12 to 24 months).
Imagine that you have been asked by the hardware engineers in your organization to prepare a display, white paper, flyer, and and "a cute give-away" for a trade show that they're attending in two months. The engineers have already drafted copy for the white paper and flyer, and have definite ideas about the booth. But they need editorial assistance in "whipping those papers into shape," production assistance with the booth and to make the white paper and flyer "standout publications;" and need your creative ideas ab out the give-away. None of these projects were in any budget for the year, but now that the engineers have deemed them necessary, budget is not a problem. Schedule is. All you need to prepare is a proposal, and it's likely the work will be yours (if you can find someone to handle the tight schedule, that is).
Projects that are funded as a fee-for-service by clients, who either use the communication product themselves, or re-sell it, operate under the agency model. The model receives its name because the information design and development team manages the project like an independent agency, whether or not they actually work as one. Whether the engineers hired an outside communications firm or gave the work to an internal publications department, the project above is an agency project because it is a separate project. Unlike projects developed under the venture capital or design model, these projects do not stand on their own as products, nor are they strategic to the firms that commission them.
Groups operating under the agency model produce a variety of communication products, but they generally tend towards communication products intended for marketing, employee communication, and other high profile uses. Examples include materials for trade shows, white papers, marketing collateral (brochures), sales-promotion materials (flyers), short online demonstrations, video presentations, and interactive media presentations.
If working internally to an organization, groups operating under this model report to a publications (information design and development) manager. Independent agencies also operate under this model.
The skills needed to succeed in an environment operating under the agency model are:
Groups operating under the agency model are funded on a per-project basis, and are often paid for time and materials (rather than as a lump sum, as is typical of the venture capital and design models). That is, organizations receive payment for each hour worked, as well as reimbursement of necessary business expenses, such as printing costs and specialized production software.
Groups operating under the agency model primarily have referent power within an organization. This referent power, based upon perceived expertise, serves as an asset for marketing services in the future.
Within the agency, the value of the information design and development effort is primarily measured in terms of profitability: that is, the extent to which revenues exceed costs. Value is also measured in terms of repeat business by customers. Sponsors (clients, customers) assess the value on subjective terms, usually considering issues such as timeliness of service, perceived utility of the final product, perceived appearance of the final product, and cost. More sophisticated clients, especially those in marketing, have systems in place for measuring customer response and place a high value on this.
Finally, the time frame for projects funded under the agency model is typically short turn-around.
Imagine that your software development organization is preparing release 3 of its main software application. Your group developed the help and documentation that accompanied the first release. As the market planners and system architects complete the list of features for the release, the software development organization invites you to a kick-off meeting to begin the development of the new release. They seek your ideas for improving user assistance. When the software still has the design flexibility and the team still has the labor, they welcome your ideas. Otherwise, the core design team will consider the ideas for later releases.
Projects in which the information design and development team provides communication products to support a software or hardware project, or new initiative in the organization, and in which the information designers and developers do not have approval rights for the software design, operate under the development model.
Organizations operating under the development model produce the following types of content:
Groups operating under this model typically report to a manager or director of product development (rather than the top executive in software development), or of technical support. Groups operating under this model are usually kept informed of product development plans and may often offer comments on these plans. But these groups do not have the right to approve or disapprove product development plans.
The skills needed to succeed in an environment operating under the development model are:
Organizations operating under the development model are funded on an apportionment basis. In an apportionment, the information design and development group typically receives a pre-determined percentage of the development budget. Although the percentage varies by organization, it usually ranges from 5 to 20 percent. Information design and development groups that receive higher apportionments typically have responsibilities for developing product training and pre-sales material, in addition to product documentation.
Groups operating under the development model have deferent power within the organization. That is, they must defer to the decisions made by others. Typically, these groups receive referent power as the authority on user issues by earning it, rather than by the mere position of being responsible for user documentation.
The value of the information design and development effort is primarily measured in terms of project management measures (ability to bring in the project on schedule and within budget), and the satisfaction of the sponsor with the experience of working with the information design and development group. Although taken seriously, other attempts to more substantially measure the value of technical communication products and services are ultimately seen as secondary measures at this time.
Finally, the time frame for projects funded under the development model is medium to long-term (6 to 24 months, depending on the project).
Imagine that you are one of three information designers and developers in the user support group in your organization. Others in your department manage and staff the help desk; your little group tries to help develop a level of self-sufficiency among users, to contain future demand for the help desk. You produce newsletters and specialized user's guides (the ones telling the "real" story that the manufacturer's guides never tell). You teach 1- and 2-hour mini-seminars on specific topics. You occasionally produce online tutorials. You maintain the list of frequently asked questions. And you produce the three-times-a-year open houses for the department.
Groups that provide user materials as part of a larger technical support effort that also includes the help desk operate under the technical support model. Organizations operating under the technical support model produce the following types of content:
Most of this content is primarily aimed at internal audiences.
Groups operating under this model typically report to the manager or director of technical support, or the manager of Management Information Systems. The skills needed to succeed in an environment operating under the technical support model are:
Groups operating under the technical support model are funded on an apportionment basis (usually 5 to 15 percent of the total Information Systems budget) or a flat annual budget, based on anticipated expenses.
Groups operating under the technical support model have referent power within the organization. Although they usually do not participate in the design or customization of systems used within the organization, they usually help users navigate through these systems more easily and work more productively with them. From that, information designers and developers earn their referent power.
The value of the information design and development effort is primarily measured in terms of the number of products and services provided, and the number of people served.
Finally, the time frame for projects funded under the technical support model is short-term (less than 3 months) or ongoing (such as a newsletter--any individual issue is short-term, but the project is ongoing). Also, groups operating under the technical support model usually complete a high volume of projects.
Imagine that your organization produces a military system. The military first deployed the system a decade ago, but updates it twice annually to keep up with changes in technology, the political landscape, and staffing. Each time the system is updated, so is the documentation. Because the user base is relatively stable, the primary responsibility is keeping the documentation up to date. On the one hand, the task is not a particularly complex one, but does require an in-depth knowledge of the content and library structure, so that all of the affected content can be changed. Although the work is ongoing, it is not a full-time job. So the organization hires someone to handle the work part-time, but for an indefinite period of time.
Information design and development projects that primarily involve maintaining existing documentation, that require an information developer to serve as "scribe" for a project planning effort (record the proceedings, without making substantive contributions), or who provide production services for information that was developed elsewhere operate under the contractor model. Groups that operate under the contractor model offer no original contributions to the content; rather they ensure its ongoing completeness and accuracy. Because this work is usually not strategic to an organization (though necessary either for legal or historical purposes), organizations often use contractors to perform it. Hence, the name of the model.
Groups operating under the contractor model produce the following types of content:
Groups operating under this model report to an operations manager, publications manager, or head of a contracting agency. In fact, contractors typically produce this type of content. Although they nominally report to a publications manager, they are usually employed by an outside firm and their official manager is usually a placement specialist within the contracting firm.
The skills needed to succeed in an environment operating under the contractor model are:
Organizations often hire back their retired workers to prepare communication products under the contractor model. In some instances, organizations hire retirees back on a part-time basis and through their own payroll. In other instances, organizations work through an outside agency to re-hire retirees for part-time work.
Groups operating under the contractor model are funded on a per-hour basis, or an ongoing apportionment. In either funding scheme, organizations paying for the service seek to minimize costs by controlling hourly rates or limiting the total number of hours that a contractor may work.
Organizations operating under the contractor model have deferent power.
The value of the information design and development effort is primarily measured in terms of the cost. The lower the cost, the higher the perceived benefit.
Finally, the time frame for projects funded under the contractor model are usually long-term ones for the organization funding them, but typically managed as short-term or ongoing projects. That is, the information design and development team usually begins work as the product development effort nears completion.
Although one of these models is likely to dominate within an information design and development group, the larger the group and its workload, the more likely that more than one model might be in operation. For example, the manager of a 120-person information design and development group for a computer manufacturer operates under several models. About half of the employees operate under the development model, supporting new releases of software. One 10-person department operates under the design model, and designs interfaces for the software. Another 15-person department operates as an agency, handling short turn-around projects on a fee-for-service basis. Finally, two other departments operate under the contractor model, updating service documentation that was originally developed years ago and that the manufacturer continues to support. The manager of this 120-person group essentially oversees four different businesses.
To read the literature on technical communication, especially the literature on usability and information design, one would get the impression that information designers and developers operate under the design model. In reality, according to a recent study of the management practices of larger technical communication departments, most information design and development groups operate under the development model. The next most commonly followed models are the technical support and contracting models.
Applications of this concept vary among practice and research. Within the community of practice, the construct of business models has many implications:
Within the community of researchers and theorists, the concept of business models has these implications:
Thoughts? Please send your feedback to me.
Afuah, Allan and Christopher Tucci. (2000.) Internet Business Models & Strategies: Text and Cases. New York: McGraw-Hill Higher Education. 2000. (Chapter 1.)
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(c) Copyright. 1999, 2000, 2001, 2002. Saul Carliner. All rights reserved.
