University Library Information System: PEST and Porter Analysis

Overview of the University Library System

The university under examination is a large institution located in London, England that serves a global student population. It maintains four campus library resource centers available for student use: Cavendish Campus Library, Harrow Campus LRC, Marylebone Campus Library, and Regent Campus Library (WMIN, 2004). The libraries use information systems and library services (ISLS) to disseminate information to students, staff, and visitors. Also in use is infoLinX. The purpose of a system such as ISLS is to improve accessibility to learning materials.

Currently the university serves the following populations: graduate and undergraduate students, international students, part-time students, researchers, alumni, businesses, job applicants, and external examiners. Major academic areas range from traditional sectors such as architecture to more advanced areas such as digital media and e-commerce. The information system utilized by the university is analyzed below using PEST analysis, value chain analysis, and Porter's Five Forces. The analysis reveals that the university is currently utilizing competitive technology to provide students with an advantage; however, the ability of the system to remain successful depends upon its capacity to adapt in an environment of rapidly changing technology. The student population exerts a strong marketing influence and will continue to seek out system upgrades that allow for the most reliable and expedient information, capable of supporting large user populations.

PEST analysis helps achieve a greater understanding of the position and potential direction in which a business can grow — in this case, the university library system (Chapman, 2001). Unlike a SWOT analysis, which simply measures a business unit or proposition, PEST analysis allows for measurement of the market as a whole, including its potential, attractiveness, and growth or decline trends (Chapman, 2001). In the PEST analysis below, the library information systems in use are examined in relation to their market — that is, the student population and general public as a whole.

PEST Analysis of the Library Information System

The library systems ISLS and infoLinX utilized at the university must have the ability to address European and international standards for disseminating information. In order to expand upon the technology currently in use, funding, grants, and initiatives may need to be presented to the university's governing body. The regulatory bodies currently directing usage of the systems include the student body, government, and university officials.

The current economy supports the use of information systems such as those in place at the university, as they enable the transfer of information electronically and digitally, saving both time and effort. There are no specific taxation issues or industry factors that necessarily apply in this situation.

Consumers are increasingly becoming technologically savvy and are seeking advanced methods for researching and transferring information. The population served by the university includes not only students, but also officials, staff, and the general public, as well as a global population of information seekers.

Technology is rapidly changing, and it will be important for the university's innovation potential to be examined in order to keep pace with these developments.

Porter's Five Forces Applied to Library Information Systems

Porter suggests that corporate strategies should address the opportunities and threats arising from interaction with the external market, and that competitive strategy depends upon an organization's ability to change in response to technological and industry advances (Porter, 1980). Of the five forces Porter identified, those most applicable to information systems management at the university are the bargaining power of suppliers and the bargaining power of customers.

Supplier bargaining power is likely to be high because the market for information systems is dominated to some extent by a few large suppliers. Although there are many suppliers of information system technology in general, within the library services arena there are relatively few major competitors. While substitutes for information systems may exist for smaller universities, for larger institutions no substitute for systems as complex as ISLS carries real weight. High bargaining power on the part of suppliers may reduce the strategic options available to the university when considering replacement of its current systems.

The bargaining power of customers is also significant. Customers in this context may be considered patrons of the library. They possess considerable bargaining power because they use the information systems in large volumes; thus they are likely to exert heavy influence over demands for changes and upgrades. A concentration of buyers exists within the student population and other groups served by the library system. The type of information system in use is of considerable concern to these consumers, further increasing their power to recommend and drive system improvements.

One additional force from Porter's framework deserves mention: the threat of new entrants. In a rapidly changing marketplace, the likelihood of new technology entrants is high. There are some barriers to entry evident in the information systems market for large library systems, however, including economies of scale — such as the minimum size requirements for use of certain materials — and brand loyalty, which is perhaps the largest barrier (Recklies, 2001).