Financial models and calculation mechanisms

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Type: 
Technical Report
Author: 
Hans Westerhof, Jeff Ubois, Marius Snyders
Year: 
2011
Difficulty: 
Not Applicable
Tags: 
Business models, Costs, Finance
Topics: 

This technical report is a product of the PrestoPRIME Project (D6.3.1.), the major project on digital preservation in the audiovisual sector in Europe.

Archives in the early stages of mass digitization projects face a enormous number of uncertainties about likely costs. These uncertainties may be addressed through the application of general principles, rough techniques of estimation, comparison with similar projects, and the use of cost models, some of which have reached an impressive level of sophistication.
Based on an exhaustive literature review, and on informal conversations with managers at more than twenty archival institutions and service providers, the authors selected the concepts, rules of thumb, comparative project data, and cost models that seemed most useful, and summarize them in this report.

The data gathered about cost estimation represents the bulk of the document. Several studies, including those by PrestoSpace, FIAT and Screen Digest, Numeric, and the Primary Research Group, point to a market that is sizeable, yet fragmented. Ultimately, this report uncovers a need for better data and further research.