Mosaic

TITLE : Final Project Review Report

WRITTEN BY : M.Borghi

SUMMARY : MOSAIC activities

The document describes the main activities in MOSAIC done by Contractors and Participating Organisation.

No part of this document can be reproduced, in any form, or by any means, prior to written authorisation of the

MOSAIC Consortium

Table of Contents

1. Reference Documentation
2. Synthesis of work done
3. Project technical overview 3.1 Introduction
3.1.1 MOSAIC Network
3.1.2 MOSAIC tools
3.1.3 MOSAIC Users
3.2 Mosaic applied reference technologies and applications
3.2.1 Knowledge of the MOSAIC Network
3.2.2 Model of MOSAIC Cultural Service Centre (CSC)
3.3 MOSAIC Legal Framework
3.3.1 Mission
3.3.2 Agreement Framework 4. Nature of the project's future work 4.1 Pilot Phase – Integration, Validation and Verification
4.2 CSC Management Plan
4.3 MOSAIC International Organisation start-up 5. Risk Analysis 5.1 General
5.1.1 MOSAIC Positive points
5.1.2 MOSAIC Negative points
5.2 Revenues
5.2.1 Financial Risk
5.2.2 Economic Cycles
5.3 MOSAIC Organisation
5.3.1 Company
5.3.2 Management Team Risk
5.3.3 Exit Scenarios
5.4 Consumers opinion
5.5 New Media
5.7 Communication
5.8 Brief outline on the strategy of communication
5.8.1 Advertising
5.8.2 Public Relations
5.8.3 Sales Promotion
5.9 Opportunities
5.10 Competition 6. ANNEX A : FINANCIAL ASSUMPTION 6.1 Costs Justification
6.1.1 Video conference room costs
6.1.2 Virtual theatre min/max configuration average costs
6.1.3 Cybercafe room
6.1.4 Fixed costs for infrastructures
6.1.5 Personnel costs
6.1.6 Virtual exhibitor cost
6.1.7 Authoring tools costs
6.1.8 Training room cost
6.1.9 Application & marketing product cost
6.1.10 Distributed database cost
6.1.11 Cultural on-line browser cost
6.1.12 Network infrastructure & interoperability gateway
6.1.13 Multimedia room cost
6.1.14 Playroom cost
6.1.15 Basic services & thematic forum costs
6.1.16 Total infrastructure cost
6.1.17 Hw/sw upgrading cost
6.1.18 Video conference infrastructure cost
6.1.19 Museum visitors presence
6.1.20 Number of visitors in Italian museum
6.1.21 Number of visitors in art galleries and archeological sites
6.1.22 Tourist market in Italy
6.2 Revenues description
6.2.1 Prices of goods sold in museums and the average propensity to purchase of visitors
6.2.2 Content driven
6.2.3 Service driven
6.2.4 Advertising on events
6.3 The propensity to purchase on the art market
6.3.1 Cybercafe statistics 6.3.1.1 MOSAIC cybercafe 6.3.2 Advertising on Internet 6.3.2.1 Statistics on average hits of a web site
6.3.2.2 The main ways to advertise on internet 6.3.3 Data on electronic commerce and Internet 6.3.3.1 Considerations on e-commerce
6.3.3.2 Main problems on e-commerce
6.3.3.3 Products and services sold on Internet 6.4 MOSAIC versus traditional institutions 7. ANNEX B : LETTERS OF AGREEMENT
8. ANNEX C : DATA DISTRIBUTION - CSC DEMO PROCEDURES 8.1 Procedure to activate a CIMI query using Cultural on-line Browser
8.2 Procedure to activate a query to MOSAIC Metadatabase (on DISET web)
8.3 Procedure to watermark an image (on MOSAIC web)
8.4 Demo Service Centre Overview
8.5 High Quality Data Production 9. ANNEX D : MOSAIC MODEL ARCHITECTURE - DIAGRAMS 9.1 MOSAIC diagrams
9.1.1 MOSAIC context diagram
9.1.2 MOSAIC Network
9.1.3 MOSAIC Cultural Service Centre (CSC) 10. ANNEX E : OTHER MAIN REFERENCE DATA 10.1 Data on Internet, E-commerce and cybercafè
10.2 Data on museum flow and to other cultural wealth initiatives

Contract N. 45527

Project Acronym: MOSAIC

Project title: Museum Over States And vIrtual Culture

Project Coordinator:
Name: Mr. Maurizio Borghi
Department: Area Legale e Affari Generali / Tecnologie di Comunicazione
Organisation: Banca di Roma S.p.A.
Address: Via dell’Umiltà, 43
Country - Code City: 00187 - Roma

Telephone: +39 6 6700 8944
E-mail: mosaic@bancaroma.it

List of Partners

Organisation	Role	Country
Banca di Roma s.p.a -BDR	Coordinator	established in Italy
Joanneum Research - Forshungsgesellschaft mbH - JRC	Contractor	established in Austria
Zentrum fur Graphische DatenVerarbeitung e.V - ZGDV	Contractor	established in Germany
Cineca - Consorzio Interuniversitario per la Gestione Del Centro di Calcolo Elettronico dell'Italia Nord Occidentale CINECA	Contractor	established in Italy
Politecnico di Milano, DIP.ISET DISET	Contractor	established in Italy
Infobyte s.p.a - INFOBYTE	Contractor	established in Italy
ARENOTECH	Participating Organisation	established in France

Form SA - Project Self-assessment

Project Acronym MOSAIC Contract N. 45527
Project Title: Museum Over States And vIrtual Culture
Project Coordinator : Maurizio Borghi

1. Reference Documentation
[1] EC Fax: European Commission, Brussels, DG XIII, A3 24/11/98/XIII/ 06390
[2] EC Fax: European Commission, Brussels, DG XIII 06/05/98 02312
[3] Mosaic Report: Mid Term Review – 28^th January 1998
[4] Mosaic Annual Progress Report –April 1998
[5] Mosaic Fax: response to the fax [2] (Annual Review Recommendation)
[6] EC Fax: European Commission, Brussels, DGXIIIA3.YC.mos98016MOSAIC

The list of all deliverables of MOSAIC is the following (see: http://mosaic.infobyte.it/project/project.html ):

Work Package 1100: SURVEY on the STATE of the ART
Work Package 1100 (SUMMARY): SURVEY on the STATE of the ART Summary
Work Package 1200: Market Plan
Work Package 1200 (SUMMARY): Market Plan Summary
Work Package 1300: Partner Research and Economical Agreement Definition
Work Package 1400: Target Users Profile Specifications
Work Package 1400 (SUMMARY): Target Users Profile Specifications Summary
Work Package 1500: Requirements Definition Document
Work Package 1500 (SUMMARY): Requirements Definition Summary
Work Package 1600: Technical note on Application Reuse
Work Package 1600 (SUMMARY): Technical note on Application Reuse Summary
Work Package 1700: Architectural Document
Work Package 1700 (SUMMARY): Architectural Document Summary
Work Package 1800: Dissemination of Results
Mosaic Video, CD-ROM, Screen Saver and Mosaic Brochures for dissemination and partner research
Mosaic Cultural On Line Browser (demo version) (see http://mosaic.infobyte.it/demo/)

The list of MOSAIC Progress Reports is the following (see: http://mosaic.infobyte.it/project/project.html ):

MOSAIC kick-off - Brussels 29th may 1997
MOSAIC activities (May/June/July months) - Rome 31th july 1997
MOSAIC activities (August/September/October/November months)
MOSAIC activities: Periodic Progress Report (first six months)
MOSAIC activities: (November/December/January months)
Annual Review Report
Annual Project Review 1998 - Project Mosaic
MOSAIC activities: (February/March/April 1998)
Progress Report 7
Final Review Report

Mosaic Press Release

Activated CSC demo:

Bologna CSC- Cineca
Roma CSC – Musa

Activated web sites:

Banca di Roma: http://mosaic.bancaroma.it

Joanneum Research: http://mosaic.joanneum.ac.at

Cineca: http://mosaic.cineca.it

Polit. di Milano: http://mosaic.polimi.it

Zgdv: http://mosaic.zgdv.de

Infobyte: http://mosaic.infobyte.it

2. Synthesis of work done

The Mosaic project born with the aim to create added value services and use what is already available on the market. It is not a project to develop standards but to define new content and services. The objective is thus to develop glue SW able to integrate the existing standards. This objective has been reached and developed as shown in the demo CSC. The frontier of development and competitiveness for who manages services is in the application sector which is the one nearer to the user and our efforts have been directed towards the latter, new browsers, new tools, new applications in the GIS sector and in virtual reality distributed on the territory. It is here that we believe there is a need to develop a greater competitiveness and a major integration at European level. In sum, the efforts that Mosaic wants to develop are in value added services where little investment is necessary and this is why the excellence service centres able to conduct research and to guarantee competitiveness of Mosaic services in time have been conceived.
From the user requirements analysis performed in WP1400 it has been evident that a lot of users do not need to retrieve the catalogue of data but data with significant added value. Many users are not able to retrieve the information correlated with the piece of art. The problem that MOSAIC wants solve is not to find how many data bank already exist but to assure that they fulfil the condition to create new data with added value. For this reason it is necessary that:

public institution are involved with CSC (the exhibition CSC it is equipped with a museum space having raw data like images and texts)
it is available a specialist team with high scientific skill able to adapt the digital data (to improve quality) or to acquire new ones with high added value (info about the restoration, 3D animation, virtual reality reconstruction, multimedia presentation, correlation with literary data and other sources coherent with the thematic query). Usually the existing catalogue does not contain useful information expected by wide public, so it shall be necessary to generate a new products by using the MOSAIC tools (as digitalisation, archiving, virtual exposition, CD-ROM, video-cartridges …)

For example in the case of Leonardo tables they contains only the cards as they are generated by the great scientist, but to facilitate the access to the catalogue it shall be necessary:

to animate the drawings to understand how the wonderful machines work
to be able to read the texts (because they are written from right to left) together with critical comments to enhance their understanding
to describe the historical environment to understand why such ideas was innovative or to compare them with modern points of view

Points 1, 2, 3 could represent the added value that a thematic CSC could produce and insert in the network about an artwork. It is not important if some catalogue exists or not. What it is important is the availability of skilled peoples and the availability of original data with texts or images from institutional/scientific partners. The CSC has to adapt itself to the local needs or to develop "glue" s/w or adapters (gateway) for the basic services and moreover enhance the thematic contents and advise its work by using the Network.

We remember that the main target of the work was the realisation of a feasibility study to demonstrate the potential technological applicability of the project by means of a configurable and scalable architectural model. Considering this philosophy, the integration aspect proper of the implementation phase has been foreseen in the next pilot phase. The work was organised in several work-packages as in the following:

Work Package 1100: SURVEY on the STATE of the ART. The main idea was to review the existing technologies, standards and the active projects related to the MOSAIC main targets and the information retrieval sites where information are collected to have a clear idea of the actual State of the Art.

Work Package 1200: Market Plan. Integrate the results of the project into an overall plan for the deployment. Demonstrate the commercial and financial viability, identify the impact of communication costs, property right, describe how the overall project is planned to be financed.

The integration plan refers mainly to the Mosaic organisation. On this aspect there had been explicit recommendations in the Annual Review [2] and an Operational Plan to determine the project’s start-up was asked. From an organisational point of view the most complex element is the creation of new entities: the CSCs and their relationships [5]. Therefore agreement criteria and steps of integration were found (see chapter on Risks, paragraph 7.1, Mosaic Legal Framework). From the network point of view, it was agreed that there was a need for a project pilot phase before the deployment, since network integration is the major critical point and needs further experimentation. For this reason the presented plan passes from the feasibility study to a phase of integration in the pilot network before reaching deployment.

Business Model is based on specific enquiries shown in document 1400, the Consortium’s experience (service managers, network service managers, product developers, managers of formation training , event promoters , event organisers …) as well as that of third parties involved ( for example the CNR, the Superintendency, editorial partners and managers of exhibition areas such as Progetti Museali, the Maastricht MacLuhan Institute, the Service Center of Schloss Schoenbrunn, the Musa service center, …). Also taken into consideration were a number of data sources on the subject such as: FNAC, Eurobarometer, Databank, Italian Ministry of Cultural Heritage, CNR reports on the fruition of cultural heritage, Jubilee, third millenium prospects … Moreover Mosaic has taken into account most of the results and recommendations of other European initiatives such as the Memorandum of Understanding, working group 2 – Market Evolution Perspectives and more recently Medici.

Financial Assumptions are based on an operational market correspondence as far as prices and markets are concerned. More detailed information are attached in annex as required in the Final Project Review [6] recommendation A. Due to the organisational nature of the project and the basic assumption of using a marketing strategy equaling that of Internet, the financing is not that of a holding who manages the profits at central level and invests in the periphery, but of local structures tuned in local reality able to work on the territory. Therefore the financing is mainly private and utilises the available funds and subsides for employment, tourism, research, structural funds, benefits for the Small and Medium sized enterprises, Jubilee funds or more simply bank loans, locally. The contribution of the European Commission is limited to the initial phases of the investment and therefore to the feasibility study and to the pilot start-up phase of the service and integration of the network. Thus the detailed analysis cannot be made unless on localised and concrete cases and for this reason we have presented a detailed plan for French and British CSC. A concrete example is represented by the declarations of 10 CSCs ready to participate and finance the next steps of the Mosaic network. (e.g.: CSC Schloss Schoenbrunn, CSC Graz, CSC La Villette, CSC Rome Musa …) Moreover, CSC Rome Musa is already financed by private organisation (following the MOSAIC financial forecast) and is ready to start-up (see www.musaroma.it).

Electronic Commerce Model. is an important concept for the project. The WP1200 contains a detailed review of laws about IPR and refer also to referenced legal studies about the matter. Moreover some significant examples of electronic commerce on internet (of well known museums) are reported. We believe that the CSC, since it’s a local party, can more easily solve the legislative and procedural aspects linked to specific European regions. The CSC therefore solves local organisational problems in respect of current laws as an adapter between users and Institutions. For a more general point of view the service can base itself on the existing banking network and an example of this was made in WP 1600 and presented in WP 2000.

Work Package 1300: Partner Research and Economical Agreement Definition. The list of companies and institution that are going to be involved in MOSAIC is presented together with their agreement letters in annex B as required in recommendation B of document [6]

The search for partners had as main objective that of grasping attention around the Mosaic project and to see whether there were some parties interested to be involved in the project during the implementation phase. This is why a letter of intent was defined and placed on Internet site. The work done so far is therefore aimed towards this type of result. With the significant received letters of intent we have produced a summary. The mutual agreements represent an accordance with CSC and therefore necessitate a further organisational step. On this point, we have the intention to proceed with the continuation of the project by the 10 hypothesised service centres (Mosaic project phase II).

Work Package 1400: Target Users Profile Specifications. The main idea was to identify the users typologies and their needs using the MOSAIC Partners knowledge. The expected needs was classified as general user requirements. General statistics was presented to define the interest towards cultural heritage using new technologies.

Work Package 1500: Requirements Definition Document. To define a model of services it is necessary to start from the user needs to list all the user requirements to define the system requirements and the system architecture model like in a standard system life cycle. This was what we have foreseen to follow in MOSAIC feasibility study.

Figure 1 : Standard System life cycle

An high level analysis was performed by using a design tool to decompose the MOSAIC functionalities into single and separate components. For each component a Data Flow Diagram (Yourdon-De Marco methodology) was created to illustrate the functionality and the data flow: a list of system requirement was edited for each component w to identify all the ideal functionality. Two main families of components was identified: Network and CSC:

Mosaic Network Requirements

Network infrastructure, Inter-operability Gateway and Distributed Database

Cultural on-line Browser

Metadatabase, Search Engine & Agent

Multilingual Inter-operability

CSC Requirements

Services (thematic forum, publishing team, accounting management, security management, Tools, VR exhibitor, archiving tool, authoring tool)
Infrastructures (training room, video-conference room, multimedia room, playroom, virtual theatre, workshop, cybercafe & marketing area)
Promotion and Advertising
CSC Organisation: a primitive idea about internal CSC organisation

Three level of Yourdon De-Marco DFD are usually enough for the architectural phase when the depicted model is not correlated with the real case. This has been proposed as useful for the feasibility study in the Mosaic contract. However we never foreseen for Mosaic a more detailed objective to analyse pre-existing systems or to describe an integration phase proper of the real case implementation.

Work Package 1600: Technical note on Application Reuse. Because it was foreseen to not develop any new s/w but to re-use already existing packaging, this document outlines commercial or proprietary s/w packages to be useful reused in MOSAIC Network or in MOSAIC CSC. The CSC DEMO guide-lines was added to the document. Now the main objectives are to verify if the technological area of mosaic corresponds to some applicative environment that implement the mosaic requirements. The synthesis is that some MOSAIC technological area are partially covered (glue SW is required) and reference application are lacking (new application in VR, GIS and Virtual Set are required).

Work Package 1700: Architectural Document. A model for MOSAIC Network and the MOSAIC CSC was developed. For each component a detailed description in terms of functionality and items list was done. A real MOSAIC CSC implementation shall contain a sub-set of functionality described in this document.

In the document, the integration of different MOSAIC components is well defined. The central point of MOSAIC system is defined: the Cultural Service Centres (CSC) and their network. For each component of CSCs and their Network a part list is presented. The DFD Diagrams show interconnection and data flows between components.

The service centre was born on the base of a modular concept as sum of different self consistent modules. The integration issue [2] of the service centres is dependent on a choice of configuration and availability of budget [5] as described in WP1200 (par. 5.2).

The complex nature of parties who insist in cultural heritage determines that the services have to be scalable. In other words, when a service centre is created it can candidate itself within Mosaic by pointing out some services to activate. Obviously, there must be a minimum configuration to guarantee the compatibility of the access to the Mosaic network. On this idea a service centre may be more or less complex and more or less performing. To better clear this point three types of centre have been considered. They have been called:

Technological Service centre (mainly service centres which offer educational areas in the cultural heritage sector and manage the network data repositories)
Excellence Service Centres (structures that produce new applications for the cultural heritage sector and that develop their market with a logic similar to franchising towards the other CSC)
Exhibition Service Centres (that is complete configuration) capable of managing expositional areas both traditional and technological.

This classification, does not eliminate the concept of CSC and its business model, on the contrary it adds potential of enlargement of parties and therefore create a greater critical mass of data and products. The main target is to valorize pre-existing initiatives and to amplify them within an international network. The practicability of this perspective is guarantied only by an highly modulable and extremely concrete service model. Internet’s typical logic in progress may allow all CSCs to start with minimal configurations and to growth in time, depending on the market answers.
In principle the differentiation is a plus that strength the central role of Mosaic not a must but an eventuality, a diversification that can better meet the pre-existing efforts and characteristics of the industrial investors distributed on the territory.

Work Package 1800: Dissemination of Results. In the first phase, the feasibility study, the CSC demo was presented and it meets positive feedback (ideas, technologies and tools) from operators and experts in every meeting in which the project was presented. The pilot service is not in first phase but was proposed for next phase, together with start-up of the Mosaic network basic kernel. Thanks to the project there is a way to diffuse world wide an European idea judged valid and interesting by all interlocutors met.

Work Package 2000: CSC Model Demonstrator. The main target of the feasibility study was to define an organisational model to be applied in different local realities (sites). We have do not studied the existing system because it shall be reductive, but we are started from the user needs in their large whole so to define the main MOSAIC system requirements. From the system requirements by using design methodologies (used in professional context) we have defined the system architecture of MOSAIC model decomposing it in several components. Deeper detailing should require a concrete test case type. So our problem was not to know how many data banks are available but how we can link the data bank by standard mechanisms, and how use tools to create new data and new added values services with Multimedia and Virtual Reality technology.

The CSC demo centre had as main target to validate the effectiveness and the integration of several tools inside a unique context. We had not the target to develop new s/w or tools but to use already existing tools or s/w by using the idea of "glue" s/w (like the cultural on-line browser). The procedures to retrieve the distributed data via the CSC demonstrator is illustrated in annex.

The annual meeting review has been done on 28^th April 1998 in Brussels and the deliverables WP1100, WP1400, WP1500, WP1600, WP1700 was considered Good. It has to be considered that each workpackage is self-consistent and the successive use only the previous conclusions. For this reason in the MOSAIC planning was foreseen a mid term review in order to assess the WP conclusions and proceed for the business plan finalisation. Also the mid term review had good results.

It has been chosen to have a partial review in order to avoid delays for WP1200, that uses ideas and concepts stressed in other documents, it has been chosen to deliver it after the approval of the other documents to avoid inconsistency.

An analysis of the work done and the forecast of the work for the project finalisation, was done in the Annual Progress Report [4]. In that occasion, the Mosaic Consortium clearly asked a delay for the project with consequent increasing in working months. Also mentioned, was that the increased necessary effort would not have translated in a rise in financing on behalf of the Commission but would have been an increased investment for the contractor. This aspect was positively evaluated, acknowledged and understood and the six months prorogation was accorded.

Three recommendations was emitted in the Final Review [6] (points A,B and C) and we think to have answered to them with the content of this paragraph and related annexes.

3. Project technical overview

3.1 Introduction

The MOSAIC project introduces a new approach in the organisation, maintenance and international promotion of cultural wealth and museums, based on new advanced technologies : multimedia and telecommunication applied to museums, art galleries, architecture and other pieces of art.

The main target of MOSAIC is to increase the visibility of the cultural wealth collected in the European museums, diffusing the knowledge and increasing the cultural exchanges between the European countries and their co-operation.

Mosaic system shall be constituted of the following main functionality :

Network Services shall have in charge to implement the Cultural on-line Browser to perform Thematic queries consulting an updated Mosaic catalogue to the existing Cultural Heritage links and the metadatabase. The Network Services shall manage the system inter-operability and the Network activities in order to support the related Services & Tools and Organised data.
network of Cultural Service Centres (CSC). Each CSC shall have in charge to supply the users with :
Services & Tools outputs

Organised data with added value requested by the users

Advertising & Promotion info/materials
and exchange User feedback with Users.

The CSC shall supply the Mosaic organisation of significant Feedbacks and Services Statistics to individuates which are the user interest and their trend. The CSC shall receive from the Mosaic international organisation the Directives and shall give the Access rights for the Cultural on-line browser utilisation:

Mosaic international organisation shall be constituted of specialists that send Directives (about Consulting, Marketing, Quality...)

The Mosaic International Organisation will manage the strategical agreement and will enlarge the market framework in order to create of a trans-European network aimed to promote, share and resell information related to Cultural Heritage.

The main conditions on which the promoters will confirm further commitments to the project are:

positive demonstration and validation phase (pilot phase)
positive deployment phase

An important target of MOSAIC is the institution of at least 10 Cultural Service Centres for 2000 year. Detailed information about CSC are reported on Architectural Document WP1700 (Ref. http://mosaic.infobyte.it/project )

3.1.1 MOSAIC Network

The MOSAIC project is the first European element for the development of cultural services and products through the network in the International global Market. MOSAIC is basically the product of two networks: a telematic network and a physically distributed network spread across countries. The telematic network is made up of different performances level from ATM to ADSL via internet and ISDN.

Figure 2: The MOSAIC Network

The telematic network is the central part of the project. It provides a wide range of services and perform a basic communication channels between nodes and the various type of users.

3.1.2 MOSAIC tools

MOSAIC shall have many tools:

The cultural on-line browser: to allow public to get on line the exact area they want to visit by navigating in a geographically mapped system.. They can view the areas of interest on the map by selecting the period (year) and the subject (paintings, sculptures, etc …) and other details they are interested in. Part of this browser deals with the management of the mosaic catalogue and the sales of high quality images. The browser will be populated by active links with home pages that are already in museum, institution and other things connected to cultural heritage. A permanent telematic forum area and news area for the broadcasting of world events
The Mosaic search tool: this element is made up of a meta-database that updates links related to information on cultural heritage making it available the search browser
High quality media-catalogue and archiving tools
Database information search tools, also through CIMI standards
Tools for protection of the IPR (Intellectual Property Rights) data quality and watermarking
Virtual exhibitor to permit the creation of exhibition in virtual context to preview exhibition space or to announce new cultural initiatives connected to forthcoming cultural events
Tools for e-commerce
Tools for remote learning
Tools for phone communication via internet

3.1.3 MOSAIC Users

The following tables shows the kind of users that shall use MOSAIC:

Users A	Users B	Users C	Uses D	Users E
Museums, Universities, Professors, Researchers, Students, Scholars	Art Restorators Cultural Associations, Local Entities for the Protection of the Community, Linguistic Reasons, Thematic Museums Photographers, Scenographers, Directors and/or TV Producers Curators, Authors, Scenographers, etc Manufacturing Companies, Advertising Agencies, Sponsors, Public Relations Children of ages 3-5 Toddlers and Teenagers Artists, Technicians, Advertisements Sponsors Image Agencies Merchandise Producers Art Brokers	Archive Managers (Libraries, Museums, Music-tech, Historical Register Office, State Archives)	Cultural Tourist Disabled Cultural Tourists Tourist Operators/Agencies	Interpol/Police Force

3.2 Mosaic applied reference technologies and applications

Technology	Description	Why they are important	How they are going to be used	How they will be integrated in MOSAIC	Added value
ATM, ADSL, ISDN	Communication Protocols. See WP1100, WP1500, WP1700: http://mosaic.infobyte.it/project/project.html	They allow fast and reliable connection to the network	ATM and ISDN to connect CSC and ISDN and ADSL to connect remote users to the CSC	Network Infrastructures Distributed database Interoperability Workshops Thematic forum	Use of significative network technologies to divulge the cultural wealths Possibility to share database and virtual environment between CSCs
Hardware Data Acquisition, Digitalisation	3D scanners. See: WP1100: http://mosaic.infobyte.it/project/project.html	They allow digitalisation of 3D objects in models of high quality	To allow modeling of 3D complex object like sculptures …	CSC Organisation Tools Infrastructures They are used by the publishing team to produce images and high quality products (3D models, VRML objects …)	To allow modeling of rare pieces of art for 3D rendering or for Virtual reality applications allowing their visibility also from remote sites
Data Storage	CD-ROM, DVD, MPEG-2. See: WP1100: http://mosaic.infobyte.it/project/project.html	CD-Rom are extremely cheap and the DVD holds up to 4.7 GB of data. MPEG-2 has high quality digital video	The CD-Rom DVD and MPEG-2 shall be standard media to disseminate CSC artistic production (derivated products)	CSC Organisation Tools Infrastructures Archiving tool Multimedia room Marketing area	Media easy to reproduce and to disseminate. Portable high quality derivated product with mix technologies (VR/multimedia/internet__)
Software Databases	See: WP1100: http://mosaic.infobyte.it/project/project.html MS Access, SQL server & RBDMS (Oracle, INFORMIX,..)	De-facto commercial standards	To create implementation of museum and collection database	Distributed database, metadatabase Archiving tool Application & market products Datawarehouse, Datamaning	Creation of local database with modern Information technologies techniques
Data Presentation & Encoding Standards	See: WP1100: http://mosaic.infobyte.it/project/project.html HTML 4.0, VRML, SGML, XML	De-facto standards	To implement dynamic presentation	Application & market product Virtual exhibitor Cybercafè Training Room	Possibility to prepare dynamic hypermedia documents and to shows 3D virtual environments on PCs downloading the model via internet
Image Format Standards	See: WP1400: http://mosaic.infobyte.it/project/project.html JPEG, GIF, TIFF, TGA, MPEG, MOV, PICTEL	De-facto standards	To store images to be used in internet and in e-commerce	Distributed database, metadatabase, Archiving tool Virtual exhibitor Authoring tool Multimedia room Cybercafè	Possibility to download high quality images via internet or to contribute to e-libraries
Searching distributed databases	See: WP1100, WP1500 http://mosaic.infobyte.it/project/project.html Z39.50 CIMI	Z39.50 is a formal standard (ANSI, NISO, ISO 23950)	It shall be used for sophisticated online information retrieval	Interoperability Distributed database, metadatabase, Cultural on-line browser Archiving tool	Interoperability: possibility to access several heterogeneous databases containing structured information about the piece of art
Interoperability of Payment and Access Systems	See WP1500: http://mosaic.infobyte.it/project/project.html	De-facto standards	It shall be used to allow secure transaction on the web	Basic Services IPR fees management watermarking	Give possibility to activate e-commerce of souvenirs, gadgets and so on allowing remote users to pay with credit cards

3.2.1 Knowledge of the MOSAIC Network

In order to develop a value added network there is a need to understand the type of mechanism needed for data management and increase. The value added of information is strictly linked to the capacity that the network has to make the information increase and make it more specialized. In other words on the capacity that it has to elevate itself from primary information and be able to cover the vastest possible range of interests of the users. Therefore the MOSAIC network must be characterized not only by its capacity to make remote data banks accessible but especially to be able to increase the value of information via new multimedia information forms. The objective is to make information more immediate and useful to the user. The existing data banks are extremely specialized and aimed at the service for which they have been built (conservative catalogue). The current catalogues are a point of departure for MOSAIC since in this way they are both of limited use and limited profit.
MOSAIC’s objective is to build new dimensions in data, from local databases to CSCs, that via a in-depth theme logic correlate the complementary information already existing but also present an area of information with new technologies. This shows the growth potential of competence and knowledge of a network.
The generation of high quality products on different media (CD-ROM, Video, TV, Network, etc.) is MOSAIC’s objective of growth contribution. Substitute the old generation of gadgets or increase the spectacular value with these type of products. Therefore the basic conditions for this project are: having a production team in the CSC, include an institutional partner that can certify the value added data and have a local data bank on which to capitalize the information.

3.2.2 Model of MOSAIC Cultural Service Centre (CSC)

Figure 3 : MOSAIC Cultural Service Centre and the Network

An added advantage is that of technologically advanced Cultural Service Centres (video-conferences, WEB servers, virtual reality …) whose main target is to create jobs and to generate founds through the sale of products and services to third parties. Service Centres are an important element of the project and make up the point of contact with the real public. In the service centres (istitutions, galleries, museums, libraries …) there will be the primary elements for access to MOSAIC. The main services that could be supplied by the CSC are:

Virtual theatre: for virtual reality viewing rooms inside historic buildings or to have 3D reconstruction of rare pieces of art…
Video Conference: to allows remote connections possibilities and debates in real times between users and specialists like scientific committees and peoples in charge of cultural heritage
CyberCafè & Workshops: to allow recreational space inside the context of cultural wealth fruition
Basic Services & Thematic forum: to allows off-line debates between users and specialists and to supply general basic services to the users
Training rooms: to organise course on different topics in cultural wealths

It is possible to configure the CSC depending by following criteria:

local needs (thematic nature of the contents, type of exposition area, guide-line of the institutional partners …)
expected quality
available budget

Each CSC shall be scalable, it shall be possible to add new functionalities or services

Figure 4: CSC configuration & scalability strategy

Basically, MOSAIC CSCs shall be organised in three types: Excellence, Technological and Exhibition. The MOSAIC International organisation coordinates the activities of three types of CSC:

Excellence CSC: they have in charge to develop new tools (h/w or s/w) or update already existing application; its main target is the production of instruments to facilitate and improve the cultural heritage fruition

Technological CSC: they have as main target the studies of technical aspects in the field of art culture (Universities …), distributed databases and telecommunications and promote the exchange of knowledge and results promoting workshops and conferences

Exhibition CSC: their main target is to diffuse the cultural heritage knowledge by exhibitions to allow interaction between new technologies and wide public (Virtual Teatres, CyberCafé, Exhibition areas …)

This differentiation, as it has been conceived, does not eliminate the concept of CSC and its business model, on the contrary it adds potential of enlargement of parties and therefore create a greater critical mass of data and products. The main target is to valorize pre-existing initiatives and to amplify them within an international network. The practicability of this perspective is guarantied only by an highly modulable and extremely concrete service model. Internet’s typical logic in progress may allow all CSCs to start with minimal configurations and to growth in time, depending on the market answers.
In principle the differentiation is a plus that strength the central role of Mosaic not a must but an eventuality, a diversification that can better meet the pre-existing efforts and characteristics of the industrial investors distributed on the territory.

The next figure shows the relation between the Mosaic International Organisation and the different CSC types:

Figure 5: MOSAIC International Organisation

The creation of a Consortium of different subjects coming from: Museums, Universities, Software Market Leader, Hardware Producer, Telecommunication and/or Entertainment Company, will be studied during the trial phase in order to manage each CSC.

3.3 MOSAIC Legal Framework

The MOSAIC international organization has the task to dictate guide lines for services in terms of requirements and qualitative level. It is an association or at least a non-profit organization with all of the CSC adhering and all Museums being institutionalized partners. The associative quota is established every three years based on the structure's organizational costs. The main offices could be in Brussels at the Banca di Roma premise. The staff of this association will be limited.

The technical scientific committee of the organization has the task to draw up and emits indications as well as MOSAIC guide-lines. It verifies the quality of the various service centres and selects new associates. It will send warnings in case the guide-lines and quality are not respected.

The MOSAIC international organization has the task to point out reference standards, reaches agreements with structures, suppliers and institutions at world level. It points out the application elements of interest and suggests them to the CSC of Excellence which have the task to produce the appropriate SW or HW products. These Excellence centres are those which will better interpret the needs of the final user and thus due to their sectorial experience they will produce the appropriate tools to distribute within the CSC. The latter are extremely variable in structure. There can be some technological CSCs who privilege network services, areas of formation and debate (e.g. University) or CSCs within exhibit areas (museums, libraries) that have services with access to the local public and therefore specialize in value added ...

The main basic logic is to not create a pyramidal vertical structure but a WAN, meaning a network in which everybody can join and find the right indications to dialogue (standards), the accords to enhance one's own services and the structure to organize one's own service centre. The logic is therefore very similar to Internet. There is no control on data but a spreading of information within specific agreements and non homogenous area interest. Like in a network each new user increases the value added and significance but nobody is essential. There is no hierarchy but different potential thus heterogeneity in content.

The economic revenue of each CSC is based partly on the existence of other CSCs (presence of data in the network and ability to sell value added associated services) and in part to the specific capacity of the CSC (exhibit areas, specific application content, thematic services). A CSC can be a profit or a non-profit private organization. In particular the CSC may be a consortium of many private and institutional structures that have as main goal common objectives for the enhancement and exploitation of cultural heritage.

The Mosaic International Organisation:

Will manage the mosaic network domain: mosaic-europe.org
Allow the introduction of new partner and CSC in the network by means of a specific sub-net address
Manage all the international agreement with other International Organisation
Support the new CSC to create the centre in term of financial and technical support
Organise the communication and organisation of Mosaic

A preliminary logic schema of the MOSAIC Organisation is illustrated in the following figure:

Figure 6: MOSAIC Organisation logic schema

The International Organization will have to predispose a plan of consultance, formation and quality for each CSC. The latter will depend on the former to acquire the financial, technological and organizational aspects needed to create the different CSCs. As far as the network is concerned the organization will control and supervise the flow of information and statistics on accesses to the service. All this information and the organizational and technological directives will be published on the MOSAIC site and will be a point of reference for all the associates. The MOSAIC secretariat will take care of the organization of the technical direction committee meetings and the issue of guide lines and news on reached agreements. The project promotion and communication side will be taken care of by the International Organization but will be executed by the single CSC at local or national level.

3.3.1 Mission

MOSAIC International Organisation is a non-profit corporation formed by European Institution, Organisation, Museums, PMI, industries, Universities,. … organised in Cultural Service Centres (CSC) to provide Cultural Heritage access to and delivery of added value services by creating and maintaining a network and a distributed collective digital library of images and documentation.

MOSAIC I. O. enables its CSC to do a number of things that they cannot do on their own, including:

Creating a distributed databases for a large class of final users
Reaching the educational community in a coordinated and cost effective way
It realises agreement with technology vendors in order to have a Mosaic special discount for all the selected equipments for the CSC implementation. It can provide its members access to collective funding to pursue their educational missions
It assists CSC to improve their information infrastructures and documentation practices
It can negotiate digital rights with organisation and museums at international level

MOSAIC I.O. guarantee the CSC to :

Reducing risks through collective decision-making
Adopting common standards and guide-lines
Sharing expertise

MOSAIC I.O. balances the needs of small and large CSC, the well prepared and the novice, by providing for different levels of membership participation from observer through full contributor
Services which it is envisioned that MOSAIC I.O. will deliver to its CSC include:

Technology information Services, including "best practice" guide-lines, "frequently asked questions", standards for data capture, advice on hardware and software application guide-lines, training and research and liaison with developing standards

Data Enhancement Services, including data value standardization, the addition of unique identifiers and watermarking of images, subject indexing, metadata augmentation, thesaural explosion of terms in controlled vocabularies, markup of text to SGML and mapping institutional data to export standards

Catalog Management Services, including creating and integrated, publicity accessible directory with many access points and different interfaces for different users which enables educators to identify works which they have licensed and may use through MOSAIC and allows the public to seek further rights including commercial use rights from the individual museum members

Rights Management Services, including defining the minimum rights management data requirement, creating searchable rights metadata systems, negotiating rights with individual rights holder and their collectives, writing model licensing agreements, providing a forum for and developing terms of licenses for schools and schools district, museum education departments and public libraries and developing and disseminating end-user responsibility training materials

Customers Services, including monitoring and analyzing uses and users, conducting focus groups to identify users needs and promoting innovative educational uses of museum digital content

Collaborative Partnering, including with technology firms, funding sources, standards organisations, telecommunication providers and others

3.3.2 Agreement Framework

In order to implement the Mosaic operational mode a set of agreement has to be established between the Mosaic members. With reference to the Mosaic legal framework the following agreement has to be considered:

Agreement	Involved actors	Main items
Mosaic International Organisation association – A1 of WP1200	CSC and Mosaic members (Museums, Institutions, International Organisation,…)	Mosaic mission and general rules Members obligations
Distribution - A2 of WP1200	Between CSC, between Mosaic I. O. and CSC, between International data Mosaic and Mosaic I. O. , between Local Data Provider and CSC, between HW and SW producers and Mosaic I. O.	Establish distribution agreement between involved parties and defines the related royalties for the shared collections and products
Standard and Guide-lines - A3 of WP1200	Mosaic I.O. and CSC	Establish the concept of dissemination and respect of Mosaic requirements and expectations.
Non disclosure agreement – A4 of WP1200	CSC and Excellence CSC	Allow all the CSC to the usage of special products (HW, Basic SW or Application) for demonstration session or periods.

4. Nature of the project's future work

The planning, annexed to this document and already presented into the original proposal, illustrates how we proceeded into the project.

4.1 Pilot Phase – Integration, Validation and Verification

preparing quality grid on services

facilitate meetings between suppliers and players of the market (strengthen communication between the players - setup the network)

undertake different approaches for national CSCs

preparing a methodology for CSC implementation

implementation issue: "strengthen effort on dividing project into working groups"

prepare a legal framework

MOSAIC international organisation start-up

re-engineering of existing product on Mosaic environment

Pilot users feedback analysis

Activation of pilot network of cultural service centre

France Cultural Service Centre

Italian Cultural Service Centre (Bo)

Italian Cultural Service Centre (RM)

German Cultural Service Centre

Austrian Cultural Service Centre

Integration of the network and distributed database connection

Service start-up - Implementation Phase

Market plan and contractual agreement refinement

Pilot results validation

Promotional demo and dissemination

4.2 CSC Management Plan

Pre-Start and Start-up phase

Activate the CSC’s company
Create a business plan to collect the local characteristics
Individuate public and private companies able to activate a thematic service centre
Individuate the logistics of the service centre, the physical space to introduce the new technologies. Typically, 200 square meters are required for the centre with an ability to grow.
Review the guidelines of MOSAIC business plan to be applied to the real case
Individuate local financing
Define the start-up technological configuration and the business plan
Submit the business plan to MOSAIC International Organisation to be approved
Activate the HW & SW procurement necessary to the chosen configuration
Select the professional resources necessary to the CSC and activate their training
Prepare the exposition space
Install and put in operation the network services, activate the "glue" software production and the basic services
Activate the production of product with added value and initialisate the local database with high quality images
Communicate the service centre start-up to the others CSC by MOSAIC international organisation
Local management and administration. At an early stage a CSC director and a Sales manager must be appointed
Activate the marketing functionality of the CSC. Marketing and sales support, including brochures examples of offers and pricing
Activate the CSC services
Quality Management. Check and control the quality of the services

CSC Operational Plan
When the CSC is up and running it will be a subsidiary of MOSAIC International Organization

Assist sales and marketing. The centres are marketed at seminars, exhibition and international trade press
Centre operation and support. Each centres will have a support agreement with MOSAIC international organization that gives full support and continuous upgrades of the system. It is of vital importance for the centres to have state-of-the-art technology
Continuously develop the centre including the products/services for customers and the personnel
Technology supervisor. Through the relation with MOSAIC International Organization the Centre will be updated on the latest development in the area. This will be used to support the development and growth of the centre
Establish strong relation between the centres which gives opportunities to learn from each other

4.3 MOSAIC International Organisation start-up

The main objectives are:

we will setup a legal framework by transforming intentional letter into contractual agreement and enlarging CSC cooperative network in national and International area.
we will increase the quality of the products disseminating multilingual and multicultural applications.
we will go on enforcing relationship within the MOU and Medici.

This direction cannot be omitted from structures capable of sustaining the initial payment of the system. In the second phase when the interchangeable mechanisms of information have been edited, the political system launched and the exercise tariffs have been indicated (rent, service cost, locations and fees, etc.) through a correct and concrete market plan, the system will be able to proceed on its own account. Taking into consideration the enormous contents of information, we believe that the volume of activities correlated with the cultural service centres cannot help but grow, consequently, feed itself new investments and new working opportunities.

The main step for the Mosaic International Organisation are summarised as follow:
join the Mosaic project as interest partner (Participation at the Project Mosaic (letter of agreement) – see http://mosaic.infobyte.it/partners/partners.html)

participate in the Mosaic Organisation as associated
Share the information and the basic SW by means of NdA for the trial phase

By the first semester of 1999 the structure will have to be set up at the main offices of the Banca di Roma in Brussels. All the CSCs will have to adhere with an association quota. Each CSC can designate a representative to participate in the organization's technical committee. The first task of the Organization will be to create the supervisory body: the technical scientific committee.

The committee will have to provide a plan of quality, configuration and service control.

5. Risk Analysis
5.1 General

5.1.1 MOSAIC Positive points

It is supported by important partners

It is entered in the market when cultural wealth are rediscovered

It has the possibility in short time to realize good economies and good final prices

It is a project unique in his kind, it seems to do not have concurrency

5.1.2 MOSAIC Negative points

It is necessary to concentrate the efforts and coordinate several partners to realise necessary synergies

It has to manage a lot of information with efficiency

It is in a market in which user desiderata are not well defined and standardized

To formulate a risk hypothesis about MOSAIC project we have point out five main risk area that should be careful checked and controlled by MOSAIC management:

Revenues
Mosaic organisation
Consumers opinion
New media
Communication

From the same point of view we have also point out the possibilities offered by the project.

5.2 Revenues

5.2.1 Financial Risk

The figures of the revenues could have a certain error margin. Because statistical data of cultural wealth through VR, Internet ecc. do not exist we have based our assumption on Consortium and 3^rd party experience, adapting to MOSAIC the data in our knowledge (visitors in museums, souvenirs sales, traditional gadgets sales …). But the data the we have assigned could have an error margin.

5.2.2 Economic Cycles

The growth of VR and Multimedia technology is expected to be very high over the next five years.
This growth will not be following the normal cycles of adaptation. Based on previous experience, utilization of VR and Multimedia technology is actually increasing during a recession as the pressure on the companies and government institutions increase for cost-saving, time saving and quality improvements, which are the main advantages generated especially by the CSC.

5.3 MOSAIC Organisation

5.3.1 Company

The main risk consists to convince to support MOSAIC and to maintain aggregate the several MOSAIC partners (also because they have very different experience). Also the time period needed to realise the entire project could became another element of risk. It shall be very important, during the start-up phase, the role that the European community shall have to guarantee the goodness of the project and to create and maintain confidence and collaboration between the Mosaic partners.

5.3.2 Management Team Risk

As in most business, the success is based on a good team which is active on the market and is able to run the centre effectively while maintaining a high level of quality. The two crucial persons here are the CSC Director and the Marketing Director. This risk is addressed by careful recruitment process, clear work descriptions and generous incentive plans combined with personal development programs for the management.

5.3.3 Exit Scenarios

In the event that the CSC does not perform in accordance with expectations, an Exit Scenario should be considered. In this case Exit scenarios means that some costs are adjusted to the actual revenues.

5.4 Consumers opinion

The cultural wealth market is completely new so available information are very little

It is very difficult to establish, because the paucity of available information, the MOSAIC potential user response to the services offered by the project

It is foreseeable that academic or institutional environments could have doubts or resistances about the use of new technologies like, multimedia, virtual reality or internet to diffuse cultural wealth

Some institutional profiles are sceptic about the new technologies because they prefer a traditional media like the books. They are a kind of opinion makers that have a big influence on the public opinion. More over they are an important part of the MOSAIC target users. So we address ourself to the youngest (under 50 years old) that are more positive about the new technologies.

Another important risk is represented by the preference of the single consumer towards the traditional way to enjoy the art wealth (poster or postacards on papiers, books, essay, ecc…): this is mainly due to the relatively low diffusion of the information technology in many world countries

5.5 New Media

Virtual Reality, Multimedia and Internet are again at an experimental phase in didactic or remote learning and in cultural diffusion

Multimedia itself has not the same balance between text or images: in general the languages that it contains are not still well balanced.

Internet has not the same level of communication power and in same way it depends from other media because it copy the contents or the way of do of other communication media. In short words it has not still developed a proper language as other old media (like press, tv, radio) have done.

Virtual Reality is less famed that Multimedia and Internet.

New media are competing to enlarge their influence on the users, but until they do not substitute the traditional media they shall remain in a marginal position. How long again before they can surpass the traditional media?

At the moment the new media are not again used by the wide public. The production cost are high and the production volume is to low to allow the growth of scale economies.

In short the new media final price is again too high to allow large purchasing. But wide level of production and high competitive markets shall completely change this market.

In short: it exists the risk due to the intrinsic new media characteristics because they are not yet completely evolved technologies. This could favour more traditional communication media

5.7 Communication

Communication will play a fundamental role in the launching phase and will therefore have elements of risk. There will be the necessity to reach a precise perception of MOSAIC, a particularly complex product, for our target.

CSC and Mosaic I.O. management will have to constantly check the coherence of "key messages". Great attention will have to be paid in the strategy of Public Relations especially in the finding of "friendly" Opinion Makers to bring under one's wing and of the "less friendly" ones to try to limit reactions. MOSAIC’s main characteristic is in the capacity of creating art fruition in the most efficient possible way by valorizing local richness. The search engines, images, data banks, virtual reality reconstruction, multimedia products, etc, will allow the user to fully immerge himself/herself, something unavailable up to now. In this way quality and quantity will improve. All of this will have to be communicated in the most efficient, clear and coherent way possible.

5.8 Brief outline on the strategy of communication

After having established a particular objective of communication the more appropriate communication strategy should be based on three main tools.

5.8.1 Advertising

Communication should be made on all those media that will enable us to hit our target in the most precise way. Magazines on art, Internet, brief television spots during cultural programs.

5.8.2 Public Relations

Identification of appropriate Opinion Makers that can help to lessen the diffidence of cultural circles as regards new technology.

Organization of the opening event, conferences, meetings and congresses.

Creation of an appropriate web site which may be used as "virtual" cultural circle to host news on the project and ways of adhesion, discussion forum, opinions and comments, requests for information, press reviews, etc.

Creation of appropriate House Organ on paper and CD-ROM

5.8.3 Sales Promotion

We have spoken about this previously. The objective is to fix the number of clients as far as possible to guarantee us constant income. Associates therefore but also new clients to maintain a constant increase. We will keep the free trial of the product to favour the arrival of new clients.
We will teach our main users to see in MOSAIC the possibility to satisfy all their own information necessities on art and to renew their purchases of our services year after year. We will try to stabilize the flow of purchases by occasional clients by trying to determine the area of their major interest to create an ad hoc packet – maybe not as complete – but which is able to stabilize the purchasing flow.

5.9 Opportunities

MOSAIC – making art a new business – will be able to contribute to the creation of new employment and new professional figures. There will be a large impetus in young entrepreneurial

Possibility to valorize the cultural and artistic heritage in different local realities.

MOSAIC will be able to promote a new concept of fruition of art that solves the limits of traditional forms. The possibility to commence a personal relationship with the work of art and have access to a load of additional information has not been possible so far.

MOSAIC could become a pioneer in the new system of fruition of art but also of the new system of distance training which utilizes all the potential of new media and technology (Multimedia, VR, Internet).

5.10 Competition

MOSAIC is a unique project due to its organisation complexity, vastness and created value added.
It is therefore difficult to point out those competitors that have developed or are working on a similar project. MOSAIC’s specificity is that to create a network that valorizes local realities. Valorizing what is available without impositions.

The market is currently made up of:

Typical institutions that still dominate the art market and promote a traditional fruition of art. Museums, galleries and exhibitions etc promoting the real and physical visit should set up a certain resistance and doubts concerning new technology. As a fact the institutions are the ones who supply the content to the various CSCs and represent an "indirect multiplier" of profits.

Among those who promote the fruition of art through new technology the following may be quoted:

Museums on line, Art on line etc. and all of those firms producers of multimedia art CD-ROMs.

The make a lot of communication but their weak point and main characteristic is to promote a type of fruition that is summarily and just a completion of the traditional one.

MOSAIC proposes a new enlarged fruition system that aims to valorize and strengthen the existing local "riches" but places itself as a complete substitute of the traditional fruition of works of art.

Among possible MOSAIC competitors one can mention:

The Art Museum Image Consortium (AMICO) that is a non-profit organization aimed at promoting extensive use of digital documentation of art collections.

The AMICO members are building a digital archive of their own collections. This archive will be made available for universities, public archives, cultural institutions etc. AMICO is aimed at all those institutions that want to contribute to the development of the digitalization.

This represents the main initiative that may be defined as competitor. But AMICO, despite some point of contact with MOSAIC, lacks in impact. MOSAIC is a more complete project because it proposes an integration between new means of communication (multimedia, Internet and virtual reality) that will create new means of fruition via the creation of a network that valorizes local realities.

6. ANNEX A : FINANCIAL ASSUMPTION
61. Costs Justification

6.1.1 Video conference room costs
(in ECUs)

DESCRIPTION

BUDGETTARY PRICE

Desktop MMX 233 for multimedia communication via ISDN connection and speed up to 128 Kbps with necessary software

450

Professional VideoCamera Sony

Video projector
Audio amplification

600

Technical Personnel Costs:
Video conference technique
Camera-men
Personnel to mount and install devices and to try theyself

250
190
125

Transports

40

Total for video conference room

1655

DATA SOURCE : average values taken from international offers and ISTAT
ASSUMPTION: decreasing prices, this is a worst case.
ERROR MARGIN: 10-15%, fluctation in prices

6.1.2 Virtual theatre min/max configuration average costs
(in ECU)

DESCRIPTION

BUDGETARY PRICE

VIRTUAL THEATRE MINIMAL CONFIGURATION
(only 1 CHANNEL)

ONYX 2

331735

PROJECTOR

20475

OTHER MATERIAL (continuity group, loudspeakers…)

6107

TOTAL VIRTUAL THEATRE MINIMAL CONFIGURATION

358317

VIRTUAL THEATRE MAXIMAL CONFIGURATION
(3 CHANNELS)

ONYX 2

1015000

PROJECTOR

62175

STEREO GLASSES

14850

OTHER MATERIAL (continuity group, loudspeakers…)

7315

TOTAL VIRTUAL THEATRE MAXIMAL CONFIGURATION

6.1.2.1.1.1 1099340

DATA SOURCES: list prices taken from international offers

ASSUMPTION: decreasing prices of technological equipment’s. This is a worst case : we have considered the most expansive UNIX products and configuration

ERROR RANGE:10-15%
some variation in prices could be present due to negotiation (for example: mosaic (hw/sw) packaging with discount at international level)

6.1.3 Cybercafe room
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N°10 PC with CPU Pentium166,256K cache,32 Mb RAM

21600

N°32 Patch cord to have HUB e PC for the network

160

N°1ROUTER for telephone connection with Cisco 2501 with cables

2872,5

N°1 (HUB) Ethernet with 16 way UTP_RJ45

395

TOTAL CYBERCAFE ROOM

25027,5

DATA SOURCE: average values taken from international offers
ASSUMPTION: decreasing prices
ERROR RANGE:15%
every CSC could have same variation due to the possibility that every csc could configure in a proper way its cyber cafe’

The exposed costs refer only to the equipments. The telecommunication costs are included into general costs

6.1.4 Fixed costs for infrastructures
(in ECU)

DESCRIPTION	BUDGETTARY PRICE
Renting	20 for square/meter
Telephone	25.000
Electric Power	25.700
Security	2600
Cleaning	27500

DATA SOURCES: statistic values. we are referring to a company with 50 employees and 1000 square meter

ASSUMPTIONS: this is a worst case . hypothesis: renting of rooms. the fixed costs could decrease or enhance depending from taxes in different European countries. generally the CSC is settled inside already prepared spaces and this fact could decrease costs.

ERROR MARGIN:15-20%: it could depend from a different consumption in the different cultural service centre (for example massive use of internet and indeed high telephone costs)

6.1.5 Personnel costs
(in ECU)

Production sector:

DESCRIPTION

BUDGETTARY SALARY

CURATOR

4500

RESEARCHER

3400

PROJECT LEADER

3400

SYSTEM MANAGER

3100

PROGRAMMER

2400

Publishing Team Leader

2400

Editor

2400

Graphic

2400

Educator

2400

Administrative Production

2000

Executor

1600

DATA SOURCE: statistics values- European market
ASSUMPTIONS: We assume that every CSC needs n°11 employees for production
ERROR MARGIN=20%
Each service centre could choose its contributive system (the one more adequate to its necessities: travels, bonus, overcosts …) and of course the number of employees

Marketing sector:

DESCRIPTION

BUDGETTARY SALARY

Marketing Director

6200

General Sales Manager for Public

5400

Sales Manager for Public

4700

General Sales Manager for Institutions
& Enterprises

5400

Sales Manager for Institutions & Enterprises

4700

Sales Administration

2000

DATA SOURCE: Statistic values - European market
ASSUMPTIONS: We assume that every CSC needs n°6 employees for marketing
ERROR RANGE: 20%
Depending on the different emphasis that every CSC could attribute to marketing and merchandising. Thus, number of employees and salaries could change

Direction sector:

DESCRIPTION

BUDGETTARY SALARY

CSC Director

8200

Secretariat

2000

SOURCE: Statistic values taken from European market
ASSUMPTIONS: We assume two employees for direction
ERROR MARGIN: 20-25%: it depends by the retributive system

Additional statistical values on personnel costs in Germany (in Deut. mark)

DESCRIPTION	BUDGETTARY SALARY
Director	115.000
Vice-Director	95.000
Secretary	50.000
Museums pedagogue	80.000
Specialists of archive,library etc.	65.000
Restorator	65.000
Modeller	55.000
Technical assistants for collections	45.000

DATA SOURCE: average statistical costs of some professional resource in Germany

They are the current annual salary of some professional resource like museum pedagogue e specialists of archive. The use of such resource is a free choice of each single service centre.

6.1.6 Virtual exhibitor cost
(in USA $)

PRODUCT

CONFIGURATION

BUDGETTARY PRICE IN US $

Vex

3D modeler
3D Picture Maker
3D Expo Build
3D VEX Expo Print

12.000

3D modeler

2.300

3D picture – maker

2.500

3D expo build

1.500

DATA SOURCE: average values from international offering

ASSUMPTIONS: decreasing of costs in time (medium, long period). These prices consider all options of the product

ERROR MARGIN: 15%. Each service centre shall adopt the configuration more convenient to its needs

The price exposed in Market Plan is of 13000 ECU as resulting from some consideration about the configuration of the tool

6.1.7 Authoring tools costs
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

Altavista Forum

1000

Macromedia Flash 2

2000

Macromedia Shockwave

2000

Adobe Photoshop

500

Adobe Premiere

500

Casus

500

Total

6500

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN = 20%. Each service centre could choose other components

6.1.8 Training room cost
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N° 10 Multimedia pc

20000

N°1 Printer

1000

N°1 White Board

100

N°1 Projector

1000

N°1 Forniture

5000

N° 1 Learning Materials

100

N° 10 Crystal-eyes

5000

N°1 Barcographics 808S

500

TOTAL

32700

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 15%. For each service centre there is the possibility to change the number of components in the training room, depending on the importance of this kind of service

6.1.9 Application & marketing product cost
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N°1 Equilibrium deBabelizer

500

N°1 MultiGen II

45000

N°1 Cosmo studio

500

TOTAL

46500

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 15-20%. For each service centre there is the possibility to change the number of components

9.1.10 Distributed database cost
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N°1 Server

20000

N°1 Juke –Box

30000

N° 1 LAN

2500

TOTAL

52500

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 15-20%. Possibilities to have discounts from suppliers

6.1.11 Cultural on-line browser cost

DESCRIPTION

BUDGETTARY PRICE

PC clients

0

Multimedia kit,Plug-in,CIMI clients

0

TOTAL

0

The cultural on-line browser is freeware. It shall be distributed without additional costs to the CSC that shall require it for advertising and promotional activities.

6.1.12 Network infrastructure & interoperability gateway
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

Server minimal configuration

N°1 System using Intel Pentium or Digital Alpha processor

7500

N°1 Microsoft Windows NT server 4.0 Enterprise edition

100

N°1 64 MB of memory

100

N°1 80 MB available on hard disk

200

N°1 CD-ROM drive

100

Networking Options

N°1 RDBMS

20000

N° 1 Microsoft Windows NT server

100

N°1 Microsoft LAN Manager

500

N°1 Novel NetWare

500

N°1 TCP/IP based networks

500

N° 10 Modems

1500

Client Supported

N°1 Microsoft Windows 95

100

N°1 Microsoft Windows for Workgroups

100

N°1 Microsoft Windows NT Workstation

100

TOTALE

31400

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 15%. Possibilities to have discounts from suppliers

6.1.13 Multimedia room cost
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N°10 Multimedia PCs

20000

N°1 LAN

1000

N°1 Network concentrator

200

N°1 Router

200

N°1 Modems

200

TOTALE

21600

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 20%. Possibilities to have discounts from suppliers

6.1.14 Playroom cost
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N°10 Multimedia PCs

10000

N°1 Educational Toys

500

N°1 Chairs and Fornitures

100

TOTAL

10600

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 20-25%. Possibilities to configurate the playroom according the necessity of each service centre

6.1.15 Basic services & thematic forum costs
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

N°1 Telepay

2600

N°1 Watermarking tool

1000

N°1 Image encription

1000

N°1 Macromedia Flash 2

2000

N°1 Macromedia Shockwave

2000

N°1 Kudo Image Publisher

500

N°1 Softquad Panorama Viewer

100

N°1 Dyna Web

1000

N°1 Dyna Text

1000

N°1 Model Maker

1000

N°1 3DRAW

10000

N°1 Microscribe 3D

2500

N°1 CyberWare 3D scanner

10000

TOTAL

61700

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 20%. Possibilities to have discounts from suppliers
6.1.16 Total infrastructure cost
(in ECU)

DESCRIPTION

BUDGETARY PRICE

INFRASTRUCTURE COSTS

727467

TOTAL INFRASTRUCTURE

MAINTENANCE (10%)

72747

TOTAL INFRASTRUCTURE COSTS

800214

We assume as average percentage for infrastructure maintenance the value of 10%

6.1.17 Hw/sw upgrading cost
(in ECU)

We assume that HW/SW upgrading shall be a "una-tantum" to pay year for year in decreasing value

DESCRIPTION

BUDGET

Upgrading H/W-S/W

1999

2000

2001

HW/SW tools upgrading-Cost

15.000

10.000

5000

6.1.18 Video conference infrastructure cost
(in ECU)

DESCRIPTION

BUDGETTARY PRICE

Integrated Communication video system "Le Pleiadi" VTC 228-T/U on CDN,RFD/N e ISDN(videoconference with video graphic help)

HW

19720

Installation

1350

TOTALE

21070

DATA SOURCE: average value from international offering

ASSUMPTIONS: decrease of costs in medium period

ERROR MARGIN : 15%. Possibilities to have discounts from supplier

6.1.19 Museum visitors presence
Visitors in Japanese Art Museums since 1980 to 1992

Visitors Number

Year

16,561,597

1980

19,472,886

1983

21,687,325

1986

32,127,341

1989

28,233,413

1992

Source: Department of Education, Science and Culture of Tokio.

6.1.20 Number of visitors in Italian museum

Year 1997

Free

Payment

Total

12.033.158

8.098.596

20.101.754

Year 1996

Free

Payment

Total

11.366.184

7.074.224

18.440.408

Total revenues of 1997

Total revenues of 1996

108.879.394

102.071.856

It has been registered an increment of visitors of 9% and an increment of 7% of revenues between 1996 and 1997 years

6.1.21 Number of visitors in art galleries and archeological sites

Year 1997

Year 1996

free

payment

total

free

payment

total

4.148.169

8.378.491

12.526.660

3.586.346

7.824.967

11.411.313

Total revenues of 1997

Total revenues of 1996

83.836.706

77.672.176

6.1.22 Tourism market in Italy

Total revenue

120.000 billion

61,800 billion ECU

Income in foreign exchange

48.000 billion

24,800 billion ECU

Balance of trade

28.000 billion

14,400 billion ECU

Number of employees

1.700.000

Number of tourists

+ 37 million/year

+ 14,3% for year

WORLD TOURISM

- increment of + 3% for year
-foreseen of 1,600 million of tourist till 2020
- Italy, France and Spain shall be in the four more visited countries in the world
Data Source: research of RC&P-Consulenti Di Direzione

6.2 Revenues description
MOSAIC will create profit via the three channels Content Driven, Service Driven and Advertising on Events. In quantifying the possible flow of income between 1998 and 2001 we have made reference to price lists and international offers, market analysis also made directly by us as well as personal experience. All these studies and analyses are attached to the end of this document after the cost analysis. Many other figures will be attached to this document.

The major forecasting difficulty is the fact that MOSAIC is an innovative "product" that goes into a completely new market. Therefore there is a lack of specific information that instead will arrive in the first months after the project’s start up. There are three income categories: Content Driven, Service Driven and Advertising on Events.

In general apart from the above categories there is an estimate on the number of visitors based on statistics from direct experience of who has organized or set up 3D or virtual theatres. The statistics of the number of visitors to traditional museums offers more optimistic indications than the annual 60,000 visitors/users forecast.

The virtual centres of Prosolvia, the reality centre installations of Silicon Graphics with Trimension and Imax as well as the vision theatres for 3D movies installed by Thomoson or the Planatarious Installation by Imax and Goto and the direct experiences by partners of the consortium have had 20,000 paying visitors a month, 80% of the visitors to the entire event, museum, theme park, etc being users

We therefore believe that the parameter behind our assumption is cautious and may represent a medium CSC.

Therefore we are orientated towards the creation of the following new services:

A new generation of high quality derived products

A new way of in-depth and visual fruition of cultural heritage.

6.2.1 Prices of goods sold in museums and the average propensity to purchase of visitors
(In ECU)

CD – ROM
Average price to the public
Percent of global invoices

25
25%

PHOTO REPRODUCTIONS
Average price to the public
Percent of global invoices

From 0.5 to 5
3%

ART BOOKS
Average price to the public
Percent of global invoices

10
25%

MUSEUM- EXHIBITION CATALOGUES
Average price to the public
Percent of global invoices

30
25%

POSTERS
Average price to the public
Percent of global invoices

From 45 to 7.5
2%

GADGETS
Average price to the public
Percent of global invoices

From 2 to 450 (average 7.5)
20%

Average propensity to purchase of each visitor

1.125

Source: Average values based on European market analyses

Assumption:
The propensity to purchase of the visitor increases as the price of the entrance ticket decreases.

Margin of error; 15-20%
For the possibility to create and sell high technology products (e.g. Personalized gadgets with virtual reality reconstruction)

Based on these figures we have given prices and percentages of fruition of the single services.

6.2.2 Content driven
(in ECU)

Content Driven

Unitary

Cost/price

Fruition

% or number Renting/

sales 1999

1999 Revenues

Fruition

% or number Renting/

Sales 2000

2000

Revenues

Fruition

% or number Renting/

Sales 2001

2001

Revenues

Multimedia CD-ROM

25

0

0

20

15000

35

525000

Electronic Documentation

20

0

0

4

24000

8

96000

High quality electronic images

20

0

0

30

18000

40

480000

Funny Electronic

2

0

0

3

1800

5

6000

Markup on fees/Rights from other CSC

10

0

0

0

0

0

0

Sales of souvenirs

5

0

0

20

30000

40

120000

- Prices are based on medium list prices and international offers.

- The fruition percentages and number of visitors result from research, studies and assumptions based on statistics regarding number of visitors to museums, international tourism, fruition of new technologies – particularly internet, penetration of the international electronic trade market.
These figures may be found in the tables and data analysis of this document and the attachments.

- We have forecast a "Publishing team" year for 1999. MOSAIC will substantially self produce the services (CD-ROMs, VR, etc.) that the various CSC will sell to the public starting in the year 2000.
We have assumed that there will be no revenue in the first year.
In one of our real experiences (MUSA) this self-production period with no revenue lasted seven months. Thus a 0 revenue in the first twelve months must be considered as Worst Case.

- In the High quality electronic images entry we include the selling of synthetic 3D images, 3D animations, VR films on video, glasses for VR images and all the other products that allow the use of high quality images.
In other words a new generation of the most innovative gadgets and souvenirs (e.g. Videos showing an entire family in a VR reconstruction).
We have given some fruition percentages based on our experience and on the possibility of the single CSC to sell them to (and through) different media (TV, Internet etc.).
There are no market statistics on these products. Ours though is a challenge because we forecast success despite accepting a percentage of risk (ref. Risk Analysis)

- The prices derive from a comparison between our experiences and the international price lists that we have been able to find. The same thing must be said for the Electronic Documentation and Funny Electronic entries. The cost of electronic gadgets is between 10 and 35 ECU with an average of 20. As far as the percentage is concerned we have hypothesized that this entry will be more relevant than traditional gadgets.

On the Markup on fees/Rights from other CSC entry a few considerations have to be made.
The markup on other CSC data must be considered under two aspects

I am selling or using products and services offered remotely and I am making a profit

I provide a MOSAIC card to access services that generates revenue to who sells locally but this has a value on the entire network and therefore assigns a markup quota to the remote place where it is being used.

The entries concerning Multimedia CD-ROM and Sales of souvenirs are the nearest to the real data since they are more traditional products. The fruition percentages and prices per unit completely reflect the real figure.

The element of challenge and main risk is therefore that of a new generation of high quality derived products. We believe that this risk is anyway not particularly high due to the strong market trend that 3D products have with youngsters and in the game sector (Play Station).

6.2.3 Service driven
(in ECU)

Service Driven
Unitary Cost/
Price

% Fruition

Number
Renting/
Sales 1999

1999
Revenues

% Fruition
or Number
Renting/
Sales 2000

2000
Revenues

% Fruition
or Number Renting/
Sales 2001

2001
Revenues

Training Courses

1250

0

0

0

1

375000

1

750000

Video Conference renting

500

0

0

0

5

2500

10

5000

Multimedia Room

Access

2

0

0

0

3

1800

3

3600

Multimedia Room Renting

90

0

0

0

10

900

24

2160

Playroom

0

0

0

0

0

0

2

0

Virtual Theatre access

6

0

0

0

20

36000

80

288000

Virtual Theatre renting

1500

0

0

4

6000

10

15000

Workshops

20000

0

0

0

2

40000

2

40000

CyberCafè &

Marketing Area

2

0

0

0

25

15000

50

60000

CSC network services subscription

50

0

0

0

15

225000

30

900000

For the training courses we have estimated an average price per person of 1250 ECU based of the average of the various formation courses, brief masters etc., at European level.

We took into consideration the fact that the formation courses on average host 10-15 people and that the costs of who gives the course must be divided between the participants.

For the Cybercafè and the CSC network services subscription we based ourselves on our market studies and analysis using real figures. There is a risk margin on this forecast due to the fact that there are no data on the success of these services in the cultural heritage market. We therefore based ourselves for the cybercafè cases on the ordinary ones especially in Europe and figures on the services subscription as well as the evolution and availability of e-commerce tools.

For all the other entries there are scarce specific data and therefore we based ourselves on our experience as well as price lists and international offers. Another reference parameter is the price of traditional media such as the price of a movie ticket.

The fruition percentages for all the entries are average values.

The data concerning revenue is a challenge

While the renting and workshop activities entries depend on the managerial ability of each CSC and specificity of the theme in consideration, as far as multimedia and virtual theatre is concerned the success factor is guarantee by the technological innovation linked to the quality of the applications.
The statistical forecasts on the VR exhibition experiences show us that the average monthly number of visitors is around 20,000 paying 2 ECU on average (80% of total visitors).
In other words multimedia and virtual reality may be catalysing and driving force elements for CSCs.
According to a European market research the average number of visitors of a Virtual exhibition is about 20.000/month. The average price of ticket is about 2 ECU.

6.2.4 Advertising on events
(in ECU)

ADVERTISING ON EVENTS

Unitary Cost/Price

%Fruition

Number Renting/
Sales 1999

1999
Revenue

%
Fruition
Or
Number Renting/
Sales 2000

2000
Revenue

% Fruition
or Number Renting/
Sales
2001

2001
Revenue

Sponsoring subscriptions

1500

0

0

0

6

9000

10

15000

Advertising of the cultural events

0

0

0

0

0

0

0

0

ADVERTISING ON EVENTS is MOSAIC’s third revenue source.
We have given relevance in the first three years especially to the Sponsoring Subscription and we based ourselves on price lists and international offers concerning the sale of advertising banners on Internet.
The price may vary depending on the type of strategy.
On Internet it is possible to have a fixed banner on the home page with the objective to hit everybody without any target distinction. Otherwise one can choose to purchase space in a particular section of the site that, more specialist, is normally visited by a particular target due to age, sex, social-economic class. In this case this is a target campaign.

The unit prices for the purchase of banners on Internet normally decrease. For the law of the curve of the memory of the advertisement the more one is in campaign the less the need to invest. The costs decrease with the increase of the number weeks of campaign.

The following is a price list that emphasizes the average costs of sponsorship on Internet.

(Values in ECU)

Undifferentiated campaign

Campaign weeks

Cost per impression

1

2

3

4

6

9

12

Site rotation

0.0545

0.046

0.042

0.038

0.0355

0.0335

0.0295

Targeted campaign

Campaign weeks

Cost per impression

1

2

3

4

6

9

12

Site rotation

0,0635

0,054

0,049

0,044

0,0415

0,039

0,0345

The costs decreases due to the curve of the memory of the advertisement that allows firms to make decreasing investments and to who sells the spaces to ask for decreasing prices.

6.3 The propensity to purchase on the art market

In 1997 visitors to Italian museums spent an average of 13,444 lire each. In 1996 they had spent 14,428 lire each. The decrease in spending is due to the increase in 1997 of paying visitors.

The average propensity to spend of the visitor is around 2,250 lire. It represents the additional expenditure that the visitor would spend in the shops and kiosks inside the various museums and galleries.

The average propensity to purchase increases proportionately with the decrease in the entrance ticket price.

6.3.1 Cybercafe statistics
Prices, customers and services (European market average)

USE OF PC

PRICE (in ECU)

Up till 9 PM

4 per hour
2.5 per ½ hour

After 9 PM

5 per hour
3 per ½
10 hour PC card : 35 ECU

File transfer onto floppy disk

1 onto 3.5"- 1.44 Mb

Printout

0.25 per A4 page of text (black and white)
1 per A4 page of images to high quality
(color, black and white)
1.5 per A4 page of images to high quality (color, black and white)

Special rates for more than 20 pages

Mail Box Rental (mr.John Smith@cybercafe..)

Three monthly: 7.5+hourly rate for use of PC
Six Monthly: 12.5 + hourly rate for use of PC
Yearly: 20 (+ hourly rate for use of PC)
Alias:2.5 ECU

Web space

PWP formula – Personal WEB page
300Kb of space usage on server: 35 ECU a year

CUSTOMERS

AGE:

from 16-40

SEX:

65% Male

Education

College education

Class

Middle Class

University students and free-lance workers morning and afternoon
Starting from 7 p.m. the visitors become more heterogeneous

Services:

USE OF PC

FILE TRANSFER ONTO FLOPPY DISK

PRINTOUT

MAIL BOX RENTAL

WEB SPACE

FUNNY ELECTRONICS

GAMES

PAY TV/PAY PER VIEW

RESTORATION

Prices:
The single cybercafé will have its own price policy depending on the greater emphasis given to some services compared to others. Thus there is the possibility to vary prices depending on the opening hours and demand.

Opening hours:
The cybercafes are generally opened from nine in the morning to two at night on working days.
On Saturdays, Sundays and holidays the opening hours average 4 p.m. – 3 am

Demand characteristics:
These are places where entertainment is linked to the satisfaction of information needs
From morning until late afternoon (9-7 p.m.) whoever does not have a PC and Internet link to satisfy their computer needs.
From 7 p.m. there is a purchase motivation: entertainment is the goal and navigation becomes entertainment. From 7 p.m. there is the maximum flow and the average prices may even have a 100% increase.
Demand characteristics:
20-25 places for navigation

They can host an average of 80 clients in conditions of maximum structural exploitation.
They can host an average of 300 people per day with a strong affluence from 7 p.m. to closing time.

Clients during peak hours stay an average of two hours – two-and-a-half.

Those who are there from the morning until 7 p.m. stay an average of one hour – one-and-a-half.

They usually have their own web site that registers around 6000 hits per month.

6.3.1.1 MOSAIC cybercafe
Rationalization of the services provided to satisfy user demand (avoiding, for example, investments in entertainment structures that do not have certain revenue)

Necessity for in-depth study on demand due to the fact that it is impossible to assimilate them with ordinary cybercafès. The single Service Centre will adopt its own objectives and strategies.

Adoption of an adequate price policy in consideration of demand.

The MOSAIC cybercafès will be points where the single client will pass an average of 30 to 45 minutes for a break but continuing to satisfy his/her own information needs.

We have considered 10 PC points on cultural and tourist services with MOSAIC tools such as the Cultural on line Browser, culture Edutainment services. We assume an average of 30 visitors a day.

6.3.2 Advertising on Internet
6.3.2.1 Statistics on average hits of a web site
(In particular of an European daily newspaper)

AVERAGE NUMBER OF DAILY IMPRESSIONS: 480,000

The difference in the number is considerable if confronting working days with weekend.
This means that many people get linked to site from their place of work for their own information necessities.

Homepage monthly hits: 2,000,000
News page: 1,400,000
On-line newspaper page: 1,600,000
Fact page: 250,000
The number of impressions are calculated to use Internet as an advertising vehicle

Impressions are the visualization or download of the banners on the page

Another parameter is the number of Clickthroughs (how many times the banner is clicked). A good campaign reaches clickthroughs equal to 5% of the total impressions

The Advertising server is made up of a PC and software that manages the advertising campaign on Internet

The more advanced Advertising server allows the client to draft a report of the campaign in real time

The main international firms that have invested in communication via Internet

BMW

Microsoft

Telecom

Iridium

Ikea

Daewoo

British Airways

IBM

Lufthansa

Ericcson

6.3.2.2 The main ways to advertise on internet

GENERAL ROTATION

- The Banner rotates on the site not based on subject

- No targeting

- Length of campaign and number of impressions are defined

PER TARGET

- Targeted based on section and parameters such as day of week and specific time of day, used browser, PC system, dominion of origin.

- Length and number of impressions are defined

SPONSOR HOMEPAGE

-Banner fixed on home-page

- Sold per week

- Number of impressions not defined

The average number of hits decreases the more one enters in the various pages.

The home-page is generally for mass consumption, the specific pages of the site to a niche public.

Thus two planning strategies:

Advertising banner almost exclusively on the home-page:
Mode of communication for almost everybody

Advertising banner on a specific section
Targeted communication to a niche public

The choice depends on the type of product or service that will be advertised

Advertising costs on Internet
(Values in ECU)

Undifferentiated campaign

Campaign weeks

Cost per impression

1

2

3

4

6

9

12

Site rotation

0.0545

0.046

0.042

0.038

0.0355

0.0335

0.0295

Targeted campaign

Campaign weeks

Cost per impression

1

2

3

4

6

9

12

Site rotation

0,0635

0,054

0,049

0,044

0,0415

0,039

0,0345

The costs decrease due to the curve of the memory of the advertisement that allows firms to make decreasing investments and to who sells the spaces to ask for decreasing prices.

6.3.3 Data on electronic commerce and Internet
Electronic commerce is popular in the US and it is forecasted that in the following three years also in Europe it will be one of the most used on the net. In Italy it is still used relatively little.
What is still stopping its popularity in Europe is the lack of reliability.
Today in the world there are 770,000 smart cards. In 2001 they could reach three billion.
In US it is the most popular way to use Internet whereas in Europe it is almost last.
Problems of electronic commerce

Lack of security of transactions

Scarce availability of e-commerce sites

Cultural resistance and diffidence

Who, how and how many times uses Internet

SOURCE: GVU’s WWW User Survey

Number of people who have made at least one purchase via Internet

More than 76% of total users

How much they spent

71% more than 100 dollars

Education

80% has a high school diploma

Income

50% has an annual income of at least 40,000 dollars

How they use the net

39% to shop
65% as entertainment
54% for work

How much time is past on line

73% navigates at least 7 hours a week

Frequency

More than 86% is linked at least once a day

On line origin

62% from home
32% from work

Sex

61% are men

6.3.3.1 Considerations on e-commerce
- Electronic commerce is a sector that is increasing at higher rate compared to any another form of trade.
- Traffic via Internet doubles every three months and the annual increase is over 700%.
- Between 1993 and 1997 Internet users have increased from 3 million to more than 100.
- After only four years from the opening of Internet 50 million people have been on-line. It would need 38 and 13 years respectively for the same thing to happen for TV and radio.
- IT has made the real economy increase more than 25% in the last five years.
- By 2002 business-to-business transactions on Internet will be more than 300 billion dollars.
EUROPE:
43% of Britons will be on line by 2000. 29% of adults have access to the net and a further 14% will do by the end of 1999.
Source ICM for The Guardian
Britons will spend over 9.8 billion in the purchase of on-line goods and services in the next five years.
Source: Verdict Research
1,179 million Swiss are Internet users.
In 1997 they were only 717.000
Source WEMF
ASIA:
To favour the development of e-commerce the South Korean government has given a juridical value to on-line transactions.
The Philippines will need at least 500,000 subscribers before starting electronic commerce in that country. Today there are 200,00.
US:
6.7 million adult Americans used internet to book travel during 1998. In 1997 they were 5,4 million.
Source: Travel Industry Association of America (TIA)
DATA ON THE INCREASE IN ELECTRONIC COMMERCE
The increase is of 67% per year
Over 15 billion dollars spent on line in 1998
By 2002 100 billion dollars in transactions is forecasted
The situation in Europe

- by 2001 the sales of electronic transactions of large European firms will be of 3 million billion dollars.

During 1998 10.9% of European firms have sold products on line making a profit

Divided as follows

Great Britain and Ireland

16.2%

France

9%

Germany

9%

Italy

10.8%

Switzerland

13.8%

Scandinavia

6.6%

Benelux

9.6%

Rest of Europe

7.4%

Number of peoples at December 1998 in internet was 151.000.000.

Geografic Area

Number of user

AFRICA

0,92 MILION

ASIA/PACIFIC

25,57 MILION

EUROPE

32,38 MILION

Middle EAST

0,78 MILION

CANADA E USA

87 MILION

SUD AMERICA

4.5 MILION

TOTAL

151 MILION

Data source: Nua Surveys

How many peoples have used internet in the last three months

Canada USA
70 milion
Europe
20 milion
Asia e Pacific
14 milion

Sud America
7 milion
Africa
1 milion
Middle EAST
0,5 milion

TOTAL

112,5 MILION

Internet users in Italy
7.336.161 771.418 1.555.6222.365.398 73% is male61% is between 25 and 44 years 128.000internet is too slowgood quality of on-line services
Data source: Research Bocconi published on Espresso magazine
6.3.3.2 Main problems on e-commerce

encryption

privacy protection

taxes on internet

6.3.3.3 Products and services sold on Internet
Products and services more accessed on internet

How many people have potential access to the net

How many people in Italy use internet all days

How many people in Italy use internet all weeks

How many people in Italy use internet all months

Sex:

Age

How many use internet to buy something

Main unsatisfactory area

Main satisfaction area

categories

1997

2000

Pc Hardware

863
2,901

Travels

654
4,741

Free time

298
1,921

Lbooks/Music

156
761

Flowers present & greetings

149
591

Shoes

92
361

Food & drinks

78
336

Jewel

38
107

Sport accessories

20
63

Electronics

19
93

Others (toys, homemade ecc.)

65
197

TOTAL

2,432
12,072

DATA SOURCE: FORRESTER RESEARCH Inc, January 1998
Data in million dollars

Consideration

- Between 1997 and 2000 the e-commerce shall have a growth of about 400%. The more important categories shall be:

Travels / Tourism + 625%

Free time + 545%

Culture + 388%

Electronics + 389%

It does not exist data on specific topics like art fruition on internet. Any way we can have some indication from Travel/Tourism and Culture that are in strong growth

6.4 MOSAIC versus traditional institutions
We have classified the cultural wealth market by two fundamental parameters (referring to what different services can offer to the users)

Satisfaction of occasional exigence

Satisfaction of informative exigence

We go to visit a museum or a gallery or an exposition to satisfy professional exigence of study, research, tourism or curiosity. There is a substantial duality in the exigence of the visitors (case 1 and 2) and the cultural institution should respond to these exigence simultaneously. But generally this is not the case. Usually one case or the other are satisfied but not both: we are in the case of too much academic environment or we are in the case of too much tourists environments where is easy to find restaurants, merchandising ecc…

On the x axis we have the satisfaction of occasional exigence. In the third dimension we have another parameter

enjoyability and valorization intensity

It is difficult to enjoy completely of an art wealth. Maintenance problems, security, access time usually allow only a partial visibility. Moreover Mosaic could help this aspect.

7. ANNEX B : LETTERS OF AGREEMENT

8. ANNEX C : DATA DISTRIBUTION - CSC DEMO PROCEDURES
The MOSAIC web has been created in order to manage the project and disseminate information to all the partners and contractors. The first network of MOSAIC, has been activated in following cities: Bologna, Darmstadt, Graz, Milano. The MoU web hosting and related forum has present in MOSAIC server.
The main links are : (1) Partners, (2) Project, (3) Other Projects, (4) Info, (5) Form, (6) Demos, (7) News, (8) Intranet, Web Tools.

"Partners" - information about : (1) MOSAIC Consortium ("the Coordinator" and "the Contractors"), (2) Additional Partners (other Cultural Operators) (3) How to join (how to obtain more info, to receive an account for MOSAIC, to support MOSAIC, to send remarks/suggestions)

"Project" - information about : (1) Contractual Documentation (Contract, Planning, Deliverables List, Work Packages), (2) Technical Documentation, (3) Events (MOASIC events), (4) Dead line check and control(MOSAIC deliverables), (4) Report

"Other Project"- web links of MOSAIC related projects. Actually new links have been added to the following EU projects : AQUARELLE, CHIO, IMPRIMATUR, MOU

"Info" - abstract of MOSAIC project

"Forum" to have a cyber-net debate about MOSAIC and spread the cultural heritage dissemination.

"Demos" presentation of tools, services and applications related to the MOSAIC project.

"News" contains a list of MOSAIC related events and a "Press" area

"Intranet" contains useful documents for entities involved in MOSAIC project. At moment is present: Documentation (Digital library, Related non-EU projects, MOSAIC logo forum), Download Area (standard document, report layout, compression tools, telecommunication tools, Site download)

"Web Tools" contains tools for MOSAIC web users. A demo for flashpix and WRML has activated

Access to "Project" and to "Intranet" is allowed through the usage of a password. Access to the "Press" (in Info)also requires a password.

MOSAIC sites:

Banca di Roma: http://mosaic.bancaroma.it

Joanneum Research: http://mosaic.joanneum.ac.at

Cineca: http://mosaic.cineca.it

Polit. di Milano: http://mosaic.polimi.it

Zgdv: http://mosaic.zgdv.de

Infobyte: http://mosaic.infobyte.it

The number of access to the English version of the web is around 2500.

The MOSAIC logo has been produced. It is the outcome of the various stages experienced by the graphic alphabet, it is a fundamental mean for communication and culture. It is the synthesis of the graphic excursus, which goes from the Roman inscriptions, through Charlemagne, with the Caroline writing, who was the promoter of the unity of the western graphics, to the Renaissance harmonization and the XIX century ornate style. The colours of the logo come out from an artistic elaboration of a detail of the EU flag, as an interpretation of the contents of the project MOSAIC.

The MOSAIC communication and presentation tape, save screen and cd-rom have been produced.

8.1 Procedure to activate a CIMI query using Cultural on-line Browser

Enter in Mosaic web site at the URL: http://mosaic.infobyte.it

Enter in the Demo section by clicking with the right button of the mouse on its icon

Click with the right button of the mouse on "tool section"

Click with the right button of the mouse on "culture on-line". The "Cultural on-line browser" window shall appear on the screen

Click with the right button of the mouse on "Search" button. A new window shall appear on the screen

Click with the right button of the mouse on "CIMI resources" button. A window with the list of CIMI databases shall appear on the screen

Click with the right button of the mouse on desired databases. A window with some fields appears on the screen. For each database you can perform a trial with the data exposed in the following:

**********************************************

Archeocomp Association (Hungary)

Examples:

subject: plant 2 hits

**********************************************

Databasix (Holland)

Examples:

Title: abraham 15 hits
Accession Number: 300 2 hits
People_Culture: Moeyaert 10 hits

**********************************************

German Historical Museum (Germany)

Examples:

creator name: pizzi 6 hits
object title: venezia 1 hit
roma 3 hits

**********************************************

Hungarian National Museum (Hungary)

Examples:

subject heading: crown 7 hits
painting 20 hits

**********************************************

Tilburg_el_va / Tilburg University (NL)

Examples:

Title: vase 80 hits
dress 135 hits
Author james 14 hits

**********************************************

Tilburg_tha / Tilburg University (NL)

Examples:

Author: van 354 hits
Title: graf 7 hits

**********************************************

Insert the data in the corresponding fields

Click with the right button of the mouse on "Send query" button. A new window containing the query results shall appear on the screen. Some "record" shall appear in this window

Click with the right button of the mouse on desired record to display the final result

8.2 Procedure to activate a query to MOSAIC Metadatabase (on DISET web)

Enter in Mosaic web site at the URL: http://mosaic.polimi.it

Enter in the Intranet section by clicking with the right button of the mouse on its icon

Click with the right button of the mouse on "Mosaic MetaDatabase". Three choice shall appear on the screen:

List of all museums in the database
Search for a specific museum
Add a museum

To list all museums in the database

Click with the right button of the mouse on " List of all museums in the database". A Museum Listing table containing all museum of database, appears with three column of fields: Name, Nation and Continent.

Click on desired record to access in museum

To search for a specific museum

Click with the right button of the mouse on " Search for a specific Museum". A Museum Search table containing some fields appears: Museum Properties, Collection Properties, Artwork Properties

Fill the desired fields

Click with the right button of the mouse on Search button. The museum listin table appear with desired museums.

Click on desired record to access in museum

To Add a Museum

Click with the right button of the mouse on " Add a Museum". A Insert New Museum table containing museum identification fields appears

Fill at least the following fields:

Name
Street
City
State/Prov
Nation
Continent
Prefix
Area Code
Phone

Click with the right button of the mouse on Search button. The museum shall be inserted in the database

8.3 Procedure to watermark an image (on MOSAIC web)

Enter in Mosaic web site at the URL: http://mosaic.infobyte.it

Enter in the Demo section by clicking with the right button of the mouse on its icon

Click with the right button of the mouse on "service centre"

Click with the right button of the mouse on the arrow to select "Intellectual Property Right"

Click with the right button of the mouse on "Intellectual Property Right". The following shall apper on the screen:

Click with the right button of the mouse on "Embed a watermark". A window with the following field shall appear on the screen:

File (local file to be watermarked)
Watermark (to be inserted in the image file)
Secret key (to be used to access to the watermark)

Fill the fields

Click with the right button of the mouse on "Embed Your Watermark". The local file shall be transferred to the remote site, watermarked and rewrite in local disk

To retrieve watermark

Click with the right button of the mouse on "retrieve the watermark" . A window with the following fields shall appear on the screen

File (local file to which you want read the watermark)
Secret Key

Fill the fields

Click with the right button of the mouse on "Read the Watermark". The local file shall be transferred to the remote site to read the watermark

8.4 Demo Service Centre Overview

See the site at URL: http://www.musaroma.it

8.5 High Quality Data Production

This procedure want give only an example of use of the Virtual Exhibitor tool.

How to create a web site of the virtual exhibition

This procedure illustrates how to create a web site using the data inserted for the creation of the virtual exhibition.

click with the right button of the mouse on Project and select Load Project. The Project Shell window appears

click with the left button of the mouse on the project one wants to create a web site for

click with the left button of the mouse on OK. The Java Virtual Machine is loaded on the computer and the Vex Expo Web window appears on the screen

click on the Expo Abstract icon and insert the following data:

General Description: name of the museum. Description and comments

Address Book: address, city, state, zip code, country

Exhibition: name of the vent, date of start and finish, comments

Organizer: name of the organizer and e-mail

Opening Hours: opening hours, closing dates, other information

Telephone: international code, area code, telephone number

Fax: international code, area code, telephone number

E-mail: This address will be given by the system manager or provider of internet services

click on the Works icon to check the contents of the works of art in the Dialog Area window (check title, author and comment) and eventually personalize them based on the type of site one is building. The works of art appear in the Memo Planning window.

To personalize or correct the title, author or comment:

click twice with the left button of the mouse on the field (Title, Author or Comment) which one intends to edit (the VEX Internal Name fields are not editable)

add correction

(eventually) click on the Target icon inserting the Remote Host Address, the User-name and Password. The content of the files are transferred on the target machine via ftp

click on the Topics icon to choose the graphics for the site. A combo-box appears on the screen in which the following choices may be made: art, cinema, contemporary, graphics

choose in the combo-box the style which one intends to apply to the site (art, cinema, contemporary, graphics)

click on the Export icon to generate the site. The Web Site Builder window appears on the screen where the current situation in the creation of the site is traced. Once the creation is finished the window will disappear and the Netscape browser appears (if installed). The HTML files are placed in the directory indicated by the Export Path accessible via the Target icon. This directory is the root document of the exhibition's site; inside it one can find the HTML files, the images and VRML model of the exhibition.

click on the Preview icon to open the HTML browser. The Web Site Builder window appears on the screen where the current situation in the creation of the site is traced. Once the creation is finished the window will disappear and the Netscape browser appears (if installed). The preview page of the site with the chosen graphic stile as background will appear on the screen. By clicking on the latter one can have access to the site’s home page

To exit the Expo Web module

click with the right button of the mouse on Project and select Exit.

9. ANNEX D : MOSAIC MODEL ARCHITECTURE - DIAGRAMS

9.1 MOSAIC diagrams

A more detailed and abstract description of MOSAIC is supplied by the following schemas.

9.1.1 MOSAIC context diagram

In the next figure the main interfaces of MOSAIC are the Users of the system and the information sources like Cultural Database on Network (database that contains information in a structured form) and all other Sources Information on Network (i.e all other information that can be retrieved from the network).

Figure 7: Mosaic Context Diagram

Mosaic shall have two main data sources :

Cultural databases on network from which are retrieved both data in CIMI standard and other formats

other sources Information on Network from other services different from Cultural context that use information like Television Networks, Publishers, News ...

The users shall interact with Mosaic :

to activate Thematic queries to retrieve Organised data in standard structures (like CIMI standards and so on ...)
to activate Services & Tools to access their features and the CSC Infrastructures

to be informed about the Mosaic activities, programs or to retrieve promotional material by the Advertising & Promotion outputs
to exchange mails, feedback with the Mosaic organisation or with the CSC Publishers Team or to fill forms by the Users feedback data

Data Dictionary :
Advertising & Promotion : data and materials to promote the CSC activity
Data from heterogeneous Databases : Data from databases on network both in CIMI standard and other formats
Heterogeneous data : Data retrieved from the network in several formats (structured data, raw data, off-line data in different media as CD-ROM,VIDEOTAPE,... ....)
Organised Data : Structured data retrieved from the Databases on network organised in a known standard (CIMI ...)
Services & Tools : data to activate the CSC services & tools and their outputs
Thematic queries : Data to activate a thematic query using the Cultural on-line Browser
Users feedback : mails & feedback exchanged between Mosaic and their users

9.1.2 MOSAIC Network

Figure 8: Network Services Diagram

Network services shall be constituted by four functionality :

Inter-operability gateway shall manage the access to Cultural databases on network and to Other sources Information on Network retrieving Heterogeneus data and Data in standard CIMI

Cultural on-line Browser shall allow Thematic queries to the Users. The Cultural on-line browser shall have a graphic human interface in a map-like way where to find information

Meta-database Search Engine shall consult the Mosaic catalogue and Meta-database returning Retrieved links to the Cultural on-line Browser. The Agent part shall have in charge a continuously update of Mosaic catalogue making it available to the search browser.

Multilingual inter-operability shall manage the query request in natural language to and independent form consulting a suitable thesaurus

Data Dictionary:
Access rights : parameters/procedures to enter in the system accounts to enable/forbid user access
Data in standard CIMI : Data in standard CIMI
Data to translate : Query in natural language to translate in independent form
Heterogeneous data : Data retrieved from the network in several formats (structured data, raw data, off-line data in different media as CD-ROM,VIDEOTAPE,... ....)
New links to Cultural Heritage : new links to the cultural databases retrieved by the Agents activities
Organised Data : Structured data retrieved from the Databases on network organised in a known standard (CIMI ...)
Retrieved links : retrieved links to the Cultural sites on network related with to the thematic query
Synonyms : Thesaurus output to translate queries from natural language in independent form
Thematic queries : Data to activate a thematic query using the Cultural on-line Browser
Translated data : Query translated in independent form
Updated links to Cultural Heritage : Updated links to the Cultural Heritage retrieved by the Agent activity
Users feedback : mails & feedback exchanged between Mosaic and their users
Network Services activation : data & controls to activate the network services (ISDN, ATM, ADSL, satellites ...)

9.1.3 MOSAIC Cultural Service Centre (CSC)

The following diagram illustrates the Mosaic CSC logical and functional decomposition.

Figure 9: Cultural Service Center (CSC) Diagram

The cultural service centre (CSC) shall be constituted of four functionality:

CSC organisation shall manage the CSC Infrastructures, it shall receive Directives from Mosaic organisation and Users feedback from users. It shall actuate the User access control and shall give Directives of Promotion to the Promotion and Advertising functionality

Infrastructures shall be constituted of Training room, Video Conference, Multimedia Room, children Playroom, Virtual Theatre, Workshop room, Cybercafe & Marketing area room

Promotion and advertising shall have in charge to disseminate the CSC activity, the organised events, to produce advertising materials (gadgets, posters, images, documents ...) ...

Services shall have in charge to supply the Users of s/w Tools (Archiving tools, Application & Market products, Virtual Exhibitor, Authoring tool), Thematic forum and Basic services

Data Dictionary:

Access rights Parameters/procedures to enter in the system accounts to enable/forbid user access

Data and materials to promote the CSC activity

Infrastructures Management Directives from the CSC organisation to manage and maintain the CSC

Organised Data Structured data retrieved from the Databases on network organised in a known standard (CIMI ...)

Services & Tools Data to activate the CSC services & tools and their outputs

Statistics Statistics on the services, users and topics in the CSC Thematic Forum

Users feedback mails & feedback exchanged between Mosaic and their users

Directives Guidelines from the Mosaic organisation to the CSCs

Progress Report progress status report to inform Mosaic organisation of problems, risks analysis, statistical data and business plan

10. ANNEX E : OTHER MAIN REFERENCE DATA

10.1 Data on Internet, E-commerce and cybercafè

10.2 Data on museum flow and to other cultural wealth initiatives

DESCRIPTION	BUDGETTARY PRICE
Desktop MMX 233 for multimedia communication via ISDN connection and speed up to 128 Kbps with necessary software	450
Professional VideoCamera Sony Video projector Audio amplification	600
Technical Personnel Costs: Video conference technique Camera-men Personnel to mount and install devices and to try theyself	250 190 125
Transports	40
Total for video conference room	1655

DESCRIPTION	BUDGETARY PRICE
VIRTUAL THEATRE MINIMAL CONFIGURATION (only 1 CHANNEL)
ONYX 2	331735
PROJECTOR	20475
OTHER MATERIAL (continuity group, loudspeakers…)	6107
TOTAL VIRTUAL THEATRE MINIMAL CONFIGURATION	358317

VIRTUAL THEATRE MAXIMAL CONFIGURATION (3 CHANNELS)
ONYX 2	1015000
PROJECTOR	62175
STEREO GLASSES	14850
OTHER MATERIAL (continuity group, loudspeakers…)	7315
TOTAL VIRTUAL THEATRE MAXIMAL CONFIGURATION	6.1.2.1.1.1 1099340

DESCRIPTION	BUDGETTARY PRICE
N°10 PC with CPU Pentium166,256K cache,32 Mb RAM	21600
N°32 Patch cord to have HUB e PC for the network	160
N°1ROUTER for telephone connection with Cisco 2501 with cables	2872,5
N°1 (HUB) Ethernet with 16 way UTP_RJ45	395
TOTAL CYBERCAFE ROOM	25027,5

DESCRIPTION	BUDGETTARY SALARY
CURATOR	4500
RESEARCHER	3400
PROJECT LEADER	3400
SYSTEM MANAGER	3100
PROGRAMMER	2400
Publishing Team Leader	2400
Editor	2400
Graphic	2400
Educator	2400
Administrative Production	2000
Executor	1600

DESCRIPTION	BUDGETTARY SALARY
Marketing Director	6200
General Sales Manager for Public	5400
Sales Manager for Public	4700
General Sales Manager for Institutions & Enterprises	5400
Sales Manager for Institutions & Enterprises	4700
Sales Administration	2000

DESCRIPTION	BUDGETTARY SALARY
CSC Director	8200
Secretariat	2000

PRODUCT	CONFIGURATION	BUDGETTARY PRICE IN US $
Vex	3D modeler 3D Picture Maker 3D Expo Build 3D VEX Expo Print	12.000
	3D modeler	2.300
	3D picture – maker	2.500
	3D expo build	1.500

DESCRIPTION	BUDGETTARY PRICE
Altavista Forum	1000
Macromedia Flash 2	2000
Macromedia Shockwave	2000
Adobe Photoshop	500
Adobe Premiere	500
Casus	500
Total	6500

DESCRIPTION	BUDGETTARY PRICE
N° 10 Multimedia pc	20000
N°1 Printer	1000
N°1 White Board	100
N°1 Projector	1000
N°1 Forniture	5000
N° 1 Learning Materials	100
N° 10 Crystal-eyes	5000
N°1 Barcographics 808S	500
TOTAL	32700

DESCRIPTION	BUDGETTARY PRICE
N°1 Equilibrium deBabelizer	500
N°1 MultiGen II	45000
N°1 Cosmo studio	500
TOTAL	46500

DESCRIPTION	BUDGETTARY PRICE
N°1 Server	20000
N°1 Juke –Box	30000
N° 1 LAN	2500
TOTAL	52500

DESCRIPTION	BUDGETTARY PRICE
PC clients	0
Multimedia kit,Plug-in,CIMI clients	0
TOTAL	0

DESCRIPTION	BUDGETTARY PRICE
Server minimal configuration
N°1 System using Intel Pentium or Digital Alpha processor	7500
N°1 Microsoft Windows NT server 4.0 Enterprise edition	100
N°1 64 MB of memory	100
N°1 80 MB available on hard disk	200
N°1 CD-ROM drive	100
Networking Options
N°1 RDBMS	20000
N° 1 Microsoft Windows NT server	100
N°1 Microsoft LAN Manager	500
N°1 Novel NetWare	500
N°1 TCP/IP based networks	500
N° 10 Modems	1500
Client Supported
N°1 Microsoft Windows 95	100
N°1 Microsoft Windows for Workgroups	100
N°1 Microsoft Windows NT Workstation	100
TOTALE	31400

DESCRIPTION	BUDGETTARY PRICE
N°10 Multimedia PCs	20000
N°1 LAN	1000
N°1 Network concentrator	200
N°1 Router	200
N°1 Modems	200
TOTALE	21600

DESCRIPTION	BUDGETTARY PRICE
N°1 Telepay	2600
N°1 Watermarking tool	1000
N°1 Image encription	1000
N°1 Macromedia Flash 2	2000
N°1 Macromedia Shockwave	2000
N°1 Kudo Image Publisher	500
N°1 Softquad Panorama Viewer	100
N°1 Dyna Web	1000
N°1 Dyna Text	1000
N°1 Model Maker	1000
N°1 3DRAW	10000
N°1 Microscribe 3D	2500
N°1 CyberWare 3D scanner	10000
TOTAL	61700

DESCRIPTION	BUDGETARY PRICE
INFRASTRUCTURE COSTS	727467
TOTAL INFRASTRUCTURE MAINTENANCE (10%)	72747
TOTAL INFRASTRUCTURE COSTS	800214

DESCRIPTION	BUDGET
Upgrading H/W-S/W	1999	2000	2001
HW/SW tools upgrading-Cost	15.000	10.000	5000

DESCRIPTION	BUDGETTARY PRICE
Integrated Communication video system "Le Pleiadi" VTC 228-T/U on CDN,RFD/N e ISDN(videoconference with video graphic help)
HW	19720
Installation	1350
TOTALE	21070

Visitors Number	Year
16,561,597	1980
19,472,886	1983
21,687,325	1986
32,127,341	1989
28,233,413	1992

Total revenues of 1997	Total revenues of 1996
108.879.394	102.071.856

Year 1997			Year 1996
free	payment	total	free	payment	total
4.148.169	8.378.491	12.526.660	3.586.346	7.824.967	11.411.313

Total revenues of 1997	Total revenues of 1996
83.836.706	77.672.176

Total revenue	120.000 billion	61,800 billion ECU
Income in foreign exchange	48.000 billion	24,800 billion ECU
Balance of trade	28.000 billion	14,400 billion ECU
Number of employees	1.700.000
Number of tourists	+ 37 million/year	+ 14,3% for year

CD – ROM Average price to the public Percent of global invoices	25 25%
PHOTO REPRODUCTIONS Average price to the public Percent of global invoices	From 0.5 to 5 3%
ART BOOKS Average price to the public Percent of global invoices	10 25%
MUSEUM- EXHIBITION CATALOGUES Average price to the public Percent of global invoices	30 25%
POSTERS Average price to the public Percent of global invoices	From 45 to 7.5 2%
GADGETS Average price to the public Percent of global invoices	From 2 to 450 (average 7.5) 20%
Average propensity to purchase of each visitor	1.125

Content Driven	Unitary Cost/price	Fruition % or number Renting/ sales 1999	1999 Revenues	Fruition % or number Renting/ Sales 2000	2000 Revenues	Fruition % or number Renting/ Sales 2001	2001 Revenues
Multimedia CD-ROM	25	0	0	20	15000	35	525000
Electronic Documentation	20	0	0	4	24000	8	96000
High quality electronic images	20	0	0	30	18000	40	480000
Funny Electronic	2	0	0	3	1800	5	6000
Markup on fees/Rights from other CSC	10	0	0	0	0	0	0
Sales of souvenirs	5	0	0	20	30000	40	120000

Service Driven	Unitary Cost/ Price	% Fruition	Number Renting/ Sales 1999	1999 Revenues	% Fruition or Number Renting/ Sales 2000	2000 Revenues	% Fruition or Number Renting/ Sales 2001	2001 Revenues
Training Courses	1250	0	0	0	1	375000	1	750000
Video Conference renting	500	0	0	0	5	2500	10	5000
Multimedia Room Access	2	0	0	0	3	1800	3	3600
Multimedia Room Renting	90	0	0	0	10	900	24	2160
Playroom	0	0	0	0	0	0	2	0
Virtual Theatre access	6	0	0	0	20	36000	80	288000
Virtual Theatre renting	1500		0	0	4	6000	10	15000
Workshops	20000	0	0	0	2	40000	2	40000
CyberCafè & Marketing Area	2	0	0	0	25	15000	50	60000
CSC network services subscription	50	0	0	0	15	225000	30	900000

ADVERTISING ON EVENTS	Unitary Cost/Price	%Fruition	Number Renting/ Sales 1999	1999 Revenue	% Fruition Or Number Renting/ Sales 2000	2000 Revenue	% Fruition or Number Renting/ Sales 2001	2001 Revenue
Sponsoring subscriptions	1500	0	0	0	6	9000	10	15000
Advertising of the cultural events	0	0	0	0	0	0	0	0

Undifferentiated campaign	Campaign weeks
Cost per impression	1	2	3	4	6	9	12
Site rotation	0.0545	0.046	0.042	0.038	0.0355	0.0335	0.0295

Targeted campaign	Campaign weeks
Cost per impression	1	2	3	4	6	9	12
Site rotation	0,0635	0,054	0,049	0,044	0,0415	0,039	0,0345