Although you can organize the Library in many ways to suit your needs, the following are some possible ways to design a folder structure in the Library: 


Project centric: Create folders for each project. Within each project you can create subfolders for each application within that project. You can further organize within each application by the various document types (modules, sections, topics, packages, web pages, questions and assessments, and so on).


Application centric: A folder is created for each application, with a subfolder for each module. Within each folder are the documents that are linked to that module.


Also consider how you intend to version your content. For example, if you are building content for an application, you may want to design your Library folder structure around the version of the application and duplicate all your content from version to version.


Author or Team: If you normally divide workload by content author or teams of content authors, organizing your Library documents by team may be your best approach. This allows multiple authors to quickly see who owns a particular set of content and makes it easy to locate your documents. To organize by author or team, create a folder for each content author or group of authors. Within these folders you can employ one of the other organization methods above to further organize your documents. You may even want to organize by locations if you have different groups in different locations working on content.


Document Type: If you are doing a lot of content sharing you may find it beneficial to organize the Library by document type. This allows content authors to focus on specific types of content. For example, you may want specific authors creating all of your glossary terms or creating packages that will be used by other content authors. Organizing by type may make more sense as a second layer of organization.


Localization: If you are planning to localize your content you will want to make a complete duplicate of the source content before it is translated into the target language. To keep all of the different languages organized you should create sub-folders within your content folder hierarchy for each language.


One guideline is to keep your Library simple. Do not make overly complex folder structures and try to keep the Library between a maximum of three to five levels depending on your content.


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