You need to convert the analog audio signal into digital form (best to use standard and modern codecs) and apply the modern compression tools (again, use the modern tools). By the way, you will gain very little because most modern codecs produce output that are already compressed and any additional compression gets you very little.
A better project would be a comprehensive and well balanced review of the modern codecs and the associated tools. You will need to understand the modern trends and also the coming future.