1. Why bother studying costs and benefits?
To support transition from project to core service
Need to justify expenditure
Demonstrate accountability, management control
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2. Sources of information: Costs
Technology Costing Methodology (TCM) Handbook
Western Cooperative for Educational Telecommunications, 2001
The Costs of Networked Learning - Phase 1-2
Sheffield Hallam University, (for JISC)
Management Information for Decision Making: Costing Guidelines for Higher Education Institutions
KPMG Management Consulting, 1997 (for the Joint Funding Councils)
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3. Sources of information: Analysing costs and benefits
Evaluation of the Costs and Benefits of IT Usage in a Higher Education Environment
University of Strathclyde Insight Initiative, 2001 (for JISC)
Cost-Benefit Analysis Guide For NIH IT Projects
National Institute of Health, Maryland, USA, 1998
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4. Sources of information: Information on specific benefits of MLEs
Reports, papers, including:
JISC MLE Interoperability studies
BECTA MLE Case Studies
Cost-Effective Uses of Technology in Teaching (CEUTT)
US literature on academic "enterprise portals"
Interviews with / Surveys of DMU staff and students
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5. Conclusions No consensus over how to measure costs in HE
Staff time is a very significant factor, but it is difficult to arrive at accurate figures
“Hidden Costs” and “Costs borne by others” associated with ICT developments
Difficult to separate out the costs and benefits of MLE from related activities: VLE, Intranet development, Content Management Systems, etc.
Many benefits of MLE are “intangible” rather than “tangible”
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6. Choices Activity-Based Costing or traditional “Top-down” approach?
Full costs or marginal costs?
How to treat hidden costs and costs borne by others?
Use discounting techniques (e.g. NPV)?
Assign numerical values to intangible benefits?
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7. Choice should reflect the needs and practices of
We chose
“Top-down” approach
Full costs
Broad assessment of hidden costs and costs borne by others (but not quantified.)
Use discounting techniques not used
Did not assign numerical values to intangible benefits
Choice should reflect the needs and practices of
the Institution.
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8. Categories of benefit Direct cost savings Savings in staff time
Print and distribution costs
Savings in staff time
easier communication
reduce time spent on low-level admin activities
less time correcting errors and their effects
Qualitative benefits
more staff time freed up for teaching and support
better information and support for students
reduction in non-completion rates
flexibility: inter-operability of systems means that will be easier to meet new information requirements, e.g. requirement for Progress Files.
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9. On-line Student Regulations and Support Information
Examples (1)
On-line Student Regulations and Support Information
Direct cost saving = c£50,000
Plus improved quality and consistency of presentation
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10. Effect of reduction in non-completion rates
Example (2)
Effect of reduction in non-completion rates
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