1. Cost of Producing Information Chapter 1

2. Contents This presentation covers the cost of: – Hardware – Software – Consumables – Personnel

3. Introduction An infinite amount of time ago an unknown amount of mass collected together... 13.73 Billion years ago the universe as we know it was created...give or take about 120 million years.... A few years later people emerged...

4. Introduction But unlike the universe and all that is within it which suddenly appeared (be it by one massive fluke or some greater power)... Information doesn’t magically appear. It is gathered, processed and re-emerges as new information...but at a cost.

5. Hardware Hardware can be used to collect, process, output and store information. Although expensive to initially purchase, the cost is often spread: – Hardware can last a long time – Hardware can be used for multiple tasks

6. Hardware Further costs might include repair, maintenance and upgrading. Some organisations take out maintenance contracts to lower the costs... Some smaller companies may even rent hardware...if it breaks down they don’t have to worry about replacing it at a cost!

7. Hardware As more and more information is collected storage space becomes an issue and further upgrading my be required. This means spending more money on upgrading current hardware and also later on when backup/archive storage facilities need updating.

8. Software Software is seldom free. There are lots of free applications available however they may not have all of the functionality that custom software applications may have. More often than not, site licences are required to help lower costs...for example Microsoft Windows can be purchased using a site licence...lots of schools will do this.

9. Software Training staff in how to use new software may also need to be considered. Technical support may also cost extra. – This can come from either the software manufactures or in house teams. Over time, software may not be able to carry out all of the tasks required of the user/company. Future upgrades will cost money.

10. Consumables Consumables are anything that get used up. For example: – Paper – Printer Ink – Stationary items

11. Personnel Personnel are often the most expensive part of a company. Different personnel may be required to do different jobs with information: – Some might collect, some might analyse and some might output information.

12. Personnel When new members of staff begin working they may need extra time to complete jobs as they get used to working with new systems. This ‘bedding in’ time needs to be worked into the costs of the company. On top of training costs, companies may need to cover the staff whilst they are away.

13. Take note: Fill in the following table, giving examples of what the hardware could be used for, the cost of the hardware and it’s estimated life. DeviceUseCostLife Scanner Printer 2GB memory key Digital camera Digital tablet LCD monitor

14. Take note: Investigate the cost of training courses for pieces of software such as: – Adobe PhotoShop – Adobe Flash – Microsoft Access – Visual.Net

15. Take note: Imagine that you are producing a leaflet for a new vegetable delivery service. Using the four costs discussed, list all the expenditure associated with producing a leaflet and give a cost to each item.

16. Take note: Describe the hardware items required to collect and input data required for a fashion magazine. Explain why an organisation might need to upgrade the software it uses to produce information. Explain the personnel costs incurred by an organisation that produces a leaflet completely from scratch.