1 Calculating the costs of Information technology in higher education Paul Bacsich, Sheffield Hallam University £ + £ = £ ??

2 IT in T&L work at SHU Costs of Networked Learning [JCALT] Real Costs of (Admin) IT [JCALT] T&L Round Table [JCIEL] NLN Evaluation [FEFC] e-tools for the e-University [HEFCE] CETIS associate partner [JCIEL] Also GENESIS [TEN-TELECOM], Upgrade [Obj 4], REMIT-MOE [ESF]

3 CNL - Introduction... CNL Funded by JCALT, run by SHU Outcome - the theory and identification of the main issues Further funding from JCALT - CNL 2 Aims to transform the theory into a practical guide

4 CNL1 outcomes Schema with the following features Multi-level Multi-stakeholder Activity Based Costing in line with Transparency Review guidelines Flexible allocation of overheads, including consumption-based Planning model Course life cycle of 3 phases

5 CNL2 Project Update... Started August 2000 ABC Experts Contracted Research Team Active Faculty Engaged Interim Report Written Project Conclusion February 2001

6 Activity Based Costing General Ledger Activities Cost Objects Budgets Business costs Attributes Function Process Normal Reallocate Direct Resource Drivers Cost Drivers

7 Steps towards ABC Identification of Processes and Activities Allocation of Time against Activities (based on memory and records) Cost Driver Collection General Ledger Analysis Model Building Reporting

8 Interim Thoughts Once engaged, participants enthusiastic! Links to IiP and EFQM should be explored Long time-scales are essential plus the sustained effort to get the necessary depth of study Project Team and Study Participants need to get along Champion Essential to Open Doors - and the time to do it

9 Real Costs of IT 6-month study ending Dec 2000 Tries to do a CNL for Admin IT Draft Final Report nearly ready for select release to critical readers

10 RCIT - some outcomes Same critique of conventional accounting as in CNL: need for ABC, stakeholders, etc Need softer measures of cost-benefit Life-cycle issues and costs Another 3-phase model to parallel CNL: Plan/Procure, Install/Operate, Enhance/Decommission More quantitative info than in CNL1

11 TLT Round Table Costs are only a part of the issue Change management is key Round Table a particular approach (US) Participative Co-chairs Allow refuseniks Trialling this at SHU, UoS and TSC Need to establish a baseline - so survey

12 Get in touch... I will be around for the rest of the conference After the conference you can get hold of our team via Check out the project web sites at and RCIT site coming real soon now