Cost of Producing Information

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.

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.