Costs of Networked Learning Phase TwoThe Costs of Networked Learning Phase TwoPaul Bacsich, Charlotte Ash, Sarah Heginbothamwith the assistance of Petros KandareSeptember 2001Telematics in Education Research Group on behalf of theSchool of Computing and Management SciencesBacsich et al. iiiFurther information:Professor Paul BacsichTelematics in Education Research GroupSchool of Computing and Management SciencesSheffield Hallam UniversitySheffieldS1 1WBUnited Kingdomemail: cnlmatic-media.co.uk URL: Sheffield Hallam University 2001The copyright of all materials delivered by this project remains with Sheffield Hallam University. Materials may, of course, be freely used within UK Higher Education, provided that the original authors/owners are acknowledged. Outside this community, anyone wishing to utilise these materials should contact the authors.The JISC Committee for Awareness, Liaison and Training (JCALT) addresses the human and organisational issues of deploying C&IT within HEIs. Its parent body, the Joint Information Systems Committee (JISC), is the strategic advisory committee working on behalf of the funding bodies for higher and further education (HE and FE) in England, Scotland, Wales and Northern Ireland. It also works in partnership with the Research Councils. For more information contact:Rachel CorrieJCALT Programme ManagerJISC Secretariat Northavon House Coldharbour Lane Bristol, BS16 1QDUnited Kingdomemail: r.corriejisc.ac.ukURL: http:/www.jisc.ac.ukPrefaceIn 1998, the JISC Committee for Awareness, Liaison and Training commissioned a study to investigate the hidden costs of developing and supporting networked learning. The resulting study “The Costs of Networked Learning” provided a theoretical framework and concluded that it was difficult to cost this activity as there was no consistently used costing approach across the education sector at that time.Following this study, JCALT has funded this extension, the aim of which was to take the theoretical framework and develop it into a practical handbook. This report focuses on one particular approach to costing: Activity Based Costing, piloted at a School Level within Sheffield Hallam University. It was found to be a useful tool in this context. As well as focusing on the specific example and generating generic guidelines for institutions interested in ABC, the final report also adds to the debate about costing in higher education. In this respect it is of wide interest to the HE community and JCALT will share these findings with the Funding Councils Joint Costing and Pricing Steering Group.David HouseChairman, JCALTAugust 2001ForewordThis is the second phase in the series of reports on the Costs of Networked Learning. It has taken the methodology developed in phase one and applied it in a real higher education institution.Taking the theory and applying it in a real institution has been a major challenge, and the timescale for delivering the report has been rather longer than the 6 months originally proposed. But in our view (and with hindsight), costing is like many other e-related initiatives in HE and FE: speed is not always of the essence.The wider context of the report is an era of major new UK initiatives such as the eUniversity, and ever-increasing interest in costing, exemplified by the Transparency Review and other reviews of HE and FE costing and income structures.The outcome of phase two comprises two volumes: a Report plus a Handbook, which will help other institutions to carry out their own work in this area.One top-level recommendation from our Report is to confirm our earlier view that there is no point in doing Activity Based Costing work using traditional spreadsheets.It is also the case that institutions will need specialist help to kick-start such a study. We are especially grateful to the staff of Armstrong Laing plc for their help and advice, especially to Moira Abernethy for her tireless support and cheerfulness.Within the University, special thanks are due to the members of my research team and to my colleagues (management, academic, administrative and technical) in the School of Computing and Management Sciences during a challenging period for the institution, its management and staff.Dr Paul Bacsich, Professor of TelematicsTelematics in Education Research GroupSheffield Hallam UniversitySeptember 2001Table of ContentsPrefaceiiiForewordvTable of Contentsvii0.Executive Summary11.Introduction41.1Report overview41.2Project funding42.CNL1 Overview62.1Main conclusions from the CNL1 study62.2Planning document and financial schema from CNL172.3Project recommendations from CNL172.4Assumptions73.Methodology93.1 Identification of a supplier93.2Literature review93.3Key issues93.4Trial103.5Reporting104.Activity Base