Techniques for the measurement of cost‐benefit in information centres

The value and profitability of information services can be quantified by using modern management techniques to generate numerical data. In this approach, programme budgeting derived from management by objectives exercises is used as a basis for preparing cost‐activity and cost‐function analyses, whilst alternative costs for maintenance of the programme are derived by applying some basic critical examination, activity sampling and work study principles. By difference, cost‐related benefits are obtained for specific activities and functions. The procedure does not indicate the true value of units of information per se, but ranking of the benefits immediately highlights economic and uneconomic operations. Model analyses are described in detail, supported by a number of factual results. The dynamic nature of the system and its use as a management device are illustrated by a practical application in a real‐life change situation.