Do we *REALLY* know how much is spent on IT?

A tweet was posted by @MSETCHELL yesterday (mattianuk on EduGeek) about being asked to work out the cost of the entire network.

This didn’t strike me as a strange request to be honest. It just seemed to be a standard pain-in-the-backside, paper-generating, unread-report-producing exercise … probably needed because of some arcane bid proposal which schools sometimes get involved in to try to squeeze money out of any available pot or group. It is worth saying the businesses do the same thing when applying for EU funds, regeneration funding, moving locations, etc … so it happens all over the place.

I replied that

I thought that would be fairly easy to generate? Have asset library with original costs, calculate depreciation, etc

But Matt said he had a full inventory but not purchase costs.

It struck me about this being another example of where silos exist in schools, this time between departments of support / admin staff rather than between curriculum departments.

It also made me wonder what do people record in their asset library? How do them maintain it? Who is the ultimate owner?

At Learning Possibilities, we work based on ISO27001 : 2013 (part of our standard of working for a variety of contracts, as well as best practice) and knowing your assets is vital, whether they are physical, intangible or information assets. Whilst the standard is over the top for most schools it does clearly align with standards such as the Framework for ICT Technical Support (A school friendly Service Management IT Management regime based on ITIL v2 and v3, with elements of other good practices from areas such as PRINCE2 and LEAN).

An asset library should not just be about the make, model, serial number and location of a physical piece of kit; it should include other relevant information too. When you install a network in a school you spend a certain amount on cabling … this is also an asset that is often missed. Is the cabling infrastructure in your school suitable for the next 5 years? Are you expected to go Gig to the desktop? PoE?

I’ll be posting a thread on EduGeek to discuss this in more detail about what could and should be recorded but I thought I would set out the basic principles here.

  1. All assets have an initial value (on purchase), a replacement value (how it would cost to replace it based on whether you do like for like replacement or old for new) and a depreciated value (how much they are worth now with their value going down due to an agreed method … and there are a variety of methods).
  2. All assets have a set period of useful life. This might be set out when you purchase the device and be based on a variety of factors. Usually these will be the warranty and support periods for the product, how frequently it receives updates, an estimate on how long you think the functionality will fit your needs and so on.
  3. All assets should be associated with a purchase order, when a direct purchase was made.
  4. All assets should have an ‘owner’. This is the person who is responsible for them to the institute and not necessarily the person who manages them on a day to day basis. An example would be the MIS hold information about timetabling, personnel, students, etc but the SIRO is ultimately responsible. In the same way the iMacs being used in Music are ‘owned’ by the Network Manager, not the Head of Music.
  5. Assets have to be written off at some point in their life. This can only be done by an authorised member of staff.

There are probably more I could add, but this is a starting point for most people.

Some of the above information might be able to be held in the software you use for asset management. Some might already be held in other systems, such as the finance systems.

It will be up to each school whether there is any replication / duplication of the information held … and who updates the relevant asset libraries too.

From the above this should be enough so that the Head and BM can easily see what the value of the network is (in financial terms) and what the total direction is over a period of time, see what is about to be at end of supported life and what they need to replace like for like (in general terms).

Not only does this allow for SLT to plan, it helps them decide on whether maintaining a status quo with regards to IT is affordable or whether changes need to be considered on financial grounds. Changes on curriculum, or leadership grounds are a separate discussion, and that has a slightly different set of criteria and measurement.

There are plenty of ways you can check whether others you work with, as partners or suppliers, are following similar models … a basic tool for IT management. For us it is our work on ISO27001: 2013, but for others it could be ITIL v3 certification of staff, FITS certification,  ISO/EIC 20000 certification. At Learning Possibilities we ask it of some of our partners and are happily reassured.

Have a chat with your own school to see who manages what areas of assets, how the Facilities Management team monitor and write things off, how the Business Manager controls what is put down as needing covering for insurance? See what standards they look at when working with others?

 

3 thoughts on “Do we *REALLY* know how much is spent on IT?

  1. Pingback: Do you *REALLY* know how much is spent on IT.

  2. Steve Gough

    I read this on the morning I took proud possession of my language club’s 2nd and 3rd Raspberry Pi, and thought “Tru dat”. No matter the scale of the enterprise there’s always a bean counter – in my case the Red Tape mavens of the French government. It’s never too early to start proper asset records. Point 3 is an issue for those of us outside a real enterprise environment but the rest is, what I call, golden. Did Tony mention FITS? I think so!

    Reply
    1. Tony Sheppard Post author

      Good to see the tech bug is still firmly attached. Looking forward to hearing of your trials and tribulations as you get to grips with the device.

      Reply

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