Page 118 - DLIS406_ACADEMIC_LIBRARY_SYSTEM

Unit 11: Budgets

11.3.2 Cost-Benefit Analysis Need and Importance Notes

The concept of cost-benefit analysis is now increasing day by day and applied to all the areas
of the library. Beside, welfare activity libraries also use the resources of the organization/
institution and also see the associated cost and benefits to the organization/institutions. The
concept of cost benefits analysis has now starts taking practical shape in these days. The
planning commission has already decided about the feasiblilty studies for the various welfare
and social projects of different institution/organizations. The United Nation Industrial Development
Organization (UNIDO) and Center for Organization of Economic Co-operation and Development
(COECD) have come with the unique publication dealing with the problem of measuring cost
benefit analysis. Lancaster (1971) made a distinction between cost-effectiveness analysis and
cost benefits analysis as applied to information system and also discuss the relationship between
cost, performance and benefits. He found that system benefits are usually more difficult to
express and to measure. Baliarsingh and Mahaptra (1986) conducted the cost benefit analysis
of university library and said that user surveys are the best means of measuring the benefits
in the context of library and information center.
Narayna (1991) explained the concept of cost-accounting, different types of cost etc,. He explained
the model of cost-effectiveness and cost-benefits analysis. He found certain limitation while
applying cost-effectiveness and cost benefit analysis to libraries. The cost benefit ratios are
helpful for evaluated the total cost benefits of ICT, which include all economic and non-
economic, internal and external benefits. According to it, an ICT giving a higher output per
unit of capital employed is to be preferred over project giving a lower output. However, a
broad decision on ICT acceptability on welfare grounds by looking to the different welfare
aspects associated with it. The cost-benefit analysis helps determining the cost of ICT in a
library by taking into account various costs i.e., Network costs, Website development cost,
user cost and miscellaneous projects costs and compare it with the benefits arises from these
activities for a particular period of time.

Did u know? The lack of national ICT strategy and inadequate ICT skills leads to the
slow rate of polices of ICT sector, which create the need of its cost analysis.

11.3.3 Meaning of Information and Communications Technology

In the past Libraries were regarded as store houses of books. They were not for use. But today,
the Libraries, through their books, are actually repositories of information and knowledge.
Information is indispensable for any human activity aiming at social progress. The researcher,
the teacher, the student, the administrator, the worker in the factory and in the factory and in
the field, all need information to equip themselves better for the fruitful pursuit in their
respective fields. The basic information role of the Library is to collect the materials containing
the information required by the various sections of the society and disseminate the information
to them through appropriate methods. It is primarily in this sense that a Library is described
as an information center. The advancement of science and technology has made tremendous
improvement and change almost in all fields of life. Especially the magnetic word “Information
and Communications and Technology” has been chanted in all carriers of global arena. The
services rendered with the help of ICT are faster and more effective. Moreover, it creates faith
and confidence about the products and services of an organization among its customers. ICT
is an important catalyst for social transformation and national progress. As already mentioned,
that Libraries which were earlier considered as store houses have got a new outlook in the
modern information communication technology Era. The activities which were carried out

LOVELY PROFESSIONAL UNIVERSITY 113