This article illustrates the potential costs associated with information. Staff work an average of 5 days per week. Annual Costs are determined by multiplying monthly costs by 12. The method above will only give an approximate value of information costs as calculations do not measure exact productivity and annual costs can only be calculated by deducting leave entitlements, holidays, absenteeism, etc. The above calculations also ignore the real wage affect.
Every organization has potentially significant information cost centres.
The article on the TI Index can be applied to this problem. Above the ratio is actually 4.45 to 1. This minor TI Index is calculated by dividing productivity by wages at any level above. All Rights Reserved. All other trademarks and service marks are those of their respective owners.