The use of word processing and digital image processing to develop new methods for preparing and evaluating materials in the Open University and the implications of these developments are discussed. Recent developments in computer and educational technology are reported as they pertain to cost effectiveness both in production efficiency and educational effectiveness. In addition to discussing experiences with current developments, new or soon-to-be commercially available word processing technologies are described. Characteristics of the next generation of word processing, such as large- screen, multi-font, proportionally-spaced displays, that aid in manuscript preparation, are discussed, as well as semi-automatic house-style implementation and checks on vocabulary. (CHC)