2009-07-18 makingpfmtechnologywork

7/31/2019 2009-07-18 makingpfmtechnologywork

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Making PFM

Technology Work:Lessons Learned

July 17, 2009

Doug Hadden

VP Products


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Most Commercial Off-the-Shelf (COTS) and

custom developed financial systemsfail to achieve government goals in

Emerging Countries.


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On Budget On Time On Time, On

Budget

Sustainable

Success Rates, IFMIS in EmergingCountries


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FreeBalance Success Rates, EmergingCountries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On Budget On Time On Time, On

Budget

Sustainable


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Under More Stressful Conditions?

World Bank Sample

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Low Medium High Post Conflict

*

FreeBalance Customers

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Low Medium High Post Conflict

*

HumanDevelopmentIndex


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Why is FreeBalance so much more successful?


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Low success rates in developedcountries!

40%of enterprises exceed time and budgetestimates > 50%

ERP technology to business benefits rated D+

15% large implementations failed

51% were over budget, over schedule orunder delivered.

Halfof all respondents incur additional costsafter implementing financial applications

Fewer than a third of enterprise decisionmakers would recommend their ERP vendor toanother company


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The traditional model for software development

that works (sometimes) in the West

does not work for Emerging Countries.


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Agenda

What difficulties need to be overcome? Where is the software development model

broken?

How can governments increase the

chance for success?


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1. IFMIS Software takes too long to implement.


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2. IFMIS Software does not adapt well to reform.


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3. IFMIS Software cannot be sustained bythe government.


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What Happens When Things Go Wrong?

Blame the victim Customer didnt articulate business

processes properly

Customer had unrealistic expectations

for delivery Customer changed requirements after

the first phase

Customer did not dedicate enough staffto manage project

Customer did not train enough staff


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Product

Management

Sales&

Marketing

User

Trainer

Consultant

Customer

Support

Product

Development

Typical


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Product

Management

Sales&

Marketing

User

Trainer

Consultant

Customer

Support

Product

Development

Productoftendesigned

withdifferent

customersinmind

Productdevelopers

havenoexpertisein

governmentfinancialsSalespeoplewantto

selltoeverypossiblemarket.

Consultingfirmsoften

donothave

governmentexpertise.

Consultingfirmsmaynot

wantsystemtobe

sustainedbygovernment.

Governmentneeds

maynotgointoupgrades

Consultingfirms

generaterevenuefrom

customization.

Governmentisoneof

manyverticals

Typical


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The FreeBalance Solution


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Company Summary

FreeBalance is a global provider ofsoftware solutions for public financialmanagement (PFM). Canadian software company ISO-9001/2000

certified

Strong domain expertise in government financialmanagement, 100% focus on government

Integrated technology for budget formulation andpublic expenditure management

Founded in 1984

De factostandard forfast implementations Global presence, implemented in every World

Bank region


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CustomerHeadquarters

FreeBalanceDevelopment

FreeBalanceSupportCentres

FreeBalanceOffices

100% F


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Product

Management

Sales&

Marketing

User

Trainer

Consultant

Customer

Support

Product

Development

Productdesignedwith

EmergingCountry

requirements.

Productdevelopers

understand

governmentfinancials

Salespeoplefocusedin

government.

AtFreeBalance,success

isdefinedassustainability.

FreeBalanceprovides

consultingservices

worksasamemberof

allimplementationteams

100%Focuson

Government

Governmentneeds

ALWAYSgointoupgrades

FreeBalance


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Customer Centric ApproachProductManagement

CustomerSupport

ProductDevelopment

Consultant

UserAllproblems&feature

requestsaretracked

managementdashboard

FreeBalanceconsultantsmentorcustomerstobuild

capacity.

Developersvisit

customersandarepartof

SWATteams.

InternationalSteering

Committeesetsproduct

direction.

CustomersinteractwithFreeBalance

staffandothercustomerson

CustomerExchange

Customersvisitedat

leastonceeveryyear.

Localin-country

support.


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1. IFMIS Software takes too long toimplement

Vendor should understandthegovernment domain.

Product should be designedfor rapid

implementation configured, not

customized.

Products should be

provento implement

quickly in countrieswith more stressful

conditions.

quickestimplementation

26days

Average

firstphase

8months


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3. IFMIS Software cannot be sustained bythe government.

Product should not place a significantburdenon the government.

Vendor should know how to build

capacity.

Government

should not be

maintaining

custom code andcomplex

technology.


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Lessons Learned

Software design, implementation andsupport methodology criticalto ensuringsuccess

Advanced country governments have the

luxury to buy expensive solutions withnice to have features

Governments around the world shareyour challenges

Some governments have morechallenges


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help governments across the world leverage

robust government financial management

technology to acceleratecountry growth.

Our mission

2009-07-18 makingpfmtechnologywork

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