Software Implementations:What have we learned?

By Normand Arsenault

Successful software implementation

Technology is not the problem

Quality needs assessment

Building MIS around the needs

Step-by-step process

MFIs need to adhere the following process

Participatory Needs

Assessment

Design of MIS

Product Selection

Implemen-tation

Maintenance and

Development

Participatory Needs Assessment

Cause for most IT project failure Knowing what you want Identifying the real issue Buy-in from the users

Participatory Needs

Assessment

Design of MIS

Product Selection

Implemen-tation

Maintenance and

Development

Design of MIS

Different Languages Discrepancies b/w Accounting and Loan Tracking systems Integrated Software IT support for “Integrated Software” – the misunderstanding

Participatory Needs

Assessment

Design of MIS

Product Selection

Implemen-tation

Maintenance and

Development

Product Selection

The security Issue Using open source software Learning to walk before running Trapped by technology Developing a custom based solution

Participatory Needs

Assessment

Design of MIS

Product Selection

Implemen-tation

Maintenance and

Development

Implementation

Strategy to implement the software Problems with running systems in parallel Training Support from the software provider

Participatory Needs

Assessment

Design of MIS

Product Selection

Implemen-tation

Maintenance and

Development

Maintenance and Development

Iteration of the whole process over

Participatory Needs

Assessment

Design of MIS

Product Selection

Implemen-tation

Maintenance and

Development

Conclusion

Information technology– Important for microfinance sector– But it need to be applied the right way

User centered design Technology adapting the user rather than the other way

– Otherwise it’s hard to get quality service

Discussion

Using off-the-shelf systems The gap b/w the MF management and

technologist? Narrowing the gap?

Discussion

“integrated software will not make up for the absence of staff with proper accounting skills.”

Rural Microfinance Service Delivery: Gaps, Inefficiencies and Emerging

Solutions

Tapan S. Parikh

Rural Microfinance

Microfinance is transitioning to a commercial and profitable business model– Must be efficient so that it will scale

Three major obstacles– Exchange of information with remote clients– Data management at the industrial level– Collection and delivery of money to rural areas

Rural Microfinance - Info. exchange

12,000 staff for 3.2 million clients in 45,000 villages

Thousands of transactions captured and processed every week in a timely manner

Unpredictable growth Massive amount of data to update and

maintain

Rural Microfinance - Info. exchange

Several handheld-based solutions– All increased accuracy and saw increases in

productivity and efficiency– Many discontinued pilot programs due to high

software and hardware costs– Expensive and time-consuming process

Should we be using handhelds? Is there another piece of technology that

would be more appropriate?

Rural Microfinance - Data management

Visited eight MFIs Six used VB and MS Access One used custom PHP/MySQL software One used only paper

Rural Microfinance - Data management

VB/Access– Easy to implement– Easy to learn– Does not scale well

No modularization of application Leads to redesign and reimplementation

No industry standards– Need reports and information

Investors, donors, creditors…

Rural Microfinance Money transportation

Unsafe for loan officers to travel with large sums of money

Cash increases potential for fraud Relying on regional banks CASHPOR working with ICIC bank

– 5% service fee for loans

Low-cost ATMs and POS devices

Discussion Questions

How would we design standards and systems that are general enough?

What types of systems will emerge? What other parts of microfinance can

technology help out with? Comments?