Management Information Systems:
Planning and Selection
“Is the ‘Software as a Service – SaaS’
model nowadays a real option for MFIs?”
European Microfinance Week 2011, Luxembourg
Sandra Moreau (European Microfinance Network, Belgium)
Tom Baur (Triodos Facet, The Netherlands)
Tibor Szekfu & Eva Farago (FEA, Hungary)
Jean Pouit (MyTransfer & European Microfinance Platform, Luxembourg)
Theshome Dayesso (BuuSAA GonofA - BG, Ethiopia)
Agenda
9 Introduction EMN and JASMINE
9 Introduction of MIS Planning & Selection and
its challenges
9 Panel experience
9 Discussion
9 EMN eLearning Platform
About EMN…
9 The European Microfinance Network (EMN) was created in
2003 and currently has 91 members in 21 European
countries.
9 The mission of EMN is to promote microfinance as a tool to
fight social and economic exclusion and to promote
microentrepreneurship and self-employment.
9 EMN supports its members by:
- making their working environment more favourable, both at
European and national levels.
- helping them grow and develop so that they become
sustainable organisations that respond to specific market
needs.
About JASMINE…
9 JASMINE (Joint Action to Support Microfinance Institutions in
Europe) was created in 2007 and is a joint initiative of the
European Commission, the European Investment Bank (EIB),
and the European Investment Fund (EIF)
9 JASMINE’s principal objectives are to:
- enhance the capacity of non-bank micro-credit
providers/micro-finance institutions; and
- help them to become sustainable and viable operators in the
micro-credit market.
JASMINE is managed by the European Investment Fund (EIF)
Management Information Systems
an overview
Front End
<< IS >>
Back End
ERP or
independent apps
Channels:
Customers
Branch Offices (incl.
mobile offices/travell.
front-end staff)
Call Centres
Mobile Phone Banking
Internet-based Banking
Intermediaries:
ATMs
Agents
POS Devices at retailers
Social Media Portals
Portfolio System
(deposits / loans
/ transactions)
General Ledger Apps
CRM Application
HRM Applications
Payroll Application
Reporting Tools
Credit Scoring Apps
Interbank/Own Switch
ICT Admin Tools
Platforms Security
BCP Fallback Facilities
Pro’s and Con’s
of three Technology Solutions
BUY
BUY
BUILD
OUTSOURCE
¾ Low to medium cost (upfront & running costs)
¾ Shortest implementation phase but requires proper
vendor management
¾ Relative bug free free
¾ Require vendor’s tech support and update
and patch release schedule
¾ Unlikely to fully match expectations and particular
requirements
¾ Future expansion could force change of vendor
Pro’s and Con’s
of three Technology Solutions
BUY
BUILD
BUILD
OUTSOURCE
¾ High cost & high risk
¾ Longest implementation phase and could divert
resources away from core business of MFI
¾ Requires stable, qualified, and experienced technical
support and proper ICT project management
¾ Can be fully adapted to institution’s policies and
procedures
¾ Future modifications to match institutions' changes can
be done in-house (if adequately chosen)
Pro’s and Con’s
of three Technology Solutions
BUY
BUILD
OUTSOURCE
OUTSOURCE
¾ Low upfront costs and medium running costs
¾ Short to medium implementation phase but requires
proper ASP management
¾ Likely to operate low error free and with high uptime, but
high dependence on connectivity
¾ Depending on ASP and contract, sys modified or standard
¾ Integration with non-ASP systems may be problematic
¾ Compliance issue possible (depending on national
legislation re. privacy – and financial sector matters)
¾ High dependence on ASP, that needs to develop into a
“trusted partnering” role to sustain
Dealing with different
Pricing Models
; Upfront Costs (investment v.v. costs)
; Depreciation & Running Costs
; Tiered Pricing (volume discount)
; Unit of Pricing (number of accounts,
users/workstations, connected servers, time)
¾ Equally important to consider also: In-house Costs
¾ Use: TCO (Total Cost of Ownership) principle
¾ Comparing pricing options (cases for:
current, realistic growth, optimistic growth)
Quick Reference
Good Planning/Selection Guides
9 EMN – MIS Guideline (new, Nov/Dec 2011)
9 CGAP – IS Implementation Guideline (2008)
9 DAI (USAID/MBP) – MIS Evaluation Framework
(1999)
9 CISCO – website section Evaluation Guideline
ASP Security for Enterprises
9 Microfinance Gateway – website section
Technology Web Resource Guide
9 Mix Market – website section Service Providers
Challenges with SaaS
9 ASP market in country
9 Effective legal environment in country for
SaaS implication and SLAs
9 Compliance and legal issues for MFIs using
SaaS model
9 Cost benefit in case of “dual (batch & online)
mode” SaaS
9 Effective MFI’s Board oversight on ICT
Experience with the
Three Technology Solutions
Over to the three panellists, each with in-depth
experience and understanding in African,
European and global context
Q&A, reflections, thoughts…
¾ “Is the ‘Software as a Service – SaaS’ model nowadays a real option for MFIs?”
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9 For further questions or comments, the EMN e-learning
Platform is open for Q&A:
http://elearning.european-microfinance.org/
9 You can also contact directly:
Tom Baur
Sandra Moreau
t.baur@triodosfacet.nl
+32 2 227 27 05
s.moreau@european-microfinance.org