cgap training information systems slides

©CGAP/World Bank, 2009

System Development Life Cycle IS1-O1

Preparation

Optimization

and Maintenance

Needs Analysis

Selection

Implementation


Goal

To provide guidelines for

planning

developing

implementing

and managing

the RIGHT information system

for your microfinance institution

IS1-O2


Objectives

To present a systematic process used to create and manage an information system for microfinance

To define information systems and their importance to the business of microfinance

To identify specific information needed to make business decisions in microfinance

To analyze critical business processes (in the context of an IS) and streamline them for efficiency

To use a framework tool to evaluate information system software options

To understand the processes required to – plan and conceptualize – select, develop or acquire – implement, manage, maintain and optimize

an information system for your MFI

IS1-O3


Information

IS THE PILLAR

OF ANY

MICROFINANCE INSTITUTION

IS2-O1


Data Unprocessed basic facts about

the activities of a business that give no

insight by themselves

IS2-O2

Information Data transformed into a meaningful form that

helps someone to make sound, quality

decisions or to gain insight


Information and Decision Making IS2-O3

Decision Information Needed to

Make the Decision

Information Source

(Who/How/Where)

Disbursing a loan Cash flow position Accounting

Client profile Client records

Client repayment record Client records

Loan application form Loan management

records

Loan officer details and

recommendation

Loan officer reports


Information System

The series of actions involved in:

Capturing raw data from various sources,

Processing the data into usable information,

Storing the information; and

Disseminating information in the form needed.

IS2-O4

(Based on Waterfield, Ramsing, p.4)


Information Systems IS2-O5

Others

Auditors

Tellers

Encoders

Bookkeepers

Managers

Clients

Loan Officers

Portfolio

Management

System

Deposit Tracking

System

Customer

Information

System

Accounting

System

Human Resource

System

Decision

or

Action

Processes or

People Seeking

Information

Data Capture Processing Storage Information Reporting


Basic Information System for Microfinance IS2-O6

Accounting

System Accounting

System

Portfolio

Management

System

Deposit-

Tracking

System

Interfaces

Tellers

Delivery Mechanisms

Loan

Officers ATM

Smart

Card

Credit

Cards



Preparation

Determine reason for change and define goals

Form task force

Develop plan

Determine institutional readiness

Needs Analysis

Selection

Implementation

Optimization and Maintenance


What are the problems?

How will the new IS help mitigate these problems?

How will FairFund know if the IS has succeeded?

Identify the measurable goal(s) that FairFund’s new information system is expected to achieve.

IS3-O2


Task Force Creation

Who serves?

What do they do?

How do they communicate?

How do they ensure buy-in?

IS3-O3


Sample Excel-based Planning Tools IS3-O4

Task List (outline format of WBS)

Staffing/Time Analysis

Project Schedule


Before You Start

Check for:

Business Plan and Budget

Policies/Procedures/Practices

Accurate, Complete Historical

Data

Internal Controls

Infrastructure

Personnel

IS3-O5


System Development Life Cycle Preparation

IS4-O1

Needs Analysis

Document, review, and (optionally) redesign business processes (If not routinely performed by internal audit or management)

Analyze and record current information needs

Analyze and record future information needs

Assign priorities to information needs

Write Needs Analysis Report

Selection Implementation



Information Flows

Define and diagram:

Data sources

Points of transformation

Where information is used for decision making

Where and how information is stored

How, when, and to whom information

is communicated

Are the right people getting the correct information when

they need it and in the appropriate format?

IS4-O2


Flowchart Symbols (Available as AutoShapes on the MS Office drawing toolbar)

IS4-O3

Data (Input or Output)

Process

Document(s)

Decision

Off-page Connector

Flow Direction


Sample Flowchart

IS4-O4

Source: Understanding Information Needs for MFIs, by Shirley A. Lunde, CRS, 2002, p. 37.


Protect Your Information Assets

Back up

Secure

Safeguard

Recover

IS4-O5



Preparation

Needs Analysis

Selection

Review resource requirements for feasibility

Conduct high-level scan of available systems and establish shortlist candidates

Make initial recommendation (buy vs. develop) and seek senior management approval

Apply due diligence tools to analyze shortlist candidates

Make final recommendation and obtain management decision

Implementation Optimization and Maintenance


What Is Feasible?

STAFF

IS5-O2

TECHNOLOGY

TIME COSTS


What Should Be Automated? IS5-O3

Component Criteria Priority

Accounting System

Core system for any MFI Essential

Portfolio Management System

Core system for any MFI Essential

Deposit- Tracking System

Core system for any MFI that takes deposits

Essential, if deposits are taken

Reporting Systems

MFI is:

Consistently missing out on making

good management decisions due to a

lack of timely information

Unable to provide its staff all the

information they need to perform their

jobs

High


Note Well:

The cost of installing an IS may be

but the cost of

not having information is

IS5-O4


The Choices for a Computerized System

Purchase off-the-shelf software

Modify an existing software system

Design a custom system

IS5-O5


Framework for Evaluation

Functionality, Expandability, Flexibility

Usability

Reporting

Standards and compliance

Administration and support

Technical specifications and correctness

Cost

IS6-O1


Due Diligence Continues

Collect information from the vendor, in writing

Look for other reviews or other third-party evaluations

Review a demonstration version of the

software

Check references with other clients

using the product or the vendor

Visit an MFI that is using the software, or

see a live demo using your own data

IS7-O1


Alphabet Soup

Request for Proposal (RFP)

Request for Quotation (RFQ)

Request for Information (RFI)

Statement of Work (SOW)

Terms of Reference (TOR)

IS7-O2


We are pleased to announce that

SOFT CORPORACIÓN

has been recommended and selected to install our new

information system.

The system will be based on

MICRO

More details on how this will

all happen to follow.

At this time we wish to thank everyone for their input, and

the task force in particular for its hard work over the past

several months.

IS7-O3



Preparation

Needs Analysis

Selection

Implementation Plan

Finalize contract negotiations

Set up hardware

Install and configure software

Test

Document

Transfer and convert data

Hire or train staff

Create institutional interface

Run parallel systems



Implementation Plan

Finalize contract negotiations

Set up hardware

Install and configure software

Test

Document

Transfer and convert data

Hire or train staff

Create institutional interface

Run parallel systems

IS8-O2


IS8-O3


Testing Levels

Unit

Integration

Full System

User Acceptance

IS8-O4


Sample Plan – Hardware Setup IS8-O5

Task R D

2.1 Design network infrastructure 2w

2.2 Prepare Request for Quotation 2d

2.3 Purchase equipment 4d

2.4 Prepare facilities 4w

2.5 Configure hardware 1w

2.6 Install and test equipment 3d

2.7 Prepare documentation 3w

2.8 Train or contract for hardware

support staff

1w

Tim

e

R = Responsibility D = Dependency


System Development Life Cycle

Preparation

Needs Analysis

Selection

Implementation


Keep hardware and software functioning and updated

Ensure the system is used to maximum advantage

IS9-O1


Daily News Headlines IS10-O1

granted banking license

Will take savings!!

cgap training information systems slides

Technology

information assets

specific information

usable information

correct information

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