octopus service level agreements
TRANSCRIPT
© OCTO Technology 2008
Service Level Agreements
with the Octopus Community
Images by Bidulz.com
How are you challenged by MIS?
MFIs usually face two main issues:
MIS are expensive: High license fees Cost of technical assistance (often
done remotely)
MIS are not agile/adaptable: When new features are needed, it
takes a long time before it can eventually be integrated
And need for adaptation will always appear (because of competition, growth or regulation) !
© OCTO Technology 2008
$
Fle
xibl
e
Excel(2006)
MIS(2007)
Secured & automated
Octopus project aims at mitigating those issues
© OCTO Technology 2008
Costs Adaptability
No license
Cheaper local assistance
Designed to be
adaptable
Develop adaptations for
your clients
VAR
What is a VAR?
© OCTO Technology 2008
Value-Added Resellers (VARs) are working in close relationship with microfinance institutions.
They can be :• IT companies, or • Microfinance assistance programs
They are officially enlisted by Octopus microfinance to provide a high quality technical support to local MFIs. Some of them directly contribute to the software development.
VARs and Octopus: which advantages? which
contracts? High reactivity to adapt to your needs Lower costs thanks to a local technical partner Trust relationship
Two types of Service Level Agreements:
Short-term SLA: implementation of Octopus Long-term SLA: accompany the growth of your structure
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Short-term SLAs: Implementation through ‘target price’Your VAR and Octopus Microfinance accompany your appropriation of the software:
Step 1: your VAR conducts a needs and gap analysis, and detect what should be adapted in Octopus
Step 2: your VAR and Octopus Microfinance make a proposition, with a target price and date
For this price and at this date, we ensure the following results:
The software is adapted to your needs (new developments if necessary) The software is installed and configured in your institution, Your data from the former system has been migrated to Octopus The users are trained
You don’t pay any license, you only pay for the technical assistance provided by your local VAR
Short-term SLAs (2): build a trust relationship
Octopus microfinance and your VAR share the risk in case of problem and you share the benefit in case of success of the project
If the cost of the project exceed this amount because of unexpected issues in the deployment (unexpected product complexity, unexpected processes complexity, unexpected data quality problems, unexpected issues with your team, ...) we charge you only half of our complementary expenses, up to 50% more than
the target price.
If our spending are lower because of unexpected ease of deployment (high quality of existing data, low complexity of your demanded features, high quality of your team …), we retrocede half of them in the form of a credit on your future maintenance fees,
up to 50% less than the target price.
© OCTO Technology 2008Target price
& date
Lower than expected: we retrocede half of the saved costs
More than expected: we charge only half of the complementary expenses to the MFI
Long-term contracts with MFIs: Value-based Service Level Agreement
© OCTO Technology 2008
You manage your computers and network Every three months, you meet your VAR and define the priorities of
development for the period Your annual fees for an adaptable-guaranteed MIS are set to 2% of
your revenues!
Your VAR and you are therefore aligned on the same goal: maximize your growth and impact!
MFI k€ 2005 2006 2007 2008
OLB 1,400 4,000 8,000 13,000
Revenues 280 800 1,600 2,500
SLA (2% of the revenues) 5 16 (2%) 32 (2%) 50 (2%)
