cgap training information systems slides
DESCRIPTION
Slides for CGAP's training on Information Systems.TRANSCRIPT
©CGAP/World Bank, 2009
System Development Life Cycle IS1-O1
Preparation
Optimization
and Maintenance
Needs Analysis
Selection
Implementation
©CGAP/World Bank, 2009
Goal
To provide guidelines for
planning
developing
implementing
and managing
the RIGHT information system
for your microfinance institution
IS1-O2
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
Information
IS THE PILLAR
OF ANY
MICROFINANCE INSTITUTION
IS2-O1
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
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)
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
System Development Life Cycle IS3-O1
Preparation
Determine reason for change and define goals
Form task force
Develop plan
Determine institutional readiness
Needs Analysis
Selection
Implementation
Optimization and Maintenance
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
Task Force Creation
Who serves?
What do they do?
How do they communicate?
How do they ensure buy-in?
IS3-O3
©CGAP/World Bank, 2009
Sample Excel-based Planning Tools IS3-O4
Task List (outline format of WBS)
Staffing/Time Analysis
Project Schedule
©CGAP/World Bank, 2009
Before You Start
Check for:
Business Plan and Budget
Policies/Procedures/Practices
Accurate, Complete Historical
Data
Internal Controls
Infrastructure
Personnel
IS3-O5
©CGAP/World Bank, 2009
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
Optimization and Maintenance
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
Sample Flowchart
IS4-O4
Source: Understanding Information Needs for MFIs, by Shirley A. Lunde, CRS, 2002, p. 37.
©CGAP/World Bank, 2009
Protect Your Information Assets
Back up
Secure
Safeguard
Recover
IS4-O5
©CGAP/World Bank, 2009
System Development Life Cycle IS5-O1
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
©CGAP/World Bank, 2009
What Is Feasible?
STAFF
IS5-O2
TECHNOLOGY
TIME COSTS
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
Note Well:
The cost of installing an IS may be
but the cost of
not having information is
IS5-O4
©CGAP/World Bank, 2009
The Choices for a Computerized System
Purchase off-the-shelf software
Modify an existing software system
Design a custom system
IS5-O5
©CGAP/World Bank, 2009
Framework for Evaluation
Functionality, Expandability, Flexibility
Usability
Reporting
Standards and compliance
Administration and support
Technical specifications and correctness
Cost
IS6-O1
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
Alphabet Soup
Request for Proposal (RFP)
Request for Quotation (RFQ)
Request for Information (RFI)
Statement of Work (SOW)
Terms of Reference (TOR)
IS7-O2
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
System Development Life Cycle IS8-O1
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
Optimization and Maintenance
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
IS8-O3
©CGAP/World Bank, 2009
Testing Levels
Unit
Integration
Full System
User Acceptance
IS8-O4
©CGAP/World Bank, 2009
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
©CGAP/World Bank, 2009
System Development Life Cycle
Preparation
Needs Analysis
Selection
Implementation
Optimization and Maintenance
Keep hardware and software functioning and updated
Ensure the system is used to maximum advantage
IS9-O1
©CGAP/World Bank, 2009
Daily News Headlines IS10-O1
granted banking license
Will take savings!!