The story of an MFI, and the issues it faces with its Information System..

1. An MFI story.. Why Information Systems are crucial in the microfinance sector How Octopus attempts to address the related challenges © Octopus Microfinance 2009 Images by Bidulz.com

2. 2005, Omar, CEO Zagora MFI - Morocco © Octopus Microfinance 2009 flexible secured 1,4 M€ OLB

3. 2006 : growth … but © Octopus Microfinance 2009 2,4 M€ OLB 1,6 M€ OLB

4. Errors © Octopus Microfinance 2009 Too bad, these amounts have not been inputted in the correct cells We now believe that customer #12 has paid, whereas he hasn’t .. And customer #13 is now delinquent whereas he has actually paid !

5. Frauds © Octopus Microfinance 2009 This loan has been discretely inserted without following the standard appraisal process Money has been disbursed to someone we don’t know .. How many fake loans have we got now ??

6. Operating costs increase 2,4 M€ OLB 1,6 M€ OLB .. Extra staff to control and consolidate information

7. THE solution : A MIS ! © Octopus Microfinance 2009 Excel (2005) Flexible Secured & automated Excel (2006) MIS (2007)

8. Significant upfront investment... © Octopus Microfinance 2009 Argh, those software look very nice but they are so expensive! Yes, but this investment is necessary for your future development..

9. An 8 months marathon … © Octopus Microfinance 2009 Loan + Grant Requirements analysis RFP Configuration & Migration Software Proposals 1 M€ OLB 80 k€ IT Local IT expertise Technical Assistance

10. 2007 : still growing … but © OCTO Technology 2008 4,2 M€ OLB 2,8 M€ OLB 1 M€ OLB 1 M€ OLB

11. MIS doesn’t support our new local-currency products © Octopus Microfinance 2009 10 k€ € OLB DH OLB Never mind, I will manage the Dirham portfolio aside in Excel And I will ask to a local IT guy to develop an automatic bridge between the two Requirements analysis Development, Test & Migration

12. Can’t improve steering : breakdown rural/non rural © OCTO Technology 2008 I will ask my software provider to develop a specific patch for me! 10 k€ € OLB Requirements analysis Development, Test & Migration

13. Can’t improve operations : bulk collective repayments © OCTO Technology 2008 I will ask the local IT guy to develop this for me 10 k€ € OLB Requirements analysis Development, Test & Migration

14. Can’t change Accounting method © Octopus Microfinance 2009 The local IT guys says he can’t handle such a big change in the software ! We’ll have to wait for a new release from the Vendor…

15. Mid-2008 : Specific development is a dead end © OCTO Technology 2008 And my VAR now proposes a 70k€ shift to a new technical solution … € OLB DH OLB New release Won't work Won't work Won't work Local adaptations make the migration to the next Vendor version very difficult

16. Lost Eden … © OCTO Technology 2008 Flexible Secured & automated Excel (2005) Excel (2006) MIS (2007) MIS ? Is it impossible to streamline innovation while being secured & automated ?

19. Octopus proposes a different model © OCTO Technology 2008 Costs Adaptability No license Only value-added services Cheaper local assistance Designed to be adaptable Develop adaptations for your clients IT partners Community Open Source platform

20. Octopus applies a continuous improvement process Need from the MFI Discussion and schedule with the Community Test-driven Development New release every 3 weeks Training/assistance to the final user

23. © Octopus Microfinance 2009 WWW.OCTOPUSNETWORK.ORG