Automation of SACCOs - FSD Kenya

32 • AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS
Chapter 6
reCommenDAtion
6.1 ConSIDErATIonS
In addition to providing the key functional and technical requirements and
a logical approach to automation, the project team would recommend that
each SACCO also thoroughly assesses its own unique position with regards
to the four key considerations outlined below. In the worst case these could
be constraints completely preventing an implementation, in the not so severe
cases they would prevent the SACCO from fully benefiting from the full capacity
of the system. The SACCO needs to be aware of the considerations and adapt
the approach to automation or develop the organisation before launching the
automation project. They are also important in order to manage the vendor
as the vendor will limit its responsibility and expect the SACCO to own certain
aspects of the automation.
The considerations are based on our observations of the SACCOs current
proficiency and the objectives of the automation decision. They include
organisational, technical and financial aspects of the SACCOs and automation.
6.1.1 Ability to acquire, customise, and implement the
solution
Determining the context of the automation decision
As a first step towards automation the SACCO management has to objectively
assess the current system, understand the alternatives and the additional
benefit they could bring. The strengths and weaknesses of the current system
have to be clearly understood as otherwise the benefits of other systems
which the SACCO reviews will not be clear. The automation project should
be based on the SACCO strategy as the system is likely to be one of the most
important factors determining if the SACCO is able to realise its strategy
Consideration The SACCo’s role The vendor’s role
Ability to acquire, customise and
implement the application.
Ability to integrate branches to
one network which is continuously
synchronised in real time.
Table 8: Automation considerations
Articulate the strategy.
Gather requirements.
Develop a business case.
Be clear on who is making the decision.
Set targets and track benefits.
The SACCO needs to decide which level of integration is
required and provide specifications.
Ability to manage the application. Depending on sourcing decisions the SACCO will need to
build a capacity ranging from basic application management
functionality to full ownership.
Ability to utilise the system. The SACCO needs to adapt the organisation accordingly to
fully use the system’s capacity.
or not. If they are not aligned there could be a gap between the long term
goals and the system. If the strategy is not clear it will be very difficult to
assess which functions need to be automated and also to set targets for the
automation and the improvement it should bring.
The persons responsible for IT at the SACCO and in particular the chief
technology officer (CTO) play a key role and need to continuously be aware
of the development in the market for the relevant applications, in database
technology and service offerings. This would enable them to realise when it is
appropriate to assess the current solutions, make change requests or make a
high-level business case for a new application acquisition. Once the strategy
is clear and the key business owners have specified what they need from the
system the CTO would be appropriate to assume the project management
responsibility for the automation.
Business case as a tool to measure benefit from automation
The SACCO would benefit from developing a business case for the automation
in order to make an objective decision. The business case would help
document the objectives, costs and benefits of the automation and assess
different options with regard to the application. It would also document key
assumptions about the financial impact the automation is expected to have on
the most important processes in the SACCO. These assumptions could also be
used as targets to eventually measure the actual benefits of the automation.
In this project it has been assumed that the SACCO will acquire a system in
order to create value for the members by doing business more efficiently.
Value for a SACCO is a combination of the typical corporate value drivers and
Provide a proposal with detailed information about the system.
Lead a gap analysis.
The vendor and additional suppliers will support the SACCO and
potentially will one take on a lead supplier role and act as project
manager.
Application management can be outsourced leaving the vendor with
responsibility for all but basic administrator support.
The vendor can provide training and support but is in likely to have
the detailed understanding of the SACCO required to control and
execute the organisational change.