Computerizing Farmers Co-ops

COSTS & BENEFITS OF ICTCOSTS & BENEFITS OF ICT

National Seminar 16National Seminar 16thth December 2009 December 2009Rop KiplagatRop Kiplagat

Marcel WernerMarcel Werner

Why computerization?Why computerization?

Information and Communication Information and Communication TechnologyTechnology

Mobile Telecom

Information and Communication Information and Communication TechnologyTechnology

Internet everywhere

Information and Communication Information and Communication TechnologyTechnology

Computers in all offices and companies

Information and Communication Information and Communication TechnologyTechnology

Software made for Kenya

Information and Communication Information and Communication TechnologyTechnology

It’s the people that make your success!

Computerization?Computerization?

ICT can make money for your co-opICT can make money for your co-op

For whom?For whom?

Farmer associations with 100-plus membersFarmer associations with 100-plus members

– Willing to improve livelihood of the membersWilling to improve livelihood of the members– Ready to invest in efficiencyReady to invest in efficiency– Computer knowledge = not essentialComputer knowledge = not essential

BenefitsBenefits

• Administration efficiencyAdministration efficiency– Accurate pay-out & reporting– Duplication & complaints eliminated

• Business growth– More members– Discover where to save costs– Healthy cash-flow

CostsCosts

• The BoxThe Box

• ServicesServices

We will see: Computerization costs 1 - 2 % of SBO turn-over

Investments; Services

• Minimal investment: one computer + printer• Training: light training for clerk• Service: payment preparation outsourced• Service: computer + printer

Small society < 100 members

Society does data entry members’ deliveries; service provider does payment preparation and maintains the computer + printer. No need for computer network.

Investments; Services

• INVESTMENT– One computer + printer Ksh 60,000– Training & set-up Ksh 40,000

• SERVICE INSTALLMENTS– Payment preparation (12 mo) Ksh 60,000 – Equipment (12 mo) Ksh 15,000– Ink cartridges Ksh 5,000– Backstopping Ksh included

Small society < 100 members

Investments; Services

• Investment: two or more computers + printer• Training: training for clerks; computer manager• Service: computers, network, printer

Mid size society ± 1000 members

Society has one computer with staff for every 500 members. Does data entry members’ deliveries; prepares members’ payments; management reports. Service provider for training, backstopping and equipment maintenance.

Note: computer network + computer manager needed if more than 1,000 members.

Investments; Services

• INVESTMENT– Two computers + printer Ksh 110,000– Training & set-up Ksh 90,000

• SERVICE INSTALLMENTS– Equipment maintenance (12 mo) Ksh 30,000– Ink cartridges Ksh 8,000– Backstopping Ksh included

Mid size society ± 1000 members

Investments; Services

Investment: computer network > Ksh 500,000

Large society > 1000, up to even 10,000 members

Society has computer network with computer and staff for every 500 members. Computer manager full-time.

Service provider for training, backstopping and equipment maintenance.

Depreciation in 3 years

Check your: Computerization costs 1 - 2 % of SBO turn-over

Partners to support you

• NakuruNakuru

• BungomaBungoma

• EldoretEldoret

• MeruMeru

• NyeriNyeri