Cooperative Computerization Project Plan

This assignment outlines a comprehensive plan for computerizing a cooperative. It delves into various stages of the project, including designing, reviewing, testing, and implementing a computerized information system. The plan emphasizes participatory monitoring and evaluation throughout the process, with specific performance indicators to assess the effectiveness of the computerization effort on client satisfaction, profitability, and operational efficiency.

Project Design Implementation and Evaluation
1. Introduction
Agricultural cooperatives in developing regions are being hit from all sides. They are receiving
far less support from government than they have in the past, and with the liberalization of
agricultural markets, many of them are struggling to survive in an increasingly competitive
business environment. Member services are declining and farmers are leaving. The world is
changing and these changes tend to favor small, decentralized organizations that are able to
respond rapidly to the ever-shifting demands of the market.
In large measure, this transformation is being enforced by the liberalization and globalization of
markets and the growing use of information and communication technologies (ICTs). If
agricultural cooperatives are to survive, they must learn how to compete. One obstacle to
achieving this is that information-processing in farmer cooperatives in developing countries is
notoriously slow; most large cooperatives still operate with manual or semi-manual accounting
systems. Such systems are lab our-intensive to maintain, leave plenty of occasions for errors

and create opportunities for abuse. It is difficult for managers to be competitive when they
must work with outdated or inaccurate information.
The immediate advantage that computerization brings is the enhanced ability to handle large
amounts of information. The introduction of modern information and communications
technologies (ICTs) in cooperatives can significantly improve results: they can facilitate the
collection, analysis, storage and reporting of information much faster and more accurately than
could be accomplished using manual systems.
Computerization also can help cooperative managers streamline operations, cut operating
costs, enlarge their networks of members and affiliated institutions, increase sales and respond
to signals from far away markets. Connecting to the global network of the Internet also has its
advantages, allowing faster communication with members, partners and clients at a fraction of
the cost.
Yet experience shows that the benefits do not come as quickly as might be expected. That
happens because computerization is more than just a technical issue involving the installation
and linking of a few computers and the development or use of appropriate software. It also
means changes in work habits and the way people relate to one another; these behavioral and
institutional changes cannot easily be predicted or planned for beforehand. They are the result
of experimentation and innovation after adoption of the technology, and this can take time.
WHY THESE GUIDELINES?
Currently, those agricultural cooperatives considering computerization have no reference book
to turn to for guidance. This manual is intended to help fill that gap and ensure that their first
attempt to computerize will be a successful one. It is based on a review of computerization
experiences in Asia, Africa and South America.
Intended readers:
This manual is written for developing country cooperatives that are just starting to consider
whether or not or how to computerize. Its intended target audience includes managers,
trainers and policy makers with little experience in working with computers.
Structure and format:
The information in this booklet is presented in a simple, well-illustrated and easy-to-understand
style. It is supplemented by practical examples of how agricultural cooperatives in developing
countries tackle computerization problems at local level.
It is organized in the following sections:

1. Introduction to this manual.
2. Why should cooperatives computerize? Advantages and risks of computerizing.
3. The computerization project: stages of a typical computerization plan. Things to look for at
each stage, advice and suggestions.
4. A case example of a cooperative that designs a computerization project, developed in more
detail in the Annexes.
5. Conclusions and recommendations on the application of technologies in cooperatives.
6. Annexes: a glossary, references, a series of checklists, and more detail on the case study.
2-Computerization projects in
cooperatives

WHAT DO STAKEHOLDERS WANT?
Even though you may be convinced that computerization is a good idea, other stakeholders
may not be. Take time to find out what other stakeholders and potential users - elected leaders,
employees, regular members and clients - think about it: What type of information do they
want? Are they satisfied or dissatisfied with the existing manual information system? What
improvements would they like to see? And most importantly, are they willing to pay for those
improvements?
Elected leader, employee, regular member and client needs for information may differ
considerably and ideally, the proposed computerized system should try to address as many of
them as it can. Without broad stakeholder agreement on what are the priority information
problems of the cooperative that need to be addressed and whether some form of
computerization will solve them, the project idea will probably fail.
This information can be collected through a series of informal talks or meetings with a
representative sample of staff, elected leaders, regular members and cooperative business
clients or through a series of workshops or larger group meetings. Below is a listing of the key
areas that your questions should address:
 Type of information provided: What type of information do they currently receive from
the cooperative?
 Accuracy: Is the information provided accurate and useful? If not, why not?
 Timeliness: Is the information provided in a timely and frequent manner? If not, why
not?
 Additional information: What other information needs do them think the cooperative
should fulfill?
 Priority stakeholder needs: Which of the above current and additional information
needs do they think are the most important to them?
PRIORITIZING THEIR INFORMATION NEEDS
Once the information needs of each stakeholder group are defined, you will have to reach
consensus on the overall priority information needs of the cooperative, and decide how those
needs are going to be satisfied: through improving the existing manual system or through some
kind of computerization. This can usually best be done by calling a general meeting of
representatives from all stakeholder groups and management.
Make sure information needs are collectively addressed and equal weight given to the concerns
of each major stakeholder group (not always an easy task!).Then get stakeholders to organize
those needs into short term, medium term and long-term objectives. There are several
techniques that you can use to identify and prioritize these needs. One of the more effective
means is called "structured brainstorming," which is described in Chapter 4. The results of this

exercise should give you a much clearer idea of what the priority information objectives are
that the proposed project will tackle.
KEEPING STAKEHOLDERS INVOLVED
Stakeholders should not only be consulted in the design stage of the project but also
throughout its implementation:
· Managers and elected leaders: keep them informed of the project’s evolution at regular
intervals. It is advisable to provide them written reports on the status of the project and
following steps.
· Staff: employee support of the project is critical to success, so consult them frequently and
keep them well informed of developments during the design and testing stage. These are the
persons who will use the system on a day-to-day basis, and who usually know how things are
done in the cooperative.
· Members: make sure that at least a small group of respected members and leaders are
involved at the start of the project, and also use them as testers of the first functional versions
of the software. Since regular members often consult with and acquire information from these
"opinion leaders", keeping the latter involved will ensure that all members stay better informed
on project progress. The more informed members are, the less apt they are to be suspicious
and critical.
The first step taken by the management of Tulia Dairy Farmers’ Cooperative in
Kananga, Kenya in June 2004 was to hold a series of sub-regional stakeholder
workshops to identify and prioritize member and management information
processing needs.
PROJECT PROPOSAL DESIGN
The project life cycle
All projects have a life cycle, which means they are organized into a series of logical
implementation steps that begin with the formulation of the original idea and development of a
business plan, proceed to the identification and verification of stakeholder capacities and
needs, and then to address the project design, execution and evaluation stages.
Since the implementation of a computerization project may involve considerable cooperative
staff time and expense, your next task will be to convince the elected leaders, directors or
Management Committee that it is a good idea. You will need their strong OK before proceeding.
That will require the preparation of a brief 1-2 page "project proposal" for their consideration
which summarizes the aims, objectives and expected benefits, costs and potential risks of the

project. This may seem like a waste of time, but actually it is not, since it will help you answer
many of the questions that they are likely to raise.
KEY FACTORS AFFECTING PROJECT OUTCOME
So let us take a look at all of the factors that might affect your project’s outcome. Some of them
are not controllable by the cooperative, but need to be considered right from the start but
others are. Some of the elements to consider are:
Internal factors
Now that you have a good idea of what the priority information needs are of each stakeholder
group and of the cooperative, there is a need to look at several other issues, like:
 The existing business information system. What are the strengths and weaknesses of
the existing system? What needs to be changed?

 Alternative solutions. Why computerize? There may be several other ways to solve the
problem. Examine each option, its costs and benefits. How will computerization address
those weaknesses and how will stakeholders benefit?
 Management, elected leaders and member support. Do all stakeholders think that
computerization will help solve the cooperative’s priority information needs? Who are
the supporters and who are the doubters? Are members willing to invest some of the
cooperative’s net earnings to finance the costs of computerization?
 Resources available. What are the financial, people, software, and hardware resources
that can be invested in the project? Will that be enough?
External factors
Another important area to examine is the external environment within which the cooperative
operates. There are a number of factors largely beyond your control but which may influence
the success or failure of the project; therefore, you should know about them.
Policy and legal conditions:
 Economic conditions of the country and region. Are economic and market conditions
favorable? How will they affect project costs and returns?
 Relevant laws and regulations governing information sharing and processing, patent
protection, contracting and tax reporting should also be assessed.
Technical requirements:
 Electrical power: If the electrical supply is not reliable, you might have to buy a
generator (to provide electricity), a stabilizer or voltage regulator and/or a UPS
(uninterruptible power supply) with battery and stabilizer that might provide up to 2
hours of electricity in case of power breakdown. A good ground connection is also
advisable. An electrician might provide advice on your specific needs.
 Telecommunications: If you want to connect to the Internet you will need a phone line
or other means of connecting (wireless, broadband, microwaves, radio, ADSL) according
to your area. See your local ISP (Internet Service providers) in your region and get a
quotation for the type of connection that you want. Note: connecting to a regional ISP
might require long distance calls.
 Technical support: Consider the availability of suppliers and IT professionals in your
area, and the cost of their services. How expensive it is to acquire and maintain
computing equipment? Are there other cooperatives or businesses in your region that
have already computerized? If so, they can be a very useful source of information.
PREPARING THE PROJECT PROPOSAL
Now that you have gathered the necessary information about stakeholder information needs,
consolidated and prioritized them and checked to see if the external environment is favorable,

it is time to develop a well thought-out proposal to obtain elected leadership approval to
proceed.
Since the costs of this project will have to be covered by the cooperative, you may receive many
questions from members and elected leaders about the desirability of the project. That is
normal, but it does mean that you will have to develop a convincing argument supporting the
project.
After having examined the expected costs, the potential risks and expected benefits of the
project, it is worthwhile developing a "Business Plan" justifying the project, which could be
presented to the elected leadership of the cooperative to obtain their approval and support. An
example of the structure of a typical business plan is provided in the figure below.
Should the Board decide to go ahead with the project idea, and provide the necessary financing
to start work, then the next step would be to prepare a detailed implementation plan.
3-Preparing the project implementation
plan

Before developing such a plan, pause a moment and reflect on what are some of the key
questions the plan will have to address:
 What are the expected benefits to stakeholders?
 What are the risks?
 What scale of technological solution do you need?
 What cooperative services are covered?
 Which personnel will be involved in the process?
 How can we ensure good performance?
 How can the system be maintained in the long run?
Once you have given some thought on how you are going to answer these questions, it is time
to take the next step: preparation of a detailed project implementation plan.
Take your time, because mistakes can be costly. Please also keep in mind that the design
process should be as participatory as possible in order to guarantee its success. Consult with
others before forging ahead. "Two or more heads are usually better than one." Below are listed
some of the tasks you will have to complete:

Designing the project implementation plan is a VERY important step that requires a
lot of thought. Changes made once systems are implemented are much more
expensive!
DEFINING PROJECT OBJECTIVES AND THE BUSINESS
GOAL
 Deciding on project size and time frame. The amount of surplus funds the cooperative
has available, the experience of its employees, and the influence of local computer
hardware suppliers will have an impact on project size and time frame. One major cause
of computerization project failure is the tendency to start on too large a scale. It would
be advisable to proceed cautiously in a step-by-step manner; that way mistakes will be
smaller and the cost of correcting them more manageable.
 Identify feasible and measurable objectives and goals. Separate them into: project
objectives (for example, computerize accounting records, increasing speed of
processing large volumes of data, improving accuracy, access to a new market,
industrialization of products, etc.) and business goals (for example, to increase profits
by 20%, reduce financial costs by 30%, increase members by 10%).
 Obtain agreement from all stakeholders (members, staff, everyone) on the objectives
and benefits of the project. Try to achieve consensus. Stakeholders must be involved in
the project as soon as possible.
 Develop a method for monitoring project implementation progress. Define
measurable success indicators to monitor progress. If possible, assign an economic
value to some. Some examples are: monetary savings, new members, business profits,
more clients, etc.
The use of computer systems has allowed Manfred Dairy Cooperative of Commerce
and Industry Ltd., Argentina to have information on cooperative business
performance, which enabled it to gain access to bank loans.
GETTING STARTED
 Establish a project team whose main responsibility will be to assist you in preparing the
plan and overseeing project implementation, interacting with external developers
(consultants), managers and members.
 Identify all tasks required to attain each objective: key human resources, capital
requirement and budget, formal risk analysis, software test plans, training plans, pilot
and implementation plans. Define time and resources for each. Define and estimate
costs. Assign tasks to individuals or groups of individuals.
 Identify all risk areas and consider measures taken to minimize risk.
 Define references to other key documents that are needed: e.g. risk assessment
document, training plan, software testing plan.

 Establish a backup system: keeps the manual system running in-parallel during the
development and testing phases. If something goes wrong with the new system during
these phases, no data will be lost and cooperative business operations will continue to
operate smoothly.
IDENTIFYING THE MAIN REQUIREMENTS OF THE
SYSTEM
Since software is designed to operate only on certain platforms (a platform consists of
hardware, computer programming language and operating system), choosing the most
appropriate platform is important. Also, once the software has been programmed for a certain
platform, it is not easy to adapt it to another platform. You will need professional advice to
design a technological solution, but at least the following variables have to be considered when
designing it:
 Hardware: equipment cost and ease of upgrade. How many computers will you buy?
What brand and model?
 Operating system: cost of licensing, years on the market, language, stability.
 Access levels: Different users need different levels of access to information. For
instance, the elected leaders will need to be able to see all the cooperative’s accounts,
while an individual member will only need to see his or her account. These access levels
must be defined for each information resource and user profile.
 Usability requirements: The users’ ability to navigate and exercise functions of the
information system. If usability is taken into account, the software achieves faster
acceptance among users since it is intuitive, easy to navigate, has online help and
provides most desired functions and reports.
Source code: consists of a series of consecutive programming statements that are
written by a programmer in a certain programming language to carry out a
particular task. These files are later compiled (converted to machine language).
Machine language: a set of instructions that a computer can understand. When you
purchase software, it is usually in the form of compiled object code and the source
code is not included, so the programmed cannot be modified or customized.
Open Source: any programmer whose source code is made available for use or
modification as users or other developers see fit.
DEVELOPING A TRAINING PLAN FOR STAFF AND
MEMBERS

 Ensure a formal Project Manager is assigned to project. Obtain commitment on use of
human resources where appropriate.
 Identify what the manager and employee skills are that will be required to operate
and maintain the new system, what their existing skill capacities are, and what
additional skill training needs to be done.
 Develop a training plan. Define employees re-training and adaptation process in order
to overcome the fear of losing jobs and encourage their participation and support.
 Assign staff to continue running the manual system during the project as a back-up.
This is essential to ensure that the day-today operations of the cooperative and member
services are not negatively affected by any problems that might occur as a result of
project implementation.
 Anticipate the eventual need for procedural changes and analyses their implications
on organization, structure and incentives: Computerization does not just involve
installing computers and software: the whole "way of doing things" is altered; this
means that special emphasis must be put on the staff, with training and support to
ensure that they can adapt as required.
PREPARING THE PROJECT WORK PLAN AND
BUDGET
An easy way to prepare a work plan is by organizing the information you have collected on
what you want to do in a hierarchical sequenced fashion: starting with the objective, then
moving on to the outputs that contribute to that objective, then to tasks that contribute to
achieving the output. A partial work plan for one of probably many objectives is shown below:
WORKPLAN
Objective Output Task Activity Who? When?
1. Computerized
information
system
1.1 System
installed and
functioning
1.1.1 Purchase
hardware and
software
1.1.1.1 Visit
hardware and
software
suppliers and get
best price
Manager 03.06.0
4
1.1.1.2 Obtain
board approval of
purchase
Manager 10.06.0
4
1.1.2
Installation and
wiring of
computer
network
1.1.2.1
Installation and
wiring
Technician 11.06.0
4
1.1.2.2 Electrical
testing
Technician 12.06.0
4
1.1.3 Hardware 1.1.3.1 Install Consultant 15.06.0

4
installation equipment
1.1.4 Software
installation
1.1.4.1 Install
software
Software
developer
22.06.0
4
1.1.5 User
training
1.1.5.1 Plan
training
Manager
teacher
12.06.0
4
1.1.5.2 Develop
training material
Manager
teacher
25.06.0
4
1.1.5.3 Arrange
training schedule
Manager
teacher
27.06.0
4
The next step is to look at the timing and sequencing of all of these outputs, tasks and activities
to see how everything fits together. This is often best done using a Gantt or bar chart, as shown
in Annex 4.4.
The final step is to assign costs to all of these sequenced actions to determine when funds will
be needed to cover the expenses. This information is then arranged in the form of a monthly or
quarterly expenditure plan or budget, as illustrated below:
COMPUTERIZATION PROJECT
Task/Activity description Planned expenditures
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Year Total
Purchase of hardware and software 4,500 4,500
Installation of hardware and wiring 500 500
Software development 1,500 1,500 3,000
Staff training 250 250
TOTAL 4,500 500 1,500 1,750 8,250
ESTABLISHING A PARTICIPATORY MONITORING
AND EVALUATION SYSTEM
In addition to the implementation plan and budget, you will also have to create a simple
mechanism to monitor project implementation performance. This is usually done by identifying
clear and measurable "milestone events," or outputs, tasks and activities that have to be
accomplished within a specified period of time and meet certain quality standards. If you have
prepared the project work plan correctly, you should be able to extract most of the information
you will need to monitor implementation performance from the work plan itself. In summary,
the more detailed it is, the easier it will be to track project performance.

Planning issues and tools
In the planning phase, you and your project team must make a number of important hardware
and software decisions. Since the software decision will have an impact on subsequent
development, test, implementation, education, and support activities, it must be made with
great care and foresight.
Small-scale or large-scale?
The scale and scope of computerization you decide on will depend on the size of your
cooperative, the staff experience and financial resources available, and a number of other
factors. If your cooperative is small, your staff has little or no experience in the use of
computers and you have limited financial resources to invest in the project, the safest approach
might be to purchase a single computer and printer, plus a commercially available software
application [4].

Once you and your staff have gained sufficient experience in operating the computer and
learning how it can help improve your information processing, you may then want to purchase
another and network them together so that they can share information more easily.
If your cooperative is large, some of your staff may have some experience in using computers
and you will have more resources available. You may therefore want to begin by installing a
small system of say, 2-3 computers, plus printer and server, linked together in a network, but
keeping an eye towards expansion in the near future. This cautious approach is recommended
for two reasons: (1) it is less expensive; and (2) if mistakes are made and problems occur - and
they most certainly will occur - they will have less negative impact on member services or on
cooperative business operations.
Buy packaged tools or develop own software?
There are three general approaches to software selection: (1) develop (programmer) your you
own software, (2) customize an existing application, or (3) buy packaged (commercial) software.
Using the table below can help you decide on the best option to choose:
Option Advantages Disadvantages
Develop own software:[5] hire
programmers to design a
customized solution
- Complete control over
features: software is built to
your specifications
- It can be maintained,
updated and extended as
needed
- It can be developed in local
languages
- Possibilities of replicating
software, since intellectual
property belongs to the
cooperative
- Writing software is a complex
process.
- Takes longer to implement
- You cannot learn from other
organizations that
implemented the software
before
- Might end up being more
expensive (programmers
notoriously take more time
than originally planned)
- Requires hiring computer
professionals on a medium
term basis
Customize existing software:
hire a software developer to
adapt an existing software
solution
- Faster than developing
entirely new software from
scratch
- Limited control over features
and generally no control over
the interface
- More difficult and might be
more expensive to
maintain[6] (update)
Buy packaged software:
[7] acquire an off-the-shelf
- Generally less expensive to
buy and maintain (update),
- No possibility to modify the
software; it can only be

software solution from a
known vendor
since it is mass produced
- Faster to implement: it is
already developed and tested
- If the software was
developed for other coops
with similar needs, probably
has more features than those
you initially require
- Easier to support and
maintain over a long term
configured as the programmer
allows
- Limited availability in local
language
- Cost of licenses might be
high as the system grows
Project planning tools
A number of business tools exist that can help managers define and keep track of the tasks and
resources involved, in an easy and organized way. Three common methods are: structured
brainstorming, the Bar (or Gantt) Chart and the PERT Chart.
Structured brainstorming
An easy way to begin defining project goals, objectives and tasks is in a small group through a
process of collective problem solving, or "brainstorming." All you need are: an unobstructed
wall, a supply of blank sheets of office stationery, some marking pens or charcoal points, and
adhesive tape. First, the facilitator pastes sheets of paper on the wall vertically showing the
logical structure of the project, as shown previously in Section 5 on the Work Plan and Budget,
beginning with: project objectives, followed by outputs that have to be produced to achieve the
objective, followed by the tasks to produce each output and an estimation of the time that will
be required to complete each one, followed by identification of the people who will be
responsible for performing the tasks.
Participants are asked to write: in 1-4 words per sheet, what they think the project objectives,
outputs and tasks should be. The facilitator tapes them in random order on the wall and then
asks participants to group and rank them in order of importance. This way everyone
participates in defining the issues addressed. The best approach is to work from objective to
output to tasks, to people, etc., grouping and ranking the ideas at each step and then
proceeding to the next one. At the end of this process, all participants will have a clearer idea of
how the project will be structured and implemented.
The Bar or Gantt chart
Frequently used in project management, a Gantt chart or "bar chart" as it is often called
provides a graphical illustration of a schedule that helps to plan, co-ordinate, and track specific
tasks in a project. Tasks or activities are listed in order of sequence on one side and the time
required to complete each activity is represented by a line or bar to the right. The longer the

bar, the more time the task or activity requires. By keeping this chart updated with real project
information, you will be able to track, detect and even estimate the cost of a delay in the
project. The following is an example of a very simple Gantt chart.
A more complex chart developed with Project Planning software (e.g. MS Project) can be found in Annex
3.
The PERT Chart
PERT stands for Program Evaluation Review Technique, a methodology developed by the U.S. Navy in
the 1950s. It is another planning tool used to schedule, organize, and co-ordinate tasks within a project.
One advantage of the PERT chart is that it illustrates task and activity dependencies in a visually more
graphic way. An example of a PERT chart is provided in Annex 4.2.
4. Project execution

Once the project implementation plan has been completed and the required resources have
been obtained, it is time to put the plan into effect.
Some of the activities that occur during this stage are: hiring consultants, purchasing hardware
and basic software, installing hardware, training staff, bench-testing the software
implementation and monitoring the progress of the project. Each of these issues will be
discussed in the following sections.
SOFTWARE DEVELOPMENT ISSUES
Suppose your organization has decided to develop its own software, and hire a computer
professional to do the work. Then there are a few issues you must consider in order to protect
your interests and make things easier for the future evolution of the system. Let us examine
these issues more closely:
Software development strategy An incremental, step-by-step approach that can
quickly demonstrate to doubting managers, staff and members, through a series of
visible outputs or events, how they can benefit from computerization is preferred.

SANCOR United Cooperatives Ltd., Argentina has standardized its administrative
operations to optimize relations with secondary cooperatives, by providing each of
them with the same administrative software package.
Documentation: most programmers and system architects are reluctant to write things down,
not only because it is an arduous, non-creative task, but also since not doing it increases the
business’s dependence on their continued employment.
So, insist on proper documentation and make it a strict condition of any contract that you have
with them. Such documentation must include: information on the system’s internal design
processes, data table structures and relationships, source code, installation requirements.
A well-documented system is easier to maintain, makes problem solving easier, and most
important of all, gives you freedom to hire subsequently contractors other than the original
ones if the developer does not satisfy your needs. Documenting is also fundamental if you plan
to share or sell your software to other organizations. It is also a good idea to include the
development of administrators’ and users’ manuals as part of the documentation bundle.
Contracting issues: if you decide to hire software developers, it is strongly recommended that
you prepare a detailed service contract with them that defines among other issues the:

 Scope and limitations: be sure to include the scope and limitations of the services you
hire, especially regarding user support, documentation, error correction and updates
over time.
 Source code: as previously mentioned, source code files are necessary to make future
changes to the system. If you pay for the development of the source code, you should
insist on securing copies of these files. This gives you the exclusive right to modify and
sell them if you wish.
Licensing and intellectual property rights: if you have hired a programmer to develop software
for the cooperative, make sure that the cooperative has the exclusive ownership and
possession of the source code files. Many software development agreements do not include
clauses requiring the sharing of source codes, to the chagrin of cooperatives which decide to
modify the code later on.
That may not be a problem as long as the service provider agrees to provide maintenance and
updating support (at a reasonable cost) in the post-project period. However, there are some
instances where the provider has had complete rights to the source code and then goes
bankrupt. In these cases, the cooperative is unable to recover the code and there is no way to
correct errors or improve the software. One way to cope with this problem is by placing the
source code in escrow, i.e. held "in-trust" by a third party. In case certain specified events
happen, the user is then allowed access to the code.
You might also have to register the intellectual property rights of the system so that it cannot
be sold to someone else or copied without your authorization. The procedure is different for
each country. Consult a lawyer to learn the specific procedures in your country. If, on the other
hand, you acquired pre-packaged software from a vendor, you will be bound by the licensing
contract you signed with the vendor: it might limit the quantity of computers the software is
installed in or have other licensing restrictions.
PROGRESS REPORTING
The project team should require all those involved in project implementation (especially hired
contractors or consultants) to report to it regularly on progress in completing required tasks,
activities and outputs. Such reporting requirements should be made a standard part of all
contracts and final payment made only upon satisfactory completion of assigned work.
On the other hand, the project team is responsible for keeping elected leaders and cooperative
members periodically informed on project progress achieved, problems encountered and
action taken to solve those problems. This can be done through a series of open meetings
(monthly or bi-monthly) held during the project development and implementation phases.
BENCH-TESTING

Bench-testing is the last stage of development where the system is tried by a few users to
identify the final adjustments that are needed. Testing should be conducted by people other
than those who have been directly involved in developing the software program for the simple
reason that the latter usually have a vested interest in shielding their work from excessive
critical analysis. A formal defect correction process also needs to be developed in case mistakes
are made which have a negative impact on project performance. Testing carried out by
programmers rarely works since programmers are usually blind to functional shortcomings in
their own code. A successful bench test result should be made the last condition that the
contractors or consultants should have to meet before they receive their final payment for
work done.
Once the bench-testing is over, you should be in a position to begin using the first functional
version of the program. During the first months of operation, it is best to keep the manual
system running in parallel until you are sure that the computerized system runs effectively and
can completely replace the manual processes.
Also, now that your data are stored in digital media (diskettes, hard disks, tapes, CDs) instead of
on paper, do not forget to define a regular backup strategy to protect the data stored in case of
system failure or disaster. The backup strategy should include the following:
 regular duplication of the data files, according to the value and rate of update of each;
 data should be backed up on diskettes, tape, zip drives or hard disk media according to
the volume of information and cost of the media hardware;
 a copy of the files should be stored at least once a month outside the building where the
system is located;
 A copy of the most critical system and data must be kept, in order to be able to continue
work in case of failure of the main hard disk or server.

TRAINING
The amount and type of training that staff and members will need to operate and maintain the
new system will depend on a host of factors, including the existing skill capacities and
experience of cooperative staff and members, the tasks to be performed and the particular
characteristics and maintenance requirements of the hardware and software system used.
The subject matter content and focus of training should be based on a careful pre-assessment
of existing end-user skill capacities and training needs. Training of end-users and other
stakeholders is crucial for the system to function effectively. The following stakeholders need to
have targeted training:
 Cooperative administrative staff: The cooperative staff must be trained thoroughly in
the usage of the new information system. Training should include a general introduction
to computers, operating system basics, as well as specific training in the use of the
system.
 Elected leaders: Executive leadership of the cooperative should have good familiarity
with what the software can do and what it cannot. Elected leaders should receive basic
training in the use of the software, with emphasis on financial and business reporting

and interpreting data for decision-making purposes. Keeping elected leaders informed
about the project and its advantages and problems will help ensure the project’s
survival in the long term.
 Cooperative management: Cooperative management should receive the same training
as cooperative staff plus more specialized training on financial and business record
keeping and analysis, and on preparing reports for the elected leadership and regular
members.
 Cooperative members: Members should be trained in the use of the system if they will
access it. Otherwise, they should be informed regularly about the project’s evolution
and the value added services it provides, so that they will be able to perceive the return
on their invested capital. Training should include a general introduction to the system,
its objectives and how it works, a view of the main features of the system, reports
generated of interest to members, how to interpret and analyses the information they
present, and how to connect and access the system (if they will have access to it).
 Information systems staff: At least one employee (but preferably two) should be
trained in the usage, testing, maintenance, and troubleshooting of the information
system. Their main responsibility will be to provide support to other staff users of the
system as questions arise, and to solve technical issues related to system backup,
recovery, network operation, and electrical problems, and take the lead in reporting and
defining suspected defects in the automated system.
 Training is a continuous process: Computer training should not be regarded as a one-off
event, but rather as a continuous process. ICT technology develops so fast that continual
training courses are necessary to keep users up to date. With new computer models and
software updates appearing in the market almost monthly all users have to keep up to
date with these changes. That requires continual training courses, not only at the initial
stages but also as people; processes and systems change and evolve.
OTHER ISSUES TO CONSIDER DURING THE
EXECUTION STAGE
 Employee resistance to change: Computerization projects by their very nature involve
change. Employee fear of changing job roles and skill sets due to computer automation
can damage the success of the project. Strategies to overcome this problem include:
keeping them informed about the project status, objectives and their new roles,
involving them in the project right from the start (designing, reviewing, testing), and
ensuring that they receive adequate training.
 Behavioral changes: The use of a computerized information system might alter some of
the power balance of an organization. Since the crucial information will be contained in
a computer, those who can access will have more "power" over those who cannot. This
is a normal situation, and training and good communications are key elements to help
solve this situation.

5. Project monitoring and evaluation
PARTICIPATORY ONGOING MONITORING
Monitoring the project is necessary at all stages of the project life cycle. Continuous monitoring
ensures that deviations are detected and corrected in time, minimizing any negative impact on
the project. To be truly effective, it should do in an open manner with broad stakeholder
participation.
Monitoring is an ongoing process that should be done regularly at fixed intervals, and should
focus on assessing implementation performance in several areas: client/user satisfaction,
performance indicators evaluation, and ways to measure the effect of the system on

profitability. Some of the indicators that could be used to measure performance are listed
below:
Client/user satisfaction:
 improvements in the accuracy of information received
 Increase in frequency of information received
 Increased speed in processing and reporting information
 Improved format and presentation of information
Tasks completed, outputs generated and impacts
 extent to which tasks and outputs listed in the work plan have been completed
satisfactorily
 other direct and indirect impacts produced by the project
Cost savings generated impact on cooperative profitability, performance, etc.
 Reduction in staff time required to collect, process, analyses and report information
generated by the system
 Improved response time in processing and handling product orders, delivery
 Better control of stock
 Improvement in member services
 Introduction of new approaches to member capital formation
Monitoring and evaluation: key points
 Ensure Project Management continuity wherever possible. Changes of
management in the middle of the project can cause delays.
 Establish clear milestones and measurable performance indicators to ensure
that staff and consultants meet their obligations on time.
 Arrange formal project reviews on a regular basis. For example, set meetings
at the end of each stage of system development, and then every month of
the first year the system is operating.
 Perform sensitivity analysis of actual results to plan more effectively. If the
results do not satisfy expectations, it is easier to fix in the first months the
systems is operative.
 Formulate recovery plans where task completion is behind schedule.
FINAL EVALUATION

At the end of the computerization project, it is necessary to evaluate how successful the project
was and if it satisfied its intended objectives, in order to inform other stakeholders, especially
elected leaders, directors and members.
You do this by comparing the value of each indicator you have defined (such as the number of
transactions, accuracy, speed, cost savings) before the software was implemented, and after it
was implemented. You can also include predictions on future performance. The choice of
indicators will depend to some extent on the business goal or objective of computerization.
For example, if the business objective was to reduce the time required to generate a trial
balance and income statement, some indicators can be: improved transaction time, members’
satisfaction, monetary savings due to a better administration of assets, timely compliance with
legal requirements.
Evaluations can be performed by members of the cooperative, but an external opinion is always
helpful and adds objectivity to the reports.
Reference By: http://www.fao.org/docrep/007/y5471e/y5471e03.htm#TopOfPage