Computerization Projects in Cooperatives- ICT
Added on 2020-01-28
27 Pages7719 Words152 Views
FinanceLeadership ManagementProfessional Development
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Project Design Implementation and Evaluation1. IntroductionAgricultural cooperatives in developing regions are being hit from all sides. They are receivingfar less support from government than they have in the past, and with the liberalization ofagricultural markets, many of them are struggling to survive in an increasingly competitivebusiness environment. Member services are declining and farmers are leaving. The world ischanging and these changes tend to favor small, decentralized organizations that are able torespond rapidly to the ever-shifting demands of the market.In large measure, this transformation is being enforced by the liberalization and globalization ofmarkets and the growing use of information and communication technologies (ICTs). Ifagricultural cooperatives are to survive, they must learn how to compete. One obstacle toachieving this is that information-processing in farmer cooperatives in developing countries isnotoriously slow; most large cooperatives still operate with manual or semi-manual accountingsystems. 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 It is difficult for managers to be competitive when theymust work with outdated or inaccurate information.The immediate advantage that computerization brings is the enhanced ability to handle largeamounts of information. The introduction of modern information and communicationstechnologies (ICTs) in cooperatives can significantly improve results: they can facilitate thecollection, analysis, storage and reporting of information much faster and more accurately thancould be accomplished using manual systems.Computerization also can help cooperative managers streamline operations, cut operatingcosts, enlarge their networks of members and affiliated institutions, increase sales and respondto signals from far away markets. Connecting to the global network of the Internet also has itsadvantages, allowing faster communication with members, partners and clients at a fraction ofthe cost.Yet experience shows that the benefits do not come as quickly as might be expected. Thathappens because computerization is more than just a technical issue involving the installationand linking of a few computers and the development or use of appropriate software. It alsomeans changes in work habits and the way people relate to one another; these behavioral andinstitutional changes cannot easily be predicted or planned for beforehand. They are the resultof 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 bookto turn to for guidance. This manual is intended to help fill that gap and ensure that their firstattempt to computerize will be a successful one. It is based on a review of computerizationexperiences in Asia, Africa and South America.Intended readers:This manual is written for developing country cooperatives that are just starting to considerwhether 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-understandstyle. It is supplemented by practical examples of how agricultural cooperatives in developingcountries 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 ateach stage, advice and suggestions.4.A case example of a cooperative that designs a computerization project, developed in moredetail 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 incooperatives
WHAT DO STAKEHOLDERS WANT?Even though you may be convinced that computerization is a good idea, other stakeholdersmay 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 theywant? Are they satisfied or dissatisfied with the existing manual information system? Whatimprovements would they like to see? And most importantly, are they willing to pay for thoseimprovements?Elected leader, employee, regular member and client needs for information may differconsiderably and ideally, the proposed computerized system should try to address as many ofthem as it can. Without broad stakeholder agreement on what are the priority informationproblems of the cooperative that need to be addressed and whether some form ofcomputerization will solve them, the project idea will probably fail.This information can be collected through a series of informal talks or meetings with arepresentative sample of staff, elected leaders, regular members and cooperative businessclients or through a series of workshops or larger group meetings. Below is a listing of the keyareas that your questions should address:Type of information provided: What type of information do they currently receive fromthe 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, whynot?Additional information: What other information needs do them think the cooperativeshould fulfill?Priority stakeholder needs: Which of the above current and additional informationneeds do they think are the most important to them?PRIORITIZING THEIR INFORMATION NEEDSOnce the information needs of each stakeholder group are defined, you will have to reachconsensus on the overall priority information needs of the cooperative, and decide how thoseneeds are going to be satisfied: through improving the existing manual system or through somekind of computerization. This can usually best be done by calling a general meeting ofrepresentatives from all stakeholder groups and management.
Make sure information needs are collectively addressed and equal weight given to the concernsof each major stakeholder group (not always an easy task!).Then get stakeholders to organizethose needs into short term, medium term and long-term objectives. There are severaltechniques that you can use to identify and prioritize these needs. One of the more effectivemeans is called "structured brainstorming," which is described in Chapter 4. The results of thisexercise should give you a much clearer idea of what the priority information objectives arethat the proposed project will tackle.KEEPING STAKEHOLDERS INVOLVEDStakeholders should not only be consulted in the design stage of the project but alsothroughout its implementation:·Managers and elected leaders: keep them informed of the project’s evolution at regularintervals. It is advisable to provide them written reports on the status of the project andfollowing steps.·Staff: employee support of the project is critical to success, so consult them frequently andkeep them well informed of developments during the design and testing stage. These are thepersons who will use the system on a day-to-day basis, and who usually know how things aredone in the cooperative.·Members: make sure that at least a small group of respected members and leaders areinvolved at the start of the project, and also use them as testers of the first functional versionsof 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 informedon project progress. The more informed members are, the less apt they are to be suspiciousand critical.The first step taken by the management ofTulia Dairy Farmers’ Cooperative inKananga, Kenyain June 2004 was to hold a series of sub-regional stakeholderworkshopsto identify and prioritize member and management informationprocessing needs.PROJECT PROPOSAL DESIGNThe project life cycleAll projects have alife cycle, which means they are organized into a series of logicalimplementation steps that begin with the formulation of the original idea and development of abusiness plan, proceed to the identification and verification of stakeholder capacities andneeds, and then to address the project design, execution and evaluation stages.
Since the implementation of a computerization project may involve considerable cooperativestaff time and expense, your next task will be to convince the elected leaders, directors orManagement 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 considerationwhich summarizes the aims, objectives and expected benefits, costs and potential risks of theproject. This may seem like a waste of time, but actually it is not, since it will help you answermany of the questions that they are likely to raise.KEY FACTORS AFFECTING PROJECT OUTCOMESo let us take a look at all of the factors that might affect your project’s outcome. Some of themare not controllable by the cooperative, but need to be considered right from the start butothers are. Some of the elements to consider are:Internal factors
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