An Open Source platform for Micro Finance Pierre PEZZIARDI, Founder & CTO, OCTO Technology Vincent BIOT, Oxus

About this 3 things I like Results : systems that change the world People in their diversity : team, continuous improvement IT and mob-computing : Open Source, Wikipedia, Cloud 3 things we’ll share A new definition of Open : from free to easy/enjoyable Platforms and Open Source Leadership

3 things I like

Results : systems that change the world

People in their diversity : team, continuous improvement

IT and mob-computing : Open Source, Wikipedia, Cloud

3 things we’ll share

A new definition of Open : from free to easy/enjoyable

Platforms and Open Source

Leadership

Micro Finance Market 3 Billion persons in the world with no access to financial services 10 000 Micro Finance Institutions (MFI), +30% per year Huge issues with Management Information Systems for 90% of them Unsecure, obsolete, not adaptable Failure of classical business models of IT in this context Packaged software, licence fees, fool’s bargains eluding risks and change, and technical complexity requiring specialists

3 Billion persons in the world with no access to financial services

10 000 Micro Finance Institutions (MFI), +30% per year

Huge issues with Management Information Systems for 90% of them

Unsecure, obsolete, not adaptable

Failure of classical business models of IT in this context

Packaged software, licence fees, fool’s bargains eluding risks and change, and technical complexity requiring specialists

What is the problem ? Though s mall organizations , MFIs need to gather many expertises Customer management, delinquency management Financial products marketing and management Profitability and Social Impact management Risk management Accounting and Regulatory Compliance … and IT - a mirror of all those expertises - not managed by 90% of them Some succeed, some don’t, or won’t High risks situations : fast growth, credit risk, operational risks, operational costs increase, unknown social impact, low access to donors Connecting micro-finance expertises through IT is a valuable help

Though s mall organizations , MFIs need to gather many expertises

Customer management, delinquency management

Financial products marketing and management

Profitability and Social Impact management

Risk management

Accounting and Regulatory Compliance

… and IT - a mirror of all those expertises - not managed by 90% of them

Some succeed, some don’t, or won’t

High risks situations : fast growth, credit risk, operational risks, operational costs increase, unknown social impact, low access to donors

Connecting micro-finance expertises through IT is a valuable help

History of OCTOPUS 2005 : OCTO Technology & ACTED partner 2006-2008 : OCTOPUS incubated in OCTO Pilot MFI in Tajikistan, Afgh anistan and Kirghizstan with Paris team Creation of Octopus Central Asia Team : 5 people ! 2009 : Creation of OCTOPUS Micro Finance as a private company 14 regular contributors uneasy to raise funds, Octopus still supported by ACTED & OCTO

2005 : OCTO Technology & ACTED partner

2006-2008 : OCTOPUS incubated in OCTO

Pilot MFI in Tajikistan, Afgh anistan and Kirghizstan with Paris team

Creation of Octopus Central Asia Team : 5 people !

2009 : Creation of OCTOPUS Micro Finance as a private company

14 regular contributors

uneasy to raise funds, Octopus still supported by ACTED & OCTO

What is limiting the Octopus Network ?

Our goal Increase financial services affordability for the poorest By creating autonomy among Octopus users Octopus is a software by the people, not only for the people It can streamline innovation inside MFIs: reduce operation costs, create new products, provide social impact reporting … .. via a world wide community of practitioners in Agile and Lean techniques More than Open Source product , we lead a continuous improvement process , connecting MFIs and IT specialists

Increase financial services affordability for the poorest

By creating autonomy among Octopus users

Octopus is a software by the people, not only for the people

It can streamline innovation inside MFIs: reduce operation costs, create new products, provide social impact reporting …

.. via a world wide community of practitioners in Agile and Lean techniques

More than Open Source product , we lead a continuous improvement process , connecting MFIs and IT specialists

Why Open Source ? costs value Procurement -led : the user is a customer (1960-2000) t value costs Adoption -led : the user becomes a customer (2000+) t Test alone Deploy with an expert Innovate with another expert RFP, MIS in-a-box maintenance, new licenses

Benefits Freedom MFIs buy what they need, when they need it, and from whom they want Community It’s easy to step into the community and contribute : one translation, one paragraph in the documentation, one new feature, one piece of code, one end-user support … Continuous Improvement The software improves with its community Octopus specialists are also skilled in “soft techniques” : focus on the value of IT and permanent change ( lean management )

Freedom

MFIs buy what they need, when they need it, and from whom they want

Community

It’s easy to step into the community and contribute : one translation, one paragraph in the documentation, one new feature, one piece of code, one end-user support …

Continuous Improvement

The software improves with its community

Octopus specialists are also skilled in “soft techniques” : focus on the value of IT and permanent change ( lean management )

Social impact : some of our users Oxus (Afghanistan) MUNCSMED (Fiji) African Gate Support (Ghana) Informatici Senza Frontiere (Madagascar) AIRDIE (France) Oxus (Kyrgyzstan) Bardar (Kyrgyzstan) Pik and Cie (Kyrgyzstan) Sambahav (India) MSS (India) IIMC (India) Oxus (Tajikistan) ABM Credit (Kazakhzstan) Baï jurt (Kyrgyzstan) GFI (Cameroun) …

Octopus Network is growing … … But not fast enough to reach momentum yet …

… But not fast enough to reach momentum yet …

So what can we do better ?

Of course we have a competitive product 75 000 LOCs , 914 classes 2100 Unit Test 250+ Story Tests 53 iterations Multi-lingual Multi-deployment Multi-product Multi-accounting models Consistent colors …

75 000 LOCs , 914 classes

2100 Unit Test

250+ Story Tests

53 iterations

Multi-lingual

Multi-deployment

Multi-product

Multi-accounting models

Consistent colors

…

Yes, true

Of course we are Agile Method Shared vision Monthly iterations Continuous Integration (Cruise Control) Automated tests (NUnit, GreenPepper) Refactoring (Resharper) Information sharing, collective ownership Continuous improvement : Retrospectives What The Fuck workshops Undesirable effects workshops Visual management …

Method

Shared vision

Monthly iterations

Continuous Integration (Cruise Control)

Automated tests (NUnit, GreenPepper)

Refactoring (Resharper)

Information sharing, collective ownership

Continuous improvement :

Retrospectives

What The Fuck workshops

Undesirable effects workshops

Visual management …

STORIES = TESTS No automated tests = death in 6 months

STORIES = TESTS

No automated tests = death in 6 months

Of course we are open LGPL

Of course we want to empower our users Unlike traditional ISV, our goal is reached when our customers don’t call us Like Cloud players Salesforce, LinkedIn, Google Maps, SlideShare, BlogSpot, etc … We want them gain their autonomy … To be able to use and change their MIS as they need within their own local sub-community

Unlike traditional ISV, our goal is reached when our customers don’t call us

Like Cloud players Salesforce, LinkedIn, Google Maps, SlideShare, BlogSpot, etc …

We want them gain their autonomy …

To be able to use and change their MIS as they need within their own local sub-community

BUT … http://www.youtube.com/watch?v=xFAWR6hzZek

MIS can be as alienating as empowering You don’t have sponsors by default MIS came « because of western concerns » « we were ok with Excel » And if you have, you should beware They are often victims of MIS myths “ it will do all I dream” (it will solve all my problems) “ once installed, it won’t bother us again” (it doesn’t have to change)

You don’t have sponsors by default

MIS came « because of western concerns » « we were ok with Excel »

And if you have, you should beware

They are often victims of MIS myths

“ it will do all I dream” (it will solve all my problems)

“ once installed, it won’t bother us again” (it doesn’t have to change)

The constraint Is not technology Is not access to hardware or networks Is not technical know-how of end-users : Excel is OK, RDBMS is KO Is more around the lack of an IT culture MIS is a story that will stick to your business story, not an end, a beginning OK, but doesn’t it look the same in our western companies ?

Is not technology

Is not access to hardware or networks

Is not technical know-how of end-users : Excel is OK, RDBMS is KO

Is more around the lack of an IT culture

MIS is a story that will stick to your business story, not an end, a beginning

OK, but doesn’t it look the same in our western companies ?

Elevate the constraint To be useful (and competitive) requires a local assistance, a regular and permanent face to face Using continuous improvement techniques (a.k.a. lean management or end to end Agile ) Workshops (same protocols as with the team) : undesirable effects, story map, … Leading to decisive improvements like Auto-rollout

To be useful (and competitive) requires a local assistance, a regular and permanent face to face

Using continuous improvement techniques (a.k.a. lean management or end to end Agile )

Workshops (same protocols as with the team) : undesirable effects, story map, …

Leading to decisive improvements like Auto-rollout

So what’s to be learned?

Colleagues … Apache OFBiz .ORG : gaining momentum with an open mindset With Ask for help , Understand more than convince attitudes In short the best way to collaborate with others , especially in a volunteer situation like an open source project, is to start by investing in the direction you want and then giving that investment away and soliciting involvement from others (including a write up on what you've done and your vision of what it can/should be and perhaps even on how others might get involved). By "casting your bread upon the waters" in this way you open the way for others to join in and give back, to collaborate back with you. Others may not collaborate back in the way or on the timeline that you had in mind , so be patient on both aspects. Consider what others suggest and appreciate their suggestions and discuss them in the open . This will foster more collaboration and allow the end result to be far superior to what you are capable of on your own... no matter how talented and/or experienced you are. David E. Jones (VP) SugarCRM .COM gaining momentum with an open business mindset Making it easy for partners to make business with their product/process

Apache OFBiz .ORG : gaining momentum with an open mindset

With Ask for help , Understand more than convince attitudes

In short the best way to collaborate with others , especially in a volunteer situation like an open source project, is to start by investing in the direction you want and then giving that investment away and soliciting involvement from others (including a write up on what you've done and your vision of what it can/should be and perhaps even on how others might get involved). By "casting your bread upon the waters" in this way you open the way for others to join in and give back, to collaborate back with you. Others may not collaborate back in the way or on the timeline that you had in mind , so be patient on both aspects. Consider what others suggest and appreciate their suggestions and discuss them in the open . This will foster more collaboration and allow the end result to be far superior to what you are capable of on your own... no matter how talented and/or experienced you are. David E. Jones (VP)

SugarCRM .COM gaining momentum with an open business mindset

Making it easy for partners to make business with their product/process

When OSS and cloud rejoin …

AppStore pattern … A virtuous model for attracting partners Remember the Minitel ..?

A virtuous model for attracting partners

Remember the Minitel ..?

A new definition of Open Free : freedom to use, right to contribute Social movement : freedom, equality, fraternity Open Source : need to contribute Business movement : efficiency, reliability, profitability Open 2.0 : easy to contribute Cloud : easy to jump in, easy to customize, easy to mashup, … Open source is a frequent option, not a must have

Free : freedom to use, right to contribute

Social movement : freedom, equality, fraternity

Open Source : need to contribute

Business movement : efficiency, reliability, profitability

Open 2.0 : easy to contribute

Cloud : easy to jump in, easy to customize, easy to mashup, …

Open source is a frequent option, not a must have

The platform concept The communities already exist Molecular physicians Risk managers in small MFIs Green activists .. Try not to lead where you want them to go Try to help them achieve their goal #WWGD

The communities already exist

Molecular physicians

Risk managers in small MFIs

Green activists

..

Try not to lead where you want them to go

Try to help them achieve their goal

#WWGD

The GOAL for Open Source 2.0 Is more to attract partners Make it easy to do business with your FLOSS .. Than direct customers Face to face is needed, you can’t scale Partners will attract more customers But maybe not direct money for you yet …

Is more to attract partners

Make it easy to do business with your FLOSS

.. Than direct customers

Face to face is needed, you can’t scale

Partners will attract more customers

But maybe not direct money for you yet …

Surviving : CLOUD + OPEN SOURCE Beyond service, Open Source can attract new revenues on the cloud What would your end-customers do if they had a collaborative platform to achieve their goals? In micro-finance : risk management, clearing, mobile banking, peer to peer lending (Kiva, Babyloan ..) Which requires to think new, the « wikipedia, long tail way » leave the control , bet on trust, make it easy to use and contribute

Beyond service, Open Source can attract new revenues on the cloud

What would your end-customers do if they had a collaborative platform to achieve their goals?

In micro-finance : risk management, clearing, mobile banking, peer to peer lending (Kiva, Babyloan ..)

Which requires to think new, the « wikipedia, long tail way »

leave the control , bet on trust, make it easy to use and contribute

Lessons : wrap up Open Source is no longer a challenger attitude, it’s mainstream in the Cloud, as customers mostly need Open in the new definition real politic … Being a platform requires big money Attach to a platform if you don’t have such money Think mashup : integration should be cheap and easy Business Open Source requires a post-geek attitude : willing to understand business proactively Must be part of a personal desire : non-western are really good and motivated ! Or inspired by a strong vision : E. Goldratt (TOC Accounting), M. Yunus (micro-finance) … Soft on the people, hard on the process : the [ever evolving] discipline of the community is one the biggest asset

Open Source is no longer a challenger attitude, it’s mainstream in the Cloud, as customers mostly need Open in the new definition

real politic …

Being a platform requires big money

Attach to a platform if you don’t have such money

Think mashup : integration should be cheap and easy

Business Open Source requires a post-geek attitude : willing to understand business proactively

Must be part of a personal desire : non-western are really good and motivated !

Or inspired by a strong vision : E. Goldratt (TOC Accounting), M. Yunus (micro-finance) …

Soft on the people, hard on the process : the [ever evolving] discipline of the community is one the biggest asset

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