TOTAL COST OF OWNERSHIP- TOTAL COST OF OWNERSHIP- HARDWARE,SOFTWARE & HARDWARE,SOFTWARE &

TRAININGTRAININGKikuyu FCS 31Kikuyu FCS 31stst September 2009 September 2009

Rop KiplagatRop Kiplagat

Flametree Systems engineering LtdFlametree Systems engineering Ltd

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!

ComputerizationComputerization

• Management must be motivatedManagement must be motivated

• Aware of Costs & BenefitsAware of Costs & Benefits

Why computerization?Why computerization?

For whomFor whom

• Farmer Companies with 100-plus membersFarmer Companies with 100-plus members

• Having an accountant on boardHaving an accountant on board– Accounting knowledge = essential– Computer knowledge = not essential

BenefitsBenefits

• Administration efficiencyAdministration efficiency– Fast and accurate reporting– Duplication eliminated– Improved cash-flow– Fast member pay-out– Few complaints

BenefitsBenefits

• Cost controlCost control– Fast and accurate reporting– Discover possible cost savings– Improve charging for services, benefits

BenefitsBenefits

• Business developmentBusiness development– Fast and accurate reporting– Monitor whether you’re profitable– Discover weaknesses– Pick up new business– Increase membership

CostsCosts

• The BoxThe Box

• ServicesServices

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

Costs – ‘the box’ – small companyCosts – ‘the box’ – small company• One Computer (for up to 250 members) – 60,000One Computer (for up to 250 members) – 60,000

– Refurbished with warranty 25,000

• Software license – 60,000Software license – 60,000– CoopWorks 4.0 Basic Edition is free– CoopWorks 4.0 Enterprise Edition - 60,000

• Data back-up system 5,000Data back-up system 5,000• Electrical power – 10,000Electrical power – 10,000

– UPS back-up - 10,000– Solar panel + battery, incl installation - 85,000

• Printer - 15,000Printer - 15,000Total Ksh 150,000 Depreciation

in 3 years

Costs – ‘the box’ – big companyCosts – ‘the box’ – big company• Computer network (one workstation for every 500 Computer network (one workstation for every 500

members, say 4 workstations) – 400,000members, say 4 workstations) – 400,000– Refurbished workstation with warranty each 25,000

• Software license – 60,000Software license – 60,000– CoopWorks 4.0 Basic Edition is free– CoopWorks 4.0 Enterprise Edition - 60,000

• Data back-up system 25,000Data back-up system 25,000• Electrical power – 30,000Electrical power – 30,000

– UPS back-up - 10,000– Solar panels + batteries, incl installation - 300,000

• Printer - 15,000Printer - 15,000Total Ksh 530,000 Depreciation

in 3 years

Costs – SERVICES – 1Costs – SERVICES – 1stst year year• Installation and setting up – 30,000Installation and setting up – 30,000

– Installation and testing on-site– Setting up with SBO requirements– Data entry project (members, stocks) – staff

overtime• Staff training – 60,000 (if exclusive)Staff training – 60,000 (if exclusive)• Annual user support – 90,000Annual user support – 90,000

– Service Level Agreement– Help line– Support visits

• Annual Internet access (why?) 15,000Annual Internet access (why?) 15,000

Total Ksh 195,000

Costs – SERVICES – 2nd yearCosts – SERVICES – 2nd year

• Staff training – 15,000Staff training – 15,000– one staff refresher training each year

• Annual user support – 90,000Annual user support – 90,000

• Annual Internet access - 15,000Annual Internet access - 15,000

Total Ksh 120,000

Skills?Skills?

No! Everyone who is literate, can be computer literate

Meet the future!Meet the future!

• Be methodical, protect your investmentBe methodical, protect your investment

• Computerization means changeComputerization means change

• Success through LeadershipSuccess through Leadership