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© OCTO Technology 2008 IT companies: How to become a Value Added Reseler for the Octopus Community Images by Bidulz.com

Value added reslers for the Octopus Community

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Discover how IT companies in developing countries can join the Octopus Community and become VARs of the open source software for microfinance institutions.

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Page 1: Value added reslers for the Octopus Community

© OCTO Technology 2008

IT companies:

How to become a Value Added Reseler for the Octopus Community

Images by Bidulz.com

Page 2: Value added reslers for the Octopus Community

MFIs are challenged with their MIS

Many MFIs are using spreadsheet or manual systems: That is free They can control the tool

But it becomes quickly a clear limitation for growth: Errors Difficult reporting Frauds Etc..

© OCTO Technology 2008

Excel(2005)

Flexible

Excel(2006)

Secured & automated

Page 3: Value added reslers for the Octopus Community

MFIs are challenged with their MIS

The available software are often unsatisfactory:

Expensive: License Technical assistance (often

done remotely)

Not agile/adaptable: When new features are needed,

it takes a long time before it can eventually be integrated

© OCTO Technology 2008

$

Fle

xibl

e

Excel(2006)

MIS(2007)

Secured & automated

Page 4: Value added reslers for the Octopus Community

You could help mitigate those issues

© OCTO Technology 2008

Costs Adaptability

No license

Cheaper local assistance

Designed to be

adaptable

Develop adaptations for

your clients

VAR

Page 5: Value added reslers for the Octopus Community

You can think classic…

© OCTO Technology 2008

VARMFIOctopus

Microfinance

Contracts ($)

New releasesInstallation, configuration, training, maintenance

OK, nice, but I have no influence

on the development

agenda…

« Octopus is free! let’s do like the other software providers with it! »

Page 6: Value added reslers for the Octopus Community

Or enter a Win-win relationship

© OCTO Technology 2008

VARMFIOctopus

Microfinance

SLA (20% of your revenues) and shared codeSLA (2% of the MFI’s revenues)

New releases & Technical SupportInstallation, configuration, training, maintenance, adaptation

Great, Octopus accompanies the growth of my structure!

Page 7: Value added reslers for the Octopus Community

Contribute to a continuously improved project

© OCTO Technology 2008

Need from the MFI Discussion and schedule with the Community

Test-driven Development

New release every 3 weeks

Training/assistance to the final user

Page 8: Value added reslers for the Octopus Community

Short-term contracts with MFIs: Implementation through target price You handle the needs and gap analysis, and detect what should be adapted in Octopus You discuss with Octopus microfinance, and determine a target price and date, for which:

The software is adapted to the MFIs’ needs (new developments) The software is installed and configured, the users are trained, Others (data migration, etc.)

If your spending exceed this amount because of unexpected issues in the deployment, you should charge the MFI only half of your complementary expenses, up to 50% more than the target price.

If your spending are lower because of unexpected ease of deployment, you should retrocede half of them in the form of a credit on your future maintenance fees, up to 50% less than the target price.

© OCTO Technology 2008Target price

& date

Lower than expected: you retrocede half of the saved costs

More than expected: you charge only have of the complementary expenses to the MFI

Page 9: Value added reslers for the Octopus Community

Long-term contracts with MFIs: Value-based Service Level Agreement

© OCTO Technology 2008

The MFI manages its computers and network Every three months, you meet the MFI’s executives and define the

priorities of development for the period: Your revenues are indexed on the MFI’s revenues (2% of the MFI

revenues)

Your interests and the MFI’s ones are therefore convergent: More trust More revenues if you really help the MFI

MFI k€ 2005 2006 2007 2008

OLB 1,400 4,000 8,000 13,000

Revenues 280 800 1,600 2,500

SLA (2% of the revenues) 5 16 (2%) 32 (2%) 50 (2%)

Retribution to Octopus Microfinance (20% of your revenues related to Octopus)

1 3,2 6,4 10

Page 10: Value added reslers for the Octopus Community

First step to get onboard: get trained! -Octopus University

© OCTO Technology 2008

Octopus Tech

VAR

The Octopus University is a 1-week-onsite session aiming at:

• improving your knowledge of the software functionalities

• Convincing you on the business model (value-based SLAs) and implementation process •Training you on the project management tools and coordination process

• Accompanying you in the exploration of the code and in the appropriation of the development methods

Costs: 6000€ + flights and accomodations for 2 persons

Page 11: Value added reslers for the Octopus Community

Your commitments

Your developments will be shared with the whole community in the common source code: There should be only one software (the isolated installations

cannot benefit from the future upgrades and lead to a dead-end) You should discuss and get advise from the Community before

starting developing (coordination is necessary!)

When coding/developing, you must respect the rules that are described in the ‘Architecture document’, such as: Write unit tests for each line of code Respect the ‘layer’ architecture Update before commiting and check that all tests are OK Commit everyday, etc.

© OCTO Technology 2008

Page 12: Value added reslers for the Octopus Community

Join the community!

© OCTO Technology 2008

[email protected]