Key Takeaways 2012 Mifos Summit

• Must improve general awareness of Mifos as a software package for MFIs
  
  • References from other MFIs are critically important - make their contact info and testimonials readily available
    
    • Must we create this endorsement engine ourself or should we use something like LinkedIn?
  • Local support is a huge deciding factor.
  • Online searches matter a lot - make sure our SEO counts.
    
    • Transition news is top search result for Mifos/Mifos.com - FIX THIS.
  • Local conferences for MFIs are another good venue in which to plant the seed of awareness. 
  • Specialists themselves need to know how to properly market Mifos
  • Need to be aggressive in on-the-ground promotion - host local workshops/advertise in newspaper
  • Also need to educate on need to use a specialists and education on open source. 
• Demand generation
  
  • Establish relationships with influencers in each regions
    
    • Microfinance networks & associations, conferences, ministries of micofinance
    • Able to reach hundreds of MFIs rather than one individual one. 
    • Consultant has strong influential opinion - need to promote Mifos within consultant networks. 
    • Donor is driving force on spending on technology - MFIs only spend when donors give them money to.
  • Central banks in Africa (Uganda, Nigeria Ethiopia, etc.) are more influential in terms of software decisions than they are in places like India. 
  • Create a program in which to target the major influencers like the national association and sell Mifos to them.
    
    • Action: add each of the major stakeholders to our CRM and a have concerted plan to contact each one of them.
• Exclusivity/Qualification of being a Mifos Specialist
  
  • Now anyone can say they're a Mifos Specialists - need to make some stand apart. 
• Initiative Positioning
  
  • Need to fully clarify the change in paternity from Grameen Foundation to COSM.
  • Remove fear of damaging the Mifos brand (Nayan) like was common in past. 
• Product Positioning
  
  • Establish clarity on the target market so Specialist know which features they should be emphasizing to MFIs
  • Improve the first time user experience with product (easy install or simple demo/trial)
• Pricing Positioning
  
  • Enormous disparity between willingness of MFIs to pay for technology. 
  • Specialists often must focus on building trust and providing free consulting services before beginning discussion of pricing for Mifos.
    
    • Conflux has done a lot for free up front but once they've shown their value, MFIs spend on future needs. 
  • Should experiment with bundling of services and software - no commercial versions (this would kill Mifos vision)
    
    • To offer higher levels of service/software. 
  • Tension between MFIs wanting standard pricing and Specialists wanting to be able to charge a range of prices.
    
    • MFIs could then just judge on quality
    • Should specify a range of low to high prices so MFIs can have clear expectations and checklist of where services fit.
• Where COSM can add value
  
  • Marketing tools
  • Training - Technical training (on-site or virtual) is needed both for Specialists and IT staff at MFIs'
    
    • MFI IT staff by becoming pseudo-Specialists can provide downstream support to other MFIs
    • Polly: MFIs will pay for training more than software or support - want to invest in their businesses - easier to maintain without external contract.
      
      • Expectation that MFI will sign a year-long support agreement and cancel it after one year. 
  • Repository of advanced experts that Specialists can contract out when they need additional resources. 
  • For MFIs that aren't ready for a Specialist - provide repository of materials so they can self-support. 
• Next Steps
  
  • Specialists qualification program - immediately make this available with the five or six criteria that qualify a specialist
  • Significantly enhance website so Specialists know what they need to do to become a Specialist.
  • Prepare a deck to begin presenting at MFI association meetings.

Discussion

Ideas/Questions

• Enormous disparity of willingness of MFIs to pay. 
• Amit:
  
  • License fee components + upgrades, 
  • First need to sell the product at a lower price to get in the door.
• How you promote the product really matters. 
  
  • Amit: doesn't have problem with sharing revenue if he can put his software in good business
• Craig: can Specialists convince MFIs to purchase their services with no license fee?
• Zayyad:
  
  • Do have challenges - big challenge in Kenya is most small MFIs are not willing to spend. 
  • Some MFIs who have no IT budget at all - only have money to lend
  • To try to overcome these challenges, usually measure the requirements, future direction  and consulting even before talking about pricing
    
    • Do some consulting as a free service to build that trust - give advice on best things should do.
    • Once understand where do you want to take an MFI - pricing becomes last thing - how best do you put Mifos to feature requirements.
  • Zayyad:
    
    • Pricing is very flexible. No standard fees. Trying to accommodate both small and big MFIs
• Amit:
  
  • should have a commercial version and an OS version
    
    • Zayyad: would kill that vision | Arun wouldn't agree wiht philosophy
    • Arun: every single MFI is spending on technology in general (PCs, internet) - not everything can be open source. 
    • Mifos is one of few things that could be free - there is a budget for hosting, etc. 
    • Arun: looking for constant support available - don't mind paying a little more if something will consistently get resolved.
  • Craig: true in every market, everywhere.
• Amit: core is free - if I require hosting, service, extension, cost more
  
  • Commercial version is just a service bundle
  • Can't say commercial - just say bundle
    
    • Raj: would like to see bundled thing - don't want to run around finding bunches of people
    • For starting out - would rather have complete experience taken care of through one group
    • One third party with all the solutions would ideal
  • On website
    
    • This is product and if you require support - these are the bundles you can get and who you  can get it from.

• Kazeem - must look at it from multiple perspectives
• • First it's positioning - should you market it to MFIs without reliable power sources
  • • Selling Mifos to them would be a waste of time
  • Should we go to  
• Pricing - should be openly displayed on COSM website
• • Do comparison between Mifos, BR, Octopus
  • • Do the TCO
    • • License
      • • BR - $1500 per branch.
      • Annual Maintenance
      • • 15 - 20
      • Hosting 
      • Implementation
      • • Put typical implementation cost
      • Training
      • Other licenses
      • Support - Free and Premium
  • Put this on your website from the start - can largely conceptualize what pricing should be, how we compare with our like competitors  (Tier 1, 2, 3), what they should expect to pay for.
    • Compare the features also really works
• Raj:
• • Need case studies on the side
  • Kazeem: User Reviews
  • • Kazeem: for larger MFIs - quantums, factors that go into decision - pricing only accounts for 15%
    • • Technical features, local support is huge in weighing the decision.
      • Price isn't a huge deciding factor. 
  • Raj: perception
  • • i.e. SouthWest not competing against other airlines, competing against rental cars
• Amit: standard pricing. 
  • need to be make it very clear and centralized what specialist are able to charge.
    
    • Vary from region to region.
  • Amit: don't agree
    
    • Unique or single price product establishes trust and genuineness 
  • Raj: pricepoint - always a point of traction
    
    • but if this is a license
  • if price is taken out of equation, can just judge based on quality. 
    
    • Select based on quality
  • Could have standard price on implementation
  • Zayyad:
    
    • Standard pricing might work for large MFIs. We are working small enterprises - that is where money is. try to help them as much as possible.
      
      • Think standard pricing would scare them away.
    • Amit: could create ranges for standard pricing. 
      
      • Rates are pre-decided for each region.
    • Polly: You should define a range and then have a checklist of the various services must do
      
      • I.e. data migration 
      • Polly: can use as a marketing point by saying the price is lower than standard price.
    • Kazeem: pricing won't be fixed
      
      • Could use # of clients or # of branches - make lower or upper limit of five to fifteen %
      • Range or guide for specailists to know.
      • So when two different specialists submit their quotes - there is not such a wide range.
        
        • Could go back to COSM for 
      • Could part of certification be having a range of pricing
  • Raj:
    
    • Specialists don't want standard pricing but MFIs would love to have it. 
  • Amit:
    
    • How do you charge?
      
      • Size of portfolio and # of clients
        
        • Amit
  • Amit: like paying per ticket - like with Conflux - clear, transparent, trust.
    
    • Raj: in Africa would not work, take 2 weeks to do in Africa what it does in 1 hour.
    • Esther: what works in india, europe, america, doesn't work in Africa.
• Nayan:
• • Do stuff absolutely free - when they have future needs  they are willing to pay
  • • Understand the value and then are willing to pay
• Raj:
• • Involve donor communities in events like this.
  • • Donors here to meet them - we are her to meet us.
  • Shiva and Amit: donors are main attraction 
• Amit
• • CGAP or MIX - put details on how they're growing up
  • • Would help users. 
    • Would make it easier to get grants from MF community
  • Submit a new review to Mifos X
• Technical Training
• • Formal Sales Training would be good
  • Technical Training
  • • Would be willing to send
    • Formal product 
  • Online would be use
• What Shoudl COSM Charge for
• • Marketing Tools
  • • Marketing Support should be offered for free 
• Shiva: Certification only works if there is demand for the product
• Kazeem: What do next month:
• • Specialist qualification program. 
  • See a list of qualified specialists and regions. 
  • • Can see those there
    • List of five or six things they need to be qualified as specialists. 
    • formal 
• COSM
• • How to make sustainable
  • Drupal: 
  • • Run oursevles like them
    • Kazeem: significantly enhance COSM website - support specialists in a number of ways
    • • Part of revenue generating model for COSM - not too much if specialists given a certain percentage
      • Annually put a small fee back to COSM.
      • for complex projects that specialists cannot handle - COSM maintain a repository of advanced guys who can do such project
      • SPecialists can reference such skilled consultants through COSM - 
    • Really really enhance COSM website
    • • Majority of information need of specialists derive from website without having to go through 
  • MFI Association
  • • Present there at the meetings.
    • Have a reference point - can arrange site visits. 
  • If org is not ready to work with Specialist
  • • Repository of reference materials for internal folks
  • MFIs will full team of IT employees
  • • Expect them to do software and don't think need role of specialists
    • Should have tools for them to help. 
  • Polly:
  • • Sign up for one year of maintenance and then terminate contract
  • Kazeem:
  • • Encourage IT staff to go to such trainings or 
  • Kazeem
  • • Invite applications for specialists
    • • Check for particular country, for wider region. 
      • Google AdWord to invite applciations for specialists
  • Namibia
  • • If became Specialist - would be downstream support to other MFIs and promote 
    • NAMFISA
    • • Local support is always key key thing
      • Don't want to always rely on another country
    • Have the full package within your organizatoin.
  • Polly:
  • • Business model - training MFIs - organization is willing to spend on its staff 
    • • Polly: more willing to spend money on their organization and help make Mifos work.
    • See that it's possible to maintain system without external contact.
• Nayan:
  • Grameen had a lot of fear, worry that implementation of Mifos would spoil the name or brand.
  • Need this qualification