A proper history of ERP would be beyond the scope of this article so what below is a radical précis of the facts, simplifying occasionally for the sake of brevity.
In the nineteen seventies a new approach to manufacturing systems started to spread outwards from Japan. Generally credited as starting at Toyota where it had evolved over a period of years. This approach had several names JIT (Just In Time), stockless production, and Material requirements planning (MRP).
What was happening was that the capabilities of computers was being utilised to plan the resources being used in manufacturing to dramatically reduce the cost of holding and handling these resources. It became possible to plan exactly what resources were going to be needed and when. Then correct management of the supply chain meant that these resources could be in the right place at exactly the right time. Better planning and efficient use of resources produced better quality finished goods.
This revolutionary approach began to move through western businesses during the eighties with such companies as Hewlett Packard leading the way. Through the eighties and into the nineties most western companies adopted at least some of this new manufacturing philosophy, the most successful at implementing this became the most competitive, and survived the recessions of those years.
Computer software to help this approach was developed, at first in house, and then by ISV's. This was called MRP, then MRP II also CRP (Capacity Requirements Planning) eventually evolving into one integrated solution ERP (Enterprise Resource Planning).
Like most new market places there was an initial explosion in the eighties of many vendors supplying this software, followed up as the market matured in the nineties by a consolidation into a small number of vendors.
Then came the open source revolution of the new century, when there was again an explosion of new products onto the market place.
So, first Asian businesses, then American and European businesses adopted this new philosophy their products became highly competitive in the world market. Where did this leave Africa?
I first began to get involved with African businesses in the second half of the last decade and was horrified at just how few companies had adopted this approach to manufacturing. Too often the approach was "Labour is cheap, if we have a problem we throw more cheap labour at it". This approach comes with many problems. Most obviously quality falls when you employ cheap temporary labour, but there is also the social aspect of this. The small amount of planning that seemed to be done was done by hand or spreadsheet. The resource planning revolution had not reached Africa.
Poor control of resources also meant that businesses were losing a great amount of stock through theft. This had a double affect on the business, there was the loss of money that had to be used to replenish the stock, but also the failure to meet customer orders was costing them dearly.
This meant that African goods just couldn't compete with western companies that used sophisticated tools to keep quality high, and costs low.
It would be nice to say that African business owners took to ERP very quickly, but as it was in the early days in the west it was a struggle, but more and more businesses are now seeing the benefits of good planning.
The only software that has been available to African businesses has been produced in the west. This was one of our motivations in producing KwaMoja. We wanted to produce some thing that would benefit African businesses, and something that was produced in Africa, and something that African consultants can sell services around.
We are happy to announce that a new version of KwaMoja is ready and hitting the mirrors already. This is version 14.02 and you can download this version from here.
I got a lot of comments on this article, but the article was printed in many places, and so the comments were dotted around. I thought it might be useful to bring them together in one place.
On the Human Resources Africa Group Steve Oloo said:
"May be its because the Projects lacked good visibility study. another
thing that happens in Africa and in my case I can speak of Kenya. you
find that the Government can change policies and tax in a day thus
making the equipments outsourced to be expensive than initially planned
hence going for cheaper options that are generally expensive... another
thing that happens is that the level of poverty in Africa is too much
that the creativity is diverted in the line of vandalism of ICT
projects...one example is the fiber-optics which is the best invention
and thought to be useful to ICT only but people in Africa vandalize the
just to make illuminating flowers structures to sell to the public thus
hindering its usefulness...
the right personnel is also a problem since Africa , Kenya in particular
see papers rather than what you can do.... Lastly the level of
corruption in Africa is so deep that even a good project for all
humanity must be bribed so as to be implemented..making the initial cost
be peanuts compared to the cost of implementation...."
On Africa - All Things Business Phil Johnny said:
"ICT projects failure in Africa is largely due to [
LACK of will power, dedication, commitment & passion]
to ensure that people in Africa benefit from Information
& Communication technology which they rightly deserve.
Conflict & Corruption have been plaging the continent
for years. There is no doubt tons of investment
opportunities in Africa but without the right people
(Authorities) in the corridors of power, things could easily
get out of control and no one will be seen to account
for the mess. Moreover, when the willingness and
readiness to make needed sacrifices is not in the
hearts of the leaders, all else fails. Therefore, a
COMPLETE & GENUINE CHANGE OF ATTITUDE is
absolutely necessary."
On Accra Business Club - Africa | Ghana | Networking Andrew Brookes said:
"Tim great piece - very astute.
One obvious resource for ICT in Africa and other developing countries
(India)is LInux and other free source software; but because the general
ethos is that because people (e.g Ricard Stallman and GNU) don't
charge there is next to no money to support projects. Microsoft on the
other hand has a better business model ,so what it decides to get behind
usually doesn't fail
Secondly it seems to me there is no thought or co-ordination by say the
Ghana Government to take the data it has on official registered NGO's
concerned with ICT and link activities together.
As you say some projects are maybe vague. What about this project i've
been working on- You take the school wiki download a quality
E-encyclodpedia of 6000 articles, 26 million words and 50,000 images
which has been checked and based on the UK curriculum( http://schools-wikipedia.org)
you enhance it with a search function and work out how say 10 or more
children would be able to use it with a set up of server/client.
see http://www.youtube.com/watch?v=HkCjzlVQ6_g&feature=youtu.be
There would be potential to "personalize" the system if scholars and
historians contributed since the E-Encyclopedia is basically a bunch of
web pages that can easily be edited. Since the set up involves a web
server there is the capacity to use it to teach children construction of
web pages, CSS style sheets and computer languages such as PHP.
I have had a previous meeting with the ICT co-ordinator of the Ministry
of Education in Accra, and I bet if I was sitting opposite him now and
put the above to him I wouldn't be surprised if he could even
comprehend the possible value of such a project.
Microsoft on the other hand has just appointed Otema Yirenkyi in
Ghana; what I can imagine is if Microsoft comes and says "we have the
money, the ideas etc so you don't have to do much " then its easy for
those with lack of imagination, vision and leadership to just go along
with it.
Personally I am not against Microsoft and admire their business model ;
also there is potential for joint projects such as LInux servers and
Windows clients
"
I replied:
"I agree fully with you Andrew. I wrote an article here http://weberpafrica.blogspot.co.uk/2013/10/africa-and-open-source-software.html on the subject of why African governments should look to open source as a way of building a local IT industry.
I do believe that if these governments invested the money they spent on
foreign IT products and services in a local open sourced based IT
industry everybody except the multinationals would gain,
I have set out in that article how I envisioned this working.
Very much like your wikipedia for schools. Have you tried the Ministry
for Education? I am sure you are correct in what you would expect from
them. I have previously come across the "if it's not American and
expensive how can it be any good" philosophy in Govt departments. There
are potentially donor organisations that could help.
"
Andrew Brookes commented:
"cheers Tim
from the perspective of an Educational resource which could be extended ,
I can not at the moment imagine a better one than the school wiki with
search facility.When you say there are potentially donor organisations
that could help, could you elaborate a little on who they may be and how
I can contact them?
One problem I have is that I went through quite a few hoops to get an
NGO registered in Ghana but don't have anything registered in the UK. I
did try to get support in the U.K but the feedback is " we don't help
organizations or charities unless they are UK registered"!
I am not keen to bang my head against a brick dealing with UK possible EU bureaucracy to be honest"
And I replied:
"Getting money for an African NGO or other charitable
organisation directly from western countries is very hard. Too much
money vanished down that hole in the past. Going through a UK/EU based
organisation provides any donor with some legal recourse if funds go
missing.
However there are UK based organisations that already have this link
between UK and Africa in place. One such that immediately springs to
mind for your project is http://www.africaeducationaltrust.org which is UK based but works in Africa. There are others than could possibly help.
I have some other contacts that could possibly help. Contact me on
tim.schofield1960@gmail.com if you would like us to try and work
together to get this moving"
On Windhoek Business Club - Namibia Ashraf Bharmal said:
"Wrong projects for wrong reasons. There are cases of spectacular successes too but few and far apart."
and Salehe Khatibu replied:
"poor management of them
"
and I said:
"@Ashraf Agreed. I feel that many donor organisations get this balance
wrong because of a lack of local knowledge. A person or group is sent to
Africa to evaluate the project. They stay in a luxury tourist hotel,
are entertained by local people eager to say whatever they think is
needed to be said to get the money flowing. None of this is wrong, but
means that they don't get a clear view of what is needed and the people
locally will not always tell them for fear that the project will not go
ahead.
@Salehe Very true. Project management skills are some of the hardest to
learn, rarest, but least appreciated skills going. Bad leadership will
cause failure whatever else happens"
On Dar es Salaam Business Club - Tanzania Catherine Mkude said:
"Dear all, My name is Catherine G. Mkude and I am a PhD researcher at the
University of Koblenz-Landau in Germany working on a framework for
e-government systems design for developing countries. In my research, I
am investigating e-government strategies, programmes and projects
(applications, infrastructures, comprehensive solutions, etc.) in
developed and in developing countries. In doing so, I want to determine
how developing countries can leverage from the more successful
e-government endeavours in developed countries.
I am currently in a stage of collecting information on experiences,
practices and solutions in 5 domains of e-government implementation in
developed and developing countries. These domains are (1) electronic
public services, (2) electronic participation, (3) application of
information and communication technologies (ICT) in policy making
processes, (4) e-government infrastructure and, (5) evaluation and
sustainability of e-government.
Therefore I would like to kindly ask you to participate in a survey,
which investigates these domains through separate questionnaires. I
would highly appreciate if you could fill in one (or even more) of the
below questionnaires. The responses for the questionnaires are entirely
confidential and anonymous.
The following links direct you to the respective questionnaire per
domain. The approximated time to fill in a questionnaire is also
indicated below. Please choose the link(s) of the domain(s) you feel
most comfortable to answer.
-
Domain electronic public services: http://cmkude.limequery.com/index.php/983413/lang-en. Approximate time is 40 minutes.
-
Domain electronic participation: http://cmkude.limequery.com/index.php/388819/lang-en. Approximate time is 40 minutes.
- Domain ICT in policy making: http://cmkude.limequery.com/index.php/776413/lang-en. Approximate time is 35 minutes.
-
Domain e-government infrastructure: http://cmkude.limequery.com/index.php/375388/lang-en. Approximate time is 30 minutes.
-
Domain e-government evaluation and sustainability: http://cmkude.limequery.com/index.php/582399/lang-en. Approximate time is 30 minutes.
In advance I appreciate and thank you for your time and contributions.
If you are aware of someone who I can ask to fill in either of the
questionnaires, please let me know by email and I will invite them. Thank you and kind regards,
Catherine G. Mkude.
"
Ashraf Bharmal said:
"Hope you paper will produce some positive results. Best wishes and Good luck"
Leticia Slame said:
"Hello Tim, it quiet interesting that has been my question why ICT
Project fail to successed and if they successed it wont last long and
most of the people have negative response, I will be glad if I get the
reasons.
"
and Ashraf Bharmal said:
"My Take:
1. Politically expeditious projects
2 Poor planning
3 FEEDS and Feasibilities , Colorfully printed, beautifully bound and
presented, full of sound and fury in which affected sectors, people
have no say.
4. Foreign contractors, not involving local entities in the project from
the beginning who would gain hand on experience of the project, instead
of six week orientation seminars at the end of the completed projects
5. Lack of post project planning of operating, maintaining."
On KwaMoja - Open Source ERP for Africa Nicholas Mmasi said:
"-Too many unfair side deals...people want to spend money and write a good report
- Demotivated staff ,less communication and unclear benefit of the system to the operating staff.
- No plan for sustainability right from the beginning,so once the donor pulls out the things end up there.
-Unrealistic requirements and system rationale...
"
and I replied
"Hi Nicholas,
"-Too many unfair side deals...people want to spend money and write a good report "
I agree, I have seen too many "stage managed" visits by donors to sites
where people at the sites have been given money to back up a false
report.
"- Demotivated staff ,less communication and unclear benefit of the system to the operating staff. "
This is what I meant by lack of good project management. It is the job
of the project management to motivate and communicate with staff.
"- No plan for sustainability right from the beginning,so once the donor pulls out the things end up there. "
Excellent point. Sustainability is some thing I should have gone into
greater length about in the article. Who maintains once the donor
leaves. Where does the financing of that support come from?
"
Nicholas said:
"Hi Tim,
Donors also have bad policies that are not applicable in Africa.I have
been going around trying to see why so many projects fails eve before
donors pulls out.
Almost all project are in pilot mode/Nursery and never get out of the
lab.Similar scenarios are readily available and visible in areas of
agriculture(farming technology and techniques), small scale industries,
bio-gas,ICT, healthy ,and many more....
I normally find them in exhibitions only....
"
and I replied:
"Hi Nicholas, sadly you are right, despite most involved having the best
intentions. I don't believe that it is necessary though, with some
changes in policy and outlook a much higher percentage will succeed.
There will always be failures but the failure rate shouldn't be this low.
Tim
"
On Information and Technology Lisa Schnellinger said:
"Excellent points. From my experience, I think they are often true of all types of development projects, in all regions.
"
On Monrovia Business Club - Africa | Liberia | Networking Deodatus Shayo said:
"Lack of ownership
"
On Harare Business Club - Zimbabwe | Southern Africa Viola Marufu said:
"Tim, you have an interesting article. Interesting that you list your
perspective as statements made from observations of certain African
projects which does not necessarily implying that all projects are run
like this. However, you should note that the major reason why some
donors want local community members to staff and manage projects,
rather than outsiders is because the locals know their community better
and thats another way of empowering the community. Furthermore, it does
not justify the expense of getting an outsider, so to speak, than
getting an equally qualified local staff member.
You also say that ICT projects are a newer idea in Africa than in the
west and there is limited number of qualified local project managers
available. Thats not necessarily true. ICT projects are welcome and
expanding in Africa. The current development is the spread of ICT
effectively in rural communities and schools. In most areas the major
setback is electrification. They are more and more qualified business
people, educationists, economists and ordinary people who have well
advanced ICT skills. So it is not necessarily an issue of skill but they
are other factors influencing this. You are mixing points
here.Furthermore if jobs are advertised, the right candidates apply for
the job.
Then you say project employees are more interested in perpetuating the
project than completing it, they prolong the project for personal
interest etc. That is true where the project itself is not well managed.
There is always need for an independent Monitoring and Evaluation
exercise. They are also independent auditors.
A project that is really interested in benefiting the country in which
its operating in will not wait to get a report on their desk. They will
also put in measures to ensure all is well. This would be true no matter
where the project runs. Whether its in Africa or the West, there is
always need for accountability.
"
I replied:
"Hi Viola,
Thanks for your interesting comments. Firstly I should make clear that I
am not nor have I ever been part of a donor organisation. I write from
the perspective of someone who has either worked in, or observed many
projects.
"Interesting that you list your perspective as statements made from
observations of certain African projects which does not necessarily
implying that all projects are run like this" - I agree, I tried to make
the point I was writing from personal experience only, and was trying
to answer why it appeared to me the failure rate was higher than normal
in donor funded ICT projects. There is a high failure rate in all ICT
projects.The UK NHS IT project is one of the most high profile failures.
"However, you should note that the major reason why some donors want
local community members to staff and manage projects, rather than
outsiders is because the locals know their community better and thats
another way of empowering the community. Furthermore, it does not
justify the expense of getting an outsider, so to speak, than getting an
equally qualified local staff member. " - obviously it makes sense to
employ local staff, my company always has, it keeps money within the
local community. However my experience of projects where only local
staff work has not been good, for reasons I said. It requires a balance
that few projects actually have.
"You also say that ICT projects are a newer idea in Africa than in the
west and there is limited number of qualified local project managers
available. Thats not necessarily true. ICT projects are welcome and
expanding in Africa. The current development is the spread of ICT
effectively in rural communities and schools. In most areas the major
setback is electrification. They are more and more qualified business
people, educationists, economists and ordinary people who have well
advanced ICT skills. So it is not necessarily an issue of skill but they
are other factors influencing this. You are mixing points
here.Furthermore if jobs are advertised, the right candidates apply for
the job. " - Well again I can only comment from my own experience.
Recruiting qualified local staff has always been a problem. I have
regularly trawled the universities, and advertised extensively. I am not
saying that there are not capable African staff, just that either they
are either in private industry, or moved to the west. I have also seen
many projects run by project managers with little or no training in
project management. I tried in the article to understand why this is.
Project management skills are very different from ICT skills.
"Then you say project employees are more interested in perpetuating the
project than completing it, they prolong the project for personal
interest etc. That is true where the project itself is not well managed.
There is always need for an independent Monitoring and Evaluation
exercise. They are also independent auditors. " - That is the point I
was trying to make. It is human nature to make the projects last when
you are earning money from it. The fault lies in the agencies not
managing and monitoring the projects.
"A project that is really interested in benefiting the country in which
its operating in will not wait to get a report on their desk. They will
also put in measures to ensure all is well. This would be true no matter
where the project runs. Whether its in Africa or the West, there is
always need for accountability. " - Agreed, as I said at the start the
only reason I wrote about Africa was that was where my experience was.
"
As you can see, lots of very interesting comments came from this discussion on top of the comments on the article itself.
I wrote this article a couple of days ago and it attracted a lot of comments. Many of the comments focused on these two issues which I didn't go into in much detail, but they are very important to donor funded ICT projects.
These are somewhat controversial subjects so again I will keep from naming specifics.
Any donor funded project should be sustainable. That is it should continue to function when the donor leaves. Sounds obvious I know, but most people would be amazed at just how few do carry on working. Anybody who has like me, worked and traveled extensively in Africa will be able to recount stories of when this has failed. Here are just a few of mine:
- Water pumps that cannot be maintained when they break down because there are no spare parts, no money or means to get them, nobody trained to fit them if they were available.
- Fields full of farm machinery (Tractors, Canadian sized combine harvesters etc) rotting away. Why? No spare parts, and nobody trained to maintain them.
- I once visited a large hospital in East Africa which had a modern but non-functioning CT scanner. Again the reason given for its lack of functionality was that it had broken down and nobody could repair it. The hospital was losing considerable income from its not working. This income could easily have paid for a maintenance contract but nobody had arranged it. Lives were being lost in that area of East Africa because the only hospital with a CT scanner had no plan to maintain the scanner once it broke down. The hospital director told me that eventually somebody would donate a new one and the old one would be thrown away.
I am not finger pointing here, this is a story you will hear throughout Africa. In order for projects to be sustainable they have to generate some income, and that income has to be put back into the project in order to provide for the maintenance. For instance I saw a very good scheme in rural Tanzania where the donors had paid for a water pipeline bringing fresh water from a mountain spring many miles away. The local towns people were charged a few shillings (one shilling equals 0.00037 British pounds at current exchange rate) for the water. This money was used to pay local towns people to maintain the pipeline. The money stayed within the local community, and the water continues to flow to this day. Why can't a similar model be used for the above mentioned pumps?
I have seen projects providing hospitals with software. The hospitals were led to believe that the software was free, so no provision was made to support the system once it was installed. When bugs were found in the system there was nobody to fix them, and the software fell into misuse. However this software made the hospitals more efficient, improved their income, that income should have been used to fund local support for that software.
This is one of the reasons why billions of dollars in aid money floods into Africa but things never get better for its citizens.
The other reason is the corruption that follows these projects. I have over the years had conversations with people who have been found to have taken money from projects. The common theme is always that they do not see it as stealing, or as something wrong. The best analogy I have is that aid money is seen like a river flowing down the mountain, and if you divert a little to irrigate your own field, then the water doesn't stop flowing, and you get a better harvest. The flaw with this argument is that the supply of money is finite and the river does stop flowing.
The best solution I have for this is closer and more rigorous scrutiny of the project by onsite managers who are appointed by the project donors to supervise the use of the money. Just the same as would be done with any commercial company when a budget is allocated to a project.
International aid is not working, but it can. It needs a change of attitude from both the donors and the receivers of the aid.
One frequently asked questions we get on the KwaMoja project is why you cannot just select the supplier items you want to pay, when you are making a payment to a supplier.
Well now you can:
As can be seen in the above screenshot, all open items are shown for the supplier. Checking those items adds it to the amount to be paid. If it is a credit or old payment, then the amounts will be deducted instead of added.
If the item is unchecked then the amount is deducted.
Once you hit the "Accept and Process Payment" button then the payment is posted and the items are allocated against this payment.
Before I start this article let me make a couple of statements:
Firstly my experience of donor funded ICT projects is limited to Africa, so by necessity any anecdotes in this article refer to projects in Africa. This isn't meant to indicate that any of the points I make are special to the continent of Africa, and are quite probably true of similar aid projects throughout the rest of the world.
Secondly I will mention no names of people, or institutions. This is an article about what I perceive as issues in many of the projects I have witnessed, either as an observer or as a participant, and is not intended as an indictment of any person, or institution.
Failure of ICT projects is not an uncommon thing. Most statistics seem to show a failure rate of between 50% and 70%. So Africa is not on its own in having these failures. However from my observations I have noticed specific areas in donor funded projects that seem to make these projects more liable to failure:
- "We are a donor funded organisation so we shouldn't use for-profit companies". I have heard this a lot from the donor organisations. This means that they use charitable or religious organisations in order to do the ICT work. This means that local skilled people who happen to work in the commercial sector will not be able to participate in the project. For-profit companies tend to have a better understanding of the importance of meeting deadlines, and they have a reputation to keep up, which means that a successful completion of the project is to their advantage. Non-profit organisations tend to react more slowly and worry less about deadlines. This is a curious decision from the donor organisations as they are happy to hand over money to Toyota for their vehicles, Microsoft/Apple/Dell etc for IT products etc. but when it comes to the most important aspect of the project they limit themselves to the non-profits.
- "The project should be staffed and managed by local people, and not by outsiders". This is a laudable intention, but does it make sense in this sort of project? As pointed out in the above point many of the quality project manager staff will be in the private industry. Also the fact that ICT projects are a newer idea in Africa than in the west, there is a limited number of qualified local project managers available.
- Project employees are more interested in perpetuating the project than completing it. Donor funded projects generally pay much better in local terms than other employers. As the project is run by a local project manager, with local staff, then the major interest of these people is to make sure that the money continues to flow, rather than in getting the project completed. In fact, completing the project often goes against their personal interests. I know of several projects where the donors are taken on periodic "stage managed" tours to show that the work is really being done.
- Projects encourage "cronyism". Too often have I seen projects staffed by the family and relations of the senior members of the non-profit institution charged with the running of the project. I even know of one project that is supposed to be writing software that doesn't employ a programmer as part of it's large staff.
- Project aims are often too vague. I know of projects where the aim is to do something vague, such as "design and implement software for schools". Project aims should be specific, and the time scale should be set down at the start.
My experience shows that projects should:
- Be managed by an external person employed by the donor organisation charged with meeting targets.
- Use the best resources available to them regardless of whether they are non-profit or for-profit.
- Set definite targets at the start, both in timescale and project goals. The project manager should be the person held accountable.
- Donor organisations should be firmer in their dealings on the ground. Too often I see donor organisations that take a far too "charitable" view of bad work. The project should be run as a commercial project. The original donors of the money deserve nothing less.
These thoughts are based on many years of watching the failings of such projects in Africa. Donor organisations need a radical change in how they view such projects.
Not all projects fail, there have been some outstanding successes but the failure rate is way too high.