De La Salle UniversityRamon V. Del Rosario College of BusinessMaster of Business Administration

Baclaran Vendors Development Cooperative:Information Systems Strategic Plan

Submitted in Partial Fulfilmentof the requirements in MIS535M

1st Term, A.Y. 2015-2016

Aure, Patrick.AdrielNito, OrenzParana, MarkSantos, Norman KennethQuillope, Vicente Paulo

Dr. Nelson Celis

BVDCInformation Systems Strategic Plan

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Contents1.0About the Company41.1 Company Profile41.2 Objectives and Goals of the Company41.3 Organizational Structure52.0 Balanced Scorecard63.0Business Model Canvas10Key Segments10Value Proposition11Key Partners12Customer Relationships13Key Activities14Key Resources14Channels16Cost Structure17Revenue Streams18Summary of analysis How can BVDC go from Good to Great?194.0Value Chain Analysis205.0Five Forces Model29Competition and Rivalry29Bargaining Power of Customers30Bargaining Power of Suppliers30Threat of Substitutes30Threat of New Entrants306.0Strategic Alignment Maturity Model33Communications33Competency/Value Measurement33Governance34Partnership34Scope & Architecture34Skills347.0IT Project Recommendation367.1 Simplicity Collect (www.simplicitycollect.com)367.2 Cost Analysis387.3 Reconciling Recommendations with Strategic Analysis408.0Implementation Plan41Phase 1: Adopting and Optimizing Operations using Simplicity42Phase 2: Rolling out Simplicity to existing users for refinements42Phase 3: Campaigning BVDC Online for new customers42Phase 4: Review of Simplicity42

1.0 About the Company

1.1 Company Profile

Baclaran Vendors Development Cooperative is committed to utilize the cooperative resources, strengthen advocacy and good governance thru capability building to attain total human development.

October 1976 when the vendors of Mariano Nocom Market were given a notice to leave the premises because they were told that there will be a renovation and construction

With the help of the Cuatro Cantos, they were able to conduct a Pre-Membership Education Seminar (PMES) in a weeks time for 250 members to form a cooperative.

A total of Php 34,000.00 was contributed by its members and was the initial capital of BVDC. After its registration, the operations immediately started.

March 1977, Mariano Nocom Market was closed for renovation. It was the primary reason why the vendors have no stalls or spaces to sell and operate business and it was a burden for the cooperatives operation for 2 years.

In 1979, the cooperatives operation was in full bloom and was able to get a total of Php 200,000.00 from member contributions alone. The amount increased as the years pass, from Php 200,000.00 to Php 700,000.00 in 1980 to Php 2M in 1982 to Php 3.5M in 1982 with 700 members.

In July 16, 1987, the first building of BVDC was inaugurated by Senator Neptali Gonzales. In the year 2005, BVDC has a total of Php 75M Assets.

VISION:A leading cooperative that continuously responds to the socio-economic welfare and development of its members

MISION:BVDC. is committed to maximize the utilization of the cooperative resources and strengthen advocacy and good governance to attain human development.

1.2 Objectives and Goals of the Company

To institutionalize the capability building of the cooperative.To intensify the cooperative good governance and advocacy within the area of operation.To enhance cooperative business operation.

BVDCInformation Systems Strategic Plan2.0 1.3 Organizational Structure

3.0 Balanced Scorecard

One way of checking if the existing operation of a company is performing well is by using a Balanced Scorecard. In this manner, we can see a clearer picture if the company needs boosting to better perform and improve old ways.

Financial

On its financial aspect, it got an average of 3.67 out of 5. Although they are doing well with their finances, we believed that they need to expand their source of income, plan and create revenue growth strategy to better sustain the needs on this area.

Customer

On Customer relations, we believe that they are doing well but they can still do better to increase the average of 3.7.

Internal Perspective

With regard internal perspective, we believe that BVDC is performing very well. They conduct trainings and seminars to improve their staff and also do assemblies that lets other people involve meet to sit and discuss matters which needs attending to.

Learning and Growth

On the aspect of information technology, they have to improve their IT system to better sustain and avoid future problems with regards members data.

SUMMARY:

As a general comment, BVDC is still in the process of improving their system. There are still lots of things to be done and they still have rooms to fill before they can generally perform to their maximum level. They still need to improve their financial system, they have to make policies to expand their revenue center. They have to have their office be reconstructed or renovated as the space is quite small. They have to upgrade not only IT system but also people involved in order to better serve their customer.

3.0 Business Model CanvasThe Business Model Canvas (BMC) is a useful strategic tool in analyzing BVDC through the so-called nine building blocks. The following sub-sections dig deep on these building blocks and offer recommendations.

Key Segments

The key segments of BVDC are primarily borrowers and depositors. At surface level, they seem to service these segments well however, they can better tap the segment of alternatives-to-bank users. The diagram below shows the recommendations for improving this building block.

Value Proposition

In terms of the value proposition, as mentioned before, BVDC is servicing its existing target segments in an acceptable manner. However, to drive new segments which can increase revenues, it is important to create an online interface. The diagram below shows the recommendations for improving this building block.

Key Partners

In analyzing the annual report of BVDC, we can see that it works quite well with its primary key partners, specifically the regulatory agencies (CDA, Department of Finance, etc.) and its investment partners. However, it lacks value-generating partnerships with technology vendors that can allow BVDC to innovatively serve new target segments. Thus, the diagram below shows the recommendations for improving this building block.

Customer Relationships

BVDC establishes its customer relationships quite well with its existing customers (personal assistance, seminars/events). However, what pulls down their scores in this building block is their lack of relationship-building activities that can pull new members in. The diagram below shows the recommendations for improving this building block.

Key Activities

As can be seen in this diagram, managing BVDC entails many activities. Although the overall score of this building block averages to around 3.5/5, the lack of efficiency due to manual processes and lack of IT integration affects loan management and and effective collection. As such, the diagram below shows the recommendations for improving this building block.

Key Resources

The organization is able to generally manage its limited resources well, having a score of 3.4/5. However, they can better improve efficiencies if they are able to address the issue of manual database management and encoding of BVDCs debt and loans archives. The diagram below shows the recommendations for improving this building block.

Channels

The primary channel of BVDC is only limited to its Baclaran office and satellite branches. Although these channels can serve its existing customers well, the lack of convenience in terms of having online channels limit efficiencies. As such, the diagram below shows the recommendations for improving this building block.

Cost Structure

Among BVDCs business model, its cost structure received the lowest average scores primarily due to their provisions on loan collections. Upon analyzing BVDCs annual report, from a mere PhP 350,000 allocation to allowance for bad debts, it had to re-budget it to PhP 2,000,000 a red flag in terms of their ability to collect loans. This is very substantial, given that PhP 2,000,000 in expenses serve as 10% of its total expenditures! This shows as well in the organizations lack of cost-effective IT investments. As such, the diagram below shows the recommendations for improving this building block.

Revenue Streams

The good financial condition of BVDC shows that it derives just the right amount of income from its target segments. It has acceptable interest income and service fees, which serve as 60% of its total revenues. Other incomes complement BVDCs profits as well, such as rental income, other fees, and other investments. However, should BVDC strive to gear for the next level, it is important to expand the borrower and depositor base to increase its reveneues As such, the diagram below shows the recommendations for improving this building block.

Summary of analysis How can BVDC go from Good to Great?

The analysis of BVDCs business model shows that it has been good in operating and servicing its current target market segment. However, as we average BVDCs scores across the nine building blocks, we reach the score of 3.1/5, which is good, but not great. This means that the pitfalls of BVDC prevent the organization from being a truly great one. Therefore, in the next strategic goals of BVDC, we should consider:

Addressing cost concerns of having a huge allowance for bad debts Optimizing operational efficiencies (strive for automation and better database management) given manual processes Tapping new market segments to increase revenue via introducing online client interfacing4.0 Value Chain AnalysisThe VCA is a tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage. In other words, by looking into internal activities, the analysis reveals where a firms competitive advantages or disadvantages are. The business that competes through differentiation advantage will try to perform its activities better than competitors would do. If it competes through cost advantage, it will try to perform internal activities at lower costs than competitors would do.

M. Porter introduced the generic value chain model in 1985. Value chain represents all the internal activities a firm engages in to produce goods and services. VC is formed of primary activities that add value to the final product directly and support activities that add value indirectly.

PRIMARY ACTIVITIES

BVDC has an extensive database of potential and existing members, hence it has no problems regarding the number of loans it receives annualy. This may be attributed to its existence for a long time and the prominent cooperative in the area, this is a market advantage for the cooperative over other cooperatives and potential threats its business. Because of the number of members it has, BVDC has a good pool of deposits and such amount is used as capital for its primary operations.

In operations, BVDC has a long list of services that add value to its business. Many of which are serving its customers with its primary business of loans and its many classification. Additionally, the cooperative has various other services that are outside of its primary business but are necessarily connected to what I does. These services generate added value to its product.

BVDC has a fairly good amount of distribution channels. Mainly, because most of its clientele are in the Baclaran area, the main office is situated close enough to service the area properly. An addition to its distribution channel, is their satellite office in the Zapote area. This widens its serviceable area as this portion of the area is the far end from its main office serviceable area.

BVDC distributes flyers around its serviceable area and posts tarpaulins around its office and selected areas. This gives the public information of the presence and existence of the cooperative. This may also be attributed to a large amount of word of mouth as BVDC has been servicing the public for a long time and has a good reputation to its current members. Other ways of promoting the cooperative are seminars conducted for its current and new members. These seminar tend to encourage the people to join the cooperative because it gives then information on how well the service of BVDC is compared to other financial options such as banks and loan sharks. Lastly, their social activities promote good image to the public. BVDC has been conducting CSR activities for quite some time and because of these actions the public views the cooperative as a very caring company. Such view generally will give more value to its business.

BVDC has good communications and information dissemination to its members and other clients. Such service is a good way to keep the people in the know on whats new with the cooperative, what kind of services it offers, and how they can avail of the services. The cooperative also employs personal assistance through its agents in the office, wherein the members and other customers may inquire anything about the services of BVDC. CSR Activities that service its members also add value to the business. These service gives the members free services which if they availed separately is very expensive, yet BVDC provides them to its members as an added feature for being one. The livelihood program is more on how the members of the cooperative will effectively use their borrowed money.

BVDC has plenty of seminar and other group oriented activities, all of which are done in its own HR training facilities and seminar rooms. The cooperative has allotted funds for the creation and maintenance of these facilities as it uses seminars and staff development as a value adding proposition, hence it sees the value of these assets. Formal accounting, is necessary for the generation of financial books in the proper format. Since BVDC is a cooperative imbued with public interest, the government has a regulatory law for cooperatives, hence requiring a formal accounting is a must. Not only is it a regulatory requirement, it also is a good tool for the support of its activity in terms of transparency with its operations. In collections, BVDC has a good number of collectors in the field. These collectors conduct a door-to-door collection of loans and other receivables for the convenience of its members. An added feature to its services is the membership ID. This ID is in the database of members of BVDC, its a good tool for processing the services of each individual member. Generally with this tool, everything would be easily handled by the attending agent of the cooperative. Another point of having it is to segregate the existing members from new applicants, as the cooperative will only transact certain business services with current members.The careful planning of its business operations yearly provides a good foundation on how BVDC conducts and facilitates its daily business operation.

Human resource is one of the most valuable support activities of BVDC, because most of its activities require man power. The hiring, selection and development of its human resource is vital to the success of the business. Since most of the services of the operative is done manually, then human intervention is necessarily a key factor on how the business operated. BVDC employs a great number of seminars which adds value to its business, these are typically lead by the employees of the cooperative. Since seminars are a vital portion of the operation of BVDC, the people who conducts them must generally be knowledgeable and properly trained to conduct and facilitate these activities. Other employees necessary, like the collectors, accountants, front-line agents, etc. are also given priority. Hence, BVDC invests money in the development of these key personnel.

Technology for BVDC has been kept at a very minimal level. This is the weakness of the cooperative. As it does not employ any other software aside from the COPAS, BVDC is lacking in technological advancements which are readily available and has been getting cheaper by the day. Also, BVDC has not been allocating resources to the development or acquisition of more advanced equipment and software necessary to support its primary activities to its full potential. The group would recommend to improve this internal activity. The future vision is to achieve a level of technological proficiency leveled with currently leading banks such as BDO. The implementation of technology that would support its primary activities would definitely boost the value adding potential of its primary activity. In fact, if such recommendation is followed, technological advancements would necessarily be one of the primary activity that would greatly influence the value of the products of BVDC. Having hassle free transactions catered to its members would positively generate more revenue that will outweigh the cost of purchasing these technologies.

BVDC has a good procurement as a support activity. It necessarily supports all of its primary activities with not much more room for improvement. The cooperative has a healthy financial position as it generate a lot of revenue from its operation which in turn supports its other non-revenue generating business processes. The cooperative has partnerships with doctors and clinics necessary for its medical missions and services. With regard printing of necessary print materials, the cooperative has readily available contacts for printing.

5.0 Five Forces Model

The Five Forces Model, which was popularized by Michael Porter, is used to analyse the prevailing industry structure and its impacts and implications to the operations of an organization in the industry. The model looks into and takes into account five key forces within an industry: (1) competition and rivalry; (2) bargaining power of buyers; (3) bargaining power of suppliers; (4) threat of substitutes; and (5) threat of new entrants. These forces combine to shape the structure of the industry, which then influences the decisions and actions of the organization. The diagram below illustrates the interaction among the forces.

Using the Five Forces Model to analyse the cooperative sector, in general, and the Baclaran Vendors Development Cooperative (BVDC), in particular, can provide some relevant and interesting insights into how the organization can cope with the different forces in its immediate environment. More importantly, the model can be used to draw up some basic recommendations on how the organization can improve its internal processes vis--vis the industry norms.

Competition and Rivalry

The prevailing competition or rivalry within the cooperative sector is assessed to be medium. There are many cooperatives in the Philippines. In the Baclaran, Paranaque area alone, there are several prominent cooperatives. These cooperatives include the San Dionisio Credit Cooperative, which is considered to be one of the largest in the country. Some of these cooperatives are multi-purpose cooperative, similar to the BVDC. Other types of cooperatives in the area are market vendor cooperative and public transport association cooperatives. Members of the BVDC are also members of these cooperatives and are thus availing also of the services of these cooperatives.

Bargaining Power of Customers

The bargaining power of customers (members) of the cooperative is assessed to be low. BVDC has over a thousand members that are availing of its services, including loans and rentals of retail space within its building. The members generally belong to the low-income group and have very little financial options. These members are mostly market vendors, whose main source of income is small-scale retail. Borrowing money from traditional and formal money lending institutions, like banks, is possible for these people. However, this option is very unattractive for many members of the cooperative since the interest rates and other requirements are prohibitive.

Bargaining Power of Suppliers

The bargaining power of suppliers of the cooperative is assessed to be medium. The main service that the BVDC provides is in the form of loans to its members. To do this service, the cooperative sometimes needs to borrow from other public and private institutions to raise the needed capital to finance this service. The cooperative also borrows money from banks. However, borrowing from banks is generally done to retain or maintain the business relationship that the cooperative has with these banks. Generally, these institutions offer a high interest rate, which essentially could be expensive for the cooperative. Besides, banks are traditionally considered competitors of cooperatives, although the two have different target markets.

Threat of Substitutes

The threat of substitutes to cooperatives is assessed to be high. BVDC basically offers a moneylending service to its members. Although it has other services like savings and retail space rentals, loans are its primary product. For this particular product or service, the cooperative competes with many other moneylending channels, including traditional banks, Indian and Chinese moneylenders, and other micro-financing institutions in the area. Moreover, as a general practice, many resort to borrowing money from friends and relatives, which essentially is another channel for the members of BVDC. The members of the cooperative are thus likely to be borrowing money from these other moneylending channels, apart from the cooperative.

Threat of New Entrants

The threat of new entrants to the cooperative sector, particularly in the Baclaran, Paranaque area, is assessed to be low. Establishing a cooperative is very difficult. It requires a lot of government or regulatory approvals, including complying with the requirements of the Department of Finance, the Cooperative Development Authority, and the local government unit, including the city hall and barangay office, where it will be established. Particularly in the Baclaran, Paranaque area, it will be difficult to put up a new cooperative due to the prevailing environment and competition in the area. Similarly, since majority of the members of the BVDC are its clients in the building space rental service, there is a small chance that other cooperatives will be established in the area.

To summarize the assessment for each of the forces, the diagram below illustrates a color-coded metric.

This color-coded metric is defined using the following parameters:

High (RED) The force is assessed to be high when it is significantly impacting, whether positively or negatively, the operations of the company.

Medium (YELLOW) The force is as assessed to be medium when it is moderately impacting, whether positively or negatively, the operations of the company.

Low (BLUE) The force is assessed to be low when it is marginally impacting, whether positively or negatively, the operations of the company.

Not Applicable (GREEN) The force is assessed to be not applicable when it does not have any implications to the operations of the company.

Based on the analysis using the Five Forces Model, the operations of BVDC can be streamlined in order to make it more efficient and effective. Due to the high competition (with other money-lending channels available to its members) that BVDC is facing, it needs to be more proactive in liaising and communicating with its customers. This should primarily focus on creating awareness, particularly on the products and services that the cooperative can provide. More specifically, the cooperative can looked into the following basic recommendations:

1. Implementing a more streamlined operations to focus on the strengths of the cooperative considering the prevailing market competition and environment.

1. Differentiating the products and services offered by the cooperative in order to make it stand out vis--vis its competitors.

Implementing a client management system that keeps track of the cooperatives members, particularly the services or products they avail or likely to avail.6.0 Strategic Alignment Maturity Model

Communications

BVDC doesnt have a designated IT department which supposed to manage and/or control their IT infrastructure. Hence, constructive partnership between IT and business itself cannot be established.Moreover, employees understanding with their IT solutions is below average. People are isolated and limited only to their own job role

Competency/Value Measurement

IT metrics is not available in line with answers above. BVDC measures success by their growth in terms of number of members as well as their reported income. Business plans are created to be achieved within 5 years and being reinforced or modified annually.

Governance

IT solutions can be implemented in the business as they have the capacity to do so. Management of IT process need not to be accounted internally but rather outsourced. BVDC has the ability to finance such project. Planning can be included in the current annual schedule of BVDC. Planning committee will consist of all top management officers as well as representative from the chosen IT solutions provider.

Partnership

IT solutions provider will back all expenses to the business and will serve as external IT department. IT function will not have a seat at the business table and will be included as basis for decision making. IT can be considered as critical process enabler to adapt ecommerce banking which will contribute to further success of the business.

Scope & Architecture

ERP systems, as supported by IT service provider, will be installed and all processes will be monitored at an enterprise level. IT will be able to assume a role supporting a flexible infrastructure that is transparent to all business partners and customers All standards within BVDC will be integrated to create process standards.

Skills

No necessity for all employees to be have the technical know how of the IT function. Whole process will takencared of by IT solutions provider. Only selected employees are needed to be trained as internal support for the IT function.

Strategic Alignment Maturity Summary

InitialProcessCommittedProcessEstablished FormalProcessManagedProcessOptimizedProcess

Business lack IT understandingEmployees limited business and IT understandingIT is seen as process enablerIT will create process standards which will drive other business strategyAcceptance for external partners

No formal IT functionConsistent governance processIT solutions adaptive

IT is seen as additional cost

7.0 IT Project RecommendationBased on the analysis of BVDC using the different strategic tools and frameworks, we have uncovered that the most crucial IT recommendation should address the following issues:

Better loans collection More efficient and effective processes (from manual to automated) to increase productivity of staff without the need to hire extra manpower Tap the online space to appeal with new customers Not capital investment heavy, given the limited resources and capabilities of BVDC staff.

As such, we recommend the use of an integrated and online (for BVDC staff and customer access) loans collection and management software which can be outsourced via a Software-as-a-Service applications.

7.1 Simplicity Collect (www.simplicitycollect.com)

SimplicityCollect.com is a cloud-based app hosted in the United States but caters to different clients across the world. As their site describes:

Simplicity collections software provides the most affordable and sophisticated solution for managing and tracking your debt collection cases.

Unlike other case management or debt collection software packages, Simplicity specializes in ensuring your collection cases never fall through the cracks.

Their key features are as follows:

The mindmap below shows the key benefits as well of Simplicity that are highly congruent with the strategic directions of BVDC.

7.2 Cost Analysis

The next section shows the cost analysis of outsourcing to Simplicity as a software (option 1) versus building ones own software and hosting it in a dedicated online server (option 2).

Option 1: Outsource Service-as-a-Software for Debt Management and Online Client Interface

Costs PV Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Initial Setup (26,955.00)

Yearly fees (paid monthly) (53,460.00) (53,460.00) (53,460.00) (53,460.00) (53,460.00) (53,460.00)

Total Yearly Costs (80,415.00) (53,460.00) (53,460.00) (53,460.00) (53,460.00) (53,460.00)

Savings PV Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Reduction in bad debts* 400,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00

Increase in revenue** 298,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

Total Yearly Savings 698,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00

Net Present Value 617,585.00 246,540.00 246,540.00 246,540.00 246,540.00 246,540.00

Notes:*Company expects to reduce bad debts by at least 20% in the first year (from previous PhP 2,000,000)**Company expects to increase revenue by at least 1% of its 2014 income by tapping on new market segments and optimizing efficiencies in operations

Option 2: Option 2: Build and Manage own Software

Costs PV Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Yearly software maintenance fees (reference price: Simplicity) (31,860.00) (31,860.00) (31,860.00) (31,860.00) (31,860.00) (31,860.00)

Yearly dedicated server for debt collection and client portal (Web.com.ph) (264,000.00) (264,000.00) (264,000.00) (264,000.00) (264,000.00) (264,000.00)

Software setup fees on Year 0(359,955.00)

Total Yearly Costs (655,815.00) (295,860.00) (295,860.00) (295,860.00) (295,860.00) (295,860.00)

Savings PV Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Reduction in bad debts* 400,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00

Increase in revenue** 298,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

Total Yearly Savings 698,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00

Net Present Value of option 242,185.00 4,140.00 4,140.00 4,140.00 4,140.00 4,140.00

Notes:*Company expects to reduce bad debts by at least 20% in the first year (from previous PhP 2,000,000)**Company expects to increase revenue by at least 1% of its 2014 income by tapping on new market segments and optimizing efficiencies in operations

Thus, given the results of the cost-benefit analysis via calculation of Net Present Value, we recommend that BVDC go for Option 1. The tremendous savings and potential for increasing revenues far outweigh the cost of outsourcing the software to SimplicityCollect.com

7.3 Reconciling Recommendations with Strategic Analysis

It is important to tie back the analysis of alternatives with the strategic tools and frameworks discussed in the previous sections. As such, the table below reconciles our recommendation with the strategic recommendations derived from the frameworks.

FrameworkRecommendations based on FrameworkHow IT System addresses Recommendations based on Framework

Balanced Scorecard Alignment among all perspectivesOption 1 balances all the perspectives in the Balanced Scorecard with attractive costs.

Business Model Canvas Address cost concerns of having a huge allowance for bad debts Optimize operational efficiencies (strive for automation and better database management) given manual processes Tap new market segments to increase revenue via introducing online client interfacingOption 1 directly addresses issues on bad debts, improving and automating some operational activities (therefore increasing employee productivity), and having the potential to target new market segments for better chances of increasing revenues.

Value Chain Analysis Optimize operational efficiencies given manual processesOption 1 greatly optimizes activities across the entire value chain, leading to higher profit margins.

Five Forces Model Serve as a viable competitive alternative to banks and other financial institutions to tap new market segmentsOption 1 competitively positions BVDC as a good alternative to banks within BVDCs mandated area scope, attracting customers to switch.

IT Strategic Alignment Model Consider limited resources available from BVDC Have an easy-to-use software both for the BVDC staff and customersOption 1 allows Simplicity staff to help BVDC staff better be familiarized with the software. Moreover, Simplicity provides a user-friendly interface for customers to track their loans.

8.0 Implementation PlanBelow is a summary of the timetable in adopting the Simplicity software and rolling it out to BVDC staff and customers:

PhaseDurationActivitiesTarget Date

Phase 1: Adopting and Optimizing Operations using Simplicity1 month Contact SimplicityCollect.com for free 1 month demo Hands-on training of employees of how to use the software Mock market testing with potential users Adopt SimplicityCollect.com by end of monthJanuary 2016

3 months Migrate all manual data (database of members, loans, etc.) to Simplicity Integrate loans management processes with Simplicity Parallel manual servicingFebruary to April 2016

1 month Ensure Simplicity is working efficiently across all loans management processes and operationsMay 2016

Phase 2: Rolling out Simplicity to existing users for refinements1 month Begin rolling out and promoting online debt tracking and customer portals to existing customersJune 2016

1 month Assess usage of customers of the portalsJuly 2016

Phase 3: Campaigning BVDC Online for new customers4 months Campaign for the new customer portals for new customersAugust 2016 to November 2016

Phase 4: Review of Simplicity1 month Review of actual performance in utilizing Simplicity as a loans management and collection software with client interface capabilities Work closely with Simplicity staff in refining the softwareDecember 2016

Phase 1: Adopting and Optimizing Operations using Simplicity

This phase ensures that BVDC properly adopts and optimizes its operations as it adopts Simplicity. Phase 1 serves as the initial pilot testing aspect to smoothen the learning curve of having new software.

Phase 2: Rolling out Simplicity to existing users for refinements

After adopting and ensuring that Simplicity is now working efficiently in an operations aspect, it is now time to gradually roll out the Simplicity customer portal to some of the existing users in refining their user experience. Although not all customers, specifically the vendors, will avail of the client interface, there are some existing customers who most likely resemble bank users. These users can be the early testers of the online customer interface portal, which BVDC and the Simplicity staff can take recommendations from before aggressively campaigning for new customers.

Phase 3:Campaigning BVDC Online for new customers

Once refinements have been done, BVDC can now launch a BVDC Online campaign with minimal marketing communications expenses to begin attracting new customers.

Phase 4: Review of Simplicity

After a year of operation, it is vital to work with the Simplicity staff in determining how the Simplicity software can be optimized for the following years and months.