Information Systems: Frequently Asked Questions

Publication Date: 2008
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Paper

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This document answers frequently asked questions on microfinance information systems.

This document comprises questions and answers that are frequently asked about microfinance information systems. It includes the following questions:

• What is a Management Information System (MIS)?
• What is enterprise software?
• When does a microfinance institution need to change its software?
• How often should an institution expect to replace its MIS software?
• How long does it take to identify and implement a new MIS software application?
• Who in the organization should be involved in the process?
• What is a system specification document and why is it important?

Excerpts from answers include:

• An MIS involves all aspects of gathering, storing, tracking, retrieving and using information within a business or organization;
• The software application used to track an organization's core or critical information needs is known as information system (IS) software or enterprise software;
• When an MFI is no longer able to provide quality loan data in a timely and cost effective manner, it is time to consider something more automated or more sophisticated;
• An MFI should plan to use the software for at least three years, preferably five, and seven to ten years if possible, to derive the best return on their investment;
• The length of time required varies from organization to organization, depending on the existence or status of a strategic plan, documentation of organizational policies and processes, and the organization's technological capacity.