We are all super excited about the upcoming events. The time has come to prove our true commitment to GLOBE. The semester is coming to an end so we are all starting to feel the burden of all the work accumulating, but we still manage to give it our all. Preparing for these events have been a major part of our semester but all of the important dates are right around the corner. It is too late to give up now; our class has to finish with the same enthusiasm and focus we started with. Dr. Sama has done a great job at keeping us intrigued and keeping the spark going. Not once has there been a dull moment in the class. There is always so much to learn and get done. Things were slightly switched up today because we had to bring in article instead of presenting our weekly readings. Everyone acquired important information that can maybe even help GLOBE in the future.
Today our first draft of the research paper was due. While writing my part of the research paper I came across common difficulties that have come with technology. One of them being that at times people underestimate time and cost. With underestimating time comes the postponing of a project. By underestimating cost, the budget might not cover the project. Both circumstances are detrimental to the process of helping a developing country. It is vital for managers to be realistic about upfront and on-going costs because the conditions under which people in under-developed countries are living in have to be worked upon without delay. Systems that will support an MFI over the long term can be expensive. The purchase price of hardware and software usually accounts for only fifteen percent of the total cost of implementation. The majority of information system expenses are incurred in staff time, training, and adapting operations to the new system. Technology will also be an on-going expense as an MFI’s operations respond to changing client needs and regulatory and economic environments. An annual budget for information technology maintenance should not exceed 12−15 percent of an MFI’s revenues.
One of the most significant findings in the last 50 years is that a large share of economic growth, more than one-third, is driven by technological advance. Capital and labor accounted for less than two-thirds of growth. The remainder was technology. The reason computers and software had such a powerful influence was that their effect was not limited to a single industry. Information technology (IT) could generate substantial spillover effects into other sectors. Examples include local area networks, computer-aided design (CAD-CAM), electronic banking, Internet retailing, statistical quality control, computerized inventory control, and faster communication of ideas. Industrial firms could use computers to reduce cycle times, achieve fewer defects, control inventory, and do specialized production runs tailoring manufacturing to demand.
The relationship between technology and microfinance evolves continuously. Throughout the years, the new devices do basically the same things; these are: capturing and analyzing data. This means that the actual technologies are not a major innovation, but what is innovative is what these technologies have done in the underdeveloped world. For example, smart cards, credit cards and debit cards are popular now in the microfinance world. Some institutions are even using them to process microloans. The networking of branches is quickly becoming a requirement in the industry. The difficulty with this delivery channel is the cash part of the operation and being able to get beyond simple financial transactions.
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