Impact of automation and modern technology on efficiency and effectiveness of financial management in public enterprises in Africa

Abstract

This publication represents a contribution to the discussion of some of the emerging issues in strengthening the management and improving the performance of public enterprises (PE) in Africa,in this instance, a preliminary assessment of the impact of automation and modern technology (henceforth information technology [IT] for short) in enhancing the efficiency and effectiveness of PE financial management and related issues. This study further represents a timely contribution to a subject of growing importance. IT systems are being used in all types of work situations to facilitate the processing and flow of information. It is not an exaggeration to compare the impact of the computer 'revolution with that of the industrial revolution. In PEs specifically, IT systems are emerging to enable management improve the efficiency and effectiveness of financial planning and control, the billing of customers, and associated accounting and auditing functions; to design, schedule and monitor production processes and operations including advertising and marketing; and to provide detailed and timely information on enterprise performance to government and regulatory authorities. PE managers, like corporate managers everywhere, are becoming critically dependent on IT systems. Two cases of the application of IT systems in African PE corporate management are provided in Box 1.