The impact of integrated budget and expenditure system software implementation on costumer and end user satisfaction


Master's Thesis, 2014

48 Pages, Grade: A


Excerpt


Table of Contents

Acknowledgements

Table of Contents

List of tables

List of Acronyms

Abstract

1. Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.3.1 General objective
1.3.2 Specific objectives
1.4 Scope of the study
1.5 Limitations of the study
1.6 Significance of the study
1.7 Organization of the study

2. Research Design and Methodology
2.1 Description of study area
2.2 Research Strategy and Design
2.3 Sources of Data
2.4 Target Population
2.5 Sampling Techniques
2.6 Methods of Data Collection
2.6.1 Quantitative Data
2.6.2 Qualitative Data
2.7 Methods of Data Analysis

3. Data Analysis and Discussion of Results
3.1. Introduction
3.2 Reliability of the questionnaire
3.3 Demographic Characteristics of Respondents
3.4. Analysis for customer respondents
3.4.1. Evaluating whether the IBEX system made improvement or not
3.4.2 Measuring customer satisfaction from the IBEX system (Waiting time, cost
3.4.2.1 Pearson Correlation analysis
3.4.2.2. Hypotheses Test
3.4.3 The overall satisfaction from the current implementation IBEX system
3.5. Analysis for the respondents of end users of the IBEX system
3.5.1 To evaluate whether the IBEX system made improvement or not
3.5.2 Measuring end user satisfaction from IBEX
3.5.2.1 Pearson Correlation analysis
3.5.3 The overall end user satisfaction from the current implementation IBEX system
3.5.4 Identifying the challenges that the IBEX system faced in area
3.6 Interview and observation analysis
3.7. Discussion of Results

4. Conclusions and Recommendations
4.1. Conclusions
4.2. Recommendations
4.3. Implications for Future Research

References

Appendices A

Appendices B

Acknowledgements

First of all I would like to praise almighty God who gave endurance and strength in all my life. Next my most sincere and deepest thanks go to Ato Adugna Hunde and Ato Adamu Terfa, my thesis advisors, for their unreserved and timely support in checking and giving constructive suggestions throughout the thesis work. Special thanks go to Ato Waktole Feyisa and Ato Chala Diriba for their golden idea during the preparation of the thesis. Finally, I would also want to thank my beloved wife, Tadelech Fikadu and employees of East Wollega Zone fiancé office for all their encouragements.

List of tables

Lists of tables Page

Table 3.1: Respondents background

Table 3.2: Paired Sample T- Test for customer respondents..

Table 3.3: Pearson correlation for customer respondents

Table 3.4: Frequency of customer satisfaction

Table 3.5: Descriptive Statistics of the whole customer satisfaction.

Table 3.6: Paired sample T-Test for end user respondents

Table 3.7: Relation of Variable

Table 3.8: Frequency of end user respondents

Table 3.9: Descriptive statistics on end user satisfaction

Table 3.10: Frequency for the electric power challenges

Table 3.11: Frequency for browser challenges

Table 3.12: Frequency table for operating system incompatibility.

Table 3:13: Frequency table for application software incompatibility

Table 3:14: Descriptive statistic for end user satisfaction

List of Acronyms

Abbildung in dieser Leseprobe nicht enthalten

Abstract

The aim of this thesis is to assess the impact of Integrated Budget and Expenditure system software implementation on customer and end user satisfaction. The study was conducted to evaluate the improvement made by implementing IBEX system and challenges that face the functionality of the IBEX system. In addition, the study tests the relationship between independent variables such as waiting time, cost saving, data accuracy and budget transparency and the dependent variables, customer and end user satisfaction.

To achieve the objectives of the study,descriptive and explanatory type of research design was used through the sampling technique, purposiveand stratified random sampling. Datawascollected through questionnaires from 228 employees of East Wollega zone sectors and 37 end user of the IBEX system. In addition, focus group discussion was used among 37 end users of the IBEX system to gather related data. The data collected from the respondents were analyzed using statistical toolsvia reliability method, descriptive statistics and Spearman’s correlation.

The finding shows that the independent variables data accuracy, budget transparency and cost saving are positively related with customer and end user satisfaction, while waiting time is negatively related to end user and customer satisfaction. Furthermore, the results also indicated that implementation of IBEX system allowed the organization to reduce its various cost and saved human energy. Finally, even though the IBEX system is implemented, not yet fully satisfy the needs of customer and end user. Therefore, the researcher gave recommendations on the parts that needs to add another features, and on the challenges that affect the functionality of the IBEX system during its operation.

Keywords:IBEX implementation, Customer satisfaction, end user satisfaction

1. Introduction

1.1 Background of the study

The Decentralization Support Activity (DSA) Project, which was implemented by Harvard University and funded by USAID and Ireland Aid, commenced its activities in Ethiopia in 1997. The objectives of this particular project was to strengthen the capacity of the public finance management system to manage public sector financial transactions, to improve the capacity of public sectors and to enhance budget planning concerning budget, accounts and budget planning reforms(IBEX Excutive Summary, 2004). Then, the project had recognized the need to automate the budget preparation and consolidation activities, and an IT consultant was contracted to develop a budget information system (BIS) based on Visual Basic with MS Access database. Then after the DSA Project has developed two main applications that are an integral part of the reform process which are Budget Information System (BIS) and Budget, Disbursement and Accounts (BDA). BIS and BDA are desktop applications that are capable of running in a networked computer environment(IBEX Excutive Summary, 2004).

The term BIS is a computer application that captures government budget data at the lowest level i.e., from budget submission forms of public bodies, and produce reports that are required at the different levels of the government budget preparation process. Whereas BDA is used to record government financial transactions including all items of expenditure, revenue, disbursements and budget adjustments. The BDA produces reports used in the day-to-day management of government accounts and yearly accounts closing procedures. The BIS and BDA applications had currently been rolled out to all zones in the four largest regions in Ethiopia, namely Tigray, SNNP, Amhara, Oromia, as well as Benishangul/Gumuz, Asddis Ababa and the federal government(IBEX Executive summary, 2005).

The application was managing approximately 95% of all public expenditure(IBEX Excutive Summary, 2004).The project was providing technical assistance to the Government of Ethiopia in the areas of expenditure planning, budgeting and accounting reform(Brief on status of DSA IT System, 2005).In the evolution of assistance, DSA had acquired government financial management systems to continue with technical assistance that supported greater financial reform. In September 2003, the DSA Project conducted an externally-led assessment of the BIS and BDA systems in Ethiopian finance and economic development office. The assessment concluded that overall the information systems developed met user requirements and, in areas in which they had been implemented, greatly improved the efficiency and quality of the budget and accounts processes. The result of the assessment of the existing automated systems was the design of an upgraded financial management information system that provided a more robust and integrated solution for the automation of current and future financial reform procedures. It was recognized that to fully support the reforms, a robust information system must be developed that required significant upgrades to the earlier systems. The long timeline for the DSA saw very major developments in IT strategy and a global move away from earlier, simple batch-type processing to sophisticated online systems with timely capture of data and provision of up-to-date information. This was the basis of developing the integrated budget and expenditure system(IBEX) platform, which is now actively operating in Ethiopia Finance and Economic Development office and other government sectors those who have finance and accounting departments(MOFED, 2010).

Integrated budget and expenditure system represents a truly integrated financial management system that addresses the core functions of financial management (Budgeting, Accounting and Disbursements) in the short term, and is flexible enough to allow for the inclusion of non-core functions in the future. Unlike BDA and BIS, IBEX is an integrated application that used to perform budget processing, budget controlling activities, transaction registers, activities of budget transfer and supplement and finally generates necessary reports.

In all regions of Ethiopia, since 1998 EC. (2006 GC.) IBEX (Integrated Budget and Expenditure System) has begun its operation with the modules of Administration, Accounts, Accounts Consolidation, Budget Control, Budget Adjustment and Disbursement (MOFED, 2010).

In all zones of Oromia including East Wollega Zone, IBEX is on operation with the modules of Account, Budget Control and Budget Adjustment in order to serve their potential customers (zone sectors). However, the effects of the implementation of this financial management system, IBEX are not yet assessed formally among the customers and end users. Therefore, the researcher was initiated to assess and evaluate the effectiveness of the implementation of IBEX on customer and end user satisfaction in East Wollega Zone Finance office.

1.2 Statement of the problem

Before the implementation of Integrated Budget and Expenditure System, East Wollega Zone Finance and Economic Development Office had been working manually to serve their customers. When the requests of expenditure come from public body, accountant will check manually whether an approved budget is existed or not. According to business processing re-engineering reform, the waiting time for a single customer should not exceed more than five minutes to be served. However, since the work is manual and paper based, it increased the customers’ waiting time and which resulted in dissatisfaction of customers(BPR reform, 2002 E.C).The annual report obtained from East Wollega Zone Finance and Economic Development office proved that since the last two years East Wollega Zone Finance and Economic Development Office fully implemented IBEX application to save time (waiting time of customers), energy, and cost and also reduced improper budget utilization among public bodies. In addition, the system also simplified the complexity of the transaction process. The IBEX was implemented by mitigating implementation risks specifically meeting government requirements, narrowly defining scope to meet established timelines, and being implemented in the most cost-effective and sustainable manner. Nevertheless, no previous study showed the assessment of the IBEX application and its subsequent effect on customer satisfaction.

Therefore, the researcher was initiated to conduct this particular research in order to fill the literature gap related to the role of the IBEX application software on user and customer satisfaction.

- Research question

- Does the IBEX system made improvement on service delivery?

- What are the challenges of IBEX system?

- Hypotheses of the study

In order to investigate customer and end user satisfaction from IBEX system in terms of waiting time, Data accuracy, and budget transparency and cost reduction, the following hypotheses were tested based on 5% significance and 95% confidence level:

H1o: Data accuracy of IBEX system will not have positive relationship on end user and customer satisfaction.

H1a: Data accuracy of IBEX system will have positive relationship on end user and customer satisfaction.

H2o: Waiting time will not have negative relationship on end user and customer satisfaction.

H2a: Waiting time will have negative relationship on end user and customer satisfaction.

H3o: Cost reduction will not have positive relationship on end user and customer satisfaction.

H3a: Cost reduction will have positive relationship on end user and customer satisfaction.

H4o: Budget transparency will not have positive relationship on end user and customer satisfaction.

H4a: Budget transparency will have positive relationship on end user and customer satisfaction.

1.3 Objectives of the study

1.3.1 General objective

The general objective of the study was to assess the impact of integrated budget and expenditure system software implementation toward customers and end users satisfaction.

1.3.2 Specific objectives

Specifically the study would achieve the following objectives:

- To evaluate whether the IBEX system made improvement or not.
- To measure customer and end user satisfaction from the IBEX system (waiting time, cost reduction, data accuracy and budget transparency)
- To identify the challenges that the IBEX system faced in area.

1.4 Scope of the study

The research was focused on East Wollega Zone Finance and Economic Development Office, Nekemte town so as to assess the implementation of Integrated Budget and Expenditure System on customer and end user satisfaction. The study was delimited to only East Wollega Zone sectors of government employee; those have been using East Wollega Zone Finance and Economic Development Office.

1.5 Limitations of the study

Geographically, the study was focused to only East Wollega zone finance and economic development office, which is found in Nekemte town. So, the study did not generalize the rest Oromia zones. In addition, the researcher did not get more literature specially, empirical review and published references. So, the quality of the research may be affected due to the lack of empirical review and published references.

1.6 Significance of the study

Integrated Budget and Expenditure system software is a real functional application for financial management that mainly manages transactions, expenditures and budget control. The study is useful for the management of East Wollega Zone Finance and Economic Development Office by providing information about the actual benefits and challenges of IBEX system that enabled them to measure customer and end user satisfaction of the office. Also it will have many advantages for any financial institutions of Nekemte town by providing useful information on financial management system. In addition, the study will give feedback for the developer of the Ibex application software incase further improvement is needed.

Finally, the study will serve as an initiation and preliminary work or a stepping stone for those who are interested to conduct a detailed and comprehensive study regarding the IBEX system.

1.7 Organization of the study

This research is organized into five chapters. Chapter one contains background of the study, statement of the problem, research objectives, hypothesis and research questions of the study, significance of the study, limitations and scope of the study. Chapter two provides a literature review to inform the reader what is already known in the area of study. Chapter three discusses the methodology used in the study, including, research design, sample size and sampling technique, data source, data collection method and method of data analysis. Chapter four is about data analysis and discussion of results. Finally, chapter five contains conclusions and recommendations.

[...]

Excerpt out of 48 pages

Details

Title
The impact of integrated budget and expenditure system software implementation on costumer and end user satisfaction
College
Wollega University  (East Wollega Zone Finace and Economic Development Office)
Grade
A
Author
Year
2014
Pages
48
Catalog Number
V278585
ISBN (eBook)
9783656727255
ISBN (Book)
9783656727224
File size
636 KB
Language
English
Quote paper
Emiru Dirbaba (Author), 2014, The impact of integrated budget and expenditure system software implementation on costumer and end user satisfaction, Munich, GRIN Verlag, https://www.grin.com/document/278585

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