CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Before now, business Success was built on the ability to move
goods and services with speed and accuracy. Today, information has become
the fuel that powers business Success .In contemporary Cooperate world,
information technology is deployed to gain competitive edge.
Information technology has been defined as the processing and distribution of
data using computer hard ware, software, telecommunication, and digital
electronic (Encarta Encyclopedia: 2004).
Therefore it is now obvious that computer component of information
technology can no longer stand alone without the combination of other
component. However, management planning and control responsibilities are
also par amount to a successful enterprise and they represent a mandatory of an
Organization to progress and survive in today highly unpredictable and
competitive business environment. The projected plan of operation must be
decisive and dynamic timely, intelligent planning must be predicated on current
known fact and a thorough analysis and realistic approach to inevitable Feature
probabilities .These key requirement for planning directions will lead to
Business probability and an equitable return on investment, which are the
objective of a successful management.
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The techniques and mechanical tools required to accomplish the
development of planning and control objective are now available, but in many
instances, appropriate management organization, interest and progression in
fully acknowledging their utilizations unfortunately lacking. This is a dilemma
that must be overcome.
In addition, management control system must not be overlooked. It comprises;
the plan of an organization and all of the Coordinates methods and measures
adopted within a business safeguard its assets check the accuracy and reliability
of its accounting data, promote operational efficiency and encourage adherence
to prescribe managerial policy.
In other word, it could be regarded as whole system of control,
financial and otherwise, establishment by the management in order to carry on
the business of the company or organization in an orderly manner, safeguard its
assets and secure as far as possible measures. The accuracy and reliability of its
record for planning measurements for performance and control purpose .
Information technology is the technology used for study,
understanding planning, design, construction, testing, distribution, support and
operation of software, computers and computer related system that exist for the
purpose of data, information and knowledge processing.
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Another definition of the information technology (IT)is the industry has evolved
include the study science solution set for all aspect of data, information and
knowledge management, processing.
THE COMPANY UNDERSTUDY
Unilever (formerly known as lever brother) Nigeria plc (Rc113) is the largest
surviving manufacturing outfit in Nutria. The company in cooperated as a
private company in 1923 (as lever brothers Nigeria plc) to manufacture soaps
based on local palm oil. The company Strengthen it foot hold in the food and
drink business by merging with Lipton Nigeria limited in July (1985) and also
merged with chase brought products industry in December (1988) to become a
giant in personal product business.
In accordance with Nigeria enterprises promotion degree of 1972and 1977,
40% of the company equity is held by Nigeria citizens and institution, while the
remaining 60% is held by Unilever overseas holding limited , Lipton tea
company limited and chase borough product international limited.
Today Unilever Nigeria plc is a leading company in the industrial sector,
engages in the manufacturing achere and marketing of wild range of household
product.
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1.2 STATEMENT OF PROBLEMS
Management will often worry about the cost(financial and social) of
putting computer based system for processing accounting data and
generating accounting information.
incident of computer fraud.
Problems that may be associated with real time online operations.
Errors of input (garbage in garbage out) (GIGO)
Problems of system errors.
Problems that may be associated with the applications of computer based
audit procedures.
1.3 OBJECTIVES OF THE STUDY
Sequel to the problems highlighted above, the main objective of this
research study is to determine whether information technology improves
management effectiveness by affecting business strategies. The research
study were identified as follows:
To ascertain whether or not accountant efficiency contributes to
organizational growth with the information technology deployed.
Determine whether information technology improves management
effectiveness by satisfying information needs or not.
Prove that information technology improves competiveness by affecting
business.
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Determine the organization experience with the effect of information
technology on accounting process.
Access the role of training in charge management and justification as
measured from the accounting perspective.
Ascertain whether information technology improves business efficiency
by automating basic information needs or not.
To emphases on the current development of information technology and
the challenges such pose to accountants in an organization
1.4RESEARCH QUESTION
In any question to carry out this study towards finding out true position of
accountants efficiency in conversant with the information technology deployed
by an organization as an input to the business success. It is very important to
delve into the following research question.
1. Is introduction of information technology in Unilever Nigeria plc improving
accountant‟s performance?
2. How does information technology in Unilever Nigeria plc affect the
profitability in financial reporting?
3. Does the organization embark on training the accountant in other to
accommodate the change?
4. What are the peculiar problems faced by Unilever Nigeria plc in
implementing information gathered from its information technology.
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1.5HYPOTHESIS OF THE STUDY
With respect to the statement of the study, the hypothesis below can be
deducted.
H0: there is no relationship between the introduction of information
technology and the efficiency of the accountants on Unilever nigeria plc.
H1: there is relationship between the introduction of information technology
and the efficiency of the accountants on Unilever Nigeria plc.
H0: The Impact of Information Technology
1.6 SIGNIFICANCE OF THE STUDY
The research study is primarily meant for accountants and multinational
companies. Then the continent, will guide the organization manufacturing
sector with large scale production of different home use product and how
accountants can cope with current development in information technology
and the importance in organization.
The research study is also significant to manager and the authorized
personnel (accountant or IT professionals) to have the knowledge that the main
threats to information technology in an organization are human beings.
Information technology facilities can be manipulated to commit
fraud.etc. The human threats to information technology includes insiders,
hackers and phone freaks etc. the detailed operating plan involves the
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manipulation of a mass data in other to support a valid plan that will fulfill the
requirements of managements appraisal task to determine operational
directions, make resolutions decisions and assures adequate performance
measurement criteria in light of the information system utilization.
Hence managers and accountants would be better equipped to handle
various related problems.
1.7SCOPE OF THE STUDY
In the course of this research works, the researcher encountered some
restriction which militates against the smooth execution of his work
among these issues are :
Unilever is a multinational companies with several subsidiaries under it
which had incapacitated the researcher of getting some of their
transactional data for the research methodology due to the secretiveness
of the sampled population.
The problem of retrieval of research instrument administered, finance,
combining my official work which makes it always difficult for me to go
out always not to do anything personal.
Other limitation include time constraint, cost of carrying out research
work and unsupportive nature of respondents.
1 . 8 L I M I T A T I O N S O F T H E S T U D Y
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In this study the impact of information technology on accounting
system, the research is limited by time. Though this research ought to be
very broad and all embracing the research is limited by time to
go that far and treat this exhaustively. The study was also limited by
secrecy of information in the company, which requires
permission of the company higher authority hence most
information was regarded as classified information. Despite these
limitations, the project work will be useful to any person that wants to
know about the impact of information technology on accounting
s y s t e m . This research though is expected to be very broad and
all embracing, it is limited to the impact of information
technology on accounting system and this is due to the fact that this
is the researcher main concern at the moment.
1.9 DEFINITION OF TERMS
1. Data :these are any non-random set of symbols they are also called raw
files o facts, event, transaction, which have been recorded and they are
the input raw materials from which information is produced
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2. Information: in this research the use of information will signify data have
been produced in such a way as to be useful to recipient.
3. Application package: this is a set of programs together with the
appropriate system documentation. The package is designed to meet the
needs of a number of users and is modular in construction so that a
limited amount of modification can be carried out to carter for the needs
of individual business.
4. MIS: management information system is the provision of information for
all level of management in order to perform their routine functions such
as planning, directing, organizing and controlling etc.
5. Database: data base is a stored collection of related data needed by
organization and individual to meet their information processing and
retrieval requirement.
6. Internet: internet is an international computer network made up of
numerous networks, internet is also called “networks of networks”
7. Ethernet: Ethernet is a popular network protocol and cabling scheme that
uses a bus topology and carrier sense multiple access/collision detection
(CSMA/CD) to prevent network failure or collisions, when two devices
try to access the network at the same time.
8. Intranet: this is a private network belonging to an organization (which
was internet protocol) it is used in Unilever Nigeria plc .it is accessible
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only by member of the organization require authorization to access such
network (this is called an Extranet).
9. E Business: this is the use of internet in the conduct of business.
10.Extranet: this is an intranet that allows non members of the organization
to access the network.
11.Wireless network: wireless network are wide area network (WAN),that
allows user to access information instantly via handheld wireless device.
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