Fidelis Jimu | University of Zimbabwe (original) (raw)
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This paper presents an interpretative case study conducted in a division of one of the largest pa... more This paper presents an interpretative case study conducted in a division of one of the largest paper company of the world, focussing on the implementation of a profitability management system (PMS), and its integration to the existing ERP systems. Interviews were carried out at the division headquarters and in one production site. The value-chain oriented reporting in the 'Paper Group', called the " virtual integrate " , can be characterised as profitability reporting that covers a larger part of the division's value chain than just a single profit centre. This study focuses on the ERP system as the enabler of the virtual enterprise perspective in management accounting. The ERP integrated PMS is part of the divisional level strategy process, which is constructing the particular way of seeing the organization and its business. The new reporting is challenging the traditional reporting view, according to which the division consists of separate factories and production sites, each maximizing their own profit-and therefore aims at transforming the strategy. This paper will utilise Clegg's (1989) framework of power to interpret the case data. Of special interest will be the influence of information and communication technology on accounting, and the personal interests of accounting personnel on the development of the PMS. The results obtained indicate that the case company's management accounting can be interpreted from three aspects; the abstract knowledge of accounting, the craft of ICT utilisation that supplements the accounting knowledge; and the strategic thinking, the importance of which becomes critically important. All three aspects are required for strategic management accounting, so that management accounting could incorporate company strategy.
This paper presents an interpretative case study conducted in a division of one of the largest pa... more This paper presents an interpretative case study conducted in a division of one of the largest paper company of the world, focussing on the implementation of a profitability management system (PMS), and its integration to the existing ERP systems. Interviews were carried out at the division headquarters and in one production site. The value-chain oriented reporting in the 'Paper Group', called the " virtual integrate " , can be characterised as profitability reporting that covers a larger part of the division's value chain than just a single profit centre. This study focuses on the ERP system as the enabler of the virtual enterprise perspective in management accounting. The ERP integrated PMS is part of the divisional level strategy process, which is constructing the particular way of seeing the organization and its business. The new reporting is challenging the traditional reporting view, according to which the division consists of separate factories and production sites, each maximizing their own profit-and therefore aims at transforming the strategy. This paper will utilise Clegg's (1989) framework of power to interpret the case data. Of special interest will be the influence of information and communication technology on accounting, and the personal interests of accounting personnel on the development of the PMS. The results obtained indicate that the case company's management accounting can be interpreted from three aspects; the abstract knowledge of accounting, the craft of ICT utilisation that supplements the accounting knowledge; and the strategic thinking, the importance of which becomes critically important. All three aspects are required for strategic management accounting, so that management accounting could incorporate company strategy.