Automated Systems and Cost Management in Selected Commercial Banks in Bosaso, Puntland, Somalia.

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Kampala international University college of humanities and social science
The study investigated the effect of automated systems on the cost management processes of commercial banks in Bosaso, Somalia. There were three objectives that guided the study. The first objective required the establishment of the effect of transaction processing systems on cost management. The second objective required the determination of the effect of management information systems of cost management. The third objective concerned the effect of decision support systems on cost management. The researcher adopted a cross-sectional study design which involves both quantitative and qualitative approaches. Using this method, the researcher used a structured questionnaire (close ended). A research population of 137 was identified and a sample size of 102 respondents was arrived at by use of Slovene’s formula. In selecting the respondents the researcher used simple random sampling together with purposive sampling techniques. It was found that transaction processing systems had a positive effect on cost management rated at an R square of 0.255. Secondly, it was established that management information systems had a positive effect in the cost management of the banks with the R square being 0.236. Finally, decision support systems were found to be significantly influential in the cost management of commercial banks of Bosaso, Somalia and rated at 0.293 R square. It was also determined that the overall effect that automated systems had on cost management was rated at an R Squared of 0.725.The researcher concluded that the transaction processing systems have a significant impact cost management in commercial banks of Bosaso, Somalia. Management information systems have a significant effect on the cost management of commercial banks in Bosaso, Somalia. Decision support systems help in ensuring that the banks remain cost effective. Decision support systems were found to be underutilized. The researcher recommends that there is need for improving the state of transaction processing systems and their usages to enable effective operations. The information management system needs improvement through appropriate computerization. The decision support systems are vital that cost monitoring be done by the management through the decision support tools for the banks.
A Thesis Submitted To The College Of Economics And Management In Partial Fulfillment Of The Requirements For The Award Of The Degree Of Master Of Business Administration (Finance &Banking) Of Kampala International University Uganda.
Automated Systems, Cost Management, Commercial Banks