Toyota Analysis CSC580
Industry
The automotive industry appears to utilize technology, especially in the area of customer
service, call centers, and customer databases. It appears that the industry is still largely a
'push' industry as opposed to pull in regards to supply chain management. This is far
behind retailers like Wal-Mart, who have had pull supply chains for years.
Company Position in Industry (as it relates to IT)
In at least one division, it looks like Toyota is leading the industry. We were able to find
several success stories describing how Barbara Cooper has transformed the IT operations at
the company by re-inventing how IT works with the organization. Today, this division is
taking an active role in analyzing the business and making sure that IT is aligned with the
business goals. Not only is the company a leader in IT systems and usages, the IT practices
align perfectly with business goals. Specifically Toyota focuses its entire business on its
Toyota Production System (A system focusing on reducing waste, just in time inventory,
and continuous improvement) , if IT doesn't align with TPS, they aren't doing their job.
IT Structure
Toyota is a large conglomerate of several companies related to the production and resale of
automobiles. It appears that the company is structured as a series of independent but
inter-related entities, each with its own management structure and CIO. In at least one
division, the Financial Services division, it appears that the CIO reports to the Chief
Administration Officer. In the North American Sales division, it is unclear who Barbara
Cooper reports to, but it is very clear that she has worked closely with, and has strong
support from the CEO.
Information system
In the North American Division, it appears that PeopleSoft ERP is used. Toyota uses various
information systems from the following vendors for every step of their TPS:
Oracle/PeopleSoft, Oracle, Siebel, SAS, Hyperion Solutions, Cognos, Tibco Software, BEA
Systems, i2 Technologies, Activplant, Microsoft, Dell, Symantec, Trend Micro, Research in
Motion, and Citrix Systems.
Vision
Toyota is stern on its position that it does not have IT processes or an IT vision, but
business processes and business visions. Therefore Toyota's IT vision is the same as its
overall vision: "we aim for stable long-term growth, while striving for harmony with people,
society and the environment."
Strategic Objective
In keeping with Toyota's stated vision and its emphasis on innovation, I would construct a
strategic objective for Toyota IT as:
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Just in Time - Supported through the use of a proprietary supply chain management
system to ensure that inventory is kept low to reduce cost and work directly with
suppliers.
Performance Management - Throughout the assembly line, Toyota watches its
performance through the use of Activplant's performance management system to
determine where the assembly line has problems or is slowing down in real time.
Continuous Improvement - Several technologies are used to assist with continuous
improvement, but one example is the use of an internet portal Dealer Daily, to assist
dealers with inventory swapping.
Visual Controls - IT at Toyota utilizes screens, sensors, and various other equipment
to display the current state of production for the assembly line, this allows
supervisors and workers to see bottlenecks and various problems with the line in real
time.
The use of these IT strategies will allow Toyota to support the Toyota Production System
and support its overall vision and mission.
Mission
To implement Technology that will allow the company to continue to innovate at a rapid
pace and support its customers, suppliers, and employees. (OK, this poor and needs some
work).
References
Duvall, M. (n.d.). What Is Driving Toyota - Infrastructure. Information Technology Planning,
Implementation and IT Solutions for Business - Baseline. Retrieved February 8, 2010, from
http://www.baselinemag.com/c/a/Infrastructure/What-Is-Driving-Toyota/
Newsroom : TFSÂ Welcomes New Vice President and CIO / Toyota. (n.d.). Newsroom :
Newsroom Home Page / Toyota. Retrieved February 8, 2010, from
http://pressroom.toyota.com/pr/tms/TYT2008072446848.aspx
Please take a moment to log in or register.... (n.d.). strategy+business. Retrieved February
8, 2010, from http://www.strategybusiness.com/article/09213?rssid=technology&gko=f88d
Wailgum, T. (n.d.). Toyota's Big Fix: An IS Department Turnaround - CIO.com - Business
Technology Leadership. CIO.com - Business Technology Leadership. Retrieved February 8,
2010, from
http://www.cio.com/article/110851/Toyota_s_Big_Fix_An_IS_Department_Turnaround
Toyota's Innovation Factory - Creativity And Innovation Driving Business - Innovation Index. (n.d.). Creativity And
Innovation Driving Business - Innovation Index. Retrieved February 10, 2010, from
http://creativityandinnovation.blogspot.com/2006/10/toyotas-innovation-factory.html
The road to automotive industry innovation: 2002 information technology survey - page 5 | Automotive Industries.
(n.d.). Find Articles at BNET | News Articles, Magazine Back Issues & Reference Articles on All Topics. Retrieved
February 10, 2010, from
http://findarticles.com/p/articles/mi_m3012/is_11_181/ai_84398547/pg_5/?tag=content;col1