HI5019 Strategic Information Systems: System of Toyota

Introduction 

The main purpose of this task is to discuss about the strategic information system of Toyota. Toyota is an automobile company which in incorporated in 1933 in Japan (Toyota, 2018). It is one of the biggest automakers measured by revenue. The headquarter of the firm is situated in Aichi prefecture, Japan (Toyota, 2018). The firm sells and manufactures vehicles and spare parts across the globe (Parker, 2018). The paper further outlines that how the company has been able to build a dynamic image in the global market. Critical success factors, mission statement and information system for Toyota also have been discussed in the task briefly. Furthermore, it discusses the EDI, MRPII and MRP technologies of the company that help in attaining competitive benefits globally. A description of the technology platform for the system, potential risks and data breaches also has been discussed in the task. The organizational chart of Toyota and flow chart also has been prepared in the task. More detail of the task has been detailed below.

Identify the company’s critical success factors and objectives 

Toyota is one of the biggest and unique manufacturers of vehicles. Some of the unique factors of Toyota’s success have been discussed below.

Production and manufacturing facilities: Toyota has its manufacturing plants at several locations around the globe. Company produces and assembles the automobiles for the local market supply. The company implements the lean manufacturing and JIT production that is significant key success elements for the firm (Mba-lectures, 2011).

Extensive research and development: Durability, reliability, convenient, quality and value for money are the factors on which companies research and development values relies. Along with this, the firm has implemented new and innovative technologies such as gasoline electric automobile and bulk produced hybrid to overcome the competitors in the global market. It has manufactured Lexus and scion vehicles and further well known for quality and reliability (Mba-lectures, 2011).

Management philosophy: It has been analyzed that Toyota follows JIT distribution techniques and methods to build a dynamic image in the minds of the target audience.

Innovative activities: It is analyzed that “innovative international multi-purpose vehicle” plan (IMV) was started by the Toyota to utilize its gloabal manufacturing and supply methods for the different purposes. The firm also is trying to indulge its market demand across the globe to increase, its number of countries supplying the automobile, more than 142. (Mba-lectures, 2011).

Primary objectives of Toyota 

• The primary aim of Toyota is to highlight Toyota’s efforts towards environmental protection as part of its international vision.
• To explain whether the company will attain its objective of becoming the growing player in automobile industry.
• Attaining market leadership by rendering value to customers.
• Increasing its quality, reliability, and durability by built in engineering.
• Enhancing and improving the 3S dealership network quality
• To follow the laws of land and ethical business practices.

Information that might be helpful in analyzing objectives 

There are ample of information required to attain desired objectives and goals. The company needs to sustain a high form of rivalry structure of cost that would be helpful to minimize and eliminate the extra cost of vehicles. Toyota needs to focus on the plans, policies and strategies of the competitors to be a leader in the international market. Moreover, strategic actions shall be taken to focus on the quality and features of automobile products and services to stand over the rivalries internationally. Furthermore, Toyota should also focus on the generic strategies to reduce the cost of automobile products (Toyota, 2018).

Mission statement that would be suitable for client business 

Toyota has a mission of attracting and retaining its high value customers with the help of company’s high value of products as well as services. This will satisfy their customer’s ownership expectations.  

Develop a formal organizational chart 

Figure 1 Organizational chart of Toyota

Current system of Toyota 

The current system of Toyota is unique and effective to stand out against the rivalries in the global market. The company has actively and effectively propelled innovation and growth in its information system by collaborating and incorporating new information processing technologies while responding to ample of changes in the macro environment including sales, manufacturing operations, rapid globalization, electronics technologies, benefits in care, changes in the economy and compliance with universal environmental standards (Graphicsproducts, 2018). The firm has built and improved CAM/CAD systems to broader areas of activity and actions to gain competitive benefits across the globe. It has been found that Toyota lean production system has changed the manufacturing industry (Dora et al, 2013). It is stated that Toyota production system is the zenith of the organization’s dedication to continuous enhancement and improvement. It is the unique and effective culture initiated by workers and management alike. In the company production system, each and every person follows the same set of rules, regulations and principles that focus on improving and enhancing production processes based on the needs and requirements of the customers. Toyota Motor Corporation may be defined as way or process of making things which is referred to as a system called “Just in time system” or Lean manufacturing system”. The firm is well known and famous for its production system. Along with this, this system for the production has also been set up based on its experience of many years of constantly enhancement and improvements to offer the automobile vehicles as rapidly as possible. It has been analyzed that Toyota production system is based on two major concepts. The first is known as “Jidoka” which means if an issue or cause occurs, the instrument will stop working immediately, eliminating defective products from being manufactured. The other concept is well known as “Just in Time” which means that each and every process manufactures only what is required by the next process in a constant flow (Toyota, 2018).

Jidoka may be defined as a process that a machine stops safely when it’s the normal approach or processing is completed. It means that if a problem arises, the machine or system detects the issue or problem on its own and prevents or reduces defective and damage products from the production. As a result, only automobile products are satisfied good quality standards and policies while producing the products and services. “Just in time” is other option that used by the company while manufacturing the vehicles in the international market. In this system, a production instruction shall be issued to the beginning of the automobile vehicle production when a vehicle order is received. The assemble line shall be stocked or stored with sufficient quantity of its spare parts in order to produce a new cat at the time of demand without any delay in the order just because of lack of spare parts’ supply (Toyota, 2018).

In Toyota production system, an effective and dynamic production control tool called the “Kanban system” plays a significant role. This method is also called as “supermarket method” just because the thought behind it was rented from the supermarkets. Such kind of stores initiate production control cards where vehicle related ample of information such as code, product name, storage location are entered (Monden, 2011). In this way, it is noted that Toyota production is dynamic and significant to attract maximum number of customers across the globe (Toyota, 2018).

Identification of specific control weaknesses within Toyota 

In today’s era, manufacturing industry is growing and leading day by day that helps in maintaining good brand image in the competitive market. Recalls car is one of the biggest weaknesses of Toyota that hampers the image and profitability in the global market. Along with this, meeting the standards and policies are significant and dynamic threats that are encountered by the company while producing the products in the international market. When Toyota motor halted sales of eights model in the U.S. just because of dynamic and potentially fatal sudden acceleration issue then the success and growth of Toyota has turned into the terrible situation. Bureaucracy is another issue that risen in Toyota while manufacturing the products at international level. The lines of control of the company’s United States activities and operations were foggy.

After sometimes, the company lost its key and significant bridge between management in various United States constituencies and Japan and its capability to respond effectively when crises hit. The company can control over this issue due to lack of proper security and other facilities. Another significant and underlying issue is cultural. It has been analyzed that Toyota is a non communicative and secretive company. The American insiders are working for the firm as like engaging for the central intelligence agency, where ample of information is shared on the basis of the workers. Toyota did not require rebates to sell its automobile vehicles. The firm further does not use strong and unique public relations efforts. Therefore, the organization has failed to identify and understand the pressures on the number 1 leader in various markets globally. This issue is also handled and faced by the company.

Weak management is another weakness that cannot be controlled by Toyota while producing automobile cars. Lack of effective and significant management, the firm has failed to appoint potential and skilled employees to run production system smoothly and successfully. The company is facing lot of issues due to lack of innovative suppliers that may affect the progress and targets of the firm. It is stated that Toyota’s problem solving framework clearly broke down. The firm portrayed as much in the series of outlines it released. Recently, the company announced the floor mats were the issue. Some of the other issues such as third party issue, suppliers issue, fraud, authentication, informed permission and confidentiality of the customers are encountered by the company while manufacturing the ample of automobile products. It is stated that Toyota uses ample of strategies and approaches to overcome on these issues or weaknesses in the competitive market. The firm initiated to have a reputation and brand value for rapidly measuring and correcting mistakes. Along with this, Toyota’s largest issue is its damaged brand image caused by sudden acceleration recalls, massive lawsuits, ample of government fines and settlements. But what’s hurting and damaging the image of the firm is an aging lineup of boring cars (León and Farris, 2011).

Flow chart and data flow diagram of Toyota current system 

The Toyota manufacturing process flow chart has been discussed below.

Toyota production system

Primary features of new system and best solution the client 

It is noted that technology is a primary and major aspect of the automobile industry and it puts direct impact on the performance and effectiveness of the workers within the organization. It has been analyzed from the various studies that Toyota is a great player in terms of technology; industry is constantly evolving and adding new factors and becoming more innovative and advanced. The major and unique attributes of this evolution is the release of in-car smartphone applications and apps such as Apple carplay and android auto. In an effective and dynamic effort to match these new systems, the firm has started to expand and explore the integration of Smart device link technology in their already effective and dynamic Toyota entune system (Toyotaglobalnewsroom, 2018). To create and attain better understanding and analyzing of this new and innovative technology, Toyota has decided to outline and explain the advantages of Toyota Smart device link technology. It is stated that the company is pursuing of super driving and environmental effectiveness. The firm has further built advanced transmissions and engines and along with this, it evolved its hybrid system. The firm is still indicates to deploy these new and innovative powertrain units in a quickly wide range of vehicles models, initiating in 2017 (Toyotaglobalnewsroom, 2018). Some of features of this new system have been discussed below.

• The engine ensures that world class top level thermal efficiency and effectiveness, strong power and swift response and feedback.
• Permits fully electronic motor only operation when engine effectiveness and efficiency would be low.
• Introduces various effectiveness and efficiency advances including improvement and enhancement to the engine, a excellent performance hybrid battery and the effective placement of the motor rotor’s permanent magnet.
• Improves and enhances fuel efficiency and handle the stability.
• Eliminates the CO2 emissions.
• Improves engine torque.

This system is suitable for the customers achieve high level of satisfaction and morale. Toyota is a leading and growing player of hybrid vehicles, the company has main aimed to develop the automobile for the 21^st century. Toyota sold more than 130,000 hybrid vehicles globally. With the help of this new system, the company can use new brake system and new regenerative braking system that combines with a high effectiveness and performance battery that minimizes loss during energy transmission for higher energy regeneration (Newsroom, 2018). In this way, the new hybrid system helps the customers to fulfill their long term needs, preferences and desires of the customers (Gorla, Somers and Wong, 2010).

Relevance of new advanced technologies 

Electronic data interchange may be defined as the electronic interchange of the business information and facts using a standardized format, process and approach which permits one firm to send information to another firm electronically instead of paper. The business companies holding business electronically are called trading partners (Fara, 2012).  With the help of EDI, all the information and data would be managed and handled digitally through computers. Data and information can be managed standardized way with the help of this system. The EDI system helps in tracking and recording the ample of losses and challenges of the market (Bélanger and Crossler, 2011). On the other hand, manufacturing resource planning may be defined as a tool or method for the dynamic and effective planning of all resources of a manufacturing firm (Masterman and Masterman, 2013). Aside this, this system also addresses operational planning in units, systems, and financial planning. It has been found that Toyota manufacturing resource planning system uses right and innovative materials which are necessary for automobile vehicle production and process (Denton, 2016). Timely delivery of manufactured vehicles can be done with the help of MRP system. It also identifies and analyzes business data for better planning and analysis in the organization. In addition, optimum use of resources can be done with the help of MRP system and further, it also reduces cost of capital. Moreover, MRPII stands for manufacturing resource planning and develops on MRP by adding shop floor manufacturing planning and recording tools (Admin, 2018).

The proposal contain various items 

Technology platform for the system 

The main purpose of the firm is to provide automobile cars to customers at reasonable prices for maximizing number of customers across the globe. Various technology inventions such as new hybrid system have been done by the company to cope up with rivalries in the international market. Toyota uses innovative and advanced technology to manufacture its automobile products in the global market (León and Farris, 2011). The technology platforms provide a path or route for the convenience and safety of the customers globally. It is stated that technological applications are unique ways that can be used in commercially useful products and services. The basic technology platforms include processes, applications, software and hardware. Moreover, the Javascript, HTML5 and CSS also are used by the company while manufacturing the cars within the organization. It is analyzed from the various studies that for a new approach of production, open source software is being used by the company in its products. In the mainstay model of systems, company is using Automobile Grade Linux (AGL) in order to customize its software. Also company keeps customer data safe that can otherwise be stored by Car play from Apple Inc or other android auto from alphabet Inc’s Google applications and websites that enable customers to access Smartphone data through automobile vehicle through infotainment systems (Reuters, 2018). The company is among 10 international automakers engaging with suppliers and technology companies to jointly develop AGL, a basic open source route for vehicle websites and applications that can automakers can customize, preventing the needs and requirements to code system  (Reuters, 2018). Toyota generates an industry standard platform to operate in vehicle aspects including navigation applications and music. This technology platform could be used to support future innovative technologies such as connected car services and driving functions (Towill, 2010).

List of financial and nonfinancial data attributes for each entity in the ER diagram 

The ER model is used by the company to explain the explicit domain of knowledge. A basic and unique ER model is comprised of entity types and specifies relationships that may exist between instances of those entity types. 

Four users views that are source documents 

It is the accountability of Toyota to develop and enhance the trust and loyalty among the customers who show their interest and trust for the company. It will help to make a global leader in automobile industry. The four users which can be source documents have been detailed below.

Physical audit: It is responsibility of each and every company to conduct audit within the organization to identify and analyze the fraudulent activities and operations. The errors, frauds and wrongful activities can be checked by the company with the help of effective audit. Proper analysis shall be done to identify and analyze the wrongful activities. Toyota uses physical audit to examine and analyze the activities, behaviors and resources in the competitive market. The financial data can be kept safely with the help of physical audit (Bodnar and Hopwood, 2012).

Approval authority: It is committee that responsible for operating and managing a system at an acceptance level of risks. The team is also liable to delegate the tasks and duties among the employees and further, this committee also ensures strong relationship between customers and company as well. They take decisions whether which data must be stored and which data transferred. Along with this, the committee also helps in maintaining the easy flow of data within the organization (Dagenais and Robillard, 2010).

Sales order: It has been found that Toyota also manages and control over the sales order. They fulfill the needs, preferences and choices of the customers internationally.

Separation of duties and tasks: It is essential to allocate the work among the different team members in the organization (Dagenais and Robillard, 2010).

Potential security risks, data breaches and appropriate accounting controls for the new system 

It is stated that security risks and challenges can affect the brand image of Toyota adversely. Thus, the firm needs to be taken care about the security risks and threats while conducting business activities and operations internationally. The potential security risks include connection security, stealing personally identifiable information, manipulating a vehicle’s operations and activities, mobile application security and unauthorized vehicle entry (Elisabeth, 2018).

Data breaches: Data breaches issues also occur in the software and applications. A data breach is the unintentional or intentional release of private and safe information to an ineffective and untrusted environment. Data breaches put direct impact on the systems. This reduces the profitability of the firm and further it leads to loss the secret data of the company (Elisabeth, 2018).

It is stated that new system can be controlled through accounting controls. One of the significant accounting control options is separation of duties (Weber, 2010). The separation of duties helps in assigning tasks and duties among the various team members to perform roles and responsibilities in a hassle free manner. Physical audit is another option to prevent fraud and identify errors to attain rivalries benefits globally. In this way, the company can also uplift its profitability and revenue internationally (Qin et al, 2013).

Conclusion 

It is concluded from the above mentioned study that Toyota is one of the biggest brands in automobile industry. The above analysis portrays ample of information about the mission statement, organizational structure and key success factors of Toyota. Apart from this, the paper outlines that how current system of Toyota is effective and unique to attract maximum number of customers. Primary features of new system and innovative technologies also have been presented in the task. The paper indicates a new business proposal that needs to be initiated by Toyota Australia. All these systems shall be installed effectively and carefully. The reports discusses that how potential risks and data breaches may affect financial position and image of the firm.

References 

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