Role of Information System in Tesla Motors

This report discusses the role of information system in Tesla Motors and its impact on functional departments. It covers the importance of IS in a competitive market and provides an evaluation of functional departments based on information system.

BUS4002 Management Information
Systems

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................5
Functional Department of Tesla Motors......................................................................................5
Role of Information System in Business Organization................................................................5
Data Handle By different Information system.............................................................................6
Role of Information system In providing information to Functional Departments.....................7
Information System in Value Chain............................................................................................7
Importance of IS in Competitive Market.....................................................................................7
LO2..................................................................................................................................................7
Strategical, Tactical and Operational Data..................................................................................7
Information System for Three Level of Decision Making...........................................................8
Evaluation of Functional Department Based on Information System.........................................9
LO3................................................................................................................................................10
PELS Consideration of MIS......................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The managing information system is considered as the combination of the hardware and
software which is considered as the back bone of the organization in the data and information
management (Laudon and Laudon, 2015). There are different type documents need to be handles
in business organization which is consists of valuable data and information. Management of the
information system is consists of different activities that are important for business organization.
The main operation performed by the business organization are collection of data from different
sources, processing of collected data, storing operation, data analysis and preparation on the
basis of data and information analysis. There are different type of information system are used in
companies to meet their business objectives that are associated with the processing of the data.
This report is providing brief of various managing information system that are used in
Tesla Motors. Tesla Motors is one of the most famous automotive organization that is operation
on the global scale. The business strategy used by Tesla Motors is different from the other
organizations. Tesla Motors is a Public Limited Company which was established in year 2003 by
Martin Eberhard, Marc Tarpenning, J. B. Strauble, Ian Wright and Elon Musk. The Current CEO
of Tesla Motors is Elon Musk who is celebrity face of the organization. Elon Musk is one of the
most famous personality around world cause of innovative and creative business strategies. Tesla
Motors is working in automotive sector along with energy storage. The Owner of the company is
Elon Musk who is holding 21.7 % shares of company. The Headquarter of Tesla Motors is in
Palo Alto, California, U. S.
Company Vision
The vision of Tesla Motors is to create the most Compelling car company of the 21st
century by driving the world's transition of electrical vehicles. This vision of the company is
focused on the renewable energy.
Mission
The mission of the Tesla Motors is to accelerate the worl's transition to the sustainable
energy. The engineers of Tesla Motors are trying to prove that to drive a electrical vehicle people
do not need to make compromise. The main motive of the company is to provide premium and
best quality product to the consumers.
Product

The functions and operation of the Tesla Motors are More focused on the innovative and
creativity. Tesla motors is working in the automotive sector that is manufacturing premium, class
electrical cars for the consumer. Electrical car and fuel cells are major product of Tesla Motors.
Company Background
There are total number of 45000 employed are working for Tesla Motors who are from
different countries. The main characteristics of Tesla Employees is related to the creativity and
tendency for innovation. Tesla prefer technically sound people with creative nature.
The product and services that are provided by Tesla Motors are more focused on the
electrical energy products. The major products that are manufacture and sole by Tesla Motors are
electrical cars and electrical storage units (Laudon and Laudon, 2016). The services provided by
Tesla Motors are related to products which are sold by them. Tesla Motors is serving the people
around the world. But their physical stores are on limited locations. There are some other
subsidiaries of Tesla Motors are- Solar City, Tesla Grohmann, Automation and Maxwell
Technologies. There are many business organization are conducting business with similar
products that are sold by the Tesla Motors but business strategy and marketing strategy used by
Illustration 1: Home Page of Tesla Motors Website
(Source: Tesla, 2019)

Tesla Motors is completely different. The physical presence of Tesla Motors is Limited but with
this they are successfully operating on world wide scale. The countries that have Tesla store are
able to buy company product from their bust in other location this is not possible to buy product
from the Tesla Store so company allow them to buy or book their product through online
company platform. There are range of electrical cars are provide by Tesla Motors to the
consumer. The products that are sold by Tesla Motors are of Premium class with high cost. The
business strategy is made to target higher upper class people who are able to purchase their
products. The one thing which is strange about Tesla Motors is it's supply chain which is
completely unusual and different to other similar companies. The supply chain of Tesla Motors
is completely handled by the marketing and sales department of company. From the booking of
product all the functions that are related to the transportation are handed by them. This is how
Tesla Motors is Performing their business around the world. The Official Web Site of Tesla
Motors is “https://www.tesla.com/” that provides complete knowledge of company operations
and business functions.
LO 1
Functional Department of Tesla Motors
There are different functional areas are presented in a business organization. The actions
of organization are not limited to manufacturing of product and selling of it for generating
revenue. To run business successfully organization have to perform different tasks. There are
different specific departments are formed in organization to meet business demands. The main
functional areas of Tesla Motors are- Human Resources management, Marketing and sales
department, production and operational department, finance department, Logistic department and
research & development department (Khan, Flanagan and Lu, 2016). This is how Tesla Motors is
successfully managing their business operations on global platform.
Role of Information System in Business Organization.
The role of information system is most crucial to gain better performance in the business
operations. As there are different functional departments in the organization. Information system
can play different role in the operations of these departments. For each department role of
information system is different. Human resources department id back bone of the organization
because they manage the work force with in the organization. There are different in= formation
systems are their which can help them to keep data of people who are working in company. The

most common information system for human resources, operational and marketing department
are DSS, AI, MIS and TPS. This is hoe by using this information system organization can
effectively handle their operations.
Data Handle By different Information system
There are different business functions are used in organization like Tesla Motors. Some
of the most used information system in organization are- TPS, MIS, DSS, Crm and ESS. These
systems are used in the different department of organization. For each information system type
of data sources is different.
TPS
The transaction processing system is mostly used by the finance and marketing
department of the organization (Oluwaseun and Olaronke, 2015). In the finance department
people keep the data of the monetary transaction and the marketing department can use this
system to keep the sales data of organization store in their data base.
MIS
It is the most common system that is used by the business organization to keep
communication and effective date flow between other information system in Organization. This
system is mostly used by the management of the organization. Who monitor all the data of other
department on an interface screen. It used the output data of these department to represent it on
common interface software.
DSS
This information system is known as the decision support system. That studies different
type of market data and organization performance data to find patterns and connections between
the number to provide better support in the decision making process.
CRM
This information system is known as the consumer relationship management. The data of
consumer history is used by the system to improve the consumer relation with Tesla Motors.
ESS
This information system is also know as executive support system. This system is used
by the business organization to collect different type of information from the organization
operations and market place to full fill the decision making needs of the authorities of
organization.

Role of Information system In providing information to Functional Departments
There are different functional departments in the organization. Each department need
various type of information to perform their action with high efficiency. The main function of the
Information system is to connect the functional area to the information data base and internet
which is main source of information to the company (Maskell, Baggaley and Grasso, 2017). In
Tesla Motors Information system provide the different type of information to the functional
department by making an efficient communication channel between them. The information
carried by this information system is related to the monetary transactions, consumer data,
business performance data, market research data and people management data.
Information System in Value Chain
The value chain is all about creating value of the organization in mind of the consumers.
Without the implementation of the information system it is not possible to collect vast size
information of organization. Information system provide the opportunity to the organization to
reduce the complexity in the data collection, storing and processing. Information system provides
better classified data in numeric form which is more effective for the operations of the business
organization. By utilizing this data organization can make effective business and marketing
policies to generate higher value for their business.
Importance of IS in Competitive Market
To gain the competitive advantage in the market place it is important for the Tesla
Motors to gain information of different factor which are important for the [performance of the
organization (Ozaki, 2016). For example the market data related to demand and consumer need
is most important for company. This information can be collected by organization with help the
information system like CRM and ESS to provide efficient information to the company
management.
LO2
Strategical, Tactical and Operational Data
Strategical Data
The strategical data is a kind of data that is used by the organization to and operations of
organization moves around the business. This is most important for the business to collect
strategical data to keep the organization running in the particular direction which is productive

form company. This data ios mainly related to the business policy and strategic decision of the
organization. It leads to how the Tesla Motor will represent themself in the market place.
Tactical Data
The Tactical data is considered as the data which is used for the short term goal of Tesla
Motors. This basically consider as digital information that is used by the organization to meet the
short term goals to meet long immediate goals of company. This type of data can be collected
through DSS and MIS system.. This type of data is related to the internal operation of the
organization. It helps them to make quick changes in their operations.
Operational Data
The operational data of Tesla motors is known as the strategic data that is used by the
business organization to meet the goals related to the workforce, direct competitors, creditors and
suppliers of organization (Laudon and Laudon, 2016). This data is most important for Tesla
Motors because it is associated to their organization and its performance. This type of
information can be collected through the ESS.
This is how the statical, strategical and operational data of organization is different form
each other.
Information System for Three Level of Decision Making
There are mainly three level of decision making in the business organization. This level
are known as tactical, operational and strategic level decision making (Khan, Flanagan and Lu,
2016). For the each level of decision making Tesla Motors need information that can provide
them with better opportunities to them to make effective decision for the operations of the
organization.
Strategic Level
The strategic decision are related to whole operation of the organization. This decision of
Tesla motors are depended on the uncertain information that moves around the operation and
function of company in the target market.
Operational Level Decision Making
The operation level decision making is of both type where the companies like Tesla
Motors consider long and short term goals of organization to gain higher performance in the
market place. This type of decision does not need business judgement to perform this decision.
Tactical Plan

This type of decision making is related to the specific decisions with the organization. To
make this kind of decision organization need specific information to improve decision making.
These type of decisions are also known as short term decisions that are connected to supply chain
decisions.
Knowledge Management Techniques
There are different tools and techniques are used in the business organization to manage
the knowledge and information safe for long term. Knowledge management is important for the
business organization. The main technique of knowledge management are- connecting with
people through information and knowledge, connecting people with people, organizational
improvement, continuous learning and hold large knowledge base (Falkenberg, Hesse and Olivé,
2016). These all techniques can be used in the business organization to meet knowledge
management demands. These all techniques are about the collection, storing, processing and
increasing of data. In this case various information systems can be used which can help Tesla
Motors to meet the requirement of these techniques of knowledge management. For example
Artificial intelligence, DSS, TPS and ESS can be used to collect, store and process different type
of information that useful for organization. By collecting and holding this information
organization can improve their decision making process to improve their performance in the
market place.
Evaluation of Functional Department Based on Information System
There are main three components are connected to the organization. These factors are
people, technology ad processes. To get better performance organization need effective response
form these three perspectives of organization. Technological factor need to be update on the
regular basis to maintain the continuous performance. For the people factor, it is important for he
business organization like Tesla Motors to keep their employees update with current technology
to keep their actions profitable for the company (Cats and Loutos, 2016). If they are comfortable
with the new technology them they will be able to provide their best contribution to the
organization. For this Tesla Motors can use different processes like training and development to
make them comfortable with information systems that are important for company. The third
factor is considered as processes that are associated with the information system. By using
simple and pre planed processes with consideration of other risk factor Tesla can improve the
implication for the organization.'

LO3
Operational Data Base and CRM Technologies & Products
Operational Database
Operational data base is a system that is used by the organization like Tesla to create
large size Database with in short period. The data collected in this prices is collected or stored in
the real time. This can be used in organization to store different type of data related to the
finance department. This process can reduce the complexity of the numeric data in Tesla Motors.
The basic concept of this is to create instant data base for particular data.
CRM
Consumer relation management is combination of different practices, technologies and
strategies that are used by the organization to manage the relation with the consumer that is
based on the consumer life cycle and consumer data base (Reed, 2017). This is most important
for the Tesla Motors to maintain effective relation with the business organization to meet
business goals. This tool can be used by the HRM and marketing department of Tesla Motors to
get effective result in the market performance of the company.
Data Warehousing, Data Mining and Data Analytics
Data Warehousing
This is a process that is used by the business organization to construct a data base that
uses a data warehouse which is constructed by the multiple Heterogeneous sources, that supports
structured queries and analytical reporting. This technique can be used by the Tesla Motors to
solve queries which are related to their business like consumer issues.
Data Mining
The data mining is a process that is used by the organization to analyse and evaluate the
large size data to generate different kind of new information. It is kind of artificial intelligence
that can provide better business solution to the Tesla Motors in technology improvement.
Data Analytics
Th data analytics is a process that is used by the business organization to conclude the
specific and effective information from the raw data. This is about generating required
information from the whole data that is collected by the organization.
Cloud Based and Outsourced Base Data Management
Cloud Base Data Management

The cloud based data management can be considered as a way to store the data across the
cloud platform. This is one of the best way to reduce the risk of data loss and also provide the
mobility to the business operations. This can help the organizational employees to work from
large geographical distance.
Outsourcing Data Management
This is about facilitating seamless experience of data for companies and it also allow that
to take control of their data that can improve their decision making and business operations. This
can be used by Tesla Motors to improve their business operations by effective data management.
Web-Based and Mobil Access to These Platforms
There are different technologies can be used in the organization for better functionality.
The platforms that are used by Tesla Motors can be effectively accessed form different location
with the authorised user name and passwords. Most of these data base can be accessed from the
computers and mobile phones. For example this platforms like cloud storage can be accessed by
the employees of organization to provide mobility to the company operations for Tesla Motors.
PELS Consideration of MIS
The information systems are usually implemented in the business organization to
improve the operations of the company. The main purpose of this management information
system can help the organization to help Professionals to improve efficiency in their work. Better
information management can provide high functionality to organization. Ethically this systems
are good for Tesla Because it will keep their information well managed and reduce the
misleading data in organization. All the organization need to do is to consider all the ethical
measures to reduce the risks associated with it(Zaritskiy, Pavlenko and Tolbatov, 2016). If the
operations of organization are Legal and do not violating any rules then it will be effective for
Tesla Motors. Most of the legal consideration are related to ethical and privacy of data that is
stored in organization. The use of Management of information system Tesla Motors can
effectively collect the data of people who are connected with it. This will help the organization to
make effective relation with consumers to meet the social requirement inside and outside the
organization.

CONCLUSION
This report is concluding the importance of Managing Information system for tesla
Motors. This is important for the business organization to manage information to get better
market place performance. This is also important for organization to get competitive advantage
among other companies. The key concept of Managing information system has been analysed in
report to implement effective system in company. Different data storing technology also has
been discussed for organization to develop their business capabilities.

REFERENCES
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Online
Tesla, 2019.[Online]. Available Through.<https://www.tesla.com/>