Impact of IT Systems on Toyota's Performance: A Comprehensive Review

This report examines the influence of IT systems on the performance of Toyota, a global organization. It delves into Toyota's IT infrastructure, including its hub, authority, and cognitive hierarchy methodologies, highlighting the use of business intelligence systems and IT experts' roles. The report explores two key innovation strategies: exploitative, focusing on refining existing processes and workforce improvements, and exploratory, centered on new market evaluation and strategic approaches. It further analyzes the impact of these innovation strategies on stakeholders, organizational assets, and overall business performance, emphasizing the importance of selecting appropriate innovation strategies to address financial issues and enhance stakeholder value. The conclusion summarizes the impact of IT innovations on service quality, cost management, and employee productivity.

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Review impact of IT systems
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Executive Summary
The foremost determination of this paper is to focus on the effectiveness of using advanced
IT innovations in global organizations such as Toyota.
The reliability of the paper will be very much high as data will be collected from secured data
sources. All the data of this paper will be collected from secondary resources where
numerous researchers have stated their opinion about the supply chain management of global
organizations and detailed description of two different categories of innovation procedures
such as the exploitative and exploratory innovation procedure.
The impact of the use of IT system on global organizations such as Toyota and its impact on
the performance of the stakeholders of their business can be understood from the paper. The
paper will be useful for the readers to differentiate between two innovation strategies.

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Table of Contents
Introduction................................................................................................................................3
IT and its influence on performance..........................................................................................4
IT System of Toyota...............................................................................................................4
Data relationship to innovation..............................................................................................5
Exploitative innovation..........................................................................................................5
Exploratory innovation...........................................................................................................6
Impact on performance..........................................................................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
The supply chain management and the IT systems which are used in the working
environment of the Toyota Corporation are administrated using three different methodologies
such as authority, hub and cognitive hierarchy.
i. Hub: This business organization have hubs all over their business reach and business
target. Each of the stakeholders associated with the hubs are organized and monitored
using the Information System. Each activities of the authority are controlled from the
hub.
ii. Authorities: There is a central administrative authority in Toyota Corporation who
manages all the internal as well as the external stakeholders of their supply chain with
the help of their Management Information System.
iii. Cognitive hierarchy: Toyota maintains this behavioural model which help in
describing the thought process of the management team of Toyota. The lean
organization structure maintaining by this organization can be very much beneficial to
manage each of the potential consumers of this business organization. The constant
process of innovation and development is possible using lean project management.

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Figure 1 Representation of Hubs and Authorities
(Source: Bititci, Cocca & Ates, 2016)
IT and its influence on performance
IT System of Toyota
The incorporation of the Information System can be very much beneficial for the top level
management team of Toyota Corporation for managing the structured and the unstructured
data (Homepage - Toyota Europe. 2019). The business data of this organization are managed
and monitored using the Business Intelligence System as well.
The role of the project managers are very much important for setting up any types of IT
innovations in this organization. All the key components of the Information System are
managed in the first place by the IT experts of this organization. The significant criteria
which are maintained by the IT experts of this organization are discussed as follows:

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o Help Desk: The IT consultants play a leading role in case of any types of
complexities associated with the incorporation of the new Information System.
o Server Monitoring: The organization server of Toyota are secured by the server
administrator of this organization, all the networking activities of this organization are
managed and tracked in a professional way using the new server monitoring
protocols.
o Backup and recovery: The business data of this organization are secured and
managed using the Data administrator of this global organization.
o Security Management: The essential data and the future risks of this organizations in
terms of the organizational data are managed by the security experts who encrypts the
business data before sending it to a distant location outside the organizational
network.
All the Information Technologies which are installed in the working environment of
Toyota must be compatible with the existing hardware and the software systems which are
already been used by this organization over the years so that the improved market reputation
of this organization is maintained over the years (Saieg et al., 2018). The tele-communication
technologies which are used in the working environment of Toyota are also tried and tested
by both the black box as well as the white box testers so that the efficiency of the Information
Technologies which are used in the working environment of Toyota is maintained.
Data relationship to innovation
The innovation capability of Toyota are managed using the data management
capability of Toyota. This global organization have two different types of innovation
techniques such as the exploratory innovation and exploitative innovation procedures.

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Exploitative innovation
The improvement of the work practices and the workforces of Toyota are done using
this innovation technique. This innovative procedure is used in this organization to deal with
the refinements of this organization. At the same time, it can be said that the efficiency and
productivity of the employees working in this organization are managed in an organized
manner using this innovation technique (Wagner, Herrmann & Thiede, 2017). The current
skills of the internal stakeholders of this organization are improved and monitored using the
exploitative innovation technique. The business processes of this organization such as the
workforces of this organization, human resource departments and the sales and marketing
strategies of this organization are administrated in a productive manner using this innovation
technique. It can be said that the needs and requirements of the clients of this organization are
always changing, this is a very significant aspect regarding the growth and progress of this
organization (Siyam, Wynn, & Clarkson, 2015). The monitoring and tracking of the current
business needs of the consumers of this organization are done using this innovation
technique.
Thus, the changes needed in the production room of this organization can be done
using the exploitative innovation procedure. At the same time, it can be said that this
innovation procedure can be used by the top level management team of this organization
regarding the incremental product changes.
Exploratory innovation
The latest innovations which are needed to be taken by the management team of
Toyota can be managed in a professional manner using the exploratory innovation procedure.
New business strategies and fresh ideas coming from the sales and marketing team can be
implemented in an organized manner using this exploratory innovation. New markets can be

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reviewed and evaluated using this innovation (Soliman & Saurin, 2017). The change need in
the working procedure of this organized is identified, implemented using the exploratory
innovation procedures. Fresh and creative ways and approaches are aligned with the working
protocols of Toyota are managed in a structure manner using the exploratory innovation as
well. All the external stakeholders of this organization are usually managed in an organized
manner using this innovation criteria. The increased environmental competitiveness of this
organization are identified using this innovation procedure as well (Harrison et al., 2016). It
must be said that there are lot of risks and limitations associated with this category of
innovation which can have significant negative impact on the growth and productivity of
Toyota, hence this innovation procedure has to be implemented in an organized manner so
that the net profitability of this organization is maintained over the years as well.
Impact on performance
The incorporation of the innovation strategies can have a huge positive impact on all
the stakeholders of global business corporations such as Toyota. This global corporation have
employees from all over the world. There are lots of issues and complexities in the working
of Toyota (Habidin, Mohd Yusof & Mohd Fuzi, 2016). The selection and the application of
the innovation procedures can have a huge impact on the organizational performance of the
employees. It can also be said that the technologies and business approaches of this
organization can also be improved using the innovation procedures. The selection of the
appropriate innovation strategy can be very significant to manage the organizational assets
also (Chugani et al., 2017). The economic growth of business organizations can be
maintained using both the two different types of innovation procedures. The value creation
ability of business organization can also be improved using the innovation strategies. The
innovation procedures of business organization can also capitalized in numerous ways such

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as the management if each of the available resources who work for business organization
based on contractual agreements. The enhanced performance of each of the stakeholder of
business organizations can be very much responsible overall growth of the form in the
coming years (D’Andreamatteo et al., 2015). The potential driver of innovations can also be
identified in the first place with the appropriate section of the innovation strategy. The
creativity of the employees of every business enterprise can be improved using the innovation
procedure. Mobilization of the employees can be done using the innovation procedure. The
innovation procedure can have other positive impact on business enterprises as it can ensure
sustainable development for business organizations (Cherrafi et al., 2016). The actual value
of the employees, as well as the technologies used in the business, can be monitored and
managed in an organized manner using the innovation procedure. The employees who are
lagging in terms of performance can be identified by the human resource team of business
organization using appropriate innovation strategies. The selection of the appropriate
business innovation technique can be very much useful for business organization from the
business perspectives as well (Bititci, Cocca, & Ates, 2016). It can be said there are lots of
financial issues which are faced by business organization due to the overhead costs and the
implementation of the appropriate innovation plan can be very much helpful for business
enterprises to address these financial issues in a professional way.
Conclusion
The paper help in concluding that there are different categories of business
uncertainties associated with global business organization such as Toyota. The uncertainties
of the business organization include the complications coming from the provider of raw
materials of this organization and all the other external stakeholders of the supply chain, these
uncertainties can be resolved in the first place using the exploitative innovation procedure.

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This exploitative innovation approach can also be helpful to understand the needs and
requirements of the consumers of business organizations such as Toyota.
It can be also concluded that the use of IT innovations such as the Information System
can have a huge impact on the quality of service offered by global organizations such as
Toyota. The organizations issues such as management of the overhead cost and productivity
of the employers can also be resolved using the latest IT innovations.

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References
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on the performance management practices of organisations. International Journal of
Production Research, 54(6), 1571-1593.
Cherrafi, A., Elfezazi, S., Chiarini, A., Mokhlis, A., & Benhida, K. (2016). The integration of
lean manufacturing, Six Sigma and sustainability: A literature review and future
research directions for developing a specific model. Journal of Cleaner Production,
139, 828-846.
Chugani, N., Kumar, V., Garza-Reyes, J. A., Rocha-Lona, L., & Upadhyay, A. (2017).
Investigating the green impact of Lean, Six Sigma and Lean Six Sigma: A systematic
literature review. International Journal of Lean Six Sigma, 8(1), 7-32.
D’Andreamatteo, A., Ianni, L., Lega, F., & Sargiacomo, M. (2015). Lean in healthcare: A
comprehensive review. Health policy, 119(9), 1197-1209.
Habidin, N. F., Mohd Yusof, S. R., & Mohd Fuzi, N. (2016). Lean Six Sigma, strategic
control systems, and organizational performance for automotive suppliers.
International Journal of Lean Six Sigma, 7(2), 110-135.
Harrison, M. I., Paez, K., Carman, K. L., Stephens, J., Smeeding, L., Devers, K. J., &
Garfinkel, S. (2016). Effects of organizational context on Lean implementation in five
hospital systems. Health care management review, 41(2), 127-144.
Homepage - Toyota Europe. (2019). Retrieved from https://www.toyota-europe.com/
Saieg, P., Sotelino, E. D., Nascimento, D., & Caiado, R. G. G. (2018). Interactions of
building information modeling, lean and sustainability on the architectural,

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engineering and construction industry: a systematic review. Journal of cleaner
production, 174, 788-806.
Siyam, G. I., Wynn, D. C., & Clarkson, P. J. (2015). Review of value and lean in complex
product development. Systems Engineering, 18(2), 192-207.
Soliman, M., & Saurin, T. A. (2017). Lean production in complex socio-technical systems: A
systematic literature review. Journal of Manufacturing Systems, 45, 135-148.
Wagner, T., Herrmann, C., & Thiede, S. (2017). Industry 4.0 impacts on lean production
systems. Procedia CIRP, 63, 125-131.