Enterprise Systems and Organizational Change Management at Toyota

This report examines the role of enterprise systems in enhancing organizational performance, focusing on a case study of Toyota. It explores how enterprise systems contribute to improved operational activities and overall output, highlighting the benefits of systems like Odoo and SAP ERP. The report delves into the principle drivers behind adopting supply chain management systems, emphasizing cost reduction, increased efficiency, and improved stakeholder relationships. It also analyzes organizational change management considerations necessary for the successful adoption of enterprise systems, including defining objectives, assessing impacts, developing communication strategies, providing training, and implementing support structures. The report concludes by summarizing key findings and emphasizing the importance of enterprise systems in achieving organizational goals, using Toyota's implementation of TPS and ERP systems as examples.

ENTERPRISE SYSTEM

Table of Contents
INTRODUCTION ..........................................................................................................................1
1.Enterprises system contribute to organizational performance and how it can be measure
such contribution.........................................................................................................................1
2.What are the principle drivers behind business adopting a supply chain management system.
.....................................................................................................................................................2
3.Organizational change management consideration necessary for successful adoption of an
enterprises' system.......................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Enterprise system is high scale application software packages that support business
procedure, information flows, reporting and data analysis in complex firm. It will assist
organizational to run their operational activities in a better way. The report is based on the
Toyota which is a Japanese multinational automotive industry and they operate their business
across the globe. Further, organizational change management consideration required for
successful adoption of an enterprises' system.
1.Enterprises system contribute to organizational performance and how it can be measure such
contribution
The enterprise system have vital contribution to enhance the organizational performance
in terms of operational activities makes an overall output. There are various kinds of enterprises
system available which can be used by the organization in different purpose. The enterprises'
system are built on software platform which includes SAP NetWeaver, Oracles fusion and
database. The various operational need to perform in the business and these are more important
activities such as production, logistics. The Toyota developed their own production system
(Toyota production system). It is an integrates socio technical system philosophies and practices.
It will help to manage all the manufacture and logistics for the vehicle production.
Communication with the suppliers and customer. These enterprises are not only contributing in
the organizational production but there are different activities which required to perform in the
firm. The company performance increase with rapidly determine the mistake in between any
operation. The Toyota use the Odoo as its enterprise system. They are more concern about their
logistic and material handling operations efficiency is everything. This system has various
benefits in terms of material handling which could be easily customized the overall performance
of the company(Nwankpa and Joseph K). Toyota can be easily circulate core functional with the
application from the social, development of new feature as per the requirement. These will not
help to connect with the customer but also track overall performance of the organization. But in
the Toyota Australia upgrade their enterprises system I which they used for the managing people
with the SAP ERP. These will help to make an easy work for the human resource management to
manage all the data of employees in single system which save time and cost. These will help
track overall performance of employees which is directly impact on the firms' performance.
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The contribution of the system in increasing performance of organization can be easily measure
with the help of total output as the Toyota had developed TPS in which the Just in time main
only what is required, when it is required and overall cost for the particular vehicle. These will
help to make evaluate of overall performance of the organization. The contribution for effective
improvement in the organization is the ultimate aim of the such system. These will help to take
several decisions which are important for the organizations. The Toyota production system
which will eliminates waste from the overall productions process while the SAP is a software for
managing people as well other operational work in various department will assist their work
more easy(Grayson and Mark). The organization use advance enterprises' system they will get
effective benefits in terms of increasing revenue, better network with stakeholders. Therefore,
the organization using the various software for the implementing better system of firms which
will help make all the people unity and increase firm production, error free operation activities
which are the part of quality services and effective system. It can be measure when firm is
getting better output after the implementation of all the enterprises' system in the firm.
2.What are the principle drivers behind business adopting a supply chain management system.
Supply chain management is the combining among all the network in the direction of
products and services to the clients. The main aim of supply chan management is to improve the
quality, decrease cost and gain the competitive advantages. The various supply chain activity
terms as, planning, sourcing, manufacturing, delivering. The supply chain management system is
the way organization used to implement all these activities with the help of a particular system of
organization.
There are various principle key drivers behind business adopting a supply chain management
system in which it will reduce the cost by determining this procedure which can enhance cost
without increasing the overall value of finish goods. Such procedure required to avoid which is
not able to add any value need to remove(Pierce and Douglas). The another key drive of
adopting supply chain management system for increasing efficiency when the resource used for
the operation and production process have some cost. Due to improper planning it can be waste
during this process and organization may loss in terms of finance as well lack of resources. So
the supply chain management is able to achieve efficiency of it operation till the value addition
of various activities which boost the performance. It will increase the output if the firms is
adopting supply chain management system in which the relationship with customer and suppliers
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will be effective with the help of delivering goods and services in time. The commitment of firm
to the customer is not only build relation but it will help to set up strong brand value. The final
key drive for any firm to adopt supply chain management system is to increase profit of the
organizations.
The supply chain management system in Toyota is an element of firm operation strategy which
is based on the TPS (Toyota production system). They had introduced the Just In Time system
for managing the resource information allow and derision regulation that allows organizations to
realise the advantages of the JIT concepts. This will help to assist Toyota to solve the issues in
terms pull production based in the Kanban, TQM (Total Quality management), removing
wastage, decreasing inventory thorough supplier in planing procedure. Overall improvement.
Improvement of various equipment which are used for the production process and focus on co-
operation of firm. As per the Kanban all the parts go through with the card. The new arrival stock
will be required when the parts has been utilised, the card is separate, using signal to re stock this
part. Kanban is well merged in Toyota production system, because in the firm there are few units
of parts with stable demand for them. As well the product mix is low and group action are
occasional. The capacity planning in each and every firm is the portion of supply chain
management system for the particular organizations. Toyota manner in which they focus on their
capacity plan of action is that and strives to remove inventory or stock. To achieve such goals
company relies heavily in pull system. Normally, the firm focus on consistent improvement of all
the activities which are important for fulfil the aim of adopting supply chain management system
of gain supplier and customer trust.
3.Organizational change management consideration necessary for successful adoption of an
enterprises' system.
The organizational change management is the framework for managing effect new
business process, changes in company hierarchy structure or culture changes within business.
But it deals with the employee favour of change management. It is an important aspect for each
and every firm which required to considered for successful adoption of an enterprises' system.
The top management is generally faced a challenges tom implement any decision regarding the
changes in the organization. Because to bring any system it required time and cost but to adopt
the enterprise system with the consideration step of organizational change management. It need
to clearly define the objective of the enterprise system implementation in which the firm need to
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clear the requirements and propose of modifications. The next step is to determine the impact
and the affect of such changes to company. It is important for the organization which need to
find out all the negative and positive aspect of enterprises system and how this system can be
assist in implementing the effective changes to firm in terms of operation and production
process(Tarhini Hussain and Takwa). The third step is developed a communication strategy for
adopting enterprise system. The firm required to communicate with their stakeholders which are
the user and help in implementing changes. The organization use advance enterprises' system
they will get effective benefits in terms of increasing revenue, better network with stakeholders..
Further, organization provide effective training to employee before implementing enterprise
system for various purposes. At the end company required to implement a support structure
which give direction to team or employees during any issues arise to use such system for
operation.
Toyota adopted their system which are TPS and ERP which are the important aspect for the
firms. They use the organizational change management before the implementation or adopting
such system for operational use. The firm proper strategy before adopting changes and provide
all the information to the employees and their stakeholder. This changes have been used for
making firm production process effectively and deliverer the vehicle in time. For that JIT system
introduce by Toyota which gives highly response by employees and they know company
strength to give less time on single unit production in a nominal cost which is the main aim of
adopting theses system. The principle of JIT Kanban, lean producing, Kaizsen and others
providing competitive edge for organizations(Sykes and Tracy Ann). Hence, the overall training
cost incurred in better way for employees learning for new changes made by them must be
implementation successfully. It required to be done of course taking into account the recent
culture of Toyota and the overall level of abilities and education qualities of employees must be
considered. Therefore, it is important for firm required to considered organization change
management system for adopting enterprise system.
CONCLUSION
From the report enterprise system it can be easily concluded that this system will help to
boost overall operational activities of the organization as well achieve objectives. It will help to
manage all the manufacture and logistics for the vehicle production. Communication with the
suppliers and customer. The chosen firm Toyota developed their own system for increasing their
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quality productions and reduce wastage. Supply chain management system in which it will
reduce the cost by determining this procedure which can enhance cost without increasing the
overall value of finish goods. Just In Time system for managing the resource information allow
and derision regulation that allows organizations to realise the advantages of the JIT concepts.
Therefore, firm required to communicate and provide training to their stakeholders which are
the user and help in implementing changes
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REFERENCES
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Nwankpa, Joseph K. "ERP system usage and benefit: A model of antecedents and
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