HI5019 Strategic Information Systems: Tesla Business Report

This report proposes a strategic information system for Tesla Inc., aiming to improve its organizational system and achieve a competitive advantage. It identifies Tesla's critical success factors, primary objectives, and current system weaknesses. The proposal details the features of a new system, including technology platforms, financial and non-financial data attributes, user views, and security controls. The analysis uses secondary data and qualitative methods to recommend advanced training for employees and leaders. The strategic information system is expected to align with Tesla's strategic goals, enhance decision-making, and drive overall performance, ultimately contributing to a sustainable competitive advantage. The report also addresses potential security risks and data breaches, suggesting appropriate accounting controls for the new system.

Running Header: Strategic Information System for Business and Enterprise
Strategic Information System for Business and Enterprise
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Strategic Information System for Business and Enterprise
Executive summary
Aim of the report
The report is primarily developed on the concept of information system, which is one of the
critical elements for any of the business corporation. Information system plays a crucial role in
the growth and development of the business entity as it align with the strategic objectives and
enhances the capability of responding to the certain changes occurring in the business
environment. The report is analyzed and developed for setting up a new and improved
organizational system for Tesla which is a car manufacturing brand. This system will aid the
business entity in attaining the corporate goals and objectives and thus will enable to accomplish
competitive advantage.
Objects of the report
The report is basically developed for aa prime object of development of better and improved
organizational system for Tesla. The report is further segmented in various objects such as
analyzing the critical success factors of the business entity and developing organizational chart
of the firm. The next objects are analysis fof the current system and thus making identification of
some control weakness that will be addressed by the improved system. Moreover, the improved
and newly developed system and its features are described and also a justification is required to
be given for the adoption of new system.
Introduction
Strategic information system is a mechanism that aids the business entity in assessing the
information and aligning it with the strategies so as to support the decision making process. This
mechanism is adopted by Tesla Inc. for improving the current organizational system of the
entity. This will enhance the productivity and overall performance and thus will make the firm to
enjoy a sustainable and competitive advantage.
Methodology

Strategic Information System for Business and Enterprise
For developing the presented proposal secondary data collection method has been used. Research
has been conducted after analyzing various web-sites, research papers, journals etc. Qualitative
method of data was also used for extracting the data.
Outcome
Information system will be proven beneficial for developing the new and improved
organizational system for Tesla. Certain other benefits will also be attained by the firm.
Recommendations
Advanced training sessions to the employees for coping up with the improved system of the
organization should be given. Leaders and training heads should also be given professional
training so that they will be able to lead properly.
Conclusion
After summing up the analysis it has been inferred that the strategic information system is a
mechanism that will align with the strategic goals and targets and will aid the entity in
accomplishing competitive advantage. Adoption of this system will be proven advantageous for
Tesla.

Strategic Information System for Business and Enterprise
Contents
Introduction......................................................................................................................................5
Company’s critical success factors..................................................................................................5
Primary objectives........................................................................................................................7
Information might be helpful in analyzing the objectives...........................................................7
Mission statement that would be suitable for client business......................................................7
Organizational chart of Tesla...........................................................................................................8
Current system of Tesla...................................................................................................................8
Identification of specific control weaknesses within Tesla.............................................................9
Primary features of new system and best solution the client...........................................................9
Relevance of new advanced technologies.....................................................................................11
Other various items........................................................................................................................11
Technology platform for the system..........................................................................................11
List of financial and non-financial data attributes.....................................................................12
Four users views that are source documents..............................................................................13
Potential security risks, data breaches and appropriate accounting controls for the new System
....................................................................................................................................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

Strategic Information System for Business and Enterprise
Introduction
A piece of information or data that is managed and further utilized for assisting the crucial
decision making process of a business organization is the mechanism which is termed as
strategic information system. Information system can also be defined as the data which is used
for supporting, changing or improving a corporate strategy (Gorla, Somers and Wong, 2010).
Information system upgrades the current working system and also this alignment will be
advancing the potential of responding to the various types of changes such as environmental,
technological etc. and thus aids the business corporation in accomplishing competitive
advantage. Moreover, this mechanism can also be defined as the guidelines r the roadmap which
will be leading the business entity towards the attainment of the desired goals and objectives.
The prime objective of integrating or incorporating this system is that it will enable the business
entity in assessing the environmental changes and make utilization of the same in an
advantageous direction. SIS can be segmented mainly in three types financial, operational and
strategic which are inter-connected and can be employed as per the type of the organizational
structure. SIS will be aiding the business firm on various grounds such as it will make the
decision making process easier, with the supporting system that will aid in streamlining the
desired and expected business objectives and goals. Alignment of information system wills the
business strategies will be proven one of the biggest advantages for the organization.
The below demonstrated summary is a business proposal that is focused on the concept
developing a new and improved organizational system for TESLA by making use of Strategic
information System. Tesla Inc. was founded in 2003, and is an American multinational
corporation which is located in Palo Alto, California (Tesla 2018). The business corporation is a
manufacturing organization that specializes in electric vehicles, lithium-ion battery energy
storage and solar panels and is one of the leading brand names in the sector. The prime objective
of the proposal is to develop a better and improved organizational system by making the
integration of information system.

Strategic Information System for Business and Enterprise
Company’s critical success factors
Success factors are the boost or the motivating factors that stimulate the productivity and overall
performance of the business corporation (Reuters 2018). The critical success factors can be
defined as the set of activities processes or the areas on which a business corporation depends for
its continuous survival. These factors are distinct in nature for each business corporation and also
reflect the current business and future objectives and targets. On the basis of the conducted
detailed research it has been analyzed that there are 7 reasons which are considered as the critical
success factors of Tesla (Steinbuch 2015). The presented are some of the significant factors of
success:
Figure 1 Growth chart of Tesla Inc.
[Source: Critical success factors of Tesla Inc., 2018]
 Technology: Technology used by Tesla is so good that the other business corporations in
the sector are relying on the same (Weber, 2010). There are many automobile
manufacturers which rely on the technology of Tesla for instance, battery packs of Tesla
are used by Daimler, Mercedes-Benz is making use of power-train, and Toyota uses a

Strategic Information System for Business and Enterprise
Tesla motor., and also General motors has developed a team for monitoring and tracking
the new moves of Tesla.
 Monopoly: The journey of Tesla began with a tiny super-market that was easily
dominated by the business entity. This was the market of high-end electric sports cars.
Though the Roadster cannot be compared with the Ford F-150 in terms of volume, the
Ford did not allow Tesla to generate fair amount of revenue from the mentioned product
to move further down the chain (Steinbuch 2015). One more example of this is that the
business entity is planning to expand business by launching the Model S as it goes to its
3rd generation car which is believed that it will be a mass market car.
 Team: Tesla is one of the business corporations which have a huge team of professionals
and hence it is not surprising as the CEO of is the consummate engineer and salesman.
Workforce of a business corporation plays an empirical role in the growth and prosperity
of the business corporation. As the teams or the staff of the business entity is the core
element that is required for the execution of all the operations and functionalities. And
hence team is considered as one of the critical success factor for a business corporation.
Primary objectives
 One of the prime objective is to generate demand and drive sales for the Tesla’s Motors
electric car
 Establishing long term brand recognition and managing high level corporate reputation is
another objective that can be considered under the list (Cassidy, 2016)
 Management of the existing customer base of Tesla and thus developing loyalty referrals
of customers
Information might be helpful in analyzing the objectives
For a company like Tesla, in order to accomplish its objectives and goals, there is a prior need of
data and information. The rivalry structure of the company needs to be revised to high standards
such that the extra cost of vehicles gets reduced. The firm shall revise its policies and strategies;
make significant changes to them, if required (Devadevan, 2013). In order to deal with rivalries
in the international market, the company has to focus on the improvising the quality of its
automobiles. Tesla should come up with a strategy which helps to reduce the cost of the
products.

Strategic Information System for Business and Enterprise
Mission statement that would be suitable for client business
To provide customers with products of high value and world class services is the main
focus of Tesla; which will further attract customers (Rowland 2018). The mission is to retain the
customers with satisfying ownership experience in various countries.
Organizational chart of Tesla
Current system of Tesla
Tesla has managed to build an effective and unique system that it can face any amount of
rivalries in the market across the globe. The company always encourages improvement and
enhancement into its system. From time to time, the company has adopted new information
processing technologies. There has been evolution and growth in the recent years into the
system. This is done in order to cope with the fast paced changes in the industry (macro
environmental changes) (Abawajy, 2014). These macro environmental changes comprises of
changes in manufacturing operations, sales, economic changes, varying environmental standards,
CEO
Marketing
department
Product
Segment A
Overseas
Business
Developme
nt
Domestic
Business
Developme
nt
Product
Segment B
Direct Sales
Department
Channel
Department
Administrative
Department
Human
Resource
Department
Training
and
Recruiting
Team
Operations
Department
Stastics
and
Logistics
Department
Customer Service
Department
Sales
Account
Service
Individual
Customer
Service
Board of
Directors

Strategic Information System for Business and Enterprise
fast paced globalization, electronic technologies. Tesla works on a lean production system and it
has brought drastic changes in the manufacturing industry. It is said that one has to adapt with
the changes in order to survive. The system of Tesla is a fine example of this. Many give the
credit to the spirit of the company for continuous improvement and enhancement. The laborers
and the members of management all work together as a unit and create an effective work culture.
The set of rules for the entire company is same. At the end, the company has to meet the
requirements of the costumers, thus it has to keep on revising the rules and regulations of the
system. The other name which is given to Tesla Corporation is lean manufacturing system. The
production system is an asset for the company and most probably; the best part of it. It has been
15 years of its tremendous journey, and it has managed to beat so many rivalries in the system.
The production system has undergone many changes during all this time.
Identification of specific control weaknesses within Tesla
In the recent times, the manufacturing industry is at its peak and its growth helps the
companies to achieve a good brand image in the market with such immense competition. Recalls
car has proven to be a huge failure for Tesla which is not profitable and has affected the image of
Tesla in market. Not only is this, in the international market, the company facing several threats
regarding its weakness to meet the set standards and policies (Bhunia, Hsiao, Banga and
Narasimhan, 2014). Thus there are conflicts while producing the products in international
market. Another failure which the company encounters is the failure in management. In the
production of automobile cars, Tesla is unable to control its weak management. When the
management is meeting such lows, the company has not been successful in hiring employees
having potential and skills to run the production successfully. There is another threat i.e. the lack
of suppliers, which is affecting the growth and objectives of the firm. During the manufacturing
of ample of auto mobile products; the company comes across with various issues like fraud,
authentication problems, issues with suppliers, third party issues, informed permission and
confidentiality of costumers. Tesla has come up with various strategies to solve all the above
issues and its own weakness in management in the market. Initially, the company was known for
its rapid measures and the display of genuine interest in correcting mistakes.

Strategic Information System for Business and Enterprise
Figure 2 Document flowchart of Tesla
[Source: Document flow chart diagram for a car manufacturer, 2018].
Figure 3 Data flow diagram
[Source: Data flow diagram for a car manufacturer, 2018].

Strategic Information System for Business and Enterprise
Primary features of new system and best solution the client
Technology is playing a major role within the industry to enhance the overall
performance and effectiveness of the workers. It provides them with smarter ways to the same
work in lesser time. Technology can prove to be an asset for the growth of any company. It can
be noted that TESLA has laid great emphasis on the implementation of technology over the
recent years. The firm is moving with time by addition of new factors and has become innovative
and advanced. Apple car play and android auto are the recent examples of this evolution in
industry. Now there are in-car Smartphone applications. In order to cope up with these latest
innovations, Tesla is working towards expansion and exploring to integrate Smart device link
technology in their already effective and dynamic Tesla entune system. As this technology is
new to the company, Tesla has decided to outline the pros of its own smart device link
technology; this will lead to a better understanding and analyzing this new innovation in
technology. The company has also decided to work on smart driving and environmental
effectiveness. For this the company shall build advance engines, which is already under process.
This has led to evolution of hybrid system. The firm will install these latest innovations and
applications in the upcoming models of vehicles’. Below are some of the features of this new
system.
 Ensures a world class thermal efficiency and effectiveness.
 The engine provides strong power and swift response and feedback.
 Enhances fuel efficiency
 Handling of stability
 Permits fully electronic motor only operation when engine effectiveness and efficiency
would be low.
 An excellent performance hybrid battery and the effective placement of the motor rotor’s
permanent magnet.
 There is efficient advancement in the engine, which provides efficiency and
effectiveness.
 Eliminates the CO2 emissions.
 Improves engine torque.

Strategic Information System for Business and Enterprise
The implementation of this new system has managed to ensure a high level of satisfaction in
the costumers. Tesla is always known for its hybrid vehicles, which can lead to development of
automobiles in the upcoming years. Once this new system is installed, then the firm can revise its
breaking system and make significant changes to it (Schlagwein, Thorogood and Willcocks,
2014). New breaking system should be devised in such a manner that it enhances the battery
performance which minimizes the energy loss during energy transmission such that energy can
be regenerated at a faster pace. This will help to meet the long awaited desires of the customers.
Relevance of new advanced technologies
Electronic data interchange is the process of transfer of information from one firm to
another digitally in an electronic form in a standardized format. The information is transferred in
an electronic form rather than use of paper (Bott and Milkau, 2014). Hence this process is hassle
free. The companies which transfer information to each other through this electronic process are
known as trading partners. This process has put paper out of the system and all the information is
handled electronically. This system allows the data and information to process or flow in a
standardized format (Edibasics 2018). With the implementation of this EDI system, the losses
can be tracked which helps in dealing with the competition in the market. In fact MRP
(manufacturing resource planning) has proven as an effective tool for the planning of resources
within the organization. This system not only helps in resource planning bur it is of great use in
operational planning and financial planning. Tesla is using this MRP system in a right manner
and has been using various kind of innovative material in the manufacturing of vehicles (Admin
2015). MRP system has also helped in solving the problem of delays in the delivery process. It
reduces the cost of capital. A better planning or analysis of the data and information can be done
within the organization with the help of this MRP system. This also helps in putting a check to
the excess use of resources (Pearlson, Saunders and Galletta, 2016). This tool has a significant
role to play in the overall growth of the company.

Strategic Information System for Business and Enterprise
Other various items
Technology platform for the system
The main aim of the organization is to attract the maximum number of customers. N
order to achieve this, they have to provide the automobiles at a very reasonable price. They also
have to face various rivalries in the international market. From time to time the company has
come up with various such measures like hybrid system. Tesla has used various new
technologies and innovations to meet the needs of its customers in the international market. The
use of technology has proven to be a helpful technique to cope up with the rivalries in the
international market (Bicakci, Unal, Ascioglu and Adalier, 2014). It has proved to be
commercially successful. This new technology generally comprises of various applications,
software and hardware. The company also uses HTML5, JAVA script and CSS. This helps in the
manufacturing of cars within the organization. Tesla uses open software. The new AGL
(automobile grade Linux), this system helps in customization of software. With the help of this
Apple Inc (Gill, Bunker and Seltsikas, 2015) and android auto can be accessed automatically by
the automobile. The company has jointly developed the AGL system along with ten other
companies, which has customized the code system. Tesla has brought such automobiles into the
industry which has great aspects like navigation and music. It has opened a window for the new
technological reforms in the near future.
List of financial and non-financial data attributes
Figure 4 Financial and Non-financial attributes

Strategic Information System for Business and Enterprise
Tesla can make use of the ER model for describing the specific 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.
Figure 5 Entity Relation Diagram
Four users views that are source documents
The loyal customer base is an asset for growth of any company. There are customer who show
genuine interest in TESLA, thus in response to that it becomes the responsibility of the company
to further enhance this trust (Goodhart, Hartmann, Llewellyn, Suarez and Weisbrod, 2013). Then
only it can come up as a global leader of the industry. The four points, on which company needs
to focus, are given below:
Physical audit:
It becomes important to any company that an audit shall be conducted within the organization, so
that it can analyze the frauds occurring within the company. An effective audit is necessary to
check the errors, frauds and various other malfunctions (Hill, Jones and Schilling, 2014). There
should be proper analyses, and then only these wrongful and frequent activities can be identified
and analyzed. This kind of audit is observed within Tesla. From time to time, Tesla conducts a
physical audit to detect these activities and to manage the resources in the competitive market.
Approval authority:

Strategic Information System for Business and Enterprise
This committee is formed to tackle the acceptance level of risks. It is the responsibility of this
committee to form such a system which manages risk taking. Another responsibility of the
company is to handle the costumer and company relationship, which is vital for the growth of
this firm (Jenkins and Williamson, 2015). The transferring of data also comes under this
committee. The committee manages the flow of information.
Sales order:
Tesla has a control over the sales order (Laudon and Laudon, 2015). The control over sales order
helps the company to meet the demands and preferences of the costumers in the international
market.
Separation of duties and tasks:
Different teams and committees shall be assigned separate tasks to accomplish.
Potential security risks, data breaches and appropriate accounting controls for the new
System
The security of the information is always the prior focus of any company because it is
directly related to its brand image (Bodnar and Hopwood, 2012). There should be a strategy to
manage these security risks to maintain its position in the international market. These risks are
stealing of information like data breaches, manipulating the operation system of the vehicles and
manipulation in the mobile application security. Some of those risks are discussed below:
Data breaches: Data breaches have proven to be effective threats for the growth of the
company. These issues occur internally within the software or applications (Liu, 2015).
Basically, a data breach is the process in which unintentionally there is an unauthorized flow of
private information to the entrusted systems which can be misused for any purpose. They affect
the system immensely. The profits of the company become less and it faces several losses. This
new shall be controlled by the firm to avoid data breaches. This can be done by separation of
duties. Different committees shall be assigned different tasks. There should be an accounting
control over this new system (Denton, 2016). When we operate separation of duties, the work
gets divided among the workers and they are able to work in a hassle-free manner. Expect
separation of duties, there are also some other alternatives like Physical audit. Physical audit

Strategic Information System for Business and Enterprise
helps to mange or reduce frauds or errors within the organization. Thus the company moves
closer toward growth and profits (Mocker, Weill and Woerner, 2014).
Conclusion
In the limelight of the above presented analysis it has been concluded that the information
system plays a crucial role in developing and enhancing the overall performance and potential of
the business corporation. In this paper, the conclusion is that in its history of 15 years, Tesla has
established itself as one of the biggest brands of the automobile industry. So far, there has been
ample emphasis on the mission statement, organizational structure and success factors of the
company. Tesla has an effective current system and has managed to attract large number of
customers. In this task, there has been a discussion over the latest technologies and their
implementation in Tesla. Tesla shall accept the new business proposal which has been proposed
in this task. All these new technologies shall be implemented with great care. We have also
discussed in details about data breaches and various other threats.
Recommendations
Making provision for advanced training sessions for the staff regarding the changes in the
working environment within the organizational structure is required to be recommended strictly.
Bringing changes in the leadership style as per the new and improved organizational system
should also be done. More and more use of automation and contemporary means and
mechanisms for developing the organizational structure.

Strategic Information System for Business and Enterprise
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Strategic Information System for Business and Enterprise
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Strategic Information System for Business and Enterprise
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