An In-Depth Analysis of Toyota's Strategic Information System

This report provides a comprehensive analysis of Toyota's strategic information system. It begins with an introduction to Toyota and its position in the automotive industry, followed by an identification of the company's critical success factors and primary objectives. The report examines Toyota's manufacturing facilities, research and development, and management philosophy, highlighting its commitment to lean manufacturing and JIT production. It outlines the company's mission statement and develops a formal organizational chart. The current information system is discussed, including the application of CAM/CAD systems and the Toyota Production System, focusing on Jidoka and Just-in-Time principles. The report identifies specific control weaknesses within Toyota, such as recalls, bureaucracy, and cultural issues, and presents a flowchart and data flow diagram of the current system. It then details the primary features of a new system, including the relevance of advanced technologies and the technology platform. The report also includes financial and nonfinancial data attributes for an ER diagram, potential security risks, and appropriate accounting controls. Finally, it summarizes the key findings and concludes with recommendations for improvement.

Running head: Strategic information system
Strategic information system

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Identify the company’s critical success factors and objectives....................................................................3
Primary objectives of Toyota.......................................................................................................................4
Information that might be helpful in analyzing objectives...........................................................................4
Mission statement that would be suitable for client business.......................................................................4
Develop a formal organizational chart.........................................................................................................5
Current system of Toyota............................................................................................................................5
Identification of specific control weaknesses within Toyota.......................................................................7
Flow chart and data flow diagram of Toyota current system.......................................................................9
Primary features of new system and best solution the client......................................................................10
Relevance of new advanced technologies..................................................................................................11
The proposal contain various items...........................................................................................................12
Technology platform for the system......................................................................................................12
List of financial and nonfinancial data attributes for each entity in the ER diagram..............................13
Four users views that are source documents..........................................................................................14
Potential security risks, data breaches and appropriate accounting controls for the new system...............14
Conclusion.................................................................................................................................................15
References.................................................................................................................................................15
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Strategic information system
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.
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Strategic information system
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.
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Strategic information system
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
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ManufacturingPlantPressWeldingEngineersRomPressDivisionShopFloor1Group1Team1WeldingDivision1WeldingDivision2PaintingModingAssemblyTestFactoryStaff

Strategic information system
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).
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Strategic information system
(Source: 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
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Strategic information system
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).
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Strategic information system
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;
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Goal: Highest quality, lowest cost, shortest lead time
Just-in-time Jidoka
Continuo
us flow
Take time
Pull
system
Stop and
notify of
abnormal
ities
Separate
human
and
machine
work
Heijunka Standardized work Kaizen
Stability

Strategic information system
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 21st 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).
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Strategic information system
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,
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Strategic information system
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
(Source: https://stackoverflow.com/questions/42393766/er-model-representing-entities-not-
stored-in-db-and-user-choice)
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.
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