Toyota Corp: Strategic Analysis of Information System Needs

This case study delves into the challenges and opportunities surrounding information systems at Toyota Corporation. It examines the organizational structure, technological needs, and potential solutions for improving IT infrastructure. The study highlights issues such as supply chain management inefficiencies, forecasting challenges, and the need for sustainable energy technologies. It also explores the planning, purchasing, and implementation aspects of information systems, including the use of ERP systems and intelligent technologies. The analysis considers literature on corporate customer information systems, procurement practices, and the alignment of IT with business strategy. The report concludes by recommending solutions such as local purchasing, standardized business application systems, and the adoption of TCP/IP systems to enhance Toyota's information management capabilities. Desklib provides access to similar case studies and solved assignments for students.

Running head: INFORMATION SYSTEM IN TOYOTA CORPORATION
Information System in Toyota Corporation
Name of the student
Name of the University
Author note

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Executive Summary
The primary purpose of this report is to discuss about the challenges the opportunities of
Toyota Corporation and the technological needs of the company. It also talks about the
challenges and the opportunities that the company has in relation to the planning, purchasing
and the implementation of the information system within the organization.

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Table of Contents
Introduction................................................................................................................................4
Organizational Description........................................................................................................4
Challenges and Opportunities....................................................................................................4
Technological Needs..................................................................................................................5
Potential Solutions.....................................................................................................................5
Literature Review.......................................................................................................................6
Challenges and the Opportunities pertaining to planning of Information System.....................6
Challenges and the opportunities in relation to purchasing.......................................................6
Challenges and opportunities in implementation of information system...................................7
Solution......................................................................................................................................8
Purchasing Plan..........................................................................................................................8
Implementation..........................................................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
Information system refers to the organizational system that can help in the collection and the
distribution of information within an organization. Toyota Motor Corporation is the name of
a automative manufacturer that has headquarters in the Toyota City of Japan (Toyota-
global.com., 2019). This report throws light on the challenges and the opportunities in
relation to the company. The report also discusses about the technological needs that the
organization should address for its success. The report also talks about the challenges along
with opportunities in terms of planning of the information technology system in the
organization. It also talks about challenges and that of opportunities in relation to purchasing
and the implementation of the information system in organization.
Organizational Description
Toyota Corporation is run with the help of the Board of Directors who helps in the
aspect of decision making and provide the management oversight within the organization.
There is also an Audit and the Supervisory Board and the External Accounting Auditor who
helps in looking after the functioning of the organization. Toyota Motor Corporation is
located in the urban area of that of Toyota City within Japan (Argyris, 2017). The population
characteristics of Toyota City mainly comprises of affluent people and they have a high
standard of living. The organization faces challenges owing to inability of getting access to
the services and the lack of an effective information system poses challenge for the company.
Challenges and Opportunities
The biggest challenge for Toyota Corporation lies in the arena of information
technology. The company should take recourse to IT initiatives that can help the company in
surviving the competitive environment. It can help in bringing about efficiency pertaining to
the supply chain management of the company. The lack of proper implementation of

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information system throws open logistics challenges for the company. The existing systems
of the company are not compatible with speed that can help in sending the product to the
market. The challenge lies in the area of forecasting the requirements that can help in meeting
the needs of the company (Horn, 2016). The opportunities that Toyota Corporation has in
relation to the process that can help the company in leading within the growing market. The
company has new projects like Monarch that helps in carving out operating efficiencies for
the company. It was designed so that it can build agility within the company.
Technological Needs
Technology can prove to be crucial that can help in transforming the company
towards that of the sustainable energy paradigm. Electric vehicles can be used for the purpose
of energy storage and it can help in the aggregation of the storage capacity that can help it in
entering the energy markets (Laudon & Laudon, 2016). The technological needs of Toyota
Corp rises on account of the fact that information system can help in providing useful
information about the trips and the driving patterns.
Potential Solutions
Toyota Corp can make partners with that of the business units that can help in
moulding the demands across the organization. It can be useful in the elimination of
redundancy that can help in matching the strategic direction of that of Toyota Corp. The
company can take recourse to the “silo-agnostic” position that can help it in the managing of
the projects that can help in the delivering of the business value. There should be a mater
organizational plan that can help in creating value for the company. The functional group of
the company should be creative and the IT of the company should treat the business unit like
independent effort that can help in designing solution for the company (Jia, Guo & Barnes,

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2017). The company can make use of enterprise architecture in that of the IT department that
can strengthen the hold of the company in the market.
Literature Review
Challenges and the Opportunities pertaining to planning of Information System
The challenges that lies in the planning of the Information System pertains to
Corporate Customer Information System. Customer Information System is designed around
the customers that helps in providing information in relation to products along with services
of a company. It can help in the reduction of the costs that are associated with that of the
redundant systems that helps it in functioning as the central point of the entry for the creation.
The challenges in the organization rises on account of the deciding of the objectives
pertaining to computing within an organization (Hoffmann, Kiedrowicz & Stanik, 2016). The
company faces problems in relation to identification of the applications which should be
computerized by the organization. The planners would face difficulties in relation to planning
owing to different decisions being taken by the people in the management of the
organization.
The opportunities in relation to the planning of the information system rises on
account of the fact that they have moved towards a new model that helps in meeting the
corporate needs of the company (Pomerantz, 2017). The company has leveraged the existing
“silo-agnostic” approach that has helped the company in the managing of the complex
projects.
Challenges and the opportunities in relation to purchasing
The challenges in relation to the purchasing of the Information System rises on
account of the fact that the company does not have an up to date information system that can
help the company. The cost of the maintenance of the information system proves to be a

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hurdle in the path of the company (Clark, 2018). The management pertaining to information
system requires extra amount of the processing that makes the company incur a lot of costs.
The opportunities in Toyota Corp rise due to the fact that the procurement of the
company are on the basis of fair practice that helps in the realization of the amicable
relationships for the company. The suppliers of the company provide the quality items at that
of a low price that helps in promoting the aspect of environmental preservation for the
company (Burenin et al., 2017). The business practices pertaining to Toyota Corp are
transparent that helps in the company in the arena of purchasing of the information systems.
Challenges and opportunities in implementation of information system
There are management challenges that the company has to face pertaining to
implementing the information system. The top management does not approve process of that
of suggested system development that acts like a barrier for the company. The senior
management of Toyota Corp does not understand purpose of the strategies that creates a
hurdle in the path of organisation. The alignment of the information system with that of the
business strategy proves to be difficult for the company (Harrison, Parthasarathy & Sharma,
2017). The lack of the computer skills of the employees creates difficulty for implementing
the information system in the organization.
Toyota Corp has made use of the Enterprise Resource Planning (ERP) that helps the
company in making critical decisions in the organizations. The ERP system in Toyota Corp
helps in the optimizing of the operations that helps in increasing the efficiency of the
company. There is co-operation in between the various departments of Toyota Corp that
helps in improving the operations of the organization. The ERP in the company helps in
integrating the value chain activities that helps the company in making profits. It proves to be
useful in the aspect of inventory management that helps the company in its survival within

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that of the competitive environment. It helps the company in making right decisions and it
helps the company in the exploration of the options. The ERP system in Toyota Corp helps in
the reduction of the cost of the quality with the help of the quality assurance and the
management systems. ERP system helps in the consolidation of the fragments of the software
system within the organization. It helps in uniting all the systems in the organization into that
of single interface that helps in encompassing the aspect of the product development along
with supply chain management.
Solution
Toyota Corporation has adopted the intelligent technologies that has helped it in
dealing with the problems related to the supply chain management. The company can take
recourse to creation of a new operating model that can help it in dealing with challenges.
Purchasing Plan
Toyota Corporation can encourage the aspect of local purchasing that can help the
company in relation to purchasing of the various services. It can actively engage with the
local suppliers that can also help the company in making contribution to that of the local
communities.
Implementation
Toyota Corporation can standardize the business application systems that can help the
company in implementing the information system. The information system in the
organization can be changed to TCP/IP system that can help the company for the proper
implementation of the information system in Toyota Corp.
Conclusion
Information System is indicative of organizational system that helps in collecting and
distributing the information in an organization. Challenge that lies in the Toyota Corporation

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is pertaining to the use of the information technology. IT initiatives can be used by the
company that can ensure the survival of company. The company has implemented the new
projects like that of Monarch that helps in operation of the company. It helps in building
agility within the company. Toyota Corporation cannot decide on the objectives in relation to
the computing in the organization. The company has to face problem for identifying the
applications in relation to computerization in the organization. The company has made use of
new model that meets needs of the company. The company has bear cost for maintaining the
information system that acts like a barrier for the company. The procurement practices of the
company are based on the fair practices that helps the company in the aspect of building of
relationships. The senior management in Toyota Corporation not approving the processes acts
like hurdle for the company. The company has used ERP that helps the company in the
making of the critical decisions within the organization. Toyota Corporation can use the
intelligent technologies which can help the company for dealing with problems in relation to
supply chain management. It can make use of local purchasing which can be of use for
company pertaining to purchasing of the varying services.

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References
Argyris, C. (2017). Integrating the Individual and the Organization. Routledge.
Burenin, A. N., Legkov, K. E., Orkin, V. V., & Alekseev, V. F. (2017, July). To the question
of effective functioning organization of information subsystems of automated
control systems for complex organizational-technical objects in conditions of
external influences. In Systems of Signal Synchronization, Generating and
Processing in Telecommunications (SINKHROINFO), 2017 (pp. 1-6). IEEE.
Clark, N. (2018). Organization and information in the evolution of economic systems.
In Evolutionary Theories of Economic and Technological Change (pp. 88-107).
Routledge.
Harrison, R., Parthasarathy, S., & Sharma, S. (2017). Enterprise resource planning (ERP)
systems are recognized as management information systems that streamline
business processes of an enterprise. Delivering ERP software to meet functional
needs of an organization with acceptable level of quality is a challenge due to the
very nature of development and deployment of this packaged software. Drawing on
ISO/IEC 9126’s characterization of software quality... Software Quality
Journal, 25(2), 407-435.
Hoffmann, R., Kiedrowicz, M., & Stanik, J. (2016). Risk management system as the basic
paradigm of the information security management system in an organization.
In MATEC Web of Conferences (Vol. 76, p. 04010). EDP Sciences.
Horn, B. L. (2016). U.S. Patent No. 9,229,945. Washington, DC: U.S. Patent and Trademark
Office.

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Jia, Q., Guo, Y., & Barnes, S. J. (2017). Enterprise 2.0 post-adoption: Extending the
information system continuance model based on the technology-Organization-
environment framework. Computers in Human Behavior, 67, 95-105.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Pomerantz, J. R. (2017). Perceptual organization in information processing. In Perceptual
organization (pp. 141-180). Routledge.
Toyota-global.com. (2019). TOYOTA MOTOR CORPORATION GLOBAL WEBSITE.
Retrieved from https://www.toyota-global.com/