The Big Fix at Toyota Motor Sales - Case Study Example

The Big Fix at Toyota Motor SalesThe new decentralized IS structure has several advantages that guarantee progress. To begin with, it enhanced the creation of Toyota Value Program with a team of eight staffers who were responsible of translating vision into actionable items, for the department and direct reports. In addition, it increased employee training. Consequently, a business office of the CIO structure with new roles, reporting line, and responsibilities was to be put in place. Through this structure, more focus was also put on how the company would cut down its cost, improve its process, and get rid of their inefficiencies.

Lastly, top flight senior personnel where employed in every business unit as divisional information officers maximizing the production through their experience and skills in the field.However, it had some disadvantages that counteracted the advantages. First, it brought about confusion in the employees sector as 50% of the staffs where given different jobs within duration of six months. Further still, new responsibilities and completely different roles given to several mid and upper –level staffs, made some became uncomfortable thus affecting production.

Lastly, the time used in mentoring and coaching was too much and could have been used in production.The problems that Coopers was trying to solve with the new IS structures were the problems in the IT system as the in-house IT could not deliver. The basic IT disciplines such as the business relationship management and financial management were absent. IS personnel were like order takers than business partners as no one was involved in the architecture of standards, system integration, or the business benefits.

The success in the new IS structures is evident as the company has installed the Big Six technology whereby new Toyota extranet and the PeopleSoft ERP rollout, four new systems for order management, part forecasting, advanced warranty, and financial document management have been enhanced. In addition, they have hired top-flight personnel with skills and experience to steer the company forward in profit making. The IT staffs have been involved in rotational high potential, in the business units making them have broader understanding of the company.

This gives them training for leadership positions in different IT departments. To maximize production, they have increased training to the employees enabling them get rid of their inefficiencies. Managers have the complete accountability and responsibility for the vertical areas, which they serve. This makes them toe and steer every thing to the right direction. The role of Executive Steering Committee is to approve all major IT projects lessening the role of IS’s on project vetting, monitoring and increasing business responsibility.

They control all project funds in one pool and distribute them to different departments in phases depending on project goals. The Executive steering committee is a good idea, because it allocates responsibilities to everyone in the management. Business executive make proper use of funds allocated to them, as they have to give accounts of the funds given to them. The fact that everyone in the company looks at what is put into use and that which is not used force pool administrators to return the unused fund.

The committee takes funds and gives them to other project creating no room for finance mismanagement. Proper follow up of funds is done, which is the key part in every company’s growth.