Knowledge Management and School of Business Information Technology - Case Study Example

Number Subject Name Lecturer’s Name Knowledge Management Strategy Due date Date Submitted Knowledge Management Strategy Executive Summary Knowledge management in the Toyota Australia manufacturing department is one of the key aspects that could drive it to realize its objectives. The departmental knowledge is stored in various and numerous ways, which includes the human minds, documents, reports, manuals, and notes. To have an effective knowledge management strategy, it could be quite necessary for Toyota Motors to apply effective approaches and methodologies. The strategy is suggested based on the strategic gap and knowledge gap existing in the department. Based on the bottom-up approach KM approach and the data collected, there are a significant gap on the two aspects. These gaps are categorized in terms of cultural, operational and technological infrastructure. Effective KM could be implemented by eliminating the gaps. Introduction Knowledge is currently considered as a precious property while Knowledge Management practiced and applied widely by many organizations. It is applied as one of the most promising ways to achieve organizational success in this informational age (McElroy, 2003). Having realized the significance of knowledge as an intellectual asset, the manufacturing department of Toyota Motor Company has considered KM as one of the most significant prerequisite, which will turn the company in to a successful vehicle manufacturer, in the motor industry worldwide. In this case, the mission of the department is to apply the practices of knowledge management, as a mechanism for improving the quality and quantity they manufacture. This is particularly significant with conjunction to the large investment in technology. According to Toyota Motor Corporation Australia Limited (2015). There are several manufacturing practices being carried out in the manufacturing department, where the knowledge development and dissemination plays a significant role as a source of value creation. According to McElroy (2003), the departmental knowledge is stored in various and numerous ways, which includes the human minds, documents, reports, manuals, and notes. For the success and improvement of the Toyota manufacturing department, this knowledge has to be shared among the various stakeholders in the Department, through various communication channels. These communication channels include the training programs, seminars, conferences, and forums. Though these techniques have been applied for quite a long period in the Toyota Motor manufacturing department, it is evident that they have not been effectively utilized (Toyota Motor Corporation, 2015). Additionally, there is also the emergence of the computer-based communication technologies, which is one of the most effective mechanisms for sharing and managing knowledge. this technology not only complements the knowledge storage and management but also enhances the efficiency and effectiveness of the overall mechanism of knowledge delivery. In details, it simplifies the manner in which the information assets are identified, captured, evaluated, retrieved and shared. However, in the case of Toyota company, knowledge management has not been fully implemented. There are significant gaps that need to be addressed regarding the knowledge management efforts (McElroy, 2003). In relation to this, the present paper presents a comprehensive draft, of the knowledge management strategy of manufacturing department of the Toyota Motors Corporation. The KM strategy of manufacturing department will incorporate an analysis of the organization's background, with consideration of its objectives, structure, as well as other important contextual information. The paper will also present an overview of the methods and approaches used in the KM strategy development, and the organization's knowledge gap analysis. Finally, the draft will present the recommendations that should be adopted by Toyota Motors manufacturing department in Australia. Background of Toyota Motors Corporation Toyota Motors Corporation Australia (TMCA) is a subsidiary of the Toyota Motor Corporation which has its headquarters in Japan. It is the largest automobile manufacturer in the world, the position that it has maintained since 2008 (Toyota Motor Corporation, 2015). TMCA specialize in the production and sales of the industrial and commercial vehicles, automobiles, and automobile parts (McElroy, 2003). The Toyota Motors Corporation Australia overall vision, as illustrated in its website is to be the most respected and admired motor manufacturing and selling company in Australia. The company mission is the commitment to delivering outstanding automotive products and services, to its customers, which is geared to enriching the overall community, environment as well as the partners (McElroy, 2003). The company’s objectives of the organization are led by its vision and philosophy. As illustrated in the company’s website, the company aims at producing reliable vehicles, maintaining sustainable development, by offering high quality and innovative products and services (McElroy, 2003). It is led by the guiding principle of the honoring the language and spirit of the law, respect for the corporate culture and development of advanced technologies (Toyota Motor Corporation Australia Limited, 2015). With consideration to the structure of Toyota Motors, the general manager, who is helped by two assistant general managers, heads it. The leadership hierarchy goes down up to the administrator. There is three major department of the corporation. These departments include engineering and manufacturing department, which handles designing and manufacturing the vehicles (Toyota Motor Sales USA reports April 2015). The engineers are responsible for testing and making vehicles in the department. The other significant department is the sales department; it handles the sales, marketing as well as the distribution of vehicles functions. The other significant department is the financial department, which is responsible for ensuring financial management and stability of the company (Toyota Motor Sales USA reports April 2015). Ludwig (2015) indicated that due to the significance and advantages associated with the knowledge management, it had become vital for the organizational managers and executives to incorporate KM and its associated strategies in their management practice. In both public and private sector firms, knowledge management is considered as a precondition, for the for higher productivity and flexibility achievements (Toyota Motor Corporation Australia Limited, 2015). Toyota Motors incorporates the KM in carrying out and management of the business operations and processes. According to McElroy (2003), the o Toyota Motors Corporation Australia manufacturing department has a significant implication on its Knowledge Management. The structure of the manufacturing department is quite complex and contains different people with different expertise. Sharing of the knowledge across these different segment could be quite difficult. For instance, the employees working at the basic research and development section might be having quite a different knowledge with those working in the product development section, such as the body makers. \ Overview of the approach and methods of KM strategy To have an effective knowledge management strategy, it could be quite necessary for Toyota Motors to apply effective approaches and methodologies. As suggested by Ludwig (2015), there are several approaches, which can be applied in the development of the knowledge management strategies. In the case of the Toyota Motors manufacturing department, the most effective approach is the bottom –up approach, which is supported by the holistic model of the KM strategy. The bottom-up approach The bottom-up approach is conducted by involving the staff activities, which involves the key business processes. It highlights the key needs of the staff, as well as their issues, which are then tackled with a significant range of knowledge of management initiatives. In this case, the approach has five major steps as illustrated below. 1. The first step was the identification of the key staff groups within the manufacturing department of Toyota Motors. These are the groups or individuals, who are involved in prime manufacturing activities. As illustrated by Koh, Ha, Kim, Rho & Lee (2003), they carry the biggest business value to the organization. They are also involved in the major and important business activities. It also involved analyzing the existing strategy. 2. The second step was conducting a holistic and comprehensive analysis of the needs and activities that are carried out by these key staff groups. The main objective of this step was to identify the key issues and needs within an organization. It included aligning the existing KM with the business strategy of the firm (Ludwig, 2015). 3. The third step was supplementing the research from the previous two steps with the senior management input. The strategy documents of the organization are also applied as a mechanism for determining the overall strategic focus of the Knowledge Management of the Department (Ludwig, 2015).. It also incorporated auditing and analyzing the existing knowledge. 4. On the basis of the above findings, the recommendations for addressing the needs and issues and needs were developed. In this case, a blueprint for the Knowledge Management was designed. 5. The last step was the implementation of the tactical and strategic initiatives, on the basis of the documented recommendations. It incorporated developing a KM system, through effective techniques and approaches. The result is driven incrementalism methodology is deployed, which if followed by a real options analysis of performance and returns. Data collection The approach applied in the data collection was interviewing. It involved the interviewing of the key staff in the manufacturing department, regarding current KM management practices, the needs and issues of the manufacturing department (Toyota Motor Corporation Australia Limited, 2015). The interview involved asking open-ended questions, such as how the different experts in the manufacturing department share their knowledge among themselves. It also involved questions such as the training, forums, and discussions held within the department. Some of the limitations encountered include the misinformation regarding KM from the interviewed respondent. Finding appropriate time for discussion was also difficult. Application of KM strategy on Toyota Despite the complexity, the manufacturing department has made a significant effort in gathering, organizing, analyzing as well as sharing their knowledge and expertise. The knowledge, in this case, implies the resources, people skills and documents of the organization. The immense growth of the Toyota Motors, as explained by Toyota Motor Sales USA reports April (2015), could be attributed to its significant application of the knowledge management. The company recognizes the importance of knowledge management. Therefore, it has adopted several KM strategies, including the knowledge sharing networks and the tactic knowledge. According to McElroy (2003), Toyota Motors Australia manufacturing department management recognizes that creation and knowledge management involves an aggregation of information, as well as the distinctive human process, which requires additional effort for it to be replicated. As a result, the management makes an effort to alter its data into information, in a manner that it can be applied to effective decision-making. However, Toyota Motor Sales USA reports April (2015) noted that because of difference in expertise among the manufacturing segments, there is a significant knowledge management gap, which needs to be filled by the implementation of a more advanced knowledge management strategy. Strategic and Knowledge gap analysis of Toyota Motors The strategic and knowledge gap of the manufacturing department could be identified by analyzing the current position of the company in terms of KM, and where the organization wants to be, in terms of its goals and objectives. The strategic gap is identified by considering the difference between where Toyota Manufacturing department wants to be in terms of the objectives that were identified earlier, and its current position, in terms of its performance, against its set objectives. The knowledge gap is identified by finding the desired state of knowledge which is required to achieve the stated strategic objectives and the current state of knowledge regarding these objectives. The analysis depends on the information gained during the interview section, as well as from the SWOT analysis of the company, particularly about the manufacturing department. Despite the awareness of the knowledge management in Toyota Motors that was mentioned earlier, it is evident that the company has not implemented effectively the KM aspects in its operations. It implies that there is a KM gap that exists within the organization and needs to be closed. The gap is clearly depicted by comparison of where Toyota Motor wants to be, and where it is now, in terms of the cultural, operational and technological infrastructure. Where the Toyota wants to be Cultural Infrastructure: Toyota Motors manufacturing department has a vision of having an effective, innovative culture. The innovative culture would focus on research and development, for the development of highest quality vehicle in the country. This would help it achieve its vision of the offering the best quality vehicles in the world. Additionally, it has an objective of developing and maintaining a positive attitude regarding the “green” vehicles. This would incorporate manufacturing energy vehicles, which are friendly to the environment. This would achieve its objective of being socially responsible. These objectives would be achieved by increased mechanisms for knowledge sharing and management. Operational Infrastructure: Maintaining an effective organization structure is very significant in encouraging the sharing of the knowledge among employees. Toyota manufacturing department aims at maintaining the effectiveness of the two operational infrastructures throughout the organization. In the manufacturing department, this is ensured by the studying the customer needs, and manufacturing vehicles offering maximum satisfaction (Toyota Motor Corporation Australia Limited, 2015). The information is then shared with the manufacturing department so that all the specialists could be informed. These are the formalization of the tasks, and the centralization of the authority. This would ensure that the knowledge in the operational sectors, such as vehicle manufacturing, as well as in the executive departments is shared effectively. Toyota also aims at operating at the most efficient levels, under the full observation of various efficiency factors such as the Kaizen (Toyota Motor Corporation Australia Limited, 2015). Technological infrastructure: there is great evidence, according to the suggestions of Khosrowpour (2007), that the knowledge sharing within an organization can effectively be improved by information and communication technology. In this case, Toyota Motors envision at operating in the highest level of technology, to facilitate the knowledge retrieval, and remove the knowledge barriers. It aims at using advanced techniques, to support the processes of transfer, creation and sharing of knowledge (Toyota Motor Corporation Australia Limited, 2015). Some of these techniques include the highly integrated information systems, such as transaction processing systems, manufacturing aided techniques and the manufacturing design techniques and decision support system. Where the Toyota Motors is now Cultural Infrastructure: throughout its culture, Toyota Company has demonstrated its ability to think forward. There are plans to encourage the innovation culture, by setting and independent research and development section. When hiring, Toyota Motors maintains the theme of hiring people from an individual perspective, rather than employees, to set the bar for corporate achievement. The manufacturing is also moving towards environmental friendly manufacturing, such as the low fuel consuming vehicles. It also has the policy of hiring the brightest and the best individuals, as a way of bringing new knowledge into the organization (Khosrowpour, 2007). Further, Toyota observes ethical practices as one of its important cultural practices. Operational Infrastructure: Toyota Company manufacturing department has advanced operation infrastructure, which are particularly aimed at developing high quality and vehicles. It also maintains great knowledge with its employees, and a lot of crucial information in its database (Company Spotlight: Toyota Motor Corporation, 2012). For instance, its production system is considered as one of the best and equipped in the world. The company has a weakness of identifying the market trends, and customer needs. Additionally, there are no programmed forums or training programs, where the manufacturing specialist can share their knowledge and expertise. Technological Infrastructure: Within the industry, the manufacturing department of the Australians Toyota Motors is considered quite advanced in terms of technological infrastructure. It has a widely advanced research and development department, which handles the overall research and advancement in technology in the production process. This applies in terms of vehicle manufacturing. However, according to the research conducted, the manufacturing department has not comprehensively incorporated the knowledge and information systems, such as manufacturing aided techniques and decision support systems. Currently, Toyota Motor concentrates on the creation of the intelligence solution, to face the mobility challenges of today, while at the same time, taking the responsibility for the future generations. The Knowledge Gap From the comparison of where what Toyota manufacturing department current knowledge and the desired knowledge state, in terms of its future visions, goals and objectives, it is evident that there is a significant knowledge gap that exists in the department. The gap is exhibited in terms of the cultural, operational as well as technological infrastructure. Cultural infrastructure: the department does not have complete knowledge of how it should incorporate and implement the innovation culture (Toyota Motor Corporation Australia Limited, 2015). Despite the desire and plans to invest in extensive research and development, the manufacturing department has not explicitly defined how it will share the research findings. Further, it is also quite backward regarding the “green” vehicles, since it does not have complete knowledge of its integration throughout the department (Ludwig, 2015). Operational infrastructure: there are many knowledgeable specialists in different sections of the manufacturing department. However, the senior staff is not aware of the extent of knowledge held by the employees, and how it can utilize to achieve the goals of the firm. Technological Infrastructure: The department has not established information systems, aimed at sharing, storage and dissemination of the manufacturing information available to the department (Khosrowpour, 2007). Strategic Gap Cultural Infrastructure: the gap arises from the failure of the department to institute and invest in innovation culture throughout the department. The manufacturing department has not managed to manufacture completely “green” vehicles, like a way of achieving maximum satisfaction to the clients. Operational Infrastructure: the manufacturing department has not managed to study extensively market trends to manufacture vehicles compatible with the customers’ preferences. Additionally, the department has not integrated forums for sharing their expertise and focus on how to improve its quality of vehicles manufactured (Toyota Motor Corporation Australia Limited, 2015). Technological infrastructure: the company aims to be leading in technological advancement. It has not managed to compete with other vehicle-manufacturing firms. The reason is the ineffective research and development, and information sharing systems (Ludwig, 2015). Recommendations for the organization From the above analysis, there are several knowledge gaps and strategic gaps that in the Toyota Motors Corporation Australia is manufacturing department. To have an effective knowledge management structure, the department needs to implement several knowledge management strategies, based on the identified gaps. These strategies should be addressed based on cultural infrastructure, operational infrastructure, and technological infrastructure (Ludwig, 2015). Cultural infrastructure: The manufacturing department should start by investing in the importance of understanding the value that is associated with the knowledge management practices. It should also inculcate the culture of managing the support, for the managing and sharing the knowledge at all levels of the organization. Another significant strategy is the creation of the incentives, which recognizes and rewards the sharing of the knowledge, as well as encouraging organization interactions, which are aimed at creation and sharing of knowledge (Ludwig, 2015). Further, the department should invest significantly in the creation of an innovation culture throughout the organization. It should also encourage the sharing of the available knowledge among the manufacturing expertise, as a mechanism for enhancing manufacturing activities. Operational infrastructure: the Department should incorporate the whole structure incorporating roles of different stakeholders, a delegation of responsibilities, and performance of all activities should encourage creation, dissemination and sharing of knowledge (Khosrowpour, 2007). The knowledge management could effectively be facilitated through the community of practice, where a self-organized group of individuals from all operational departments would share information among them (Ludwig, 2015). The manufacturing department should also consider operating under the market trends and preferences of the customers (Ludwig, 2015). This could be achieved through extensive market research and incorporation of the information gained throughout the department. Technological infrastructure: Toyota Motors manufacturing department should develop an information technology infrastructure, with an objective of supporting the information needs of the organization. This infrastructure would facilitate the processing of data, storage as well as communication technologies and systems (Ludwig, 2015). The infrastructure would also incorporate the information processing systems, transaction processing systems, management information systems as well as the enterprise resource planning (Khosrowpour, 2007). The interaction of these systems within the organization would ensure effective sharing and management of knowledge. Some of the most significant systems could be integrated manufacturing systems, information support systems, and decision support systems. In addition to ensuring effective decision-making, this system would facilitate sharing, dissemination and storage of knowledge and information throughout the department. Knowledge Gap Strategic Gap Cultural Infrastructure Ineffective innovative culture Unclearly defined knowledge sharing culture Cultural Infrastructure failure of the department to institute and invest in innovation culture Operational Infrastructure Lack of specialist knowledge sharing Operational Infrastructure failure to extensively study the market trends unable to effectively meet customers’ preferences. Technological Infrastructure Lack of knowledge sharing by the information systems Technological Infrastructure ineffective research and development, weak information sharing systems References 'Company Spotlight: Toyota Motor Corporation' 2012, Marketwatch: Automotive, 12, 12, pp. 9- 19, Business Source Complete, EBSCOhost, viewed 1 September 2015. 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