Case Study 8-2 The Big Fix at Toyota Motor Sales - Case Study 8-2 THE BIG FIX AT TOYOTA MOTOR SALES Information Systems Strategic Planning Toyota Motor

Case Study 8-2 The Big Fix at Toyota Motor Sales - Case...

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Case Study 8-2 THE BIG FIX AT TOYOTA MOTOR SALES Information Systems Strategic Planning Toyota Motor Sales is a classic case of the indifferent attitude top management has toward IT and how it’s viewed as a separate entity within a company. Barbara Cooper was hired as the CIO, and as evident by her not so warm welcome, IT was highly misunderstood at Toyota. The discoveries that Cooper made were alarming. Even though there was an IT department in place, the business units were still outsourcing their IT needs, there were no accountable IT teams, no management support, and no one clearly understood the cost required to deliver results. Even with a dysfunctional IT department, Cooper was charged with delivering Big Six and other ambitious projects. To make matters worse, their spending habits were watched closely by the Japanese parent company and Cooper was required to provide explanations about increasing costs, cost ceilings, and why IT was not performing as expected. Cooper hired a consulting firm to help her gather honest opinions, which visualized the hotspots for her and required new strategy and vision. It started with the Toyota Value Action
Program which consisted of 18 initiatives, each with a group project owner, a team, and a success metrics. She created a decentralized IT department by placing divisional information officers (DIO's) within each business unit in an effort to help with IT strategy, development, and services. Their roles would be primarily to forge relationships with and gain the respect of business executives. To strengthen this entire system, she added an ESC or executive steering committee to approve IT projects and control funds. This created a sense of IT accountability for the business executives and better aligned IT and business.

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