BKAS 5013: SEMINAR IN ACCOUNTING INFORMATION SYSTEM

(a) Identify the problems faced by Toyota Information Systems Department and discuss what causes the problems to happen.

1) Cooper received complaints from most of the executive about unresponsive IS towards what is happening in the Toyota. Cause: The executives spent a fortune on the lot of IT projects, but so far, they did not see any development form the IT department. They just received lame reasons and excuses when they questioned IS employments. This caused executives get furious towards IS because until now they did not have any ideas about where did the money gone. 2) Lack of interaction between IT functions and daily operation activities Cause: From the case study, we can see that the IS group was made a mistake by not explaining to the business about all the things. As for example, the IS group did not mention about they are doing for the IT projects and how much it all cost totally. Those ignorance and unresponsive acts as being an impetus for the complaints as stated above. It is also stated as a classic case of mismanaged expectations and fractured alignment. Other than that, the result didnt reflect the high cost of IT projects. Besides that, whenever the projects meet pitfalls or delays, both parties (IS group and business) will point each other and will not find solution until the end.

3) Cooper found out that IS was so isolated and primitive Cause: The reason why it happens so because business units were buying their own IT systems. This caused in house IT could not able to deliver their services. As a consequence, there were no any PCs or network management for IT activities. Besides that, basic IT disciplines also lack of field such as business relationship management and financial management. All of these are root from lack of understanding the cost of delivering IT whereas the company really lack of knowledge about IT importance and usage for the company.

BKAS 5013: SEMINAR IN ACCOUNTING INFORMATION SYSTEM

4) Most of the projects will start with undefined statements. Cause: It was caused from the IS which was not trained sufficiently the dealers on how to use the new system and as a result, they had problems with it. It also caused disappointed with the project when it does not meet their expectations. Meaning to say, the little face time that IS did have with the business managers was more in an "order taker" role rather than a "let's build the solution together" partnership.

5) Most of executives did not want to participate in the new proposal Cause: This is because the new proposal required them to seek funding through the executive steering committee. Besides that, the first impression created by IS group makes the executives feel unsecure and doubtless whether they will make success through the new project. If they (IS group) failed to do so, it may give a big impact on the executives. 6) Skeptical title for Doug Beebe, the DIO for the business support systems such as ERP, HR finance, purchasing, legal, IS, corporate communications and the Affiliates divisions. Cause: The reason why he titles so because previously whenever Doug Beebe handled Big Six run up, some customers felt that they was ignored during that time. Because of that, some business managers still greeted him with skepticism. However, according to Doug Beebe, he is still on the process of mending those relationships. 7) Dealing with the uncertainty in Coopers IS department Cause: This is because most of the employees fears with changes in their responsibility and rapport relationships with other customers. In order to reduce the fears, Cooper has to foster all the employees so that they will come out from the fearsome.

BKAS 5013: SEMINAR IN ACCOUNTING INFORMATION SYSTEM

b) Based on your answers to question (a), identify and discuss the solutions taken by Babra Cooper. You will also need to discuss the potential benefits of each solution.

In order to crystallize the problems, there are few of solutions that Copper did as to achieve success in the Toyota Company. 1) Solution: Copper changed IS employees jobs and exposed all of them into the business offices and environment. Cooper also strengthens the IS-business bond by chartering the executive steering committee or in the other word, ESC, in order to improve all IT projects. As for example, the committee consists of Cooper, Coopers boss, Senior Vice President and Planning and Administrative Officer, Senior Vice President and Treasurer and so on. Benefits: From this, the employee can rapport relationships with the business executives and also business peoples and allows them to live in business environments. It is also will improve the communication skills between the IS groups and business peoples.

2) Solution: As mentioned above, Cooper assembles her staffs, employees of IS and change them into business offices. Meaning to say, the employees was exposed with business environments in order to adopt with the business peoples and learn to communicate with them. Besides that, Cooper also exposed the ITs inner workings to the business side at Toyota Motor Sales. Benefit: As a result, whenever a good relationship establish within IS employees and business peoples, they will stand shoulder to shoulder when planning and implementing IT projects. Through the exposure, it may lessen ISs role on IT project vetting and monitoring and in the same time, increase businesss responsibility.

3) Solution: Cooper come out with new program whereas Toyota Value Action Program with eight staffs in order to reliance the Coopers vision into actionable items for the IS department. Cooper also tied part of the senior IS managers' bonuses to their success in meeting the goals of each of their annual plans.

BKAS 5013: SEMINAR IN ACCOUNTING INFORMATION SYSTEM

Benefit: Thus, it helps to gain cost savings, making process improvements, ridding IS inefficiencies. It also get rid the title of bureaucratic and unresponsive department.

4) Solution: The executive steering committee controls all of the projects funds in one pool of cash and they will release cash for each project as each phase of the projects goals is achieved. Meaning to say, everyone in company can see the flow of each dollar were or were not going to spend. Benefit: This is will reduce the doubt among business peoples towards IS group. Because previously, it was a problem whereby business peoples furious with IS group attitude which did not meet business peoples expectations. It is also cut off all of the speculation and finger pointing that sometimes emerges in the meeting time.

5) Solution: Cooper demanded that a higher level business executives as for example, a corporate manager, VP level or above back each IS proposal. From this, ESC will not approve a project unless there are supports and relevancies. Cooper took top-flight personnel out of the data building and embedded them as divisional information officers or DIOs in all of the business units. These DIOs are accountable for IT strategy, development and services, and they sit on the management committees headed by top business executives. Benefit: It will reduce the fearsome among business executives and committee steering to give cash for the IT projects. As a result, DIOs who have complete accountability and responsibility for the vertical area their serve will improve the connectivity between IS department and business through forging relationship with tier-one excess and tier two executives.

6) Solution: Cooper put more senior peoples in new operating model. Benefit: It will create higher level of respect for individuals that are partnering with DIOs. Besides that, it is also will lessen the level of ignorance of customers. It is also creates layer of trust between senior peoples and DIOs.

BKAS 5013: SEMINAR IN ACCOUNTING INFORMATION SYSTEM

7) Solution: Copper gives follow up training for the employees in order to curb the fearsome. Benefit: The proper training really provides helps for the employees to overcome the fear. As for example, Bently Au, he said that middle managers were pretty stretched out during and after the restructuring, however, follow up training has helped him and other midlevel managers make the stretch.

From those solutions and benefits, we can said that Toyota SI and IT department was improved. As for example, from the case study, IS has also won more fans in corporate headquarters because of the new metrics. Besides that, in 2004, IS was able to give back to TMS 16 percent of the costs of running IT projects, a give back that ran in the multimillions. In addition, there are good supported from others. As for example, Japanese parent company get interested with the IS model and wants to apply some of the techniques in their company. So, we can said the IS and IT department really good, however it is not get well fostering and techniques from previously and it is one of the reason why Toyotas IT department meet pitfalls in projects.