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Andreas Nova (0922201135)

Tommy Valentino Octavianest (0922201002)

Yvonne M Prawinoto (0922201122)

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Toyota was founded in 1937 by the Toyoda Familiy, whose members continue to play
key roles and are a symbol of emotional unity for the company and its employee.

Toyota Motor Corporation (toyota.com) became the worlds largest automobile

manufacturer in 2008, based on the 2007 annual automobile sales figures all companies.
During the first quarter of 2007, Toyota for the first time pushed out General Motors (GM)
from the top global sales spot, which GM had held since 1931. Toyota sold 2.35 million
vehicles worldwide in the January-March 2007 period compared to GM¶s 2.26 million

In addition to competition from GM and Ford in the United States, Toyota also faces
tough domestic competitors-Honda Motor, which is the third largest automobile manufacturer
in Japan, and Nissan, which is the second largest.

The Company¶s innovators, such as their production executive Taiichi Ohno, are credited
with :

1. Inventing just-in-time (JIT) production to reduce inventory costs

2. Introducing the philosophy of worker empowerment called kaizen, allowing workers to

keep finding ways to improve production methods.

3. Introducing the idea of stopping assembly lines in order to correct problems before
continuing to achieve the highest levels of product quality.

4. Nurturing worker loyalty by offering lifetime employment. The last time Toyota resorted
to massive job cuts was during difficult times in 1950

5. Implementing a system and culture of frequent interaction between all levels

(management and employees) of the enterprise.
Companies around the world, including those outside the auto industry, have adopted
Toyota's methods. Universities worldwide study the Toyota method.


Factors contributing to competitive advantage at Toyota :

„ Toyota practices continuous improvemet, which essentially consists of thousands of

small collaborations. Its almost continuous collaboration relies on a shared pool of
knowledge and the tools to easily distribute that knowledge to all those who need it.
For example, quality control problems on the assembly line are announced via pagers
and TV monitors to everyone.

„ Toyota's supply chain is based on the principle that while product knowledge (e.g., a
blueprint) is intellectual property, process knowledge is shared by all. Toyota's
suppliers regularly share extensive process improvement lessons, even with their
competitors. In Japan, suppliers generally are exclusive to a single original equipment
manufacture (OEM), so the collective benefit of shared information stays within the
Toyota supply chain

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Deploy the Salesforce (salesforce.com) Software-as-a-Service (SaaS) solution and
fully integrated the European sales environment inless than three month. Salesforce
SaaS helps Toyota Europe target, acquire, and manage day-to-day relationships with
multinational fleet customers.

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Toyota Australia is using Oracle's BEA WebLogic Integration (bea.com) as part of its
eBusiness Transformation Program and for Web services. BEA WebLogic Integration
is a comprehensive and flexible Java-based product for rapidly integrating systems,
data, and people within and across companies.

The eBusiness Transformation Program is part of the company's overall strategy to

implement a service-oriented architecture (SOA) to broaden the accessibility of
existing applications and accelerate the rollout of new applications. The eBusiness
Transformation Program is the result of an SOA strategy, with integration via
standards based Web services, instead of expensive and inflexible custom
connections. Its key benefits have been :
1. Successfully delivering applications using BEA software in less time than if it had not
used SOA
2. Providing greater use of existing information systems and data as services across the
enterprise, which reduced overhead by eliminating the need for infrastructure
3. Linking sales, marketing, manufacturing, and financial applications in real time,
which improved customer service by making up-to-the-minute information accessible
across the value chain

With SOA, Toyota is reducing costs and improving customer service while ensuring
that neither Toyota nor its trading partners will be limited by propietary technologies.
Another beneficial method deployed was outsourcing

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Toyota Motor Sales (TMS), the U.S division of Toyota Worldwide that handles
marketing, sales, distribution, production, and customer service for the auto maker,
decided it was time to upgrade what was now becoming an outdated IT system. The
company wanted to streamline operations, improve business relationships, and ensure
continued growth.
The division began an aggressive IT-update initiative that quickly became more than
it could handle internally. The project involved simultaneous development of six
major IT and data software initiatives. It was clear that TMS need to Outsource. The
IT service provide had to incorporate changes developed by TMS's IT staff in
manufacturing, management, and warehouse processing. Many of the processes they
were outsourcing were proprietary. TMS outsource to Keane which manages software
applications and IT processes for TMS's vehicle, parts, service/warranty, and
enterprise systems.
Keane provide end-cycle data support for key systems (maintenance, warranty, etc).
Support staff comes from its Halifax, Nova Scotia, service center, a local project
management office at TMS, and other Keane locations, assuring that TMS's systems
run 24/7. This solution replaces Toyota's internal systems management core so
employees can focus on developmental intiatives. Plus, outsourcing to more
affordable geographic area such as Nova Scotia has a positive impact on Toyota's
bottom line.

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TMS is responsible for the sales and marketing of vehicles in the U.S, and the
relationship with Toyota car dealerships. In 1998, the division began to replace the
vehicle ordering and communications system for its 1,200 U.S TOyota and Lexus
dealers with an internet portal.
Under the old system, TMS interacted with its dealers through the Toyota Dealer
Network (TDN), a text-based application that ran on IBM AS/400 computers installed
at each dealership. The system in turn accessed other applications running on
centralized mainframe at TMS's California headquarters. The old system had many
limitations and was expensive to maintain.
Toyota began the portal intiative by mapping out its business process. The Dealer
Daily portal initiative took four years to develop as a partnership between Toyota's IT
division, Microsoft Consulting Services, Dell Computer, and Verizon. It is available
to all 1,200 U.S Lexus and Toyota dealers. The portal allows people at the dealership
to enter new vehicle orders and arrange financing or warranty claims, without keying
data into multiple systems. When a customer wants to finance a vehicle, dealership
submit a loan application to Toyota's financing system (which runs on an Oracle
database) and often receive a response in less than a minute. Quick response helps
Toyota increase its financing business. Dealer Daily also stores vehicle service
information, so customers can take their cars to any dealership where there will be a
complete history of work performed.
In all, the Dealer Daily incorporates more than 120 business applications. Using
business intelligence (BI) tools from Hyperion Solutions. Toyota tracks the status of
more than 35,000 vehicles that may be in trasit from ports or plants to dealerships,
constantly looking for the most cost-effective transportation routes based on changing
circumstances. Dealer Daily saves the company and its dealers tens of millions of
dollars. Users save 1.8 hours per day by using Dealer Daily instead of the older