Information System Outline of Selected Organizations

In the case of BMW, it is to be noted that the company uses an information system in
order to be competitive in the present competitive business environment. Therefore, the
company, in relation to the information system, is observed to use mySAP Automotive in
combination with the SAP Business Collection programs in various operations in order to
develop the products in the automotive industry (Brandt, 2013). MySAP can be understood to
have the ability to provide the company with customer-specific, personalized and
collaborative inter-enterprise business solutions. It helps the company to have full
engagement with the employees, customers, and business partners (Elbahri et al., 2019).

Figure 1: Image of mySAP

(Source: Elbahri et al., 2019)

The use of IS has been helping the company to provide techniques, solutions for the
employees as well as the businesses. In addition to this, it is to be noted that the IS of BMW
has combined various aspects of the business such as engineering design, planning,
processing, purchasing, sales and service, which is helping to create competent employees,
stable financial performance, efficient operations, service dominance, and excellent client
value and works hand in hand in order to improve the performance of the company (Gupta,
Sharma & Tripathi, 2010).

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 In the case of the IS, it is observed to have the components of computers, networks,
software, information, applications, interconnections and people. In the same way, the IS
implemented in BMW is observed to provide information across various departments such as
operations, accounting, finance, marketing and human resource. In addition to this, IS of the
company is observed to monitor the product in real-time. It is observed to register the
production confirmation and the utilization of the required parts (Sabarguna, 2018).

Figure 2: Components of Information System

(Source: Sabarguna, 2018)

The monitoring system used by the company is noticed to save time in auditing and
removes the chances of having added costs. It also helps to enhance the efficiency of the
order-to-delivery time of the company because of fast planning, tracking, tracing, deliveries,
and inventory through IS (Fischer & Matthes, 2021).

It is also evident that the manufacturing orders that are received for the raw materials
of the BMW are sent to JIT (Just In Time) delivery schedules where there is no need for the
company to wait for a longer period of time to place the orders for the parts. Similarly, in the
cased of the operations, the company is observed to save all the information in one place
through IS, which makes sure that no data is duplicated and it becomes easier to locate files.
An improved accounting system is also available through the IS of the company that records
all the transactions to make the audit system efficient (Gupta, Sharma & Tripathi, 2010). IS
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also helps the finance department to forecast the future financial needs of the company by
analyzing the trends from the past and present financial reports. In addition to this, it also
helps the company in regards to product development and dissemination, pricing options,
advertising, and sales predictions and makes sure that in the case of human resources, all of
them are connected through mySAP of BMW (Fischer & Matthes, 2021).

Now let us look at Management Information system followed by TOYOTA

In this present world which is also called as a digital era, there is a rising need for
upgradation of information system and in order to maintain this, certain basic and key
component has to be followed by every company in managing the Information system.
Toyota is one of the leading companies in automobile industry, managing information system
with key components. In order to enhance the information systems, Toyota has developed its
MIS is various new areas through innovation, and upgradation, they have also worked
towards improvement of shipping process. As a strategic plan Toyota has indulged the MIS
in operating schemes and budgetary procedures. In order to identify any defects in the
manufacturing process, Toyota uses “Jidoka” which is the error identification system. This
helps to reduce errors in manufacturing of products and it also helps the line workers to take
effective decision in finding the solution to the product.

Some of the other Management Information systems followed by Toyota include:

 To convey the status of production through visual controls, Toyota uses “Andons”
management information system. This helps the workers to keep a track, whether all
the stations are operating properly in one go.

Figure 1: Andon Systems.

(Source: Control systems,2016

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  One of the most trusted and dependable system is “Poka Yoke Toyota” this system
helps us to find and stop the defectives in the manufacturing products.
 In order to generate shipment schedule for each part used for assembling of their
product, Toyota uses SAP which is known as system application and products in data
processing. This helps the company to have a regular update on the need of raw
materials and also reduce the wastage.
 Toyota also uses “Muda” to reduce the irregularities in the production and also the
ultimate aim of the company is to produce the products without any defects. This helps
the company in identifying wastes and safely dispose it. It also follows 7 methods of
waste disposal in the development structure of the business.
 Some of other management information system followed by Toyota include WMS,
which is known as warehouse management system, this helps the company right from
obtaining the product, storing it and until the final shipment. Hybrid synergy drive is the
other innovative system which is used gear the transmission of electro mechanical
transmission.

Management Information System followed in Departments by Toyota.

1.MIS in Finance Department

SAP software is used by Toyota which provides information regarding finance to the finance
department. The personnel involved in finance department uses information like, financial
figures of previous and current years, this helps the company to forecast the future costs and
profits.

2. MIS in Marketing Department.

The SAP software helps the marketing department in forecasting of sales, various pricing
activities of the business, product development and marketing strategies of the product.

3.MIS in Operations.

SAP gathers crucial information from Toyota’s planning system which helps to know the
specialized production orders. These orders include various information such as the required
parts to assemble the products, this also produces the shipment schedules of every product
this helps the operations department to be time sensitive and efficient.

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Figure 2: Legacy Vehicle system.

(source: 1tech)

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References

Brandt, T. (2013). Information Systems in Automobiles–Past, Present, and Future Uses.

Information Systems in Automobiles, 1-10.

Elbahri, F. M., Al-Sanjary, O. I., Ali, M. A., Naif, Z. A., Ibrahim, O. A., & Mohammed, M.
N. (2019). Difference comparison of SAP, Oracle, and Microsoft solutions based on
cloud ERP systems: A review. International Colloquium on Signal Processing & its
Applications, 1-10.

Fischer, F., & Matthes, F. (2021). Improving IT Management at the BMW Group by
Integrating Existing IT Management Processes. Retrieved August 23, from
https://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.139.9922&rep=rep1&type=pdf

Gupta, C. L. P., Sharma, S., & Tripathi, S. (2010). Importance of management information
system in electronic-information era. SAMRIDDHI: A Journal of Physical Sciences,
Engineering and Technology, 1(02), 107-114.

Sabarguna, B. S. (2018). Management functions of information system components as an

integration model. Management of Information Systems, 10, 1-10.

Monden, Y., & Talbot, B. (2019). The Toyota management system: linking the seven key
functional areas. Routledge.

Aini, S., Lubis, M., Witjaksono, R. W., & Azizah, A. H. (2020, June). Analysis of Critical
Success Factors on ERP Implementation in PT. Toyota Astra Motor Using Extended
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Mechanical, Electronics, Computer, and Industrial Technology (MECnIT) (pp. 370-
375). IEEE.

Soliman, M. (2020). Jidoka: The Toyota Principle of Building Quality into the Process. Book,
ISBN-13, 979-8697749449.