Organizational Technology Plan

Organizational Technology Plan

Toyota Corporation is leading the technological revolution among all major car companies. In order to maintain a leading position in the automobile industry, Toyota strives to maintain an edge using technologies spanning all aspects of business, because, after all, technology is used directly to improve the product being offered and indirectly to improve the process in which people work. Because technology is essential to creating a successful organization, this paper will analyze the technology used by Toyota, how it supports the general business functions, and the challenges presented by new technologies; as well as support activities that increase effectiveness, innovative approaches and the use of the internet at Toyota. This paper will also analyze how Toyota should manage organizational change caused by its use of technology; specifically, the technology causing the move to future technologies, the responsibility of managers to implement sudden and drastic change, areas in which managers must be knowledgeable, dealing with resistance to change and the ability to communicate change to the consumer. And lastly, this paper will analyze Toyota’s business practice, including its social and ethical responsibilities as related to technology, the ethical issues for the organization, information management as it relates to technology, the Internet and cultural differences.

New Technology: Pros versus Cons

Sometime in the foreseeable future Toyota plans to release its newly redesigned hydrogen fuel cell vehicle (Car Tech, 2007), which will add to their already staggering and unprecedented amount of hybrid vehicles. Unfortunately, Toyota must overcome immense technological challenges if they want to make this car a reality. Among some of the problematic technological issues that the “environmentally-friendly cars must face [is]…how far they can travel on a single fueling and the extremely high cost of production” (Car Tech, 2007). The production cost is high because of the science behind the fuel-cells. Rather than using a standard gas burning engine, hydrogen fuel cell vehicle’s “produce electricity through a chemical reaction between hydrogen and oxygen, leaving water as the only by-product” (Car Tech, 2007).

Not only are production costs high, but so are the general costs that the driver’s of fuel cell vehicles must endure. Hydrogen is bulkier than gasoline; therefore, the pipelines to transport the hydrogen are more expensive and larger. Hydrogen also makes steel brittle, which means that over time maintenance costs, fuel cell leakages and material costs will become more frequent and expensive to fix. With those facts alone it seems unlikely that, for the time being, hydrogen fuel cell cars, although significantly better for the environment, will not be the most cost-effective. Because advances in fuel cell technology have not addressed these problems, Toyota’s researchers must create alternative solutions if they wish to make their fuel cell car the next Prius.

Technology: Data and Communication

As technology becomes smarter, smaller, and faster, the data that companies process becomes more accurate, larger, and quicker. In the case of Toyota, the employees within Toyota can process through more information and data everyday thanks to the advancements of technology.

Spreadsheets and Databases

The most common spreadsheets are two dimensional, meaning that only columns and rows exist. Information and data from the spreadsheets, with the proper software such a database, can be processed as more than two dimensions. The most common spreadsheet software program used is Microsoft Excel. Spreadsheets are used at Toyota to input data from clients, car performance, and to process finances. With computers becoming faster, more of this data entered in the spreadsheets can be processed. Need to know which clients bought a red, 2007 Camry? Spreadsheets and databases can easily be sorted and filtered to give the user these results. The combination of key information required for an output is only limited with the number of information the spreadsheet and database contains. What car has 160 horsepower, is under $25,000, and is available in a manual transmission? Potential clients can easily use these criteria in selecting their next car. Toyota’s website allows users to custom build their car to the specifications they want and the specifications allotted per car model. Does the company need to figure out how much money it spent in the month of June processing mail? Spreadsheets and databases allow the company to sort through its finances in order to get specific details about its revenues and expenditures. Spreadsheets and databases have a variety