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The case is about how Barbra Cooper, new Toyota CIO, integrates IS into the companys
system. She joined Toyota Motor Sale as CIO in 1996. At the time, IS department was
relatively isolated and primitive. For example, Business Units (BU) had to buy their own
system, as IS could not delivery. There was a missing basic IT disciplines such as business
relationship and financial management, and the execs had no vision on IT architecture
standards, system integration, or business benefits. As the result, Cooper and her staff
"buried under the Big Six technology projects". In 2001, the Japanese company replied
more on its US market because the domestic market was squeezed. That was the time both
Japan and US created communication link, and wanted to know about ISs runaway cost.
Starting in 2003,Cooper started to implement her vision for decentralized and
transparent IS system. First, she set up the Toyota Value Action Program which consisted
of 18 initiatives associated with teams. The decentralized model was implemented by
placing divisional information officer (DIO) within each of BU. Then Cooper added an
Executive Steering Committee (ESC) on the top to approve IT projects and control funds.
This action aligned IT and business. Overall, Cooper created an IS system, that was a
cost-effective way to realize the core business goals.
Relationship of ESC, DIO and BU in the new system
There were a number of advantages and disadvantages of TMSs new decentralized
structure. The first advantage was the flexibility. Each DIO had its own responsibility and
