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Running Head STRATEGIC INFORMATION SYSTEM TESLA Strategic
Running Head: STRATEGIC INFORMATION SYSTEM: TESLA
Strategic information system
Table of Contents
In the globalising economy, there are several challenges that organizations are facing to make business such as privatization, globalization, increasing competition, and increased customer expectation demands.All these challenges are coupled with the information systems and communication technologies that the organizations are using in the era of globalization. A strategic information system can change an organization’s long-term sustainability and its success position significantly in the national as well as global market. This is driving leaders to create or differentiate their information systems including significant change in their top management to plan a more sustainable business strategy for a longer time (Alshubaily, and Altameem, 2017). Along with all these today’s market defines other critical success factors like, high quality standard, time-to-market, economic business design, and high speed along with speed of innovation. Tesla is one of the biggest supercar manufacturers. Tesla is changing the customer experience about electric cars. It was founded in 2003 by Elon Musk and Maartin Eberhard. Since then it is trying to enhance the technology in the field of electric transition (Tesla, 2018).
The below give report is the demonstration of effective analysis of a strategic information system that is already existing in the company. Along with this, the below report is provided to give a brief introduction tothe new proposed strategic information system to make business more competitive and sustainable in the existing emerging market. In this report a complete analysis of Tesla’s strategic information system is done. This report will identify the critical success factors and primary objectives of the company. Also, this report will create a formal organizational chart and analyse the information system to identify its strengths and weaknesses. All this analysis in this report will produce a new strategic information system within the report to address such loopholes in the existing information system of the company.
Success factors of an organization are the elements which motivate and stimulate the organizations productivity along with enhancing its overall performance at times when company needed those most. For an organization critical success factors can be defined as a set of operations or activities that help the organization to grow successfully ensuring its business sustainability for a longer time period (Statistica, 2018).
Figure 1 Growth chart of Tesla Inc.
[Source: Critical success factors of Tesla Inc., 2018]
These success factors vary from organization to organization and also industry to industry. To identify these critical success factors of Tesla, the research work found that there are seven different factors that can be considers as the critical factors of tesla for all its success and survival in the global market. These success factors of tesla are given as below:
Monopoly:Tesla was started with a tiny submarket which could be dominated easily. This was the market for high end production of electric super cars. Company did not compare its business with that F-150 model of Ford in terms of the production volume. This ignorance of the existing competition made tesla to collect fair revenue by selling its 3,000 pieces at the rate of $109,000 per piece. Now company has taken over the market of electric transportation in the super car segment. Tesla is expanding its concept of manufacturing electric super cars with the demonstration of company’s new model S. Company CEO Elon Musk claims that the model S will be the mass market car for the company (Steinbuch, 2015).
Technology:In terms of technology for electric cars, other world class brands in the automobile industry rely on Tesla. Today, companies like Daimler, Mercedes-Benz, and Toyota. Daimler uses the battery packs of Tesla in their cars, tesla’s powertrain is used by Mercedes-Benz, and Toyota uses the motors produced by Tesla. In this series General Motors has created a task force to trek the tesla’s nest moves in terms of technology. This makes the company leaders in the technical segment for electric super cars.
Timing:Timing issthe most critical factor for an organization. Taking decisions is one thing but taking decisions at right timing is another and this little difference can create a huge gap between the organization and its success. Tesla has secured a $465 millin loan from US department of energywhich was unthinkable in 2003 and today also. But Tesla played the game perfectly and in 2010, one and a half year earlier just before Solyndra imploded under the administration of Obama, company did it. This much subsidy was the most significant factor for the company and this was possible only because of the right timing in the business.
Team:Elon Musk is a consummate engineer and a salesman also. Therefore, he assembled a team that is very good at both the essential elements of his business. Elon Musk describes his team as equivalent to the special force that is hard working and intelligent both at the same time. Company maintain the enthusiasm of its employees along with the expectations of something new or that is a discovery to the world. In simple words Elon Musk ask his employees to produce or design something that is impossible for the rest of the world. Butat the same time he plays the role of team leaders and motivates the team as well. This creates an environment suitable for teamwork and ultimately he along with his team get success as well.
To most objective of the company is to create more and more demands along with raising its sales up for the electric car of Tesla Motors.
Concentrating on building awareness of the brand for a longer time along with maintaining the brand reputation (Teslamotorsdeca, 2018).
For technology generators like Tesla, to achieve its high objectives and bigger goals a lot of data and information in the same field is needed at top most priority. Company’s high-standardised structure has to be re-structured to achieve its goals. This will help the company to reduce the cost of overpriced products that the company is manufacturing now. For this company has to revise its systems and strategies to introduce significant improvement, if demanded. Re-structuring to make the business sustainable will also help the company to compete with its rivalries. Reducing cost can play the role of strategy change for the successful achievement of its objectives and goals (Devadevan, 2013).
To accelerate the acceptance of sustainable transportation by creating mass market electric cars as soon as possible (Musk, 2013).
Figure 1: Organizational chart of Tesla
In order to build a sustainable market, Tesla has managed to build some strategic and technical advanced information system to compete with its top competitors from the global market. Company is up-to date in terms of its information system. Company always modify its existing information system by making significant change into macro elements of their existing information system. All these changes are made to cope up with the existing market and also to take a competitive advantage in the growing market (Burger, Kreutzkamp, Hagge, Lappe, and Robben, 2003). These macro element changes are comprised of change into company’s sales strategy, operational management, varying its environmental standards, advancement in the technology, and global marketing strategies of the company.
Information system used throughout the organization is same at global scale as the goal of the company is same for the global market. Tesla is also known for its manufacturing system that has been re-named as lean manufacturing. Still the company’s manufacturing system is the best that an organization can have.
In the recent time, increasing globalization and advancement in the technology has taken the manufacturing industry at its peak. Such changes in the manufacturing industry are demanding for the strategies to grow in between the market of immense competition that the globalization has created. Recall has been the biggest failure for tesla that has affected the brand value of company. Along with this company is facing so many threats associated to the weakness of company, in international market as well. There were times when tesla was unable to control its management system. Such weakness harmed the company a lot in terms of the company profile and its brand value. These factors also affected the company sales in the international market. At time, while manufacturing the sample cars company has faced problems like, authentication problem, issues with suppliers, and fraud related issues (Robinson, et al., 2014). In this listcompany has also faced issues with its suppliers as well. In order to resolve all these weaknesses company has adopted many strategies. In the beginningcompany was working to identify its weaknesses and finding their solutions. This concentration made the company to resolve them with in the time period company decided for the same.
In the emerging world technology is one among the factors playing a critical role in the success of businesses. Advanced technology is helping the organizations to enhance their business, significantly. Andwhen it comes to the technology, Tesla always impresses the global market with its technology. In the last decadecompany has emphasised the world with its technology implementation in its various operations including its products (Windahl, Andersson, Berggren, and Nehler, 2004). In the same timeautomobile world has also seen the technology evolution through the Apple car play and Android auto. These examples are setting a new benchmark for the technology implementation in the global industry of automobile. These technologies of linking the smartphones with cars are new standards for the company. In order to cope up with these standards, company is looking forward for the expansion and exploration of its Smart device link technology along with its existing Tesla Etune system in its products. Along with this, company is working on its basic objective of making transportation environment friendly; core team of the company is working on smart driving along with significant environmental effectiveness. Some of the features of this new system developed for the organization are listed below:
Transitioning the world towards sustainable energy in transportation
Providing power with a swift response to the car
It also ensures the reduction of thermal power and using maximum sustainable power for transportation
Elimination of harmful CO2emission
Improves the engine torque to experience the feel of power
Implementing fully electric operating motor up-to full efficiency along with full effectiveness
This new system will ensure the customer satisfaction in terms of their expectations for power and efficiency of the electric motor. From the beginning tesla is working on hybrid vehicles that makes the company different from others and also increases the customer expectations from the company in the same segment. In this order, once tesla implements this new system, it can break the loopholes of its existing system to make business revenues along with ensuring the sustainability.
EDI (Electronic data interchange) is one of the vital and significant processes that help in gaining competitive benefits in the international market. Electronic data interchange enables accurate, fast and reliable exchange of data between the computer systems of the companies that do business together (Dobbe, 2016). By implementing and using EDI, the company has been able to increase the competitiveness and success. It decreases costs and enhances operational performance and effectiveness across the organization. EDI further accelerates sharpness accuracy and data exchange. Tesla uses this innovative and unique technology for better inventory management and accurate accounting. The electronic transactions are done by the customers because these transactions are more effective and efficient. The customers use EDI to work with dealers that have unique and dynamic EDI systems in place. The company uses this technology to reduce and prevent data entry errors and fraudulent activities further it also maximizes productivity without increasing employees within the organization. It is analysed that EDI documents are based on the accepted and unique standards and principles (Covalentworks, 2018). This process takes less time and resources to meet the long-term business requirements and targets of the business. Apart from this, Tesla also uses manufacturing resource planning to conduct business activities in a large extent. It uses ample of resources and material in an effective manner. This is an effective system which is used by Tesla to manufacture attractive and unique vehicles for the target audience in the international market. MRP system helps in handling the problem and complaints of the customers related to delays and facts. Moreover, it also minimizes the cost of the firm and increase outputs and revenue in a right manner. Besides this, MRPII system helps in better planning and to make unique decisions related to production. With these advanced and innovative technologies, Tesla is able to compete with competitors in the global market. The entire success and profitability of the firm is dependent on advanced technologies and resources that help in attaining various rivalries advantages widely (Truecommerce, 2018).
The proposal shall include the following items
Tesla uses ample of technologies to enable a ride sharing platform called the Tesla network through which owners would be able to rent out their cars as autonomous taxis. It will help to stand out against competitors internationally. It is stated that the company has a benefit that many people are unable to understand: it is much more than an automotive corporation. Tesla provides a innovative and advanced technology platform for the various customers in the international market. The company’s cars have been created from the ground up as computers on wheels. After the various analysisit is analyzed that the company is diversifying its business activities and functions with the help of advanced technologies. Tesla vehicle is another unique and effective technology platform that is commercializing the battery. On a large scale, the company is rendering grid scale energy storage systems to the various organizations to gain cost benefits internationally. Open software system is implemented by the company to take various benefits globally along with this, Tesla also uses AGL system (Automobile grade Linux) in order to customize the software widely. Aside this, technology also leads innovation and creativity in the competitive market. It is one of the significant sources to get access to relevant and significant information at any time about the automobile vehicles (Nvidia, 2018).
Source document are essential to determine and analyze the growth and progress of the firm. This also plays a significant role in Tesla to attract and retain more and more customers internationally. Tesla motors designs, manufactures, develops, and sells various electronics vehicles and energy storage systems. Along with this, source documents are also important to make strong and unique reciprocal relationship with customers globally. The four major users that are source documents have been detailed below.
Audit:Physical audit is significant to prevent and reduce the fraudulent activities and operations successfully. Wrongful activities and errors can be minimized with the help of physical audit. A physical audit is conducted by the company on a regular basis to stop the errors, fraud and mistakes. It further helps in satisfying the business requirements and needs and fulfilling the preferences and choices of the customers. At Tesla, auditing ensures that the company is running an effective and efficient operations and activities globally and further physical audit is an essential part of quality management. Physical audit at Tesla enables a method or tool for determining and analyzing the need for change. It also ensures consistency, flexibility and accuracy at the workplace. To ensure constant improvement and enhancement at Tesla, an automated audit management technique or method is precious and significant. The physical audit is further used by the firm for checking internal processes and policies.
Bank statement: It is another significant source document that is used by Tesla while conducting business activities and operations widely.
Delegation of authorities: The separation and delegation of authorities is done by top management and managers at Tesla to overcome the rivalries internationally. The delegation of authorities is essential to make unique decisions and attain desired targets, goals, and objectives. Delegation of authorities also increases motivation among the employees at the workplace (Davenport, 2014).
Approval authority: This authority is implemented by the company to handle and reduce the challenges and risks of the business. This committee is responsible to handle the grievances of the customers and to minimize the level of risks in the competitive market. This committee also handles the flow of information and facts.
Potential security risk is involved in each and every company that may affect the long term business operations and functions (Lee, 2012). The potential risks also could affect the brand image and position of Tesla globally. The potential risks include consumer demand risk, stealing of information and facts, poor supply chain system, fraud and wrong activities. All these security risks may affect the financial position of Tesla in the international market. Financial risks, operational risks and security breaches also are included in potential risks (Asmatulu, Nguyen and Asmatulu, 2013).
Data breaches are significant threats for Tesla that could affect the growth and targets in the international market. These issues may also affect the goodwill of Tesla globally. Data breaches issues occur internally within the website, applications and software. A data breach an incident or tool that involves the illegal or unauthorized viewing, retrieval of data by an individual, service and application (Ramachandran and Chang, 2016). Data breach is an event where information, evidence and facts are stolen from a system without any knowledge and experience. Data breaches lead ample of losses and damages within the organization. Data breaches also affect the long term mission and vision of Tesla adversely. The company is unable to fulfil the demands and needs of the customers due to data breaches issue (Koscher, Czeskis, Roesner, Patel, Kohno, Checkoway and Savage, 2010).
There are several ways to control over the new system within the organization. Tesla should appoint expert or professional who has enough knowledge and experience related to new system. Along with this, effective and appropriate training and development sessions shall be held by the company to handle and control over the new system. Proper delegation of authorities and roles must be done by top management at Tesla to gain various benefits. Physical audit must be conducted to prevent fraudulent activities and operation in a large extent. In this way, the company can boot and improve its profitability and revenue globally (Ajja, Beets, Chandler, Kaczynski and Ward, 2015).
It concludes from the above mentioned analysis that information system is significant to boost overall effectiveness and profitability of the firm. It is noted that Tesla is one of the biggest and leading automobile companies across the globe which manufactures innovative vehicles for the customers. The above analysis indicates mission statement, objectives and key critical success factors of Tesla that helps in boosting profitability and outcomes widely. It is stated that the organization manages an effective and dynamic system to keep a good image among the customers. Latest technologies, potential risks and data braches also have been elaborated in the task briefly. The organisational chart and flow chart for Tesla also have been presented in the paper. The paper outlines that how new system could help the company to improve and maximize the returns and outputs internationally.
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