Toyota Motor Corporation - IT Sales Opportunities - 2008

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					Toyota Motor Corporation
    IT Sales Opportunities - 2008
                                                              To yo ta M ot or Cor por ati on - 2 0 0 8




                                   Table of Contents
1. Company Overvi ew ........................................................................ 4
  1.1 Bu sin ess Overview .................................................................... 4
  1.2 K ey Figu res ............................................................................. 4
  1.3 Corp orat e Headqu art ers ............................................................. 4
2. IT Sp ending & Depl oyment s ............................................................ 5
3. IT Sal es Op p ortuni ties ................................................................... 6
  3.1 IT Sales Opp ortuni ti es - Software................................................. 7
  3.2 IT Sales Opp ortuni ti es - Hardware ................................................ 9
  3.3 IT Sales Opp ortuni ti es - Services ................................................ 11
4. Sal es Dri vers .............................................................................. 13
  4.1 Cap aci ty Exp an sion .................................................................. 13
  4.2 Collab orati on & Partn ership ....................................................... 13
  4.3 Cost Cu tting & Op eration al Effici en cy ........................................... 14
  4.4 Empl oyee Prod uctivit y & Compen sation Management ....................... 14
  4.5 Fast er & Bett er Prod uct Devel opment ........................................... 14
  4.6 Geog rap hic Exp an si on ............................................................... 15
  4.7 Imp rovi ng Cu st om er S ervice ...................................................... 15
  4.8 In formati on & Kn owl edge Managemen t ......................................... 15
  4.9 In trod uci ng New Produ ct s .......................................................... 16
  4.10 Lean & Agi le Manu factu ring ...................................................... 16
  4.11 Maint aini ng Quality St andards .................................................. 17
  4.12 Merg ers & Acqui si tion s ............................................................ 17
  4.13 Time- t o- market ..................................................................... 17
  4.14 Understan di ng Cu st om er n eeds ................................................. 18
5. Con clu sion ................................................................................. 19
App endix A: K ey IT Deci si on Makers .................................................... 20
  Jap an ......................................................................................... 20
App endix B: Defi nition s .................................................................... 22
  B.1 Soft ware ............................................................................... 22
  B.2 Hard ware ............................................................................... 24
  B.3 Servi ces ................................................................................ 25
App endix C: Meth odol ogy .................................................................. 27
  C.1 Eval u ati ng Cri tical ity Score ........................................................ 27
  C.2 Eval u ati ng Demand Score .......................................................... 30
Oth er Rep ort s in This S eri es .............................................................. 31




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                                           List of Exhibits
Exhibit 2.1: IT Deployment Details ...............................................................................5
Exhibit 3.1: Software Sales Opportunities Map ...............................................................7
Exhibit 3.2: Opportunities and Related Sales Drivers for Software ....................................8
Exhibit 3.3: Hardware Sales Opportunities Map ..............................................................9
Exhibit 3.4: Opportunities and Related Sales Drivers for Hardware ................................. 10
Exhibit 3.5: IT Services Sales Opportunities Map.......................................................... 11
Exhibit 3.6: Opportunities and Related Sales Drivers for IT Services ............................... 12
Exhibit 4.1: Key Capacity Expansion Plans................................................................... 13
Exhibit 4.2: Key Geographic Expansion Plans............................................................... 15
Exhibit C1: Calculations for Estimating Criticality Score ................................................. 27
Exhibit C2: Criticality Scores for Various Software Applications ...................................... 28
Exhibit C3: Criticality Scores for Various IT Hardware Products ...................................... 28
Exhibit C4: Criticality Scores for Various IT Services ..................................................... 29
Exhibit C5: Calculations for Estimating Demand Score .................................................. 30




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1. Company Overview

1.1 Business Overview
Toyota Motor Corporation (Toyota) primarily conducts business in the automotive industry.
Its business segments are automotive operations, financial services and other operations.
Its automotive operations include the design, manufacturing, assembly and sale of
passenger cars, minivans and trucks and related parts and accessories. Toyota’s financial
services business consists primarily of providing finace to dealers and their customers for
the purchase or lease of Toyota vehicles.

Toyota sells its vehicles in 170 countries. However, its primary markets are Japan, North
America, Europe and Asia. ¥


1.2 Key Figures
The group recorded revenues of $222,933 million (¥26,289,240 million) during the fiscal year
ended 31st March 2008 up from $203,655 million (¥23,948,091 million) dur
				
DOCUMENT INFO
Description: Toyota Motor Corporation (Toyota) primarily conducts business in the automotive industry. Its business segments are automotive operations, financial services and other operations. Its automotive operations include the design, manufacturing, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. Toyota’s financial services business consists primarily of providing finance to dealers and their customers for the purchase or lease of Toyota vehicles. . Industry trends and drivers have a direct or indirect affect on IT spending of all companies operating within an industry. For example – increase in sourcing from low cost countries might influence Toyota to relook at their supply chains, resulting in selling opportunities for SCM solutions, collaboration tools etc. Thus, we can conclude that industry spending on any particular IT product or service is an important indicator of the criticality of that product or service for the industry. Based on the IT spend information available in ‘TechNavio’, we have computed a ‘criticality score’ for various IT products and services, for Toyota. Various company level developments and events are important indicators of selling opportunities and drive the sales of IT products and services. For example – an acquisition by Toyota might result in opportunities for IT migration and integration services. By tracking these sales drivers (using ‘TechNavio’), we have arrived at a demand score for each product and service. Through an in-depth analysis of industry trends and drivers and company level developments and events, we have made the ‘IT Selling Opportunities Map’ for hardware, software and IT services for Toyota. These maps have been divided into four zones representing Level I, Level II and Level III opportunity areas. Level I opportunity areas have the highest scores and hence, there is a high probability that Toyota will buy these products and services. Level II opportunity areas have low
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