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TMS's new decentralized IS structure

Discuss the advantages of TMS's new decentralized IS structure. What are its disadvantages? How did the new structure change decision rights? How did it change accountability for IS project success?

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Discuss the advantages of TMS's new decentralized IS structure.
Toyota Motor Sales new decentralized IS structure brought the organization current with technology and the company's needs. Barbra Cooper describes the former IS structure as "basic and somewhat insular" (Pearlson & Saunders, 2013). There was a failure to marry the business relationship and financial management of the PC and network management. IS personnel were not consulted on decisions. There was a lack of coordination between business units and IS operations, with no thought given to architecture standards, systems integration or business benefits.

The new systems was highly transparent, and "generated a list of 18 objectives, each of which was provided with a project owner, a team and a mechanism for evaluating the team's success" (Pearlson & Saunders, 2013). This enabled Toyota to utilize IS more strategically for the benefit of the company. Toyota was able to achieve improved alignment with the business side by providing and embedding divisional information officers who were accountable for IS strategy, development and ...

Solution Summary

This solution discusses the advantages and disadvantages of TMS's decentralized IS structure. It explains how the structure changed decision rights and accountability for IS project success. APA reference included