CASE STUDY
An in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education)
Working Paper: Case Study
Digital in the Driver’s Seat: Accelerating Toyota’s Transformation to Mobility Services
Toyota created an independent, small organization to develop digital offerings and introduce new ways of working.
Abstract
In 2020 Toyota Motor Corporation (TMC) was the world’s top-selling car manufacturer. Despite this, the company was being driven to excel further in response to changing consumer expectations, technological developments, and new kinds of entrants into the automotive industry. Toyota’s leaders sought to accelerate the company’s culture of incremental innovation and realize a bold new future centered on mobility services. They pursued this by launching Toyota Connected, a new organization with its own decision rights and ways of working and a mandate to create new digital offerings for Toyota. In parallel, a new division within Toyota Motor North America called Connected Technologies facilitated the company-wide diffusion and commercialization of the offerings Toyota Connected created. This case describes what it took to empower the small, independent, agile Toyota Connected and how the entity collaborated with Connected Technologies to design and scale new digital offerings and new ways of working for TMC globally.
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About the Authors
Nick van der Meulen, Research Scientist, MIT Center for Information Systems Research (CISR)
Cynthia M. Beath, Professor Emerita, University of Texas and Research Collaborator, MIT CISR
MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)
Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our consortium forms a global community that comprises more than seventy-five organizations.
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