The Honda Motor Company is Japanese corporation known for its extensive manufacturing of motorcycles, aircrafts, automobiles and power systems. The car manufacturer considers enhancing its share of the market in future. According to the report delivered by the head of an Indian local unit to the Reuters, the company focusses to boosting its strategic presence and becoming the globe’s fifth automotive producer in future. Therefore, the company needs to achieve an approximate of 10% of the market share (Pelle?, 2017). The factors of market share and improvement reflect the company’s rate of competition on costs. For several decades, the company has established various forms of innovation, reliability and performance, which have enabled the inclusion of iconic prototypes like the Civic, CR-V and Accord, thus enabled the company to gain a competitive advantage despite lowering the purchasing costs.
2.1 Collaboration
The absence of collaboration in reference to Knowledge Management (KM) makes a company to limit its chances of attaining strategic goals and objectives (Barker, 2015). Due to this reason, the whole aspect of technology may seem to be irrelevant. However, epistemology in the Honda Company is a success due to its possibility of implementation. Considering how extensive the automotive industry practices KM, the consideration of its success is valid. In that case, when the implementation of knowledge management fails, it might be due to some other management concerns. The Honda Company implements the process of collaboration through a culture of innovation. The culture of innovation in the company instigates the implementation process of KM. Moreover, the culture opens up new initiatives through the inclusion of R&D experts who focus on ensuring the success of the ideation process. The workers are rewarded and encouraged for their creativity and being a coach, mentor or teacher in the organization (Coller, Harrison & Spiller, 2004). All the three fundamental aspects of innovation aid in the implementation of KM, which enhance the willingness of workers to assist the Honda Motors to access its tacit knowledge.
On the basis on moderators and determiners of the company’s innovation and KM implementation, the Honda Company finds it effective and efficient to apply ideation. The automobile industry has set established means to consolidate innovation and creativity. The culture includes a realization of the company mission and vision, which are communicated effectively to all the workers. The mode of collaboration in the Honda Company includes all measures from the initiative’s value to staffing and rewarding of workers who enhance ideation. This means that the company’s innovation culture sets workforce topography to allow Research & Development (R&D) and it implementation (Cox & Rigby, 2013).Workforce topography is the perception of workers about practices, possession, procedure and events supported in the company.
2.2 Use of Possession and Practice
The Honda Motors considers the application of Nonaka’s SECI model that facilitates the creation of knowledge that defines the converting of explicit and tacit knowledge to company knowledge. The model has become the foundation of knowledge transfer and creation theories. Nonaka proposed four key of knowledge forms converted and combined to identify knowledge creation and sharing in a company (Concepcion, 2011).
In reference to Nonaka’s SECI model (figure 1), there are four fundamental interaction forms for knowledge conversion supported by the company. The socialization step comes first in the model, which includes the transmission of tacit knowledge to tacit in possession. In this process, tacit knowledge is shared amongst different employees in various departments. Resultantly, the step forms the shared-mental model, which includes undertaking externalization and exchange of tacit to an explicit knowledge (Kopel & Lambertini, 2012). At this stage, a model and concept is created and practiced in the following step. The step on combination, following the building step, strikes an illustrative setting and examination of fundamental concepts in reference to all the present perceptions.
The concepts are located in the company’s documents as an explicit knowledge. The last step includes the exchange of explicit to tacit, which is internalized. This step includes the justification model that is convertible to tangible conclusions as an explicit result. Training workers, building models and conducting different forms of exhibitions, may achieve this (Marabini & Moretti, 2017). The Nonaka’s model implies that the creation of knowledge multiplies when all the four fundamental conversions reflect and pursue each other. The prototype also suggests that the process can be enhanced multiple times via a cross-level methodology. This means that the practice and possession of knowledge is dispersible in the company hence triggering novel spirals in the context (Davies, 2011). The SECI denotes that an organization applying present knowledge assets (outputs, inputs and moderators) facilitates novel knowledge via corresponding stages that facilitate SECI processes.
2.3 Conflict Address
In the Honda Motors, conflicts are addressed using a formulated protocol. For instance, contract conflicts are handled by filling a lawsuit under in civil courts. The remedies for such resolutions are divided in two sections, which are equitable and legal remedies (Ayoko, 2016). As for the legal remedies, the complainant has to confirm at least one form of damage that breaches a particular contract. Many forms of damages are evident in the Honda Company; these include nominal and compensatory damages, which vary according to the form of conflict. On the other hand, the equitable remedy engages parties that do somethings like rewriting a section or the whole contract. This may include a necessity that the party under a breach conducts its duties like ensuring the delivery of products and facilitating payments as scheduled.
The Honda Company applies three fundamental strategies to address conflicts. These include:
In conclusion, lean management is operative in the automobile industry since it has led to more productivity of quality products. This result is better compared to what is typically found manufacturing facilities under mass production. Under the initiate, the company has reported a profit margin of 7.09% as of June 2018. Over the latest twelve months, the company has reported a gross profit margin of 21.6%. The net margin is at a lean approach, which continues to enhance the company’s quality of produce. Therefore, the production of high quality motors is a driving force in the company throughout its global operation (Kopel & Lambertini, 2012). This measure and strategy goal enables the company is gain a competitive advantage in the automobile sector.
Task 2 – Part 2: Role of Information Technology in the Supply Chain
Abstract
The Honda Motors Company operates in collaboration with suppliers globally to enhance its initiative on sustainability, manufacturing and product development. The company’s main aim is to realize a supply network with a co-existing nature of the community as an organization that the society accepts and wish for its continued existence. Moreover, the company strives to fortify its supply network in transportation and purchasing departments. To facility these measures, the company solidifies its trust with suppliers with an initial aim of establishing a sustainable community in the supply chain (Marabini & Moretti, 2017). The implementation of information technology considers fundamental factors (like safety, environment, compliance, human rights and social collaboration) that involve global suppliers.
The management of information systems facilitates data delivery in the Honda Motors Company. Helping the organization run effectively, Information Technology (IT) is a sub-set of an internal process and control in company. The availability of application and documentation of technologies, human resource and process is essential for the company’s accountant to evaluate and solve business issues such as costing and pricing of products (Davis, 2015). The company uses Management Information Systems (MISs), which vary from other forms of Information Systems (ISs) used in the automotive industry. Judiciously, the Honda Company uses MIS to refer to a selection of data and information organization models applicable during the process of decision-making.
2.1 Lean
Lean management highlights the fundamental of enhancing the flow of work using strategic procedures of operation while reducing wastes towards adaptability. In the Honda Motors Company, flexibility is necessary to enhance the levelling of production using Single Minute Exchange of Dies) SMED tools. These tools and techniques have an analogue in Research and Development (R&D) (Dotson, 2018). Nonetheless, the rate of adaptability is constrained, which does not necessitate momentous investments. More significantly, the concepts delivered during R&D require acknowledgement by workers to facilitate product enhancement to allow for process initiation and value creation. Honda’s innovation culture and management models lay a foundation followed by the company’s methodologies and tools of production. However, the failure of sustainability of lean management in the Honda Company is blamed on poor acknowledgement and support of lean in the organization.
The foundation of the company’s corporate and innovative culture considers the continued commitment and enhancement of lean procedures. However, these processes are not reflected directing in the organization’s documentation and statements (Sanders, Elangeswaran & Wulfsberg, 2016). The Honda’s management supports a peaceful code of conduct and work process which ensuring effective utility of time as every department takes maximum responsibility of their conducts. These measures are elements of lean management in the Honda Company. Significantly, the lean approaches support and propose effective and efficient management procedures and values (Evangelista, 2012). The company’s philosophies include the racing spirit, the three joys and the fundamental beliefs. These guidelines form a critical component and foundation of the company, which can be referenced on when reviewing the company goals and objectives. The company’s founder (Mr. Honda) started the organization under an enduring strategy proposing a racing spirit who progressive enhances a chance for ideation.
2.2 Information Sharing
The networking structure of the Honda Company is hyperlinked hence is a rich basis of data, facilitate by its form of sharing and understanding. The company has a set of system techniques to retrieve data from the linked structures in various organizational structures, which are evaluated based on their effectiveness in different contexts. The principal concern that the company addresses in its framework is a critical evaluation of topics and authoritative data of relevant subjects. The model of sharing is proposed using an algorithm formulation with an impression of authorities (Fliedner, 2012). This assumption conforms to the relation between a set of hub-pages and authority-pages that connect linked structures. The Honda’s formulation has interconnections to Eigen-vectors of particular matrices connected with linked graphs, which motivate supplementary heuristics in a linked-centered breakdown.
2.3 IT & its Impact to Supply Chain Performance
The Honda Company uses IT in different ways, which have a significant impact to the supply chain. The application of IT involves cutting down on costs, enhancing performance and synchronize processes in the company’s supply chains (Gordon & Cooper, 2010). Processes under synchronization include internal production, upstream procurement, and customer service and down streaming of sales. Supply chain activities that utilize information technology include the purchasing and sourcing of materials. Thus, the inclusion on an online ordering app might lead to dismissal of thousands of clerks from their jobs in the supply chain but also enhance more sales while minimizing expenditure.
IT and E-commerce initiatives enables the company to undertake business activities like document transfer, payments processing, ordering and invoicing online (Pal, 2013). The automobile industry uses various Enterprise Resource Systems (ERSs) like the RFID, inventory organization models and CRM in the supply chains. Moreover, IT aids the company to respond promptly to consumer demands hence achieving customer satisfaction progressively as indicated in the graph below.
Graph 3: Motor Company Satisfactory and Reliability Rating 2014-2018
The company has applied a web-centered solution to enhance coordination and collaboration in the supply chain. The rate of progressive information technology has transformed the company’s organizational structure and level of competition to a premium dimension hence creating a competitive advantage in the automobile industry. Resultantly, the Honda Company is able to take advantage of new opportunity to improve its profit margin and globalize. In reference to the supply network, information technology is fundamental in the support of gaining a strategic advantage through a standardize planning using progressive and consolidated opportunity in the car industry.
2.4 Data and IT use
Information Technology (IT) and Data have a fundamental role in the Honda’s supply chain. The flow of data enables the company to attain a competitive advantage and maximize throughput. Resultantly, the company also aims at formulating means of minimizing inventory charges, enhancing lead-time of its products and integrating the supply chain with different functions of the company’s management. The management team of a company needs to be sophisticated and up-to-date regarding information flow on consumers’ demand, supply lead-time and inventory (Saleeshya, Austin & Vamsi, 2013). All the data in the company flow at various steps in the supply chain. In that regard, the supply chain management should retrieve information on the availability of suppliers, customer demands, delivery, and levels of inventory, shipping demographics, margins and costs. The Honda Motors is presently investing more efforts on IT to enhance ideation, achieve a competitive dimension and adapt to the rapidly growing automobile industry.
2.5 Relationship of Data to Innovation
In order to evaluate the impact of information technology and relationship of data and innovation, it is fundamental to predict the scores of IT utility from an initial step of operation in the compact to throughput (Kogan, 2006). The resultant tri-variate regression provides a firm support on the utility and relation of data and innovation. Data and IT types is fundamental in explaining the likelihood and capacity of Honda to innovate. Resultantly, both data and innovation enhance the roles of external R&D experts as a stream of knowledge input in the company. Moreover, data types enable the experts to evaluate the behavior of the company in the automobile sector.
The parameters of data and innovation are both exploitative and exploratory (Thürer, 2015). This illustrate the significance of IT is enhancing throughput in the supply chains. Evidently, the company that applies extensive models of innovation implements novel and enhanced process of production of goods and services. Moreover, data and innovation enables the company to adopt unique business practices compared to models applied in minimal varieties of information technology. The ideology that the Honda Company simultaneously applies different data types and innovations should designate the significance of enhancement in the organization’s infrastructure facilitating information technology in nurturing suppliers’ relations, management and knowledge sharing (Shimokawa, 2010). The application of IT reduces the acquisition costs of knowledge management like E-business organizational tools. These models are also fundamental when decentralizing decision-making processes related to process of innovation. Moreover, such models empower workers and managers to enhance creativity and autonomy in the supply chain.
2.6 Impact
Information Technology is utilized in the Honda’s supply chain to organize demands and supply. In the company, this initiative manages supply and demand by considering the requirements of end users and amalgamates their needs and demands. Moreover, the record analysis and preparation needed to facilitate future product forecast and trends of demands is a part of the initiative. According to Dolci, Maçada & Grant (2015), the provision of reports on consumption rates considering relevant system transactions is also an impact of data and IT in supply chains. These reports provide relevant data on the utility of products and trends of consumption. Amalgamation of demands allows Honda managers to evaluate a competitive model on pricing, transportation/shipping charges, clearance and handling of contacts and progressive identification of purchasing procedures.
Information technology consolidates supply by retrieving relevant data in the company’s database related to deliveries, suppliers and consumers. The process involves recording what initial suppliers used to estimate deliveries and purchasing approvals. As a result, the managers are able to control their suppliers by selecting them through a standard form of evaluation on lead-times, shipping duration, production costs and sourcing (Shimizu, 2012).
Conclusion
In conclusion, the uncertainties caused by technology disruptions include high-speed technological handovers. In the Honda Company, the enhancement of technologies and on boarding of antennas will facilitate a delivery of base postings for knowledge sharing in the supply chain; hence creating motors that will move at a higher speed. Secondly, the recovery of expertise in parts with an out of range indication is another form of uncertainties brought by disruptive innovations. The enhancement of innovations on information safeguarding and performance analysis in parts with out of range indicators is vital in the Honda Company. These measures have expedited the subsidy from the Softbank Corporation to facilitate a reputable research and development of strategic products.
The R&D subsidiary features on discussing and research methods of connected motor technologies that provide a novel value and experience to potential customers. Moreover, this exercise facilitates mobility connection, key products and assets in the company (Borzillo & Kaminska-Labbé, 2011). Data and Information Technology (IT) have a fundamental role in the Honda Company due to their analytical abilities that are gaining an extreme prevalence in the motor industry. In future, data and IT will be used in algorithms and automation processes when designing motors and their infotainment systems. This application preference enhances the company’s products due to the influence of Internet of Things (IoT) in devising of products.
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