Information systems (IS) since its introduction has revolutionised many sectors from military to education to space missions. One of the sectors that have been greatly benefitted from the introduction of the IS is the commercial industry that offers goods or services. The reason for the above mentioned fact has its base upon the automation and the benefits it offers to the organisations. Automation saves time, effort, capital and other organisational resources invested in the delivering organisational products (Rüßmann et al. 2015). Hence, it becomes mandatory to evaluate the fact on how does IS system in an organisation offers competitive advantage. The deemed objective of the paper has been achieved by evaluating the most innovative and technology dependent organisation, Tesla Motors Inc.  The paper will measure the role of IS and technology in the Tesla Motors Inc., and how it offers the subject competitive advantage over other car makers. The findings will further be evaluated to determine the challenges associated (if any). If any challenges are determined in the evaluation than the paper will be concluded with possible solutions to those challenges. The paper will also attempt at offering recommendations that may enhance the level of competitive advantage that the subject enjoys.

The subject of the report is Tesla Motors Inc., one of the most prominent leaders in the energy car making industry. The American giant established in the year 2003, is known for the innovative practices that it adopts towards the organisational operations. Tesla believes in disruptive technologies over the existing business models (Rimmer 2014). The business researchers and scholars have recently uncovered the long-term strategic plan of the organisation after the launch of Tesla Model 3. The deemed organisation was strengthening its capital resources and enhancing its quality in the automobile technology to earn a competitive advantage in the car industry.

The stronghold position that Tesla is enjoying in the vehicle industry is due to its innovative approach and the technological advancement. IS has played the most significant role in the success that the organisation is enjoying, from electric batteries to cars based on electric propulsion and challenging the major car makers. Elon Musk, the CEO of the Tesla Inc. for the technological advancements is dependent on the organisational employees and the assistance from the sister organisations of Tesla (SpaceX and SolarCity) (Coglianese and Lehr 2016). The section following offers an elaborate description of the role of IS in Tesla Inc.’s competitive advancement.

IS and Tesla’s Competitive Advantage

IS gathers, stores and spread data on organisational operations and environment to assist in analysis, control, visualisation and coordination (Nugawela 2013). However, the most important role played by the IS in an organisational environment are storage and processing of data, assistance in decision-making and sustaining smooth operations of the organisational processes and in the process provides competitive advantage. Tesla has always preferred disruptive policies and technologies to ensure sustainability of the organisation which involves a vital role play of IS (Stringham, Miller and Clark 2015). The deemed section will provide insight into the role of IS in different aspects of Tesla Motors Inc.

Informational resources are the most significant organisational resources when taking consideration of long-term sustainability and future of the organisation. Hence, protecting and preserving the data should be one of the primary focus of the organisations. Tesla understanding the need for data preservation have devised plans for management of the organisational data. The subject of the paper achieves the deemed objective by equipping the most suitable IS system in accordance with the job description. Just-in-time system to manage the inventory and computerised data recording of the employee’s details and their productivity rate.  The subject equips tools like CATIA for 3D modelling of the cars ICEM shape design offers its assistance in the surface designing (Sanquist 2016). ENOVIA V6(Version 6) is used to manage the collaborative data of the employees and the teams they are associated with (Adeppa 2014). Other technological tools and systems are also equipped with different data management processes. Hence, it can be stated that other organisations who are willing to learn the data management process should take an insight of the Tesla’s data management.

According to (Mejia 2017) the decisions making process of the subject of the paper is based upon the principle offered by the great scholar, Aristotle. Based upon the principle, the decisions makers at Tesla Motors take six steps before making a decision. The first step is to ask a question of what is the requirement followed by gathering evidence to support the outcomes of the first step. The evidence is gathered from the data management system (DMS), customer relationship management (CRM) and other such relevant tools (Coglianese and Lehr 2016). In the third step, based upon the evidence axioms are developed which are drawn to the conclusion in the fourth step before attempting at dissing the derived conclusion in the fifth step by use of probability tools and prototypes. In the final step, it is measured that if, by any means, the decision can not invalidate the conclusion is accurate. The discussion above shows that from data collection to probability development and verification, at each step Tesla equips the use of technology to make a decision that is at the highest probability of being right.

Data Management at Tesla Motors Inc.

Organisational operations of the Tesla motors are entirely dependent on the Information system (Model 2017). National Geographic Channel took an insight of the operations inside the megafactory of the subject at Fremont, CA and it is evident from that the subject uses the IS to its full potentiality. Tesla’s megafactory is home to the world’s largest 3D printing press that they equip to design the body of the cars. Over 200 robots capable of multi-tasking are used to automate the manufacturing process. The production schedule of the employees at the factory is even computerised to maintain an in and off the record along with the productivity rate. However, to maintain the environmental sustainability the subject uses cycles to move within the factory, which is the only non-IS operation inside the organisation.

Supply chain plays one of the most vital roles in the operations of an organisation, and hence, it is mandatory to manage the same with appropriate care and in time. Information systems are of great assistance in the deemed process and hence the subject of the paper instead of buying a core system from the supply chain system giants such as Bosch and Johnson Controls, they developed their own system (Zhu and He 2017). The decision was taken as the subject has both the hardware and software capability to design their own system. Additionally, they could not just buy a supply chain system as that of other organisation because of the geographical distance between them and traditional suppliers (Tsay 2014). Designing a supply-chain system that is specially designed for Tesla has proved to be of great competitive advantage and it is proved by the fact that the suppliers have started building their plants nearby of Tesla gigafactory (Teslacountry.com 2017).

Inventory plays a significant role in the manufacturing operations of an organisation. In the automobile industry, the parts of the vehicle need to be oriented appropriately and sufficient to avoid any undesired interruption in the manufacturing process, however, risks are also associated with storing too many car components. To avoid, such circumstances and maintain a balanced inventory Tesla has adopted just-in-time inventory model (Forums.tesla.com 2018). An automated system maintains the requirement and supply of the parts and car components. Adopting the deemed technology omits the hassle involved in the inventory management and even improves the productivity of the organisation. In case of Tesla, it prevents the extra human effort put in inventory management and uses that time in productive activities (Perlman 2013).

Tesla’s Decision-Making Process

The section above has cited the role of IS within the Tesla Motors Inc. in the deemed section; attempts have been made to analysis of the facts that have been mentioned in the above section. Based upon the analysis, the recommendations will be made for improvement or enhancement in the Tesla’s organisational IS.

Data management of the Tesla Motors is one of the most and hence, they have cited special focus to the deemed section. They have equipped necessary IS tools to be of assistance in the managing the data. However, the deemed organisation has entered its phase three, and now they have expanded their production by 100% (that is from 50,000 units to 500,000 units per year) (Wolfram and Lutsey 2016). Hence, the size of the data resource of the deemed organisation has also increased which demands upgradation of the data management tools. The organisation has already hit a setback by pushing back the deadline date of the Model 3 by over a month (Tesla.com 2017). The reason stated for the same by the CEO, Elon Musk of Tesla Motors is “We had to rewrite all of the software, from scratch. We managed to write 20 to 30 man-years of software in 4 weeks.” (Gene 2017). The deemed scenario cites the need for change that Tesla needs in their IS as tools for organisational expansion.

It has been determined that the deemed organisation is dependent on the technology for the production. It is evident from the fact that almost all of the organisational operations are operated through automation. A video from the National Geographic Channel that inspects the working of the Tesla Megafactory at Fremont suggests that the automation at times pose a threat to the assigned deadline (Model 2017). The posed threats were due to the failure of the automated robot systems. In the deemed scenario of the welding robot was not accurate and it deviated from its designated path by approximately 5mm. The deviation was very small, but it could have ruined the accuracy that the deemed organisation offers. The time that was consumed in reprograming the robotic arms even threatened the deadline for the delivery date. If Tesla motors had a contingency plan for such situations, the case would have been different. Additionally, the death of the driver that was driving Tesla car using the autopilot mode has also raised questions over the excessive dependence of the subject on the IS (Yampolskiy and Spellchecker 2016). The computerised production schedule of the organisation is of great assistance. However, it can pose a threat to the organisational operations in case of cyber-attacks. Such scenarios have been evident in the past, first when hackers hacked the Tesla Model S and second instant was when the deemed organisations’ cloud was hacked (Solon 2016). Hence, from the above-made discussion, it can be stated that IS are hugely beneficial for the organisations. However, they also bring challenges for the organisation.

IS in Organizational Operations

The supply chain management of the deemed organisation has been appreciated globally. The deemed organisation has developed their system for the management of the supply chain and which is successful to an extent. However, after the announcement of the Tesla Model 3, the organisation’s supply chain management has been troubled spot. Debord (2017) of the Business Insider claims that the organisation’s decision to mass produce the Model 3 is the reason for the deemed challenge. The organisations’ devised supply chain management software is citing incapability in managing such a large paced and mass data transaction. The system was devised to manage data and transaction of the inventory size of limited numbers (Model S was only produced 50,000 units per year while Model 3 has plans of 500,000 units). Additionally, a sudden surge in the requirements of the Tesla Motors has also made it difficult for the suppliers to meet the demand. The primary issue has been determined in the battery module assembling; it happened because one of the sub-contractor backed off from the deal (Debord 2017). The deemed scenario leads the organisation to rework on multiple operations from the scratch which was one of the reasons associated with the delay in the delivery of the Model 3.

  The Strategic Information System of the deemed organisation is well established and is offering the organisation a competitive advantage in the vehicle industry. However, as analysed in the above-discussed paragraph at times the organisation has suffered because of its over-dependence on the information system. It is also visible from the discussion made above that if the appropriate measures are not taken than the organisation may suffer in the long run which may prove to a loophole in the competitive advantage of the organisation. Hence, it can be stated that the IS system of the organisation has offered it competitive advantage in the market. However, it has also shared some failure instances with the organisation. The author after, reviewing and analysing the role of IS in the Tesla motors and the problems that are associated with the same has offered potential recommendations that may prove of great help in sustaining the competitive advantage that the organisation enjoys.

Conclusion: 

In conclusion, it can be stated that Tesla Motor’s information system is one of the globally appreciated factors of the organisation. The reason behind the above-stated statement lays on the vital role that the IS plays in the organisation. The subject systems offer its assistance from the organisational operations to the data management. Additionally, the system also enables the decision-makers of the organisation in making the decisions that are vital for the organisation. The IS is also benefiting the supply chain management and the inventory of the organisation. The reason for such a massive success of the IS of the Tesla Motors is because the deemed organisation believes in disruptive technology and has designed most of the system according to the organisational environment rather than just buying it from tech giants. However, apart from such a strong IS system, the organisation had faced some setbacks in the past which, if repeated can affect the competitive advantage that the organisation enjoys. Hence, it is mandatory for the organisation to take immediate actions and devise a contingency plan to tackle such situations if the need arises. The section following can be of assistance in devising of the deemed contingency plan.

Supply Chain Management

Analysing the IS system of the Tesla Motors has revealed that the organisation is enjoying competitive advantage in the electric car industry because of its innovative approach and mass adoption of the IS. However, to attain competitive advantage from the non-green energy cars the deemed organisation needs to enhance the organisational IS to next level. The recommended solutions may assist the organisation to achieve the deemed objectives.

First, the organisation should increase its data storage capacity and determine appropriate methods to keep it safe, to prevent the hacking instances that the organisation already had faced. It can be achieved by equipping P2P (peer to peer) level of security, where the cyber-attackers will have to cross multiple levels to hack the data. The organisation should also develop systems to have multiple backups of the data to prevent any loss of data. Another possible threat that has been analysed in the organisation is the failure of the automated systems. In the deemed scenario, the organisation should have a contingency plan which can be of great assistance. The contingency plan may involve, backup robots or manual labouring of the skilled employee in the field where the system failed.

The supply-chain management of the Tesla Motors has also offered challenges to the organisations. Hence, the organisations can increase their inventory size to keep additional components to be used in dire situations, or they can have a backup contractor to fulfil the demand. It is also mandatory to manage the inventory properly as the organisation has increased its production rate (from 50,000 units per year to 500,000 units per year. Hence, the IS system should be enhanced to handle such a mass surge, as the need for the organisations goods are increasing, the company will expand itself too. Hence, it is advisable that the organisation be ready for the change.

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