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Toyota's internal inertia slows digital shift to rival Tesla and BYD
Toyota's internal inertia slows digital shift to rival Tesla and BYD

The Star

time3 hours ago

  • Automotive
  • The Star

Toyota's internal inertia slows digital shift to rival Tesla and BYD

Inside Toyota Motor Corp, a group of employees are worried about the company's future in an era when a car's software matters just as much as its sheet metal. The world's biggest automaker is known for churning out reliable cars like clockwork, but it's been struggling to keep up with Elon Musk's Tesla Inc, China's BYD Co and other frontrunners in the industry's shift toward electric vehicles with sophisticated software. A somewhat obscure Toyota business unit called the Digital Transformation Promotion Department aims to change that. Established four years ago at the behest of then-chief executive officer and now chairman Akio Toyoda, the little known group's mandate is to bring the carmaker up to speed by modernizing it from within. The division's rank-and-file members are drawn from a wide cross-section of the corporate flow chart – everyone from R&D technicians to blue collar mechanics on factory floors. They all share a broad vision to introduce a more digitised future to a company with a stubbornly analogue culture. While they've managed to foster some changes, Toyota's core competency remains very much in hardware – with one foot in the world of EVs and its other planted in gas-powered cars. That cautious approach has been key to the Japanese automaker's success so far. Yet it's also a source of frustration for some inside and outside the company who are pushing for quicker progress. "Toyota sees the importance of software, but it's still slow,' said Kani Munidasa, chief executive officer of Code Crysalis, a Tokyo-based startup that's working with Toyota to put workers through Silicon Valley-style coding boot camps. Lukewarm commitment Some advocates for a software-led rethink at Toyota have grown disillusioned by what they see as a lukewarm commitment to reform from within, according to people familiar with the matter. They point to a recent decision to fold the Digital Transformation Promotion Department into a larger business unit, threatening to short-circuit its mission as a change agent. The division, which previously reported directly to chief executive officer Koji Sato, was absorbed by the Digital Information and Communication Group "to accelerate the internal promotion of digital transformation,' Toyota said in a statement. "We aim to create new value and transform business by accelerating collaboration among the various infrastructures and the use of AI,' it said. In some ways a similar fate befell Toyota's effort to create a digitally-focused, quasi-independent subsidiary called Woven. Despite bold ambitions to usher in a "software-first' approach to car manufacturing, in the end Woven was quietly folded back into the corporate mothership in September 2023 after its American executive departed and its portfolio was downsized. While Toyota's software team isn't directly involved in the development of the cars it sells, they've undertaken a number of projects focused on the company itself. That includes creating a database to keep track of the company's fleet of test cars, overhauling a system employees use to apply for time off, replacing white boards with touchscreens on factory floors and deploying robots to deliver medicine inside Toyota's 527-bed company hospital in Aichi prefecture, according to people familiar with the matter. Another project involved extending access for remote workers to computer assisted design software using a virtual desktop infrastructure in partnership with Nvidia Corp. "Moving forward, our plan is to roll out similar systems not only to Toyota Motor but also to Toyota group companies,' Masanobu Takahisa, a Digital Transformation project general manager, was quoted as saying in a 2021 press release about the campaign. Those efforts might not be transformative, but they're notable in a company where scissors are banned in the office out of an abundance of safety-minded precaution, and erasable billboards are still used to keep employees informed at factories. Looming 'digital cliff' Toyota isn't unique among Japanese companies. While the country dominates in some high-tech fields such as industrial robots, its business culture is known for clinging to fax machines and other bygone technologies. The government in Tokyo has warned about failing to surmount what it terms a "digital cliff' separating Japan from other advanced economies. In March 2021, sitting across from union members during the final round of annual wage negotiations, Toyoda, scion of the founding family and then CEO, said he wanted to break down internal information silos and put the automaker's digital innovation on par with top global companies within three years. "Inside Toyota, it's still the case that only people 'in the know' are considered valuable, and that knowledge only belongs to a small group,' he said. "By moving forward with our digital transformation, we can rid ourselves of that inequity and build an environment where its easier for everyone to focus on their work.' The Toyota City-based carmaker hatched the Digital Transformation division to heed that call with a team of innovative minds looking to break down antiquated systems and practices. The idea was that, if all went well, that reform agenda would rub off on other parts of the company, boosting resiliency and productivity. But the progress has been piecemeal and the division is far from achieving its longterm goals, the people familiar said. Former employees who spoke anonymously with Bloomberg described a workplace bound by conformity, with a paternalistic bureaucracy that values harmony over new ideas. One ex-employee joined Toyota because they were interested in autonomous driving, but instead felt trapped for several years doing quality control on mundane electronic parts. Toyota's global success – its record as the world's biggest automaker for five consecutive years and its status as Japan's biggest and most important company – has arguably created a self-enforcing inertia. Talk among employees of transferring or quitting usually triggered the same reaction: Why would anyone want to leave? It's not the only legacy carmaker struggling to adapt to modern technology. Volkswagen AG's Cariad software unit has been downsized following glitches and delays, while Ford Motor Co. recently downgraded its next-generation advanced software project known as FNV4 by merging it with an existing architecture platform. That speaks to a larger issue involving the industry's ability to innovate fast enough to compete with the likes of Tesla and China's Xiaomi Corp as well as Big Tech, which has moved aggressively into automotive dashboards with popular features such as Apple Inc's CarPlay and Alphabet Inc's Google Android operating system. Reinvention won't come easy for established automakers, said John Murphy, a senior automotive analyst at Bank of America Corp. "It goes into structures, platforms, technology – sort of the whole integrated operating system of a vehicle, I think, needs to be done differently,' he said. "It's an uphill battle.' – Bloomberg

Toyota's internal inertia stifles digital transformation effort
Toyota's internal inertia stifles digital transformation effort

Business Times

time8 hours ago

  • Automotive
  • Business Times

Toyota's internal inertia stifles digital transformation effort

[TOKYO] Inside Toyota Motor, a group of employees are worried about the company's future in an era when a car's software matters just as much as its sheet metal. The world's biggest automaker is known for churning out reliable cars such as clockwork, but it's been struggling to keep up with Elon Musk's Tesla, China's BYD and other frontrunners in the industry's shift towards electric vehicles (EVs) with sophisticated software. A somewhat obscure Toyota business unit called the Digital Transformation Promotion Department aims to change that. Established four years ago at the behest of then-chief executive officer and now chairman Akio Toyoda, the little-known group's mandate is to bring the carmaker up to speed by modernising it from within. The division's rank-and-file members are drawn from a wide cross-section of the corporate flow chart, everyone from R&D technicians to blue collar mechanics on factory floors. They all share a broad vision to introduce a more digitised future to a company with a stubbornly analogue culture. While they have managed to foster some changes, Toyota's core competency remains very much in hardware, with one foot in the world of EVs and its other planted in petrol-powered cars. That cautious approach has been key to the Japanese automaker's success so far. Yet it's also a source of frustration for some inside and outside the company who are pushing for quicker progress. 'Toyota sees the importance of software, but it's still slow,' said Kani Munidasa, chief executive officer of Code Crysalis, a Tokyo-based startup that's working with Toyota to put workers through Silicon Valley-style coding boot camps. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Lukewarm commitment Some advocates for a software-led rethink at Toyota have grown disillusioned by what they see as a lukewarm commitment to reform from within, according to sources familiar with the matter. They point to a recent decision to fold the Digital Transformation Promotion Department into a larger business unit, threatening to short-circuit its mission as a change agent. The division, which previously reported directly to chief executive officer Koji Sato, was absorbed by the Digital Information and Communication Group 'to accelerate the internal promotion of digital transformation', Toyota said. 'We aim to create new value and transform business by accelerating collaboration among the various infrastructures and the use of artificial intelligence,' it said. In some ways, a similar fate befell Toyota's effort to create a digitally-focused, quasi-independent subsidiary called Woven. Despite bold ambitions to usher in a 'software-first' approach to car manufacturing, in the end, Woven was quietly folded back into the corporate mothership in September 2023 after its American executive departed and its portfolio was downsized. While Toyota's software team is not directly involved in the development of the cars it sells, they have undertaken a number of projects focused on the company itself. That includes creating a database to keep track of the company's fleet of test cars, overhauling a system employees use to apply for time off, replacing whiteboards with touch screens on factory floors and deploying robots to deliver medicine inside Toyota's 527-bed company hospital in Aichi prefecture, according to sources familiar with the matter. Another project involved extending access for remote workers to computer assisted design software using a virtual desktop infrastructure in partnership with Nvidia Corp. 'Moving forward, our plan is to roll out similar systems not only to Toyota Motor but also to Toyota group companies,' Masanobu Takahisa, a Digital Transformation project general manager, was quoted as saying in a 2021 press release about the campaign. Those efforts might not be transformative, but they are notable in a company where scissors are banned in the office out of an abundance of safety-minded precaution, and erasable billboards are still used to keep employees informed at factories. Looming 'digital cliff' Toyota is not unique among Japanese companies. While the country dominates in some high-tech fields such as industrial robots, its business culture is known for clinging to fax machines and other bygone technologies. The government in Tokyo has warned about failing to surmount what it terms a 'digital cliff' separating Japan from other advanced economies. In March 2021, sitting across from union members during the final round of annual wage negotiations, Toyoda, scion of the founding family and then CEO, said he wanted to break down internal information silos and put the automaker's digital innovation on par with top global companies within three years. 'Inside Toyota, it's still the case that only people 'in the know' are considered valuable, and that knowledge only belongs to a small group,' he said. 'By moving forward with our digital transformation, we can rid ourselves of that inequity and build an environment where its easier for everyone to focus on their work.' The Toyota City-based carmaker hatched the Digital Transformation division to heed that call with a team of innovative minds looking to break down antiquated systems and practices. The idea was that, if all went well, that reform agenda would rub off on other parts of the company, boosting resiliency and productivity. But the progress has been piecemeal and the division is far from achieving its long-term goals, the sources familiar said. Former employees who spoke anonymously with Bloomberg described a workplace bound by conformity, with a paternalistic bureaucracy that values harmony over new ideas. One ex-employee joined Toyota because they were interested in autonomous driving, but instead felt trapped for several years doing quality control on mundane electronic parts. Toyota's global success, its record as the world's biggest automaker for five consecutive years and its status as Japan's biggest and most important company, has arguably created a self-enforcing inertia. Talk among employees of transferring or quitting usually triggered the same reaction: Why would anyone want to leave? It's not the only legacy carmaker struggling to adapt to modern technology. Volkswagen's Cariad software unit has been downsized following glitches and delays, while Ford Motor recently downgraded its next-generation advanced software project known as FNV4 by merging it with an existing architecture platform. That speaks to a larger issue involving the industry's ability to innovate fast enough to compete with the likes of Tesla and China's Xiaomi as well as Big Tech, which has moved aggressively into automotive dashboards with popular features such as Apple's CarPlay and Alphabet's Google Android operating system. Reinvention will not come easy for established automakers, said John Murphy, a senior automotive analyst at Bank of America. 'It goes into structures, platforms, technology, sort of the whole integrated operating system of a vehicle, I think, needs to be done differently,' he said. 'It's an uphill battle.' BLOOMBERG

Pete DeJoy education qualification: How a science grad from Bowdoin College is now steering Astronomer as interim CEO
Pete DeJoy education qualification: How a science grad from Bowdoin College is now steering Astronomer as interim CEO

Time of India

time5 days ago

  • Business
  • Time of India

Pete DeJoy education qualification: How a science grad from Bowdoin College is now steering Astronomer as interim CEO

In the startup world, leadership transitions are often swift and strategic. But few unfold under the kind of spotlight that recently surrounded Astronomer, the data orchestration company best known for commercialising Apache Airflow. When former CEO Andy Byron stepped down amid a wave of media attention and controversy, the company didn't look to external talent or polished executive search firms. Instead, it turned to someone who had been there since the beginning, Pete DeJoy. DeJoy, a co-founder of Astronomer, wasn't just another name on the leadership bench. He had spent years helping shape the company's technical and cultural identity from the ground up. His educational journey, which began in the chemistry and physics departments of Bowdoin College, reflects a grounding not in corporate theory, but in systems thinking, scientific discipline, and analytical rigor. Dejoy's powerful foundation at Bowdoin College Bowdoin College, located in the quiet town of Brunswick, Maine, has long been known for its strong liberal arts tradition. It is not a school typically associated with Silicon Valley-style disruption, but it has a history of producing thinkers with the curiosity and depth needed to lead in complex environments. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo DeJoy's bachelors in chemistry and physics gave him exactly that, a foundation built not just on formulas and lab reports, but on critical thinking, research-based inquiry, and long-term problem-solving. Unlike many startup leaders who lean on business school pedigrees, DeJoy's path has been shaped by his exposure to scientific complexity and intellectual versatility. The cross-disciplinary nature of his education seems to have quietly influenced his leadership style. Whether debugging a data pipeline issue or navigating a boardroom conversation, he brings a methodical approach rooted in the habits of a trained scientist. Building Astronomer from the ground up DeJoy's role at Astronomer predates the company's rapid growth and recent media buzz. In his own words, shared via LinkedIn, he has 'poured his entire professional life' into the company. What began as a focused mission to help businesses adopt and manage Apache Airflow more effectively has, over time, evolved into a central player in the global data and AI infrastructure stack, as he also noted. Much of that growth happened under the radar, with DeJoy at the helm of product and platform development. The pandemic years tested the startup's agility, scaling the company from 30 to 300 employees without ever gathering in the same room. Through these challenges, DeJoy remained a constant, solving hard problems, staying late to fix what was broken, and mentoring new engineers who joined the ride. Rising to lead in an unexpected moment When Astronomer recently found itself under public scrutiny, DeJoy stepped into the interim CEO role with quiet clarity. His LinkedIn post announcing the transition struck a rare balance of realism and resolve. 'The spotlight has been unusual and surreal,' he acknowledged, while quickly redirecting focus to the company's mission, team culture, and customer trust. DeJoy's rise to the interim CEO role is not a conventional tech story. He didn't major in business or computer science, nor did he leap from a top-tier accelerator into a unicorn valuation. His journey has been slower, more embedded, and arguably more hands-on. His education in physics and chemistry shaped a mindset that values experimentation, persistence, and clarity, all qualities that now serve him in the CEO seat. In an ecosystem often obsessed with scale and speed, DeJoy's story reminds us that leadership can come from the lab bench as much as the boardroom. His Bowdoin education didn't just train him in scientific theory, it taught him how to think critically, navigate ambiguity, and stay anchored in complexity. As interim CEO, these are precisely the skills Astronomer seems to need most. As of mid-2025, Astronomer stands at a pivotal juncture. With Pete DeJoy now leading the company through a sensitive transition, attention has turned to how the platform will evolve in the growing world of enterprise AI. While it remains unclear whether he will stay on as permanent CEO, his appointment signals a vote of confidence in technical stewardship, founder commitment, and educational depth. DeJoy's story offers an encouraging message to students and early-career professionals: you don't need to take the obvious path to end up at the top. Sometimes, the scientist really does steer the ship. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!

How Walmart plans to steal Amazon and Google's best tech talent
How Walmart plans to steal Amazon and Google's best tech talent

Time of India

time23-06-2025

  • Business
  • Time of India

How Walmart plans to steal Amazon and Google's best tech talent

Walmart is investing billions in a gleaming new headquarters campus designed to lure top tech talent away from industry giants like Google, Netflix and Amazon, as the retail behemoth transforms itself into a technology-driven company to compete in the digital marketplace. The retailer's new 350-acre Bentonville, Arkansas campus features Silicon Valley-style amenities including electric bikes, robot groundskeepers, a hotel, food hall, amphitheater and massive fitness centers. The facility, which opened its first building in January, represents a dramatic departure from Walmart's spartan former headquarters in a converted distribution center with wood-paneled offices and few windows. Tech workers now comprise one-third of Walmart's 15,000-person corporate workforce, driving the company's digital advertising platform, data services, artificial intelligence and drone delivery operations. This technological pivot has forced the world's largest retailer by revenue to compete directly with tech companies for skilled employees who have specific workplace expectations. From discount store to tech powerhouse by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo "You are in a competition for talent — even if you are the largest company in the world by revenue — and having a nice experience and work environment is a great recruiting and retention tool," said Scott Benedict, a former Walmart executive turned retail consultant, according to The New York Times. The challenge is particularly acute for a company based in Arkansas, where recruiting tech talent requires convincing workers to relocate from major metropolitan areas. Walmart must demonstrate that life in Bentonville can rival opportunities in San Francisco, Seattle or New York while shedding its image as a traditional brick-and-mortar retailer. Dan Bartlett, Walmart's executive vice president of corporate affairs, acknowledged the new campus "will play a role in recruiting and retention of talent, particularly tech talent, where they have certain expectations." Walmart is going beyond price wars The transformation reflects Walmart's recognition that competing on price alone is no longer sufficient. Modern commerce demands excellence in convenience, breadth and speed, forcing the company to match Amazon's technological capabilities while leveraging its vast network of nearly 11,000 stores worldwide. Walmart's e-commerce business recently achieved profitability, with the company expecting two-thirds of future growth to come from digital operations. The retailer now sells premium items like $6,000 Louis Vuitton handbags online while expanding drone delivery services to compete with Amazon's logistics network. The investment appears to be paying dividends with investors. Walmart's stock has outperformed both the S&P 500 and Amazon this year, rising more than 5 percent as analysts overwhelmingly rate the company a buy. AI Masterclass for Students. Upskill Young Ones Today!– Join Now

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