Weaning itself off legacy software development tools such as PL/I and COBOL, the global auto firm has become labor-force resilient
In 2014, automobile maker Toyota Motor Corporation modernized its large-scale legacy systems to improve development productivity in the digital domain, thereby achieving approximately a 30% reduction in work hours compared to conventional development methods.
At that time, the firm was noticing the warning signs of the labor force decline the country. In particular, the shortage of IT talent was become an increasingly serious issue on a global scale. In addition to modernizing its legacy development systems, the firm wanted to create an environment that could adapt to changes in the future labor environment.
Thereafter, Toyota adopted a common low-code digital development platform across its global operations. By October 2023, some 23 development teams in the Toyota Group from Europe to Asia-Pacific, in over 70 projects across various business domains, have been migrated to the low-code platform. This utilization extends beyond legacy modernization, including front-end development to connect legacy systems with users.
According to its General Manager, DX Promotion Division, Atsushi Inagaki, in the 10 years since the digital transformation (DX), “we feel that the speed and quality of delivery have improved, and user satisfaction has also increased. In addition to these requirements, as a global company, we also had to consider the scalability of a tool like this when looking to expand the scope to overseas locations.”
Toyota is currently looking to strengthen its digital transformation further, including establishing evaluation indicators for projects adopting the centralized digital platform, and improving the operational and maintenance structure to fully harness its features. Establishing partnerships aimed at digitalizing operations are also paramount as its leaders are expected to create sustainable growth, built upon digital-first strategies to maintain a competitive edge.
Said Paulo Rosado, CEO and founder, OutSystems, the firm that has been providing the low-code platform: “Digital transformation for businesses today is vital for enhancing agility, driving growth and enhancing customer experiences. We are honored to be a trusted partner of Toyota and to use our expertise in helping companies develop, deploy, and maintain mission-critical applications to bolster the group’s digital transformation journey.”
