In today’s world‚ IS alignment is crucial for the operation and growth of businesses. Information systems allow businesses to deal with vast amounts of complex information and run more efficiently. Founded in 1930s‚ Volkswagen is the leading automotive vehicle manufacturer in Germany. However‚ its USA branch was facing problems with inadequate IT human resources due to excessive outsourcing and a reduction of internal IT staff. Additionally‚ an inadequate budget to cover the considerable cost
Premium Information technology Strategic management Business school
Background In 2002‚ Volkswagen of America (VWoA) together with other organizational entities of the Volkswagen enterprise created a high-level business architecture called a blueprint. This blueprint of the business was primarily developed to formalize the new IT governance and prioritization processes linked to the corporate strategy. Each business unit categorized its IT projects for funding based on their business impact and their alignment with the business goals. Several entities within the
Premium Management
information officer of Volkswagen of America (VWoA) has a tough decision to make. Volkswagen’s subsidiary launched a new process for allocating budgets across the business. With the new process‚ they have derived at a list of approved projects that no one is happy about. Calls came flooding through to Matulovic with an informal request to insert an unfunded project into the IT department’s work plans. VWoA had projects requiring $210 millions and the parent company of VWoA (Volkswagen Group‚ VWAG) budgeted
Premium Project management Volkswagen Project
To: From: Date: Subject: Dr. Uwe Matulovic Bianca Fassnacht November 27‚ 2007 Volkswagen of America: Managing IT Priorities Comment [MLW1]: Great job‚ Bianca. With your permission I would like to use this as an example for future students. GRADE: 100% This recommends helping the business unit executive for supply flow to make an argument for funding the yet unfunded supply flow project from alternative sources and to strengthen the executive’s position in doing so. Implementation of this
Premium Volkswagen Supply chain management Management
main idea of this case evaluated the prioritization process as to whether it was the right process for VWoA. In this case‚ VWoA introduced a new prioritization process with three phases. But in the running the new process‚ VWoA have met many problem. All the problems can be regrouped in a major issue: How to find the right prioritization process. Background of VWoA 1930——Ferdinand Porsche designed the first Volkswagen automobiles. 1940——since the launch of the Beetles‚ Volkswagen met the peaking
Premium Project management Change management Revenue
process and determine how to allocate future IT funding. The following criteria is recommended to determine the most effective allocation of IT funding: 1. Organizational Benefit: Fund projects that contribute to VW’s corporate goals in North America and on a global scale while helping the organization establish a competitive advantage within the market. 2. Financial Benefit: Fund projects with the highest ROI that will provide revenue growth and/or long-term profitability through efficiency
Premium Project management Resource allocation Decision making
Case 7 – Volkswagen of America: Managing IT 1. What is your assessment of the new process for managing priorities at Volkswagen of America? Are the criticisms justified? Is it an improvement over the old process? The new system of prioritizing IT projects to determine funding is a very efficient way of ensuring those projects that are critical to business strategy meet their financial requirements. However‚ the method of dropping entire goal portfolios simply because they ranked lowest in the
Premium Management Project management
VW of America Managing IT Priorities Case Study 9/12/2011 Company Situation Over the past several decades‚ Volkswagen of America (VWoA) has struggled with finding and maintaining a steady growth rate. Instead‚ over the past 40 years the company has had large peaks and valleys in the number of vehicles sold.[1] One plan to smooth out the growth curve was to position the company into two main categories‚ classic and sport. This positioning led the company to plan for future growth throughout
Premium Project management Management Project
COMPANY BACKGROUND Volkswagen of America is the U.S. subsidiary of the Volkswagen automobile company in Germany. Formed in April 1955 in Englewood Cliffs‚ New Jersey to standardize dealership service in the United States‚ it grew to 909 Volkswagen dealers in the United States by 1965 under the leadership of Dr. Carl Hahn. Under him and his successor as president of Volkswagen of America‚ J. Stuart Perkins‚ VW’s U.S. sales grew to 569‚696 cars in 1970‚ an all-time peak‚ when Volkswagen captured 7 percent
Premium Volkswagen Volkswagen Group Porsche
Project Risk and Cost Management Case Study Volkswagen of America: Managing IT Priorities Group Members: Divya Yadav‚ Lamia Nafees‚ Ashwin Chadaga‚ Deeshanu Sharma Executive Summary: This summary is about the Volkswagen of America‚ which had two major concerns: defining the governance and development of the process directives. Matulovic‚ the new chief information officer‚ faced a lot of issues such as new business architecture‚ inadequate funding and increasing pressure from his
Premium Strategic management Management