Volkswagen of America: Managing It Essay examples

1682 Words Dec 12th, 2012 7 Pages
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 list could be deemed a flaw in the system, and one that could be detrimental to business unit integration slowly over time. This understandably frustrates those whose proposals are receiving no funding, and if this prioritization system has any
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In conclusion, it became apparent to Dr. Matulovic that the Supply Flow Project, which is viewed as critical to the company’s global supply chain management objectives, was poorly served by the new prioritization process in that it was left only partially funded. The process overlooked this project primarily because much of its value was felt at the global level, and not at the VWoA importer level. Dr. Matulovic found himself in a quandary and struggled with related decision-making as he understood that the loss of funding for this project would constitute a major setback for globalization initiatives based in Germany.
1. Who controls the budgets from which IT projects are funded at Volkswagen of America?
The budgets for IT projects were controlled through a process that involves several organizational entities that establish priorities. There were four specific teams that were involved in this process: the ELT (Executive Leadership Team), the ITSC (IT Steering Committee), the PMO (Project Management Office), and the DBC (Digital Business Council.) The ELT was responsible for executing the NRG (Next Round of Growth) strategy in which the IT governance is a part. The ITSC consisted of business and IT managers and was responsible for guiding and approving the process of IT project selection and prioritization. The PMO administered the project proposal

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