Volkswagen Essay

1274 Words May 16th, 2016 6 Pages
Volkswagen of America: Managing IT priorities
Volkswagen, as the name suggests means “people’s car” and defines its objectives to design and manufacture cars which are fuel efficient and affordable. With continuous improvement, Volkswagen has not only subjugated the automotive market with respect to its low priced cars, but also earned industry acknowledgement. The core competency of Volkswagen is structured to build customer loyalty. Although, Volkswagen suffered from erratic sales pattern when the company introduced a new model commonly called as the “Himalayas chart” due to its rise and falls (Austin, 2007).This was because of the management not dealing with situations proactively. This problem was mitigated soon through its
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Moreover, there was no one to even monitor the outsourcing contract as there was a deficit of IT knowledge to understand the contract terms and conditions. The company lacked good management skills which was evident when they made the same mistake of transferring the internal IT staff to GedasUS. Although a completely owned subsidiary of VWAG, the lack of knowledge sharing between the groups was another challenge faced by Volkswagen. This poorly enacted strategy and planning coupled with the failure to utilize IT were the major challenges which were faced by Volkswagen.
The establishment of the new process allowed Volkswagen to deal with vast amounts of complex information and run more efficiently. The role of information systems was crucial in the carrying out Volkswagen’s operations. The CIO made an initiative to integrate the organization through an enterprise wide strategy by the Business Process Technology and Organization (BPTO).The prioritization of the funding of projects was based on the blueprint which was decided in which models for enterprise information inventory was realized. With the diversification strategy of adding more brands integrated into the product line, managing pricing, distribution is complex. With information systems, sales figures and other on-going issues can be reported to headquarters for better decision making. The new process under the lead of a qualified PMO to manage the IT operations recognized the importance of the technological

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