The major aim is to align these priorities with the business priorities as well as with the overall strategy of the company. However, the organizational resources are scarce, and there is no prominent solution available to encounter the difficulties and achieve the objective. The CIO is in deep considerations of the alternatives available in order to make the right choice. Overview Volkswagen started operating in the late s in Germany and with the passage of time started expanding into other markets as well.
Managing It Priorities is available for you on Essays What is your assessment of the new process for managing IT priorities at Volkswagen of America? Are the criticisms justified?
Is it an improvement over the old process? Just like any other, the new process had its benefits and drawbacks. And it comes down to the Economics of cost benefit analysis to see whether the benefits outweigh the costs considerably. In our view, the problem with the old process was the unclear vision and undefined goals of IT infrastructure mainly because of outsourcing most of the IT business and excessively reducing the IT staff.
Also, the decisions were made via unstructured debate. Sometimes these debates were done on phone calls as well. As discussed in class, it is important to have face to face and structured meetings for sensitive and otherwise important decision making.
Another problem was the poor project planning in earlier phases where cost and time overruns was a norm. In the new process, the steps taken by Matulovic were commendable, standardizing the procedures of Project Planning by empowering the PMO which resulted in on-schedule and on-budget projects, that alone might have saved a lot of costs for VWoA and VWAG.
The new process for selecting the project appeared logical and was devised keeping the big picture in mind. The template of the proposals was given to help the business units clearly define their goals and vision for the project.
This way all the projects were measured on a single scale. Another benefit was the integration of all the business units in the process. More than one entities are involved to manage IT priorities in new process, dividing the responsibility in such a way that no one has full control of overall process.
This eliminated the silo thinking and paved way for an enterprise level benefits. Furthermore, combining the projects that had the same function resulted in an efficient allocation of resources. Therefore, the new process appears to us as a non-discriminatory process in which each department was given a fair chance to submit their proposals.
The process became transparent for all the business units. However, the process came with one major cost. All this meticulous planning in multiple phases led to over complications. There were so many different teams working on the prioritization process, grouping and reshuffling the projects which created chaos among the business units.
As a result, the business units focused more on aligning project with enterprise goals by hook or by crook. Who controls the budgets from which IT projects are funded at Volkswagen of America? Who should control these budgets? Should the IT department have its own budget? Currently, the budget is controlled by the parent company VWAG which uses the Top Down Budgeting approach, where the senior management decides how much the projects should cost.
This stat alone makes us question the process of budget decision-making.Volkswagen of America: Managing It Priorities This essay Volkswagen of America: Managing It Priorities is available for you on Essayscom!
Search Term Papers, College Essay Examples and Free Essays on Essayscom - full papers database/5(1). Volkswagen of America: Managing IT Priorities Stefan Radisavljevic Section 4 Ricardo Perez Garrido Technology and Innovation Management IE Business School Madrid Problem Statement CIO of Volkswagen America (VWoA), Uwe Matulovic with his IT department team, controls a budget of 60 million dollars capped by Volkswagen Global, which is situated in Germany.
Volkswagen of America: Managing IT Priorities 2 Background—Volkswagen of America Ferdinand Porsche designed the first Volkswagen automobiles during the s in Germany. Volkswagen of America: Managing IT Priorities Stefan Radisavljevic Section 4 Ricardo Perez Garrido Technology and Innovation Management IE Business School Madrid Problem Statement CIO of Volkswagen America (VWoA), Uwe Matulovic with his IT department team, controls a budget of 60 million dollars capped by Volkswagen .
Describes the efforts of Volkswagen of America, the U.S. subsidiary of Volkswagen AG, to arrive at a process for setting IT funding priorities so that they align with business priorities and the. Describes the efforts of Volkswagen of America, the U.S. subsidiary of Volkswagen AG, to arrive at a process for setting IT funding priorities so that they align with business priorities and the.