Volkswagen of America: Managing It Priorities Essay

1304 Words May 5th, 2010 6 Pages
Matulovic who is the chief 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 only $60 million.
In choosing the right projects to fund was a process that consisted of three phases: Phase 1-Calling for projects, communicating process, and identifying dependencies, Phase 2-Formal project
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In order to reach a final project list, VWoA had to simplify and categorize projects, assess their business impact, and distinguish their alignment with goals all while making trade-off decisions.
The process is an improvement over the old process since the business units were required to prioritize based on the enterprise-wide goals instead of their own business unit. It also avoided the less organized and less centralized method in prioritizing projects. The new process led business units to work together and make decisions that would affect their unit using the overall company strategy. They would also recognize other business unit’s priorities and provide a greater appreciation of their business unit and the work that they do. This helps alleviate other business units ranking their initiatives as more important than another. As this being a new process at VWoA, this process failed to capture and fund the supply flow project. The unfunded supply flow project revealed a flaw in the new process system. The supply flow project did not get funding because it was recognized at the global level and not at the VWoA importer level. The loss of funding would constitute a major setback for globalization initiatives based in Germany so this particular project must be funded somehow and Matulovic had to

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