Volkswagen of America: Managing IT Priorities
Robert D. Austin, Warren Ritchie, Greggory Garrett
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 company’s overall strategy. The process is carefully thought out and executed, but still encounters difficulties. Demonstrates the details and difficulties of setting priorities for use of a scarce organizational resource. Provides opportunities to critique the company’s efforts and to propose alternative approaches.
Suggested case study questions:
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?
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?
How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority management system?
What should Matulovic do about the unfunded Supply Flow project?
Accompanying Readings:
How to Get Better at Killing Projects
Which Initiatives Should You Implement?
please note : use very simple English
