Volkswagen of America: Managing IT Priority Case Study Assignment
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?
Dr. Uwe Matulovic, the Chief Information Officer (CIO) of Volkswagen of America had to deal with two primary concerns: Defining Governance & Establishing Development Process Directives.
Matulovic faces inadequate funding, new business architecture, and increasing pressure from his peers. Volkswagen has a history of viewing IT as a source of overhead expenditures and these circumstances did not come as a surprise. ...view middle of the document...
In doing this, he succeeded in involving all of the managers that would be affected by the prioritization system while maintaining the executive leadership team’s strategic goals. This new system was a substantial improvement over the former system.
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?
The budgets for IT projects are controlled through a process that involves several organizational entities that establish priorities. There are four specific teams involved in this process:
A. The ELT (Executive Leadership Team) – The ELT is responsible for executing the NRG (Next Round of Growth) strategy in which the IT governance is a part.
B. The ITSC (IT Steering Committee) – The ITSC consists of business and IT managers and is responsible for guiding and approving the process of IT project selection and prioritization.
C. The PMO (Project Management Office) – The PMO administers the project proposal and approval process.
D. The DBC (Digital Business Council) – The DBC is responsible for the project filtering...