Volkswagen Of Americ Managing It Priorities

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Volkswagen of America: Managing IT priorities Introduction Volkswagen is known as people 's car. Financial aspects and fuel amounts were kept in mind to transport a family of five. Volkswagen still remains the best seller due to its air cooled engine and rounded performance. The core competency was exhibited through these features. It organised itself around its core processes where brand repositioning was a good step. Volkswagen’s trying cycle "Himalayas Chart" reflects its life cycle of falling and recovering of sales. It reached a lowest point in the early 1990 's called "Valley of Despair". The managers portrayed an unhealthy habit of waiting for the next round to rescue from current difficult situations. The take of executives on…show more content…
Then step by step it added IT employees and built itself. In 1999, Volkswagen AG group company was created namely GedasInc. Gedas USA was established with an intension of charging external market rates for services to other Volkswagen companies. It was under the assumption of taking charge of the IT operations and also administering the outsourcing with Perot Systems. It also took a development project. To speed up the start-up, the whole IT department is transferred to GedasUS resulting in no internal and real IT knowledge. The IT knowledge still existed in VM group but the arms-length relationship reflected that it was lost. On the other hand, IT was also influenced by emergence of other organisational entities. VWoA had set up "e-Business team" in 1999. The sole purpose was to interact with customers in a new way and create digital-marketing assets. Further the e-Business situated in each units was responsible for the maintenance and development of Web Apps. GedasUS, VWoA and Perot Systems starting working together towards rebuilding IT to support growth. Multiple providers were responsible for managing IT. Overall control was not given to any entity. The business units concern on the increased IT expenses kept on increasing. Cost overruns could be clearly seen due to mismanagement. To overcome this situation, a measure of creating a new business unit was thought

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