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Volkswagen of America: Managing IT priorities
Volkswagen, as the name suggests means “people’s car” and defines its objectives to design and manufacture cars which are fuel efficient and affordable. With continuous improvement, Volkswagen has not only subjugated the automotive market with respect to its low priced cars, but also earned industry acknowledgement. The core competency of Volkswagen is structured to build customer loyalty. Although, Volkswagen suffered from erratic sales pattern when the company introduced a new model commonly called as the “Himalayas chart” due to its rise and falls (Austin, 2007).This was because of the management not dealing with situations proactively. This problem was mitigated soon through its
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Moreover the internet based communication through this enterprise system made it easy for the ELT to coordinate their activities through a single point of governance between the consultants of gedasUSA and other e-business teams. Thus this communication facilitated by the e-business teams through the development of web applications to administer their IT projects strengthened Volkswagens operations.
IT alignment is crucial for the growth of businesses and in the case of Volkswagen with several independent units, the alignment of their business with IT is more needed. This is because with the implementation of IT, it would be more conducive for Volkswagen to record and comprehend sales figures. Also the communication between these units is needed as they are not integrated throughout the enterprise so a technology based communication platform is required to align their business strategies. This alignment was achieved to some extent by the establishment of the Business Process, Technology and Organization (BPTO) which was an internal IT department to manage and prioritize IT projects in coordination with the IT steering committee (ITSC) which comprised of senior business and IT representative to guide the approval of the process. I feel that the workshop conducted by the
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