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
The purpose of this article is to illuminate the need for any organization to have its IT strategy and business strategy properly aligned. While many organizations view IT and business alignment as an event – it is actually an on-going process, or continuous journey. Therefore, the main problem is that many organizations of today still hold these two principles (business mission & IT strategy) as two separate entities. However, in the Information Age – collaboration is key to capturing and retaining market penetration. To not have alignment with the IT and business strategy together is not a matter of want it is a matter of survival. This report will expand upon the need for business and IT strategic alignment as well as examine what happens in lack of a comprehensive plan. This will be done by examining the Vermont Teddy Bear company prior to and after the arrival of Bob Stetzel, the Vice President of Information Technology. This document will view it findings and make recommendations on the immediate and future operations of the company.
As the new CIO of Volkswagen of America (VWoA), Dr. Uwe Matulovic brings an impressive resume that includes ample experience in aligning business process management (BPM), business process re-engineering (BPR) and the insights necessary to create the Business Process Technology Organization (BPTO). As the IT projects within VWoA have lacked governance and are facing a severe budget shortfall of $150M, Dr. Matulovic has a formidable challenge. He must first align all existing IT projects to strategic initiatives, which is the essence of effective IT governance (Huang, Zmud, Price, 2010) and then he must define processes to stabilize these strategies yet ensure integration still occurs at the process and system level (Korac-Kakabadse, Kakabadse, 2001). All of these factors need to be taken into account as VWoA is evaluating up to 22 new models with will have an exponential, nearly chaotic impact on their existing IT systems and their ability to respond. Further, the VWoA business has continued to suffer from a lack of unified focus of IT spending to overall strategic initiatives. This lack of governance has created a process of defining IT priorities more defined by the persuasive ability of managers, their ability to build compelling Return on Investment (ROI) arguments, and
The Volkswagen of America: Managing IT Priorities case study describes the efforts of the US subsidiary of Volkswagen AG (VWAG) – Volkswagen of America (VWoA) – to arrive at a new process for setting IT funding priorities and deciding on what projects to fund. Dr. Uwe Matulovic, the new Chief Information Officer (CIO) of VWoA, has a dilemma in that peers from the Executive Leadership Team (ELT) have been openly hostile and critical of the new prioritization process, particularly in regards to the lack of funding for high priorities for their areas of the company, and have pressurized him “to insert an unfunded project (or two) into the IT department’s work plans” (p. 1). Dr. Matulovic position is particularly challenging as more than 40 projects have been proposed for IT, with funding requirements totaling $240m, when a budget of only $60m has been approved by VWAG.
Creation, acceleration and emotion are the key components for any automobile industry to deliver its goods to the expected standards. General Motors, popularly known as GM has been a pioneer in the global autoindustry for more than 100 years. Developing from horseless carriages to the latest sports cars, innovations have always excelled at putting the world on wheels. In fact, there are a lot of exciting things to share about the company. GM’s corporation started in 1892 by R.E. Olds, with a solid financial foundation, which enabled him to produce great vehicles for customers and build a bright future for employees, partners and shareholders. GM slowly initiated its staff of experts in the factories which are located in different parts of the globe and acquired the brands like Chevrolet, Pointiac, GMC, Buick, Cadillac(General Motors Corporation, 2015). Leading the way is their tailored leadership team who set high standards for the company so that they can produce the best cars and trucks. This means that GM is committed to deliver vehicles with compelling designs, flawless quality and reliability, leading safety, fuel economy and commercial features. All are intended to create that special bond that can only happen between a driver and a vehicle. General Motors is a customer driven company and aims at earning customers
In accordance with Chan’s (2002) views, there was no structural alignment in the process as the responsibility of managing IT was shared resulting in a tiny business growth. After forming the BPTO and undergoing strategy change, the company came up with roles for IS as a strategic alignment (Chan, 2002) by categorizing them and relating them to business goals. This comparison articulated the priorities of a
The new process that was instituted to prioritize IT projects at Volkswagen of America is very well organized. It takes an IT project and looks at it from multiple aspects, from business to IT. It also allows for several departmental entities to play a more active role in tying in business objectives with stated benefits of the IT project. As stated in Applegate, “IT governance is the effort to devise an overarching and integrated approach, addressing broad themes such as operating performance, strategic control, risk management, and values alignment.” (Applegate, 403) In
The Freedom Writers Diary by Erin Gruwell and her students show many great examples of the vast importance of tolerance. This novel is about one teacher who taught her students tolerance and knowledge. This novel even shares how to support tolerance and diversity. Tolerance is important to have in this world because without tolerance, there can be no peace
As Andrea is in the formal operational stage, the connection between her drinking and how it affects her is apparent. Her ability to use deductive reasoning emerges at this stage by increasing her drinking habits to determine specific outcomes. In this scenario, Andrea’s outcomes from drinking benefit her socially and emotionally. Adolescents at this age are able to think about abstract concepts and think about hypothetical situations and possible results of their actions. Moreover, adolescents have the ability to consider various solutions to problem-solve before acting.
Arnold Communications undertook extensive market research in order to understand the modern VW buyer and their position in the industry. They set about collecting primary data through extensive interviews, visiting 95 of the top VW dealers and drving VX over 50,000 miles
Volkswagen wants to become a global and environmental leader in the automotive world and has developed the “Strategy 2018”. The “Strategy 2018” is stated in their latest annual report in the goals and strategies section as follows:
1. Good reputation according to 98% of their customers and under Volkswagen group 2. Emphasize on customer’s satisfaction such as having customer’s survey 3.
“An eye for an eye, and a tooth for a tooth” is how the phrase goes. Belonging to Hammurabi’s code, this ancient motto has become the basis of a great political debate over the past few decades - the death penalty (US History). The legal definition of the death penalty, also known as capital punishment, is a sentence of execution for murder, treason, and other capital crimes, which are punishable by death (Legal Information Institute). This is an issue that has the United States quite divided. While there are many supporters of the death penalty, there is also a large amount of opposition. Currently, there are thirty-two states in which the death penalty is legal and there are eighteen states that have abolished it (Death Penalty Information Center).
Volkswagen has set a bold goal of dethroning Toyota as the world’s largest auto maker. This goal includes significantly increasing the North American market share, as Volkswagen currently holds only 2.2 percent of the United States market. Volkswagen’s strategy includes cutting prices and tailoring its cars to better fit the American lifestyle and tastes. This includes increasing the size of its vehicles and modifying certain amenities, such as increasing the cup holder size to fit the larger sized beverages which Americans are known to drink. In order to become the world’s largest auto maker by 2018, Volkswagen’s management team has set a lofty goal of selling 800,000 vehicles per year
The development of marketing concept from a Product orientation to a Sales orientation and finally a Marketing orientation has signified an important change in how we understand and conceptualizes marketing in the 21st century. It signified an increased focus in the behavior of consumers and how by applying different marketing strategies organizations have been able to influence the way in which consumers react to their potential needs and how marketers can change their strategy to target different consumers wants. An assessment has been made in this essay looking at the development of the Volkswagen (herein referred to as VW) polo hatchback model.
Volkswagen goal is to become the ecological and economical leader in the automotive industry and to be the world’s leading automaker by 2018. Volkswagen has four main objectives through which they will achieve their goals.