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Essay on Volkswagen a Case Study

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THE UNIVERSITY OF MELBOURNE

VWoA – A Case Study

VWoA – A Case Study

1.0. Introduction
Alignment of an enterprise’s goals with its IT1 and IS1 systems has been a challenge ever since IT became a business enabler. Proposing an IT alignment requires a thorough understanding of the business goals of the enterprise and the knowledge that alignment is an iterative process which requires constant measurement and honing (Chan, 2002). Enterprises often face the problem of balance of priorities between IT and Business objectives. This report deals with one such case that faced alignment and prioritization hardships resulting in an unclear approach to achieve a corporate strategy.
2.0. The internal
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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
1The acronyms IT for Information technology and IS for Information Systems and their full forms have been used interchangeably.
2VWoA is the acronym for Volkswagen of America.
3Business Process, technology and Organization. technology project. The BPTO produced weekly status reports and monthly budget reviews helping the company gauge where it was heading towards. Thus the alignment started advancing (Austin, 2007).
5.0. Alignment Maturity at VWoA and Challenges
Eventhough there was significant improvement after strategy changes; business was not what it was when VWoA started up. Despite constant changes, business never reached its peak due to improper alignment. From Luftman’s (2000) alignment levels, table 5.1 measures the degree of IT and Business alignment of VWoA against the levels of standard alignment maturity during that period.
Maturity Factor Level Challenge Assessment
Communication 2+ VWoA had limited IT and Business correlation understanding. During the
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