Volkswagen of America: Managing IT Priorities

1308 WordsMay 24, 20146 Pages
In today’s world, IS alignment is crucial for the operation and growth of businesses. Information systems allow businesses to deal with vast amounts of complex information and run more efficiently. Founded in 1930s, Volkswagen is the leading automotive vehicle manufacturer in Germany. However, its USA branch was facing problems with inadequate IT human resources due to excessive outsourcing and a reduction of internal IT staff. Additionally, an inadequate budget to cover the considerable cost of multiple IT projects was aggravating the issue. A prioritisation of IT and business activities and a strategic allocation of the budget are essential in resolving Volkswagen’s problems. This paper will analyse Volkswagen’s business and IT…show more content…
With the implementation of information systems, sales figures and ongoing problems could easily be reported to headquarters, which assists in better decision-making. 2. Departments and distributors can communicate more effectively through communication software, such as Lotus Note that was implemented by PwC (Kling 2007). This will result in less phone calls and face-to-face meetings, enabling staff to spend more time focusing on sales. 3. A Customer Relationship Management system could help Volkswagen understand consumer behaviour by engaging with current clients, enabling the company to provide more personalised service. 4. The prevailing Big Data technology can collect consumer data and help identify potential customers so that the marketing activities can be more targeted. 5. Integrated Inventory-Transportation System could make the delivery and inventory management of motor vehicles more logical and efficient, just like UPS model does by reducing unnecessary routes (Volling, Grunewald, & Spengler 2013). There are many other benefits of IS alignment, which can help Volkswagen achieve their business goals and support the company’s business strategies. Given the high quality of the cars they produce, with better service provided, more targeted marketing, and efficient stock rotation, Volkswagen could stay ahead of the competition. Sales could be increased and more
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