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
Volkswagen of America: Managing IT Priorities 1) How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority management system? 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)
activities by allocating all the available funds. According to Matulovic, the major issues at VWoA were not related to IT but rather to the ambiguity that surrounded governance and development process. Assessment of the new process for managing priorities at Volkswagen of America? Significantly, he empowered PMO (program management Office) that focuses on proper planning prior to execution phase in order to generate on-schedule and on-budget projects. Hence, Matulovic satisfied that projects are working
Volkswagen of America’s new process for managing priorities is much more methodical than how things were done previously. Companies can successfully manage priorities by adhering to the following guidelines: defining the company’s value, developing “logical, fact-based prioritization processes”, creating frameworks that “resolve resource allocation conflicts… [and] encourage employee collaboration” (Townsend). The new process seemed to follow these guidelines very closely. VWoA identified and ranked
VW: Managing IT priorities Case Study 1. Define acronyms BPTO, DBC, ITSC, PMO, NRG and explain. BPTO, Business Process Technology Organization. This was a department created by Matulovic. They dealt with projects that dealt with “challenged” projects. Also known as the firefighter department due to the type of projects it received. DBC: Digital Business Council, this council was created to asses the impact the business side of IT projects. The challenge with this council was to align IT related projects
BBUS 489 A Tayfun Keskin Case 3 write-up: Volkswagen of America May. 2rd, 2017 1. Define acronyms BPTO, DBC, ITSC, PMO, NRG and explain. a) BPTO – Business Process, Technology and Organization: It was a new internal IT department created by Matulovic, for solving the issues of the ambiguity that surrounded governance and development processes at VWoA. This department was composed of 23 people, assumed chief firefighter roles as they dealt with a portfolio of “challenged” projects. (Austin, 2007)
Case 7 – Volkswagen of America: Managing IT 1. What is your assessment of the new process for managing priorities at Volkswagen of America? Are the criticisms justified? Is it an improvement over the old process? The new system of prioritizing IT projects to determine funding is a very efficient way of ensuring those projects that are critical to business strategy meet their financial requirements. However, the method of dropping entire goal portfolios simply because they ranked lowest in the
BBUS 489 | Professor Keskin | Case 3: Volkswagen Define Acronyms BPTO, DBC, ITSC, PMO, NRG, and explain. In order to understand and process the case, we have to review a few acronyms heavily used. BPTO is the “Business Process, Technology and Organization” internal IT department created by Dr. Uwe Matulovic, the chief information officer (CIO) of Volkswagen of America (VWoA). This new department composed of 23 people to engage “chief firefighter” roles in which they doused flames. A Project Management
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
Introduction In my analysis of the case Volkswagen of America: Managing IT Priorities (Austin, 2007), I will examine the dilemma faced by the Digital Business Council (DBC) members with respect to recommendations to the IT steering committee (ITSC) and the CIO, Dr. Uwe Matulovic. I will analyze two alternatives and the unfunded project, and provide recommendations. Background This case describes a decade long search for an effective Organizational Strategy and illustrates an issue faced