Volkswagen of America: Managing It Priorities

1283 Words Nov 3rd, 2012 6 Pages

The main idea of this case evaluated the prioritization process as to whether it was the right process for VWoA. In this case, VWoA introduced a new prioritization process with three phases. But in the running the new process, VWoA have met many problem. All the problems can be regrouped in a major issue: How to find the right prioritization process.

Background of VWoA
1930——Ferdinand Porsche designed the first Volkswagen automobiles.
1940——since the launch of the Beetles, Volkswagen met the peaking point in its history.
1960——VWoA settled into a trying cycle of ups and downs that became known “Himalayas chart”.
1990——the company was suffering the “Valley of Despair”.
2002——VW Group chairman, initiated a strategy of
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• To manage a new process for managing priorities at VWoA. The ELT had primary responsibility for executing the NRG program of which the new IT governance processes were a part. The entire process was expected to play out in three phase. PhaseⅠ——Calling for Projects, Communicating Process,and Identifying Dependencies. PhaseⅡ——Formal Project Requests from Business Units PhaseⅢ——Transforming Business Unit Requests into Enterprise Goal Portfolios


• Evaluate the three phase Advantage: 1. Classify the projects: the measures make a fundament for the future prioritization process. 2. Creating a new IT apartment: a single organizational entity set up in the company which made IT knowledge came back VWoA. 3. PMO contribution: PMO had done so much to tame difficulties with out-of control projects, would administer the IT project-proposal and approval process. Disadvantage: 1. Using the Ranking Method for project prioritization, it didn’t solve the problem in feasible resource. There is a big gap between the funding requirement and budget. 2. A lack of index measure system: in the second phase, it lacked relevant data which are cost analysis, risk analysis, revenue analysis ect. Thus, it didn’t give a visual representation of the project’s anticipated profits. 3. VWoA’s strategic goal was not in a same step with VWAG global