Vw of America Managing It Priorities

1683 Words7 Pages
VW of America
Managing IT Priorities
Case Study

9/12/2011

Company Situation Over the past several decades, Volkswagen of America (VWoA) has struggled with finding and maintaining a steady growth rate. Instead, over the past 40 years the company has had large peaks and valleys in the number of vehicles sold.[1] One plan to smooth out the growth curve was to position the company into two main categories, classic and sport. This positioning led the company to plan for future growth throughout the brands, as well as define five clear goals for the company to manage its growth.[2] These five goals highlighted several areas of opportunity for the IT department in the company as well as within VWoA. The first issue faced to this
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This change in cost calculation could have significant differences in ROI calculations as well as changing timelines as costs are reduced. Evaluation of the IT Project Approval Process shows a complicated process along with a minimum of five levels of approval to reach the Project Management Team. These additional levels of approval and discussion would add time and cost to the approval process. This current approval process also allows a diversion of the intended plan with each interpretation of the project plan as it moves thru those levels, allowing emotion about a project push it thru the process when it should not.

Alternative Approaches
1. Focus on base-enterprise systems in first year only. Pro, Keeps enterprise systems up to date and ready for future demand. Con, limits business unit funds for front line projects that are needed.
2. Get IT all in house or all outsourced with internal controls in place. Pro, In-House keeps most amount of control. 100% outsourced department costs are easy to reduce if economic issues arise. Con, 100% In-House is costly to maintain and has a long learning curve. 100% outsourced gives up control of fine details.
3. Get ready for large in-flow of new car models only. Pro, allows more time to fine tune approval process and is fair to all departments as no one gets funding. Con, business units need some budget to remain competitive.
4. Approve one
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