In: Business and Management

Submitted By sona1988
Words 1164
Pages 5
Sona Patel
Volkswagen of America Managing IT Priorities
The new process at Volkswagen to select, manage, schedule and fund projects seems structured and effective.

The Transformation:
In the 1990s, Volkswagen had a very decentralized IT system. Initially they had outsourced all their IT work to Perot Systems and in doing so they drastically reduced the IT staff within the organization. When that didn’t work well, they created Volkswagen AG company gedasUSA Inc. which acted as the point of contact with Perot Systems. Soon, they also created eBusiness teams within each Business unit which in turn developed relationships with their own third party IT providers. This highly segmented design led to high costs and poor timeline adherences. To correct this, Volkswagen created a new business unit within the organization that would be the single point of governance for IT related issues. This unit worked in conjunction with the eBusiness teams and the gedasUSA team but was solely responsible in the management, scheduling, budgeting and execution of the IT projects. This was the first step in the right direction.

The New Process:
There are a lot of factors that govern which projects are the most ideal to be funded and the new system seemed to understand that. The three step process was very structured and first identified the dependencies between various projects. It also classified similar projects and grouped them together for execution. This immensely helped to narrow down the number of projects that were in running to be funded.
Earlier, there was no system in place that decided which project was more critical. It was all very haphazard. The responsibility of managing IT was shared among multiple providers, which meant that each had their own rules and guidelines to decide which projects were to be implemented. This led to non-uniformity.
The reason I…...

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