Volkswagen of America: Managing It Priorities

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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 process is much more structured and organized so it is definitely a substantial improvement over the old process. In the new process IT projects are prioritized to determine funding in a very efficient way, ensuring that the projects that are very important to business strategy meet their financial requirements, enabling business unit managers to work together so they would make decisions focused on the overall strategy of the company. With the new process IT resources would be aligned to corporate and business unit goals, keeping expenses under control, as well as schedule and cost overruns. I think that the criticisms by the Executive Leadership Team members were not justified at all.

2. Who controls the budgets from which IT projects are funded at Volkswagen of America? Who should control this budgets? Should the IT department have its own budget? VWAG (the parent company of VWoA) controlled the budget from which IT projects are funded at VWoA which in this case was $60 million. However this budget was controlled through a process that involved several organizational entities. There are four specific teams involved in this process: 1) the ELT (Executive Leadership Team) which had primary responsibility for executing the NRG program, the ITSC (IT Steering Committee) that would guide and approve the process of IT project selection and prioritization, the PMO (Project Management Office) who would administer the IT project-proposal and approval process, and the DBC (Digital Business Counsel) who would categorized projects, assessing their business impact, discerning their alignment with goals, and making trade-off decisions required to reach a final list of projects for…...

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