VW Case: Business Process, Technology And Organization

VW Case
1. Define acronyms BPTO, DBC, ITSC, PMO, NRG and explain.
BPTO – Business Process, Technology and Organization. Matulovic created BPTO as firefighters who dealt with challenging projects. Consisting of 23 people, Matulovic created the organization to remove the ambiguity of governance and development processes. DBC – Digital Business Council, composed of representatives from the eBusiness teams within each business unit. They were responsible for categorizing projects, assessing their business impact, discerning alignment with goals, and making trade-off decisions. DBC’s assessment is required to reach a final list of projects before funding could be recommended for approval.
ITSC – IT steering committee, composed of senior business
This program was made as the key leadership focus. Its intent was to define the goal, function, and organizational changes required at VWoA to support and enable the new global product diversification strategy. 2. 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?
VWoA’s new process of managing priorities through a phased approach is very well organized and step process approach that ensures right organizations/stakeholders are involved in the decision-making process, and it helps to make an informed decision to fund a right project through prioritization.
However, one criticism of this new process is that final prioritization decision left out critical a part of the organization, global supply chain management, partially funded. The
SAP/MRP type IT system implementation is critical for any enterprise equivalent to the size of VWoA. The new prioritization process prohibited this type of project to be
In order to focus on the right projects VWoA IT organization should be independent of the parent company in budgeting/funding process.
4. How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority management system?
In order to make the new process to work and fully implemented VWoA wide level
Matulovic should not have a special treatments for his fellow executives asking for funding of partially and/or non-funded projects. If he allows exceptions for his colleagues it would not set a positive tone for the new process to stick with the rest of the organization. If any exceptions is required due to urgency and criticality of a project

Matulovic should establish a standard process for exceptions under special circumstances which is applicable for VWoA.
5. What should Matulovic do about the underfunded Supply Flow project?
Matulovic should collaborate with VWAG IT team to build a business case for fully funding the partially funded Supply Flow project, as it is applicable for a global project applicable for an enterprise-wide deployment. If the project is underfunded and not fully implemented not just VWoA but the whole VW enterprise would be impacted