Volkswagen of America: Managing It Priorities
INTRODUCTION
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 diversifying the product ——VWoA’s CEO, Gerd Klauss instituted an organizational readiness program called “Next Round of Growth” based on the product-diversification strategy.
IT at VWoA
1992——VWoA , in order to reduce short-term costs, entered into a 10- years agreement with Perot Systems, an IT services provider. Thus also reduced its internal IT staff to fewer than 10 people, eliminated much of the knowledge of IT within the company.
1999—— VWAG company was created in the U.S.A, gedasUSA Inc. To speed the start-up of gedasUSA, all employees of VWoA internal IT department were transferred to gedasUSA. There is a arms-length relationship between gedasUSA and VWoA. VWoA made it appear that the knowledge was lost to VWoA.
1999——VWoA set up “eBusiness team” for the purpose of creating digital-marketing assets and interacting with customers.
1999-2002——gedasUSA, Perot System and the eBusiness team worked together to rebuild the IT environment to support the now rapidly growing VW and Audi brands. But IT function was not performing optimally within VWoA.
ISSUES/PROBLEMS
1. In order to adapt to the corporation globalization strategy, Klauss, VWoa’s CEO, instituted an organizational readiness program called
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 diversifying the product ——VWoA’s CEO, Gerd Klauss instituted an organizational readiness program called “Next Round of Growth” based on the product-diversification strategy.
IT at VWoA
1992——VWoA , in order to reduce short-term costs, entered into a 10- years agreement with Perot Systems, an IT services provider. Thus also reduced its internal IT staff to fewer than 10 people, eliminated much of the knowledge of IT within the company.
1999—— VWAG company was created in the U.S.A, gedasUSA Inc. To speed the start-up of gedasUSA, all employees of VWoA internal IT department were transferred to gedasUSA. There is a arms-length relationship between gedasUSA and VWoA. VWoA made it appear that the knowledge was lost to VWoA.
1999——VWoA set up “eBusiness team” for the purpose of creating digital-marketing assets and interacting with customers.
1999-2002——gedasUSA, Perot System and the eBusiness team worked together to rebuild the IT environment to support the now rapidly growing VW and Audi brands. But IT function was not performing optimally within VWoA.
ISSUES/PROBLEMS
1. In order to adapt to the corporation globalization strategy, Klauss, VWoa’s CEO, instituted an organizational readiness program called