Volkswagen of America: Managing It Priorities
Background
In 2002, Volkswagen of America (VWoA) together with other organizational entities of the Volkswagen enterprise created a high-level business architecture called a blueprint. This blueprint of the business was primarily developed to formalize the new IT governance and prioritization processes linked to the corporate strategy. Each business unit categorized its IT projects for funding based on their business impact and their alignment with the business goals. Several entities within the organization were involved in the process of categorizing similar projects under enterprise portfolios, and select the most viable current business projects.
Problem
The main problem with the new process of managing IT priorities was the lack of a global perspective and a holistic approach in prioritizing IT projects. This was apparent as a critical project of global Supply Flow management was left partially funded even though the project required full funding to stay on track. It was realized that the some business units were incorrectly aligning their projects to enterprise goals in the lieu of funding opportunities, leading important projects sidelined or unfunded.
Recommendations and Alternatives
Priority should be given to the projects that are aligned with business goals of the enterprise. The parent group and partner companies of Volkswagen of America should consider funding critical global projects, like the Supply Flow project. Although the recommendation would garner opposition from managers of the various business units, an understanding of long term benefits has to be clearly specified. Funds from other entities of Volkswagen will also justify the allocation of funds to the other higher ranked projects. Volkswagen could also create strategy relationship between IT and other business units and try to involve other business leaders with IT selection. While the process would include higher cost, it would result in effective project selection. Alternately, the
In 2002, Volkswagen of America (VWoA) together with other organizational entities of the Volkswagen enterprise created a high-level business architecture called a blueprint. This blueprint of the business was primarily developed to formalize the new IT governance and prioritization processes linked to the corporate strategy. Each business unit categorized its IT projects for funding based on their business impact and their alignment with the business goals. Several entities within the organization were involved in the process of categorizing similar projects under enterprise portfolios, and select the most viable current business projects.
Problem
The main problem with the new process of managing IT priorities was the lack of a global perspective and a holistic approach in prioritizing IT projects. This was apparent as a critical project of global Supply Flow management was left partially funded even though the project required full funding to stay on track. It was realized that the some business units were incorrectly aligning their projects to enterprise goals in the lieu of funding opportunities, leading important projects sidelined or unfunded.
Recommendations and Alternatives
Priority should be given to the projects that are aligned with business goals of the enterprise. The parent group and partner companies of Volkswagen of America should consider funding critical global projects, like the Supply Flow project. Although the recommendation would garner opposition from managers of the various business units, an understanding of long term benefits has to be clearly specified. Funds from other entities of Volkswagen will also justify the allocation of funds to the other higher ranked projects. Volkswagen could also create strategy relationship between IT and other business units and try to involve other business leaders with IT selection. While the process would include higher cost, it would result in effective project selection. Alternately, the