Business Analysis: Case Analysis Of Volkswagen Of America

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Background Volkswagen of America (VWoA) over the years has had to adapt many of its processes and business objectives to meet an ever-changing environment. VWoA has been subjected to several iterations of IT management and project guidance solutions changes and is no better for it. More recently, funding for many projects deemed high priority by business units of VWoA was cut or reduced, by selection of a committee that organized, reviewed, and prioritized all projects. With a budget of $60 million not all of the projects, in total $240 million, could be completed but the question remains - is this the right way? 1. Define acronyms BPTO, DBC, ITSC, PMO, NRG and explain. BPTO - Business Process, Technology, and Organization. The third iteration …show more content…

ITSC - IT Steering Committee. Composed of senior business and IT representatives would guide and approve the process of IT project selection and prioritization. PMO - Program Management Office. Manages all IT projects NRG - Next Round of Growth. An organizational readiness program that makes the key focus of VWoA leadership. This program defined 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? The new process is defined to manage IT priorities efficiently and effectively. Accordingly, the process results in the selection of projects based on business requirements that support organizational goals. This is in stark contrast to the old method in which the most highly prioritized business unit projects received funding. Moreover, the new process allows for company entities to manage and to create new processes for managing priorities at …show more content…

Volkswagen AG should have a budget for overarching projects, Volkswagen of America should have an additional budget above and beyond larger corporate initiatives to support local IT and business priorities. Also, the IT department should not have its own separate budget as it should be subject to the same budget pool and selection process that the business units are. Once project budgets are approved, they are funneled through the steering committee and onto the BPTO project management group who allocates funding for IT projects and has control of the overall budget for IT projects, capping the total at $60 million

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