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Volkswagen of America: Managing IT Priorities Group Case Presentation: Anand Sidharth Jenne Foo.

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Presentation on theme: "Volkswagen of America: Managing IT Priorities Group Case Presentation: Anand Sidharth Jenne Foo."— Presentation transcript:

1 Volkswagen of America: Managing IT Priorities Group Case Presentation: Anand Sidharth Jenne Foo

2 What did Volkswagen get wrong regarding its method of prioritizing IT projects?

3 Business unit relationships with the web-service providers Contract with Perot Systems Least costly is the Gedas USA group. (IT based subsidiary of the VWAG group) Complicated IT Project Approval Process. (minimum of five levels of approval to reach the Project Management Team ) 1.Internal cost factor instead of an external structure; 2.Significant differences in ROI calculations; 3.Changing timelines as costs are reduced. 1.Implement a strategic approval process thru the BPTO department What did Volkswagen get wrong regarding its method of prioritizing IT projects?

4 IT projects under Stay in Business (SIB) should not be ranked together with others. Mainly for legislative & business continuity reasons. Essential and not discretionary projects. Categorization of Essential IT Projects Last-minute real-time phone consultations with business unit managers. Unstructured & flustered approach The association of project-to-goal process in the last phase (Phase III) should be done at the initial stage rather than at the end. All project goals should be aligned to corporate strategy. Project-to-goal Alignment

5 Incorrect prioritisation led to teams requesting unofficial accommodation when their projects where not approved. Unofficial Accommodation They lost all IT knowledge twice due to outsourcing to different parties. Later had to increase IT strength by almost 200%. IT Knowledge Lost Approach to e-business was process decentralised adoption of independent process unlike systems thinking and interdependent. Decentralised Adoption Surprisingly there was non-existent PMO even when multiple projects were underway. Non-existent PMO What did Volkswagen get wrong regarding its method of prioritizing IT projects?


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