Volkswagen Of America Case Analysis

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Volkswagen of America’s started their encounters with IT through the late 1990’s. At the time they had Volkswagen’s newest products arriving in the American market hoping to boost the brands image, but clients expected more. Matulovic encountered a difficult obstacle, but was able to redirect the firm in the right way. After a terrible choice to eliminate IT from the Volkswagen of America in 1992, with the new system of prioritizing, it made positive changes. This the new system of prioritizing projects was obvious and included all of the departments. The system grants all parties of Volkswagen of America to add substantial and equal information into the prioritization of project funding. All the proposals were given with an emphasis on…show more content…
Management took the decision for the project budgets before they even went over the proposals. Although budgets have to have restrictions to be able to achieve financial goals, there must be some flexibility to be able adapt to unknown situations. So that projects may have some potential to gain some return on investment, accessibility to funding shouldn’t be a problem. Keeping a separate budget which then can be divided with what it said on the proposals that result in a high return on investment, it can have the elasticity that is unavailable. Even though several projects, like the multi-year SAP implementation, could not achieve the needed funding. Those projects could seriously put Volkswagen of America’s in a bad place especially for the marketing and distribution of the products. The best option would be to contact the Volkswagen group to address the funding deficits and have them contribute a bit more to the support of its American counterpart by adding some funding to under-prioritized projects. That was something that needed to be addressed but was overlooked, which I think was very…show more content…
A supply chain IT project was given as an example that it would not be able to achieve proper funding for the implementation, regardless of the probability of it lowering costs considerably and supplying positive effects globally. Normally, when using this process system in Volkswagen of America, I presume that once the Digital Board Committee showed its projects to the steering committee, the projects with most value and highest priority would come together and boost performances of Volkswagen of America. However, Volkswagen group would normally back projects that would create a global impact. And this is what Volkswagen of America is concerned
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