VOLKSWAGEN OF AMERICA:
Managing IT Priorities
Jesus MonzoPulkit GanjooOlivier Magnin
INTRODUCTION
• Case introduction
• Background
• Timeline
• Business Structure
• Phase I, II, III
• Class discussion – Video role play
• Our suggestions
BACKGROUND
• Ferdinand Porsche – 1930
• Beetle - High sales
• “Himalayas Chart” – 1970
• The Strategic Change – 2000
• Import increase U.S.A.
• Introduction Next Round of Growth
INFORMATION TECHNOLOGY TIMELINE
Volkswagen AG Group
- Creation: subsidiary GedasUSA
28 employees transfer
- Setting up: “eBusiness Teams”
1999
2002
19921992
Perrot
- 10-year contract
Cutting back IT-employees
Adding 28 employees to IT department
GedasUSA – Perot – eBusiness Teamswork together for new IT enivironment
Creation BPTO Department
- Problem: no single structure
- Matulovic: new internal It-department
MATULOVIC
NRG
ITSC
PMO
DBC
BPTO
ELT
• Implemented the new IT program
MATULOVIC (CIO)
• Execute NRG program
ELT (EXECUTIVE LEADERSHIP TEAM)
• IT Project management program
NRG (NEXT ROUND GENERATION)
• Guide and approve the process of IT project selection
ITSC (IT STEERING COMITEE)
• Administration of IT project proposal
PMO (PROGRAM MANAGEMENT OFFICE)
• Categorize projects• Assesing in business impact• Discussing the alignment with the goals
DBC (DIGITAL BUSINESS COUNCIL)
ENTERPRISE GOALS
CUSTOMER LOYALTY
NEW VEHICLE VALUE
STABLE BUSINESS INFRASTRUCTURE
PRE-OWNED VEHICLE BUSINESS
OPTIMIZE THE SUPPLY FLOW
PMO(BPTO)
WORKSHOPS W/ DBC
PROJECT PRESENTATION AND
MAPPING ONTO FUNCTION WALL
GROUPING BY INITIATIVE
DEFINE DEPENDENCIES
• Business function affected• Goal that the project would advance
PHASE I PHASE II
CATEGORIZE BY INVESTMENT TYPE
CATEGORIZE BY APPLICATION TYPE
COMPILE PROPOSALS
PRIORITIZE ACCORDING TO GOALS
SUBMIT TO DBC
•Base enterprise IT platform•Enterprise application•Customized point solutions
PHASE II PHASE III
•Stay in business•Return of investment•Option-creating investment
•With phase I projects
DBC DAY 1 MEETING
YES TOP 3 YESDBC DAY 2 MEETING
YES
REGROUP INTO 5 MAIN GOAL PORTFOLIO
YES
GOAL ACCURACY
NO
BUSINESS UNITNO
FINAL GOAL PORTFOLIOS
YESBUDGETYESFINAL APPROVAL
YES
PHASE III
1. Customer loyalty2. New vehicle value3. Stable business
infrastructure4. Pre-owned vehicle
business5. Optimize the supply
flow
PROS AND CONS OF THE IMPLEMENTED SYSTEM
PRO
• High-level organization structure
• New system keeps his IT employees
• Company goals connection
CONS
• Lack of companies goals consideration
• Lack of IT knowledge
• Core projects remained unfunded
How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority
management system?
What should Matulovic do about the unfunded Supply Flow project?
SUGGESTIONS
How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority
management system?
•Matulovic has to work with these executives as part of the Executive Leadership Team. On the one hand he should consider the relationship, but there does not seem to be any reasonable basis for giving certain colleagues special treatment outside of the new priority management system other than due diplomacy.
SUGGESTIONS
What should Matulovic do about the unfunded Supply Flow project?
•The prioritization process used by the team should be reviewed so that global benefit projects are more highly ranked.
•There is a definite failure in the system and addressing the problem should be a priority. Matulovic should make a decision as CIO
•Matulovic needs to exercise strong leadership, prioritizing company’s profit instead of department’s profit.