Download Volkswagen of America: Managing IT Priorities

Volkswagen of America:
Managing IT Priorities
Group Case Presentation:
Anand
Sidharth
Jenne Foo
What did
Volkswagen get
wrong
regarding its
method of
prioritizing IT
projects?
What did Volkswagen get wrong regarding its method
of prioritizing IT projects?
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?
Categorization of
Essential IT Projects
• 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.
Unstructured &
flustered approach
• Last-minute real-time phone consultations
with business unit managers.
Project-to-goal
Alignment
• 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.
What did Volkswagen get wrong regarding its method
of prioritizing IT projects?
Unofficial
Accommodation
• Incorrect prioritisation led to teams
requesting unofficial accommodation when
their projects where not approved.
IT Knowledge Lost
• They lost all IT knowledge twice due to
outsourcing to different parties.
• Later had to increase IT strength by almost
200%.
Decentralised
Adoption
• Approach to e-business was process decentralised
adoption of independent process unlike systems
thinking and interdependent.
Non-existent PMO
• Surprisingly there was non-existent PMO
even when multiple projects were underway.