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Volkswagen of America Managing IT Priorities Case Solution

Solution Id Length Case Author Case Publisher
1145 608 Words (3 Pages) Robert D. Austin, Warren Ritchie, Greggory Garrett Harvard Business School : 606003
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Volkswagen understood the importance of having a streamlined prioritization method for IT projects. There were no technological setbacks at Volkswagen; rather the problems it faced were due to ambiguity in the governance and the development processes. With the establishment of Business Process, Technology and Organization (BPTO), Volkswagen also had new means of understanding the value of IT projects and categorizing them accordingly.

Under BPTO, Volkswagen decided that projects that would benefit the company would be implemented. This ensured that focus on doing the ‘right projects' was maintained. Prioritization was based on how well the proposed projects linked with and matched with the business goals of the subsidiary Volkswagen of America. This aligned the projects with the corporate strategy of the business, and ensured that it was the corporate approach that was ‘driving the IT projects.'

Following questions are answered in this case study solution

  1. What did Volkswagen get right regarding its method of prioritizing IT projects? How does it enable innovation?

Case Analysis for Volkswagen of America Managing IT Priorities

1. What did Volkswagen get right regarding its method of prioritizing IT projects? How does it enable innovation?

Through the introduction of the BPTO department and the new method of prioritization, Volkswagen of America was able to give the company and the various business units the right sense of direction. This method was crucial for a company to move forward, after having faced stagnant knowledge and growth in the field of IT from 1992 to 2002. In order to develop the company internally, as well as maintain its image externally and provide customers with competitive products, it was important that Volkswagen of America prioritized its projects. Decisions about which IT projects to fund, and which not to, as well as about when to fund them were necessary. These decisions were made easier when the projects were linked with the company's business and corporate strategy and goals. If a project helped the company achieve its goal, it would be funded and developed earlier than others. This process was important as it aligned all the units of the company along the larger strategy, allowing them to develop internal goals and targets to meet the company's broader objectives. The alignment of all the business units provided the company with direction and enabled it to foster creativity and innovation.

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