Volkswagen of America Managing IT Priorities Case Solution

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.