In this PPT presentation we analyze the case: Volkswagen of America. We use a practical approach to the problem and raise some questions about the performance of the main character of the case study.

1. VOLKSWAGEN OF AMERICA:
Managing IT Priorities
Jesus Monzo
Pulkit Ganjoo
Olivier Magnin

2. INTRODUCTION
• Case introduction
• Background
• Timeline
• Business Structure
• Phase I, II, III
• Class discussion – Video role play
• Our suggestions

3. BACKGROUND
• Ferdinand Porsche – 1930
• Beetle - High sales
• “Himalayas Chart” – 1970
• The Strategic Change – 2000
• Import increase U.S.A.
• Introduction Next Round of Growth

4. INFORMATION TECHNOLOGY TIMELINE
Volkswagen AG Group
- Creation: subsidiary GedasUSA
28 employees transfer
- Setting up: “eBusiness Teams”
1999 200219921992
Perrot
- 10-year contract
Cutting back
IT-employees
Adding 28 employees
to IT department
GedasUSA – Perot – eBusiness Teams
work together for new IT enivironment
Creation BPTO Department
- Problem: no single structure
- Matulovic: new internal It-
department

5. 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)

6. ENTERPRISE
GOALS
CUSTOMER
LOYALTY
NEW VEHICLE
VALUE
STABLE BUSINESS
INFRASTRUCTURE
PRE-OWNED
VEHICLE BUSINESS
OPTIMIZE THE
SUPPLY FLOW

7. 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

8. 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

9. DBC DAY 1
MEETING
YES TOP 3 YES
DBC DAY 2
MEETING
REGROUP INTO
5 MAIN GOAL
PORTFOLIO
YES
GOAL
ACCURACY
BUSINESS UNIT
FINAL GOAL
PORTFOLIOS
BUDGETFINAL APPROVAL
PHASE III
1. Customer loyalty
2. New vehicle value
3. Stable business
infrastructure
4. Pre-owned vehicle
business
5. Optimize the supply
flow

10. 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

12. How should Matulovic respond to his fellow executives who are calling to ask him
for special treatment outside the new priority management system?

14. What should Matulovic do about the unfunded Supply Flow project?

15. 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.

16. 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.