Volkswagen is a German Automobile manufacturing group.
Volkswagen was founded in 1937 as a public concern the Nazi government
Ferdinand Porsche designed the first Volkswagen automobiles during the 1930s
Volkswagen of America is a subsidiary of the Volkswagen group.
“ Volkswagen” means, literally, “people’s car”
NRG Program was launched in 2002
NRG (Next Round Growth) Improve Vehicle Value Build Brand Customer Loyalty Stable Business Infrastructure Pre-owned Vehicle Business Optimize the Supply flow Enterprise Goals B E C D A
Managing IT Priorities
Project Proposal Prioritization Process
New IT department : BPTO(Business Process,Technology and Organization)
The budgets for IT projects are controlled through a process that involves several organizational entities that establish priorities. There are four specific teams involved in this process:
the ELT (Executive Leadership Team)
the ITSC (IT Steering Committee)
the PMO (Project Management Office)
the DBC (Digital Business Council.)
ELT is responsible for executing the NRG (Next Round of Growth) strategy in which the IT governance is a part.
The ITSC consists of business and IT managers and is responsible for guiding and approving the process of IT project selection and prioritization.
The PMO administers the project proposal and approval process.
The DBC is responsible for the project filtering process which decides which projects are most in line with the company’s business strategy.
FIDELITY USER SUPPLY SPANISH $12 $10 $4 $15 VWoA VWoA VWoA Global Create a web user portal Translate VWoA website to Spanish Develop software for supply chain Develop a fidelity program Range Budget Symbol Project description Prioritization Process
PHASE 1 : Calling for projects, communicating process, and identifying dependencies
FIDELITY USER SUPPLY SPANISH Business blueprint Prioritization Process
PHASE 2: Formal project requests from business units
FIDELITY USER SUPPLY Return on Invest. ROI Customized solutions Applications Base IT platform Option-creating OCI Stay in business SIB Invest/Tech Types Project description Prioritization Process
PHASE 3 : Transforming business unit requests into VWoA goal portfolios
FIDELITY USER SUPPLY Optimize the Supply Flow Pre-Owned Vehicle Business New Vehicle Value Stable Business Infrastructure Customer Loyalty Project ranking VWoA Goal Ranking Prioritization Process
FIDELITY USER SUPPLY IT projects prioritized: 1 2 3 $12 $10 $15 VWoA Global VWoA Ranking Develop software for supply chain Create a web user portal Develop a fidelity program Range Budget Symbol Project description Prioritization Process
$22 million FIDELITY USER SUPPLY 1 2 3 $12 $10 $15 VWoA Global VWoA Develop software for supply chain Develop a fidelity program Create a web user portal Prioritization Process
Projects of global importance were not funded
How to encourage employees to think about the greater good of the company instead of their own business units
Management exaggerates ROI
Difficult to validate project’s strategic relevance
Finding the right prioritization process Problems:
Validating Proposal’s Strategic Claims
Setting and Applying Correct Filters
Sources of Funding
Best alternative 1. Financial Benefit/cost ratio Rate of return Contribution of profitability Growth rate Payback period 2. Organizational needs Contribution to firm goals Competing in the market Internal political decisions Future success Importance to the functioning Public relations effect Critical success factors 3. Competing environment : Required by regulations Response to competition Required by customers/suppliers New industry standards Lawsuit requires information 4. Technical Isolated, simple, modular project High visibility of project Basic subsystem to system Basic module for operations Availability of skilled IT personnel Availability of needed technology 5. Risk Technical risk Structure risk Risk of cost overruns Size risk 6. Management support Political acceptance End-user understanding Cooperation Project management Top management support Match with users' interest load Middle management support