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Volkswagen automobiles originated from Germany in the thirties with the need to make automobiles that are affordable and compatible with the needs of a family. Volkswagen of America saw that some middle level managers were falling into unhealthy habits whereby they waited for the next model to put the company on track. Instead, they should have used proactive models in the pursuit of success rather than relying on emphasis of the model or their release dates. Volkswagen may not have developed the best business strategy, but it did produce the needed results that were indispensable for future success.
Assessment of the New Process for Managing Priorities at Volkswagen of America
In the scheme, it came up with three phases in the scheme to launch the necessary proposals, on the other hand, when it saw that the costs were over what they were able to handle, they chose to change the timelines for compensation. The field of information technology and the business practices that accompany it have changed significantly over the past few decades. This not only describes the physical technology but also, how the technology is used. Almost every facet of business uses a form of technology that cannot be appreciated as a component of business success.
In time, the need for integration of business with technology has initiated a lot of streamlined approach in operations. Recently, Volkswagen America initiated new management protocols for the IT sector. This was driven by the new IT budget constraint given by the parent company VWAG. In the event, that the new budgetary constraint was not initiated, it is likely elements of the former less centralized and organized method would be maintained. As a result, the advantage would move to the individual, business units. The effect would be harsh on the whole picture, on the other hand. The main company would take a turn for the worse.
Matulovic was successful in enabling various business managers to work together in making decisions that would affect the departments by utilizing the overall company strategy as the driving force. When he did this, he succeeded in involving most of the managers that would later be affected by the prioritization process while going on with the strategic goals. This would be a vast improvement to the old system. Therefore, the criticism on the new process remains unfounded.
Control of the Budget Funding Process of IT Projects at Volkswagen of America
Budgets for the IT priority management were controlled by the several organizational entities that issued protocols. Here, there were four groups responsible for the process, including IT steering committee, Project Management Office, Digital Business Council and Executive Leadership Team. They each had different designations, whereby, ELT was responsible for implementing the Next Round Growth, where the IT governance plays a large part. The PMO gave the project process as well as, proposal for approval, while the ITSC consisted of business and IT managers responsible for guiding and approving the process of IT project selection. The last department known as the DBC was in charge of the project filtering process, which decided the projects in line with the corporation’s business strategy.
When it comes to budget responsibility, the budgets allocated for projects involving continuity, legality and business should receive the highest priority. According to the name, if any of the projects are incomplete or they start to fail, the risk to business will be substantial compared to that of the business unit priorities. On the other hand, the amount in question could be a contentious issue in itself. Thus, instead of predicting the amount required, he should give the projects to the same procedure just like the others in order to lessen the business unit manager’s perception that Matulovic may have been trying to take over company strategy.
The extra work requests should involve all personnel affected by the funding decisions in the priority project process. Commitment of resources give rise to problems such as spreading certain departments too thin, such that some sectors may be overworked or over emphasized. As such, Matulovic should align the IT funding processes with factors of company strategy and enable communication between business units. This also depends on the funding between the units between those units and business management.
The Response That Matulovic Had To His Executives When They Requested Exceptional Treatment as Concerns New Priority Management System
The system created as meant to follow a well-organized process following company goals. The fellow executives were meant to be part of the process of the IT priority decision making, and the company expectation demands that business unit managers also support the company goals. They may think goals do not make sense in relation to their requests, but this generates a conflict of interest that would be disadvantageous for business. They have the opportunity in this process to voice their concerns to one of the process teams but not to Matulovic himself.
In the event that the supply flow project is tied into the global strategy, Matulovic should thus propose that the funding for the project come from the mother company. There are a number of strategies pending improvement, but this can be remedied following a number of methodologies. For one, Matulovic should work towards the alignment of enterprise strategies for effective communication a well as global and internal integration. Matulovic should also concentrate his efforts toward increasing training efforts before and during projects. This would work towards better placement of personnel in business alignment strategies, which would work toward better effectiveness during project implementation.