Volkswagen

Considering the new process (NRG) of project funding, there were significantly differences between the old process and the new process that affected Volkswagen of America. From time to time, IT advancement is a double-edged technology sword; it depended on how the managers react to the process. According to this case, there were some doubts whether the new process was suitable for the organizational function or not. For example, the midway finished SAP implementation, which was partially funded, essentially needed to be fully funded. Even the chief information officer believed that the loss of funding to this project would cause a hinder for globalization progress. Therefore, I think that an orderly, rational process might not completely compatible with the company and might create substantial loss to the future growth.

Another problem within Volkswagen of America was the excess decision-making unit in the funding process. There were Executive Leadership Team (ELT), IT steering committee (ITSC), Program Management Office (PMO) and the Digital Business Council (DBC) that had to work together in the new funding process. Even though, each divisions were delegated the difference tasks, an intervention across the section might occur. Especially, ITSC and PMO that handled a very close assignment might cause a conflict within the organization.

In retrospect, my recommendations for Volkswagen of America are to rely more on reality and vision of the leader. Information System sometimes is not entirely accurate, so leaders and manager should focus more on their visions and experiences. To create value of the IT implementation, leaders must profoundly clarify all the divisions about an importance of information technology which would create a precise comprehension throughout the company. Moreover, the company should restructure the complexity of decision-making in the process by forming a specific unit that responsible only for funding, which would reduce

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