IT Portfolio Management and Why It Is Important (Volkswagen of America) Number essay

ITPortfolio Management and Why It Is Important (Volkswagenof America)


ITPortfolio Management and Why It Is Important (Volkswagenof America)

TheVolkswagen group of America (VWoA) is a subsidiary of the largerVolkswagen group that deals with automobile products in Germany. Alsoreferred as Volkswagen of America, the company is responsible for thefive major products Audi,Bentley, Bugatti, Lamborghini andVolkswagencars in the North America region. More so, the American headquarteris responsible for the company’s financial and credit services(VolkswagenGroup of America Inc., 2013).This essay addresses the company’s IT portfolio and why it is ofimportance to the company, answering key questions regarding thepresented case.

QuestionI: Budget Controller

TheIT Project budget is controlled through the involvement of differentcompany entities which establishes priorities. With regard toVolkswagen of America case, four specific groups are involved, whichentail the Executive Leadership team, the IT steering committee, theProject Management Office, and finally the Digital Business Council(DBC). However, the DBC is mandated with the filtering process toestablish the projects which are in line with the company’sstrategy (VolkswagenGroup of America Inc., 2013).The budgets are also controlled by the parent company. According tomy opinion, the IT department should possess its own budget.

QuestionII: Assessment of the New Process, Criticisms Justification, andWhether the Old Process Is an Improvement or Not

Accordingto the case presented, my view of the new process is that the processis more organized and in turn proves to be an improvement over thecompany’s old process. For example, the new process recognizes theIT projects and is prioritized when determining funding, which inturn ensures projects that are important to the company meets theirfinancial funding. This enables the unit managers to come togetherand pass decisions that are directed towards the overall well-beingof the company. The criticism of the company’s Executive leadershipisn’t justified at all as the new process is aligned to theorganization`s business and corporate goals (VolkswagenGroup of America Inc., 2013).Finally, comparing the new process with the old one, this can beconcluded to be an improvement,

QuestionIII: Matulovic response to the unfunded Supply Flow project

Regardingthe unfunded supply flow project, Matulovic ought to exerciseleadership qualities as a strong leader and prioritize on thecompany’s overall financial gain other than focusing on departmentprofit. As the CIO, Matulovic ought to make a firm decision, and onone side, he should review the process established by the team andensure that global benefits are ranked high (VolkswagenGroup of America Inc., 2013).

QuestionIV: Matulovic Response to Fellow Executives

Asthe CIO, Matulovic has to continue working with the executives asthey all together make the company’s leadership team. However, heshould not give any colleagues special treatment, but rather focus onthe new process and prioritize the company’s management system.More so, he should ensure the company’s due selection process isfollowed and it is the duty of business unit’s executives to ensuretheir proposals are more focused on a company’s strategy so as tobe top ranked (VolkswagenGroup of America Inc., 2013).


VolkswagenGroup of America Inc. (2013).&nbspCorporatePhilanthropy Report,&nbsp28(9),4-5.