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VWoA Case

Matulovic, the new CIO, has two primary concerns at VWoA: defining governance and establishing development process directives. However, Matulovic is in a difficult situation; he faces inadequate funding, new business architecture and increasing pressure from his peers. His circumstances are predictable given the history of IT consideration, by VWoA, as a source of overhead and the highly unpredictable U.S. market for Volkswagon Group.
Matulovic’s biggest hurdle is in regards to the capped funding that has been determined by the parent company (Volkswagon Audi Group). VWAG allotted VWoA only $60 million, out of the requested $210 million, for IT projects. Given the scope of VWoA initiatives, the amount is far from adequate. However, at the time, there were no additional funds available.
The procedure for deciding which projects will receive funding is streamlined by a new prioritization process. This process for managing IT priorities is part of a new business architecture designed to align organizational activity with corporate goals and strategy. During the first few years of any new policy or procedure there are bound to be unforeseen complications. The largest glitch was how the new process did not account for “behind the curtain” programs such as the intercontinental Supply Flow Project.
The Supply Flow Project should absolutely receive funding. The cost should not come entirely from VWoA, but allocated amongst the global Volkswagen group of companies. This project is critical to Volkswagen’s global supply chain management and their goals. Successful global integration not only promises company wide savings, but plays an underlying role in customer satisfaction and loyalty, the number one corporate goal. This Supply Flow Project is already underway and needs additional funding for a timely completion. The new funding prioritization process

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