Volkswagen Key Facts Essay

Improved Essays
KEY FACTS:
1. The first Volkswagen was designed by Ferdinand Porsche during 1930’s in Germany.
2. The company’s internationally popular model was Beetle by the late 1940’s.It has been the best-selling car of all time.
3. The launch of JETTA has given a new way for the short term recovery of which was known as “Valley of Despair” within the company.
4. By 2003, despite of adverse currency exchange rates and high oil prices and the overloaded worldwide auto industry VWoA prospects were Favorable.
5. The managers within VWoA got used to a custom of waiting for the next set of new models to recover from present difficult situations.
6. More effective advertising and brand positioning helped VWoA to get into competition with other major brands.
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The VWoA signed a 10 year agreement with Perot systems which took the responsibility of maintenance, repair and IT operation. This in-turn reduced the IT knowledge within VWoA.
9. The Volkswagen AG (VWAG) group company was created in GedasUSA which was subsidiary of GEDAS AG and will look after IT operations within the Volkswagen Group of companies.
10. To boost up the start up process for GedasUSA all the IT staff was again transferred from VWoA to GedasUSA which left no real IT knowledge to VWoA.
11. During 1999 VWoA set up new eBusiness teams to interact with customers in different ways.
12. Dr.Matulovic created a new IT Department and named it as “Business Process, Technology and Organization (BPTO) which worked towards “challenged” projects.
13. For the Development of business architecture VWoA built a “blueprint” and was expected to play a prominent role in governance and prioritization process.
14. The new process by CIO was expected to play out in three phases and would be in a span of three months.
15. The result of first phase (DBC) activity listed initiatives of $210million which was cut down to a list of $170million.
16. The available budget from VWAG is $60million of which $14million is only for “highest priority business unit projects” and $16million for “stay in business
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 Separate internal IT department for VWoA.
 Having at least one IT representative to manage IT departments within different Volkswagen group of companies.

COA EVALUATION:
 The Responsibility of managing IT for different providers should be managed by single organization.

Pros:
• It becomes more flexible and easier to keep the business knowledge within the organization
• Complicated and difficult IT projects can be addressed easily.
Cons:
• To set up a separate IT organization within the company would need time and resources.
• This would need separated funding and man power.

 Separate internal IT department for VWoA.

Pros:
• This will add up staff and also IT knowledge within the Volkswagen of America.
• This will enable new IT production environment within VWoA and will also look after its outsourcing contract.
• Even after the expiration of the Perot contract there would have been a back up within the VWoA.

Cons:
• This would again be more time consuming and would also need more resources to set up a separate department within VWoA.
• This course of action would need

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