Introduction
Volkswagen is a German automobile manufacturer headquartered in Saxony, Germany. Under Dr. Uwe Matulovic, chief information officer (CIO) who was earlier a leader of process development at VWAG has decided to create a new internal I.T department, which he called business process technology and organization (BPTO). He has empowered a nascent Program Management office to take over Management of all IT projects and also required all projects to have a qualified project manager to abide by project management standards.
Previously 1992 when funding priorities were marketing and selling IT was considered as an overhead and therefore Volkswagen signed a 10-year agreement with Perot systems. Over the years Volkswagen realized the need of IT in the organization, as there was insufficient knowledge in the organization and thus lead to formation of GedasUSA. Gedas and Perot worked for four years between 1999 to 2002 to rebuild the IT infrastructure to contribute to the rapidly growing Volkswagen group and its sub brands like Audi.
Volkswagen not only tried to understand the need of IT but also understood the need to diversify it self and under the leadership of chairman Dr. Bernd Pischetsrieder. He devised a strategy of diversifying in product offerings, which would help in consolidation of the brand as it would match the global demand for different vehicles such as sports utility etc.
Key strengths and Challenges
Volkswagen while in the midst of 1960’s had a crisis were sells fell sharply until 1977 when rabbit was introduced however the company had a further low point in 1990’s it was seen that the sales would go up when a new model would launch but eventually go down till the next model was introduced. The product diversi...
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...ve in future made way for more projects.
Challenges to IT Alignment
At Volkswagen the current biggest challenge to alignment is to make the company understand the need of IT fusion and the future needs of IT as businesses all across the world have adapted IT as an integral part of the business. Also at Volkswagen the current approach is correct to a greater extent but there is need to bring ELT on the same page and also there is a huge need have a greater vision and funding for IT. The key to success here lies in having each individual of the organization and rethink the IT department as technology enabled innovation were the people need to be skilled in not only business but also in information technology.
References
1. http://busi620dc02.wikispaces.com/VolkswagenCase
2. Volkswagen of America: Managing IT Priorities- Harvard business school; ROBERT D. Austin
...System (SMS). Knowing that the Harley-Davidson’s employees were not very susceptible to quick changes, SiL’k team made sure to employ company’s model to highlight People, Processes and Technology for any change initiatives. Additionally, company’s Technology decisions were differed to company’s Architecture Integration group to ensure all technical solutions will be compatible with existing Information Systems architecture. Last but not least, the team took an open communication approach and throughout the process, each party involved, shared their monthly updates as well as project newsletter that communicated objectives, activities and progress to the community. This was clearly an ultimate teams collaborative effort, which brought them all toward shared vision of the new process and activities, resulted in shareholder’s decision in favor of the new supplier.
Adapt to externalities. Correct evaluation, however additional analysis is required. The IT department needs to collaborate with the business to better understand how organization changes impact applications and systems. Moreover, IT needs to strengthen the IT-business alignment to stay abreast of future changes. One methodology that may assist here is business architecture, a blueprint of the business that supports aligning strategic objectives and tactical demands.
IBM System Journal. "Strategic Alignment: Leveraging Information Technology for Transforming Organizations." Last accessed April 14, 2007. http://researchweb.watson.ibm.com/journal/sj/382/henderson.pdf
Today's automotive industry in very competitive. Ford has had to find ways to keep ahead of the following major companies: BANC ONE, Bank America, BMW, Budget Group, Chrysler, Daimler-Benz, Enterprise Rent-a-Car, General Motors, Honda, Hyundai, Isuzu, Mack Trucks, Mitsubishi, Nissan, Peugeot, Saab, Suzuki, Toyota, Volkswagen and many others. Ford has developed a number...
This paper focuses on the impact of Management of Information Systems (MIS) on Boeing. In this endeavor, it highlights the new technologies that will most likely impact on the organization and structure. In addition, the paper discusses possible impacts of new technological advancement on the company, to remain competitive in the face of the new technological developments. In this regard, the paper reflects on the possible strategies that Boeing is likely to adapt so that it remains competitive that is, by introducing new technological developments. Finally, with such a move of adapting or not adapting the new technology, this research paper looks at risks that are associated with both moves that the company might opt for.
In 2014, researchers from West Virginia found out that recent models of Volkswagen vehicles were emitting up to 40 times the allowed levels of nitrogen oxides (2). These vehicles had a special software that would determine when the vehicle was in laboratory testing conditions, and the software would then alter the vehicle 's functionality to emit the legal amount of nitrogen oxides allowed by the EPA. The software was found in around half a million vehicles in the United States. In addition to the bad publicity, the Volkswagen scandal will cost the company at least $15.3 billion dollars in compensation to the owners of the affected vehicles (3). In 2016, Volkswagen engineer James Liang pleaded guilty for being a crucial part in developing the illegal software (3). The software was created because Volkswagen was unable to meet the rigorous EPA emission standards. Therefore, a small team of engineers including James Liang decided to cheat the emission exams to allow Volkswagen vehicles to be sold in the U.S.
Henderson and Venkatraman proposed a model for business – IT alignment; it was intended to support the integration of information technology (IT) into business strategy by advocating alignment between and within four domains (see figure 1). The inter-domain alignment is pursued along two dimensions: strategic fit (between the external and internal domain) and functional integration (between the business domain and the IT domain). The objective of this model was to provide a way to align information technology with business objectives in order to realise value from IT investments. The authors argued that the potential strategic impact of information technology requires both an understanding of the critical components of IT strategy and its role in supporting and shaping business strategy decisions and a process of continuous adaptation and change. Hence, they presented a model that defines the range of strategic choices facing managers.
The ownership of the company is as follows: FAW around 51%, Volkswagen 20%, Volkswagen (China)19% and Audi AG 10% (FAW-Volkswagen International cooperation, 2015)
Information systems (IS) projects are vulnerable to resource cutbacks and the increasing complexity of systems and advances in information technology make finding the right personnel difficult and the associated development costs high. Good project management is essential for success. Some alignment methodologies include IBM's business systems planning (BSP), Robert Holland's strategic systems planning, James Martin's (1989) information engineering and method/1 from Anderson Consulting.
Porsche came out with the models of 914 and 944 because they take the consumers with lower income into account during the recession of 1970s. They redesign, reposition and reprice the vehicles so that it is allow the consumers to purchase the product for the purpose of social class, family needs or status. With this, Porsche still able to create loyal customers even if the economic situation did affected their business when they have considered their customers’ personal income, savings and interest
Perhaps the CAR could be initially launched in a small selected test market, stressing the dialogue with the customers about the value of the product and service. Afterwards, target pricing in pace with to the company’s strategic objective of a deft market penetration can beacon engineers to rebalance the technological features of the CAR. This also accommodates better for investors’ expectations of a fixed return. Moreover, it allows AUDI’s management to concert its pricing strategy and counteract unforeseen changes in the all too sensitive demand, as the link between customer value perception and product’s cost becomes alive. After all, relying solely on a forecast is not advised, as it cannot possibly capture all the dynamics of a fairly unknown market for a project which needs to age in the years to come.
Organizations and individuals have to strategically position themselves in order to take advantage of the growing technology and achieve business competitive advantage while at it (DeHaven 2010 pg 1). Technology has enabled globalization; where ideas, products and services have been shared. This has promoted foreign businesses thus helping different economies all across the globe. Different organizations and individuals have realized that technology will keep growing and changing and the best strategy will be to adapt it other than holding to rigid ways of doin...
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.