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Question:

Discuss about the IT Alignment Volkswagen Company.
 
 

Answer:

Introduction

IT alignment in the business is referred to the IT processes that are aligned to the business in order to achieve the organizational goals and to make the business more effective (Ye and Wang 2013). These alignment procedures generally supports the business and are incorporated with them in order to increase the efficiency of the business.

The report provides a brief analysis about the Volkswagen case study and the IT alignment in the business related to it. The report provides the strengths and weaknesses of Volkswagen and their operations. In addition to this the report also provides the role of the IS in the company. The IT alignment of the company, the challenges faced by it and the remedies to the challenges have also been provided in the report.

Strength and Challenges of Volkswagen

The first car of the company was designed in the year 1930 by Ferdinand Porsche in Germany (Walter 2014). The vehicles were designed with the purpose of transporting families at a very high speed with very low consumption of fuel. The Beetle was one of the most popular cars that were designed by the company. It is bestselling car of all time. The sales of the car increased at a huge rate after its introduction to the market. The sale of the car continued for about 20 years. The sales ended around the year 1970. Although, the Latin America the sales of the car went on till 1990.

Strength

  • The company provided the cars for family purposes.
  • The cars could maintain an effective highway speed.
  • The cars also consumed a very low amount of fuel.
  • The Beetle had reliable air cooled engines.
  • The vehicles that were designed by the company were very stylish.
  • In addition to all these the company had been proposed to accept more than 40 projects lately.

Challenges

  • During the 1990s the sales of the company dropped precariously.
  • In addition to this the midlevel managers at the Volkswagen of America company had developed some unhealthy professional habits that hampered the company.
  • In addition to this, the Executive also wanted to break the patterns of the sales of the company.
  • In addition to this, the company were allocated projects worth $210 million, but the company had budget allocation of only about $60 millions
 

Volkswagen’s Operations

In order to tackle the challenges faced by the company lately they had to implement some resolutions for countering the effects of their decreasing sales (Bereford and Barrie 2015).

The company had developed a motive to keep the main focus on the core processes of marketing that would be helping the company in focusing on the marketing and the sales processes, the after sales services that are provided to the customers, and the logistics of the vehicular distribution procedures. In addition to this, the company also want to push for the one-tier brand position. They wanted to improve the overall rank in the market. 

The Information system had performed several role for the company (Bakersville and Wood-Harper 2016). The IS produced the rate of sales for the company per year. The sales of the company peaked in the year 1960. But after the period the sale of the company went into cycles of ups and downs. Due this the sales chart was also known as the Himalayas chart. The sale fell until the rabbit was introduced in the year 1977. The rates of sales of the beetles were decreased by the year 1970 but had continued in Latin America till 1990. But the sales of the company were the lowest in the year 1990. THIs phase was known as the valley of despair. The IS of the company also indicated to the company the need of diversifying their products.  

IT alignment at Volkswagen question how can IT alignment be achieved

Challenges of the IT alignment

Due to this IT alignment of the company the company faced many challenges andifficulties (Ullah and Lai 2013).

Remedies of the challenges.

Weak point identified by Group Audit: the shortcomings and misconduct of employees and other weakness faced in the processes. The tolerance of company against breaching of certain rules was looked after.

Conclusion

For conclusion it can be easily said that the, IT alignment is very important for any kind of organization. The report has provided the case of the Volkswagen of America company. Although the organization faces several challenges due to the IT alignment, yet they can be very easily overcome to increase the overall efficiency of the company.

 

References

Baskerville, R.L. and Wood-Harper, A.T., 2016. A critical perspective on action research as a method for information systems research. In Enacting Research Methods in Information Systems: Volume 2 (pp. 169-190). Springer International Publishing.

Beresford, B. and Barrie, P., 2015. Using Performance Mapping and Gap Analysis to Improve Performance: An Evidence-Based Assessment. Cases on Human Performance Improvement Technologies, p.1.

Coltman, T., Tallon, P., Sharma, R. and Queiroz, M., 2015. Strategic IT alignment: twenty-five years on. Journal of Information Technology, 30(2), pp.91-100.

Gerow, J.E., Thatcher, J.B. and Grover, V., 2015. Six Types of IT-Business Strategic Alignment: An investigation of the constructs and their measurement. European Journal of Information Systems, 24(5), pp.465-491.

Ismail, N.A. and King, M., 2014. Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2), pp.1-20.

Ullah, A. and Lai, R., 2013. A systematic review of business and information technology alignment. ACM Transactions on Management Information Systems (TMIS), 4(1), p.4.

Walter, T., 2014. Total Cost of Ownership-Demonstrating the importance of quality awareness in the purchasing function of the Volkswagen Group of America (Master's thesis, University of Twente).

Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and it managers. Mis Quarterly, 39(2), pp.497-518.

Ye, F. and Wang, Z., 2013. Effects of information technology alignment and information sharing on supply chain operational performance. Computers & Industrial Engineering, 65(3), pp.370-377.

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