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IS430 Group Project Blog
Project Milestones / Due Dates
- 10/1 - Volunteers need for Drafter, Reviewer and Poster
- 10/1 - Vote for team meeting preference
- 10/3 - Submit all personal feedback
- 10/4 - Draft paper
- 10/5 - Final review
Posts
3 comments:
The budget for IT projects of 60 million is capped by VWAG the apparent company VWoA. However
each Business units always believe their projects are important and should be funded. I believe that the IT department should have its own budget. It is important that they are allocated an amount that
allows them to obtain results acceptable to the organization. Companies need to update their Information Systems to maintain a competitive advantage
that minimizes costs and maximizes profit.
The budget is set by the parent company, VWAG. It should be controlled by the Executive Leadership Team with input from the CIO. As mentioned in question 1 the ELT is best able to determine the needs of the company with an enterprise wide philosophy. The governance team can enforce the business units to a standard methodology for applying for funding for the projects and the governance team can them prioritize those project with the assistance of the goals established by the ELT. Also as stated above, I do not believe that IT should have a budget of its own because the IT department should not be driving projects. Instead they should be running their department as a separate business within the company and selling their services to the different business units thus making them a profit oriented areas as opposed to a cost center. This methodology will reinforce the company to align their project with their goals and reduce costs down on projects to produce a higher return on their investment. The shared overhead cost of IT would be incorporated in projects and shared among the different business units.
Who should control budgets -
Agree with overall design - ELT should control budget with input from CIO. ELT has the responsibility to act in the company's best interest and provide funding to projects that support the company vision.
IT should not have it's own budget. Projects are never just about IT anymore - it is not "just a hardware upgrade". Projects may involve all facets of the organization (OCM, Training, Integration, Hardware, Software, Business Process) and should be treated as such. Allowing IT to have its own budget allows an entire group of the organization to determine and drive business strategy and design decisions. These decisions should be made by the ELT with support from the CIO.
VW has already tried to have a separate group (and hence separate budget) for IT with the implementation of gedasUSA. Between 1999 and 2002, gedasUSA, Perot and VWoA teams attempted to work as independent but related units trying to achieve the same goal. Each group had different motivations and there was no oversight on IT spending, which may have lead a decrease in the overall "IT budget" in 2004.
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