Volkswagen of America's decision to establish and grow its IT through the late 1990s came at an opportune time. Not only were Volkswagen's new products coming to the U.S. market with the promise of relaunching the company's brands, but consumers also expected features such as electronic marketing and efficient product distribution. Uwe Matulovic, the new Chief Information Officer (CIO) of Volkswagen of America (VWoA), had two main concerns: defining governance and establishing guidelines for the development process. However, he finds himself in a difficult position. Matulovic faces inadequate funding, a new business architecture and growing peer pressure. Given VWoA's habit of viewing IT as a source of overhead costs and the unpredictable US market for its parent company (Volkswagen Audi Group), these circumstances came as no surprise. The biggest obstacle Matulovic must overcome is the capped funding determined by VWoA's parent company. There were 10 business units and they had proposed more than 40 projects, which required $210 million in funding against the $60 million budget capped by VWAG. Given the scale of VWoA's initiatives, this amount is far less than what is needed. Old process: SynopsisDr. Matulovic faced a daunting challenge, but managed to get the organization back on track to serve the growing market. Stemming from the tragic choice to effectively eliminate IT from the US side of Volkswagen in 1992, the new priority management process is a radical change in the right direction. The process of processing projects based on their importance was logical and thorough and, best of all, comprehensive across departments. The process allows each ...... middle of paper ...... also another member of the group to make the decision in IT projects. Additionally, currently, with the new systems in place, we view this as an IT duopoly. A combination of IT duopoly and federal system is what is essential in any infrastructure related IT project where the management has a better understanding of the technology, security and cost, they can be effective in decision making. In places where there is a project that needs to be created for a specific business unit or team, they need to work together with IT and the BU will be the customer of IT and they need to satisfy their needs because they will be end users. who will take care of the application of the IT project. The decision will be based on collective work and BUs will be part of the decision-making and review process, as they will work with IT, instead of IT working in silos and making decisions on its own..