IT BudgetIn 2002, VWoA's ELT together with the IT organization supported a new business unit within VWoA, as a single point of governance for all IT questions. The reason why Dr. Matulovic was transferred from Germany to the United States to design, establish and then lead the new organization. VWoA's IT project budgets were controlled through a process involving multiple organizational entities that established priorities. Four specific teams are involved in this process: the ELT (Executive Leadership Team), the ITSC (IT Steering Committee), the PMO (Project Management Office) and the DBC (Digital Business Council). The ELT is responsible for the execution of the NRG (Next Round of Growth) Strategy in which IT governance is part. The ITSC is comprised of business and IT leaders and is responsible for guiding and approving the IT project selection and prioritization process. The PMO administers the project proposal and approval process. The DBC is responsible for the project screening process, which decides which projects are most aligned with the company's business strategy. As Dr. Matulovic came from a process development background, he felt the problem was more about governance and processes. He did a great job bringing the team under one roof and installing a system with a process-driven approach, weekly reporting accountability and monthly budget checks. The PMO did what was deemed necessary from the IT team, they started working on projects on time and within budget and there were qualified project managers who were responsible for managing IT projects. In some words, IT must have a foundational budget. for its own operations, but it is only a customer support unit and will get a budget based on middle of paper......island projects and will follow agile practices. With this, they are not committing to a full project, they are just planning a pilot project that can be up and running in 3-6 months, they can then execute these projects and start getting some value, if they make savings on a particular project, they can use these funds and refinance the next stage. Instead of seeking funding every year, they can have a process where one project funds another project and the cost savings are reused for the new projects as well. Matulovic should speak with VW management and discuss with them the impending events, because they will lose the SAP project, which was supposed to be part of overall globalization. Additionally, many ETL leaders are going to be unhappy, this means they need to be well aware of the goings-on and if they want, they can re-examine the projects..