Volkswagen of America's decision to establish and nurture its own IT until the late 1990s came at the right time. Not only were new Volkswagen products hitting the American market with the promise of reviving the company's brands, but consumers also expected features such as e-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 direction for the development process. However, he finds himself in a difficult position. Matulovic is facing inadequate funding, a new business architecture and increasing pressure from his peers. Considering VWoA's history of viewing IT as a source of overhead and the unpredictable US market for its parent company (Volkswagen Audi Group), these circumstances were no surprise. The biggest obstacle for Matulovic to overcome is the limited funding determined by VWoA's parent company. There were 10 business units and they had proposed more than 40 projects, requiring $210 million in funding against the $60 million budget set by VWAG. Given the scale of VWoA's initiatives, this amount is well below what is needed. Old trial: synopsisDr. Matulovic faced a tough challenge, but managed to get the organization back on track to serve the growing market. Born from the tragic choice to effectively eliminate IT from the American side of Volkswagen in 1992, the new priority management process represents a drastic change in the right direction. The process of managing projects by importance was logical, thorough, and most importantly, departmental. The process ensures that each… halfway through the document… also has another team member to make the decision in IT projects. Also, currently with the new systems put 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 for decision making. In places where there is a project to be created for a specific business unit or team, they have to work together with IT and the BU will be the customer of IT and they have to meet their needs, since they will be the end users who will manage the application of the IT project. Decisions will be based on collective work and BU will be part of the decision-making and review process, as they will work together with IT, instead of working in silos and making decisions on their own.