Case 3-2 Study Example | Topics and Well Written Essays - 1750 words

3-2 - Case Study Example Nonetheless, in order to meet such challenges effectively, many organisations in the current context are widely implementing IT governance practice. IT governance initiatives of many organizations are predominately directed towards reducing risks and cost control (Milne & Bowles, 2009). It is equally important that adequate funding is made available for the IT projects. Budgeting of IT projects needs to be made on the basis of prioritisation. In this regard, it has become essential for the organisations to effectively manage IT priorities and align them with business strategies and goals for ensuring desirable outcome (Teo et al., 2000; Berander & Andrews n.d.). At the same time, successful IT leadership is also an imperative factor for ensuring project success. The prime role of IT leaders in the current highly dynamic business environment is not confined to ensuring the effectiveness of the IT program but priority needs to be placed on the overall success of the business (Delisi et al., 2009). Correspondingly, the concerned case study, ‘Volkswagen of America: Managing IT Priorities’ describes the endeavours that have been made by Volkswagen of America (VWoA), the US subsidiary of Volkswagen AG (VWAG) in order to achieve the goal of establishing IT funding priorities and determining the type of project to be funded. The first Volkswagen automobile was designed during the period of 1930s in Germany by Ferdinand Porsche. Initially, Volkswagen was engaged in the development of the low-mid range vehicles that were targeted at the mass market. The success of the company upsurge significantly and worldwide popularity was accorded by the company primarily during 1960s with the development Beetle that was accompanied with air-cooled engine feature. After witnessing rapid growth in the 1960s, the sales of the vehicles dropped dramatically during the early 1970s. The fall in the sales of the company was primarily due the failure of the managers