IntroductionVolkswagen is a German automobile manufacturer headquartered in Saxony, Germany. Under the leadership of Dr. Uwe Matulovic, Chief Information Officer (CIO), who was previously responsible for process development at VWAG, decided to create a new internal IT department, which he called Business Process Technology and Organization (BPTO ). It empowered a nascent program management office to take over management of all IT projects and also required that all projects have a qualified project manager to meet project management standards. Previously, in 1992, when the funding priorities were IT marketing and sales, it was considered a general expense and that is why Volkswagen signed a 10-year agreement with Perot Systems. Over the years, Volkswagen realized the need for IT in the organization, as the organization's knowledge was insufficient, leading to the creation of GedasUSA. Gedas and Perot worked for four years between 1999 and 2002 to rebuild the IT infrastructure to help drive the rapid growth of the Volkswagen Group and its sub-brands like Audi. Volkswagen not only tried to understand the need for IT, but also understood the need to diversify. and under the leadership of President Dr. Bernd Pischetsrieder. He designed a strategy to diversify the product offering, which would help in the consolidation of the brand as it would meet the global demand for different vehicles such as sports utility vehicles, etc. Key strengths and challenges. In the mid-1960s, Volkswagen suffered a crisis and sales fell. sharply until 1977 when Rabbit was introduced, but the company hit a new low point in the 1990s. It was found that sales would increase when a new model was launched, but eventually decline until the introduction of the following model. Product diversification ...... middle of paper ...... in the future has paved the way for more projects. IT Alignment Challenges At Volkswagen, the biggest alignment challenge today is to make the company understand the need for IT merger and the future needs of IT, as companies around the world have adapted IT as an integral part of the business. Also at Volkswagen the current approach is to a greater extent correct, but it is necessary to put the ELT on the same wavelength and it is also extremely necessary to have a greater vision and funding for the 'computer science. The key to success here is for every individual in the organization to rethink IT as a technology-based innovation where people need to be skilled not only in business but also in information technology.References1. http://busi620dc02.wikispaces.com/VolkswagenCase2. Volkswagen of America: Managing IT Priorities – Harvard Business School; ROBERT D. Austin