Volvo Car Corporation – Essay

Case Study 1: The Big Data Challenges Richard Lall Dr. Kim Anthony CIS500010VA016-1128-001 Info Syst Decision-Making October 28, 2012 Judge how Volvo Car Corporation integrated the cloud infrastructure into its networks. Volvo split from Ford in in 2010. In doing so they needed to create their own standalone IT environment and at the same time improve its business intelligence capabilities and operational efficiency (Microsoft, 2012).

In a world where many consumers value smart technology in coexistence with automotive engineering, Volvo has created vehicles with hundreds of sensors and CPU’s embedded throughout the car (I-CIO, 2011). “Besides vehicle data gathered by sensors in and on the vehicle, we also collect visual information from four cameras. This gives us a good view of what happened in the cab and on the road at any given point in time” (Volvo Group, 2011).

From the central locking system to the on board camera’s, data is being captured for use within the vehicle and then transmitted via the cloud back to Volvo (I-CIO, 2011). Once data is received at Volvo it is streamed to a centralized analysis hub (the Volvo Data Warehouse), alongside data from customer relationship management systems (CRM), dealership systems, and product development and design systems (I-CIO, 2011). Once data is retrieved at the Volvo Data Warehouse it is archived where it can be retrieved and analyze or manipulated by Volvo employees.

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Through the cloud Volvo is massing large amount of rich data and this is providing them with the opportunity to “turn that resource into something that no only helps build better cars, but also helps the customer have a better experience [through their interaction and above all safety]” (I-CIO, 2011). Explain how Volvo Car Corporation transforms data into knowledge. Utilizing the Volvo data Warehouse to splice data together Volvo is able to perform analysis on various vehicle aspects. Having this abundance of data quicker allows Volvo to be pre-warned about potential issues pertaining to mechanical problems (I-CIO, 2011).

Becoming educated on vehicle issues early in the car’s lifecycle allows Volvo to spot flaws in vehicle parts allowing them modify the manufacturing process to correct the issue (I-CIO, 2011). By applying “well-honed lean processes”, Volvo is able limit the number of part defects that reach the consumer (I-CIO, 2011). Instead of 500,000 units being impacted the issue can be stopped at the first 1000, leaving a majority of customer experience positive and brand name intact (I-CIO, 2011). “Another area where large-scale data capture and analysis is driving improvements is in safety” (I-CIO, 2011).

At the safety center in in Sweden the company is performing detailed forensic examinations on Volvo’s that have been in various accidents (I-CIO, 2011). Using these examinations, Volvo can detect and analyze the timing of airbags, timing of braking system and weather conditions. Post analysis results allow Volvo to create software and system updates that can be loaded onto consumer vehicles ensuring that vehicles will perform better in accidents (I-CIO, 2011). Identify the real-time information systems implemented and evaluate the impact of these implementations.

Post the Ford break-up in 2010, Volvo had a unique opportunity to implement a new standalone IT infrastructure. Pre implementation Volvo sought to improve data management. The company relied on IT personnel to design and generate data reports, which was slow and in-efficient (Microsoft, 2012). “Also, there [was] no central location for storing reports, so information often is distributed by sending a Microsoft Excel spreadsheet or other attachment in an email message. This means distribution is limited, and the information can be hard to find” (Microsoft, 2012).

To address the various issues of quality and efficiency Volvo deployed a “solution based on Microsoft SQL Server 2012 Business Intelligence data management software and related BI technologies, including Microsoft SharePoint Server 2010 and Microsoft Office 2010. One of the big reasons for choosing Microsoft is that Microsoft products are designed to work well together” (Microsoft, 2012). The impact of this implementation led to reduce costs and enhanced collaboration across various Volvo business units and departments. Argue how the Big Data strategy gives Volvo Car Corporation a competitive advantage.

Being able to see into future is still impossible but using the knowledge we gain to today to make better decisions so tomorrow is better is exactly the advantage that Volvo has attained. Their Big Data strategy has allowed them analyze a variety of aspects of vehicle and consumer coexistence. From specific parts to safety Volvo is now empowered to create better overall vehicles not just initially but throughout the life of the vehicle. Big Data gives Volvo a heightened sense of collaboration from design to manufacturing to the dealership, thus giving them an edge over their competition. Works Cited I-CIO. 2011, January). Converting data into business value at volvo. Retrieved from http://www. i-cio. com/__data/assets/pdf_file/0004/8833/i-cio_Case_Study_Volvo. pdf Microsoft. (2012). Bi solution boosts operational efficiency and reduces costs at volvo car corporation . Retrieved from http://www. microsoft. com/casestudies/Case_Study_Detail. aspx? CaseStudyID=710000000271 Volvo Group. (2011). Collecting driving data to improve safety. Retrieved from http://www. volvogroup. com/group/global/en-gb/researchandtechnology/transport_society/enhancing_safety/collecting_data_for_safety/Pages/collecting_data_for_safety. aspx

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