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Big Data Challenges

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How Volvo Car Corporation Integrates Cloud Infrastructure into its Networks

Volvo utilized data mining in an effort to discover the unknown valuable relationships in the data collected and to assist in making early predictive information. It created a network of sensors and CPUs that were embedded throughout the cars and from which data was captured. Data was also captured from customer relationship systems (CRM), dealership systems, product development and design systems and from the production floors in their factories. The terabytes of data collected was streamed via the cloud to its centralized hub or Volvo Data Warehouse. From the warehouse Volvo received real-time analysis of data captured. The data could then be archived and accessed on demand.

How Volvo Car Corporation Transforms Data into Knowledge

From the Volvo Data Warehouse all the data from the various data streams is analyzed and transformed into knowledge. The information generated gives Volvo the ability to early predict potential issues such a mechanical problems which would show up only after the manufacturing process is completed. The data is insightful and Volvo can fix a problem during the manufacturing process before it becomes a hazard to customers. This real time analysis gives Volvo a competitive edge. Better maintenance plans for the vehicles are designed because they can predict when parts for various cars need to be checked or replaced. Volvo became the first company to implement an Early Warning Engine leveraging analytics. This delivers failure predictions for every diagnostic trouble code, component, and system and vehicle variation in the motor vehicle industry. Volvo is able to prioritize and focus on issue resolution. Setting priorities on future failures enables Volvo to be efficient in acting on emerging issues with a data-driven approach. Volvo is enabled to provide better service to its customers and maintain its reputation of leading the automotive industry in safety engineering

Real-Time Information Systems Implemented by Volvo – The Evaluation

At the time of Geely’s acquisition of Volvo in 2010, the IT environment at Volvo had become complex, difficult to manage and expensive. Volvo saw the need to overhaul the system with the goal of reducing licensing and other costs. It needed to improve its data management capabilities and to ensure timeliness and accuracy in all its processes.

To address these challenges, Volvo deployed Microsoft Server Production Portfolio, Microsoft SQL Server 2012 Business Intelligence data management software and related BI technologies. Microsoft SharePoint Server 2010 and Microsoft Office 2010 were also included. The company added the new Power View feature in SQL Server 2012 Reporting Services. With a SharePoint portal included in the system Volvo employees were better equipped with tools they needed to access information, collaborate with fellow employees and make better data driven decisions. As a result Volvo would be enabled to have better business intelligence because of the ease in which employees can communicate access and share the large volumes of data generated. The Microsoft Business Intelligence solution would add to Volvo’s efficiency in operations.

How Big Data Strategy Gives Volvo A Competitive Edge

Big Data has given Volvo a clear advantage over its competitors. The data analyzed is used to provide better service as customer needs are accurately anticipated. Volvo cars are better designed, problems resolution rates are higher and Big Data has greatly impacted the company’s decision-making processes. These processes are based on facts and not assumptions. The data determines the scope, priority and scale of the company’s response to issues. This greatly impacts the customer experience and has given Volvo its long standing and enviable record for safety and well built vehicles.

References

Asthana, Praveen (2011) Big Data and Little Data, Forbes Magazine at Forbes.com, http://www.forbes.com/sites/dell/2011/10/31/big-data-and-little-data/2/ Microsoft Case Studies (2012) Volvo Car Corporation, BI Solution Boosts Operational Efficiency and Reduces Costs at Volvo Car Corporation
Teradata Magazine Q2 (2010) http://www.teradatamagazine.com/v10n02/Features/Data-in-the-drivers-seat/ Turban/Volonino (2011) Information Technology for Management: Improving Strategic and Operational Performances 8th Edition, Class Text

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