“Converting data into business value at Volvo”
Dianne Allamani
Dr. Paulette Stephens
CIS 500 - Information
Friday, July 13, 2012

Volvo Car Corporation is a great example of a Corporation that has been able to integrate the cloud infrastructure into its networks. Using the cloud, Volvo is able to convey and collect huge volume of Data “Big Data” to its Volvo Data Warehouse where it can be stored and analyzed for future record usage and recovery or restoration by Volvo’s employees. Asthana (2011)
He states that:
The Swedish car maker collects terabytes of data from embedded sensors in their cars—from their customer relationship management (CRM) systems, from dealerships, and from their factory floors. These data streams are combined and analyzed to yield early predictive information on matters like manufacturing defects that haven’t occurred yet.

Using Saas, software applications are run from one centralized location. The software can be accessed from any location over the internet. Volvo uses on demand computing via the clouds, to link their business units and support areas and production plants all over the world. Their cloud computing systems functions as an entry point for their web users. Connecting employees, suppliers and vendors and therefore improving their operations making them more efficient and more competitive. This allows Volvo to optimize their IT infrastructure cost effectively and still be technologically advanced giving them the competitive advantage over our similar car manufacturers. (Strader, 2011 & Asthana, 2011).

Volvo transforms massive volumes of data into knowledge by taking the data that was collected and stored in its Data Warehouse and then transforming this data into knowledge by combining and analyzing it to produce or furnish various types of informative information. Even before a customer is exposed to an issue, Volvo can look at patterns that show a significant flaw in a product and resolve the problem by re-inventing a better or flawless product or part. They can even liaise with the supplier to make improvements to the product. (Strader, 2011)
He states that:
Before it gets out into, perhaps, 500,000 units, we can stop an issue when spotted in the first 1,000 units. And that’s a much less expensive thing to do. Plus, few — if any — Customers are impacted and their positive experience of the brand remains intact.

Clearly we see that data is not only transformed into knowledge, but into valuable knowledge. From analyzing the data collected. Volvo can use the knowledge they receive to actually make predictions allowing them to foresee manufacturing defects that has not even been established as yet. Again such high volumes of important data can allow Volvo to have almost real time analysis to aid them in supplying superior service to their customers giving them the competitive edge. (Turban / Volonino (2011)
The use of this software gives Volvo the ability to better execute their mission. This Swedish company has a state of the art Safety Centre. They can focus on product safety infact their vehicles are rated among the safest. According to Heinig, this is established due to their competence to go over safety and systems analyzed through data collected in their data warehouse. Their also have a great maintenance plan because they again can predict when parts needs to be replaced.
Volvo has implemented real-time systems. Volvo uses software that assists them with Business Performance Management. The impact of streamlining their IT architecture allows Volvo to simplify their IT environment which reduced costs by not having to keep up with multiple licenses for various systems. It also improves efficiency by allowing employees to work on a system they were already familiar with. Again enabling Volvo to have better business intelligence and richer collaboration because their employees could communicate with one another and share huge volumes of data across large distances faster and easier. (Heinig, 2012)

The Big Data strategy gives Volvo Car Corporation a competitive advantage in various ways. There are able to lower their cost, and still be reliable. They can supply quality products and services. The big Data strategy has also allowed speed to market and or quick response which they accomplish by aligning and managing their supply chain effectively. (Strader , 2011). According to Strader, we’re now able to extract huge amounts of digital information from a vehicle and see how well it responded.
The real time analytical abilities give Volvo a clear advantage over its competitors. Knowledge is great power and given such that power at your fingertips allows Volvo to use a Big Data Strategy to provide superior service to their customers. They have the ability to accurately foresee the needs of their customers. Besides a competitive advantage, I think that Volvo also has a creative advantage over its competitors. They are able to use near real time graphical reports and analytical findings throughout the entire processes, starting from design and engineering, them to the manufacturing process.

Conclusion
Volvo Car Corporation through its integration of cloud infrastructure into its networks and introduction of its Big Data Warehouse that has transformed its data into positive knowledge has given them the competitive advantage especially with the use of real time information systems position allowing their employees to make informed decisions. They have added value to their company and products across the board. They have better Business Intelligence, communication and richer collaborative processes that have allowed them to exceed in product development and customer service.

References: * Strader (2011). Converting data into business at Volvo http://www.i-cio.com/__data/assets/pdf_file/0004/8833/i-cio_Case_Study_Volvo.pdf * Asthana (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/ * Volvogroup.com (Heinig, 2012) Collecting Driving Data to Improve Safety, http://www.volvogroup.com/group/global/engb/researchandtechnology/transport_society/enhancing_safety/collecting_data_for_safety/Pages/collecting_data_for_safety.aspx * Turban / Volonino (2011) Information Technology for Management: Improving Strategic and Operational Performance 8th Edition, Class Text