The Big Data Challenges
[Jay Lynn]
[Strayer University] [ Dr. Rose]

The Big Data Challenges

1. Judge how Volvo car Corporation integrated the cloud infrastructure into its networks. More and more car companies are earning bad reputations for their unreliable service in car making. This has caused many car companies to lose money and their customers. Volvo thought of a way to keep their cars more reliable and safe by using Big data. By doing this Volvo was able to handle high volumes of data which cannot be processed by using a simple database (Turban & Volonino, 2011). An example of Big Data could be terabytes of data consisting of billions of information from different resources such as the internet, social media, and data from a cell phone carrier and etc. After Volvo Car corporation departed from their parent relationship with ford in August 2010, Volvo decided to use Big Data to make it marks with technology and design an IT infrastructure. Volvo found a successful way to use the cloud network to its advantage. Volvo is now using the cloud network to evaluate its vehicles. By using a familiar interface the employees have probably worked with before, Volvo is cutting costs on training employees on new software applications and saving money by using software works well together with other applications (Provost & Fawcett, 2013). Volvo employees could now communicate more effectively and efficiently with each other without the hassle of learning new software applications that were not consistent between departments within the company and with its vendors/suppliers.

2. Explain how Volvo Car Corporation transforms data into knowledge. Volvo is able to review the data and recognize potential problems early in the lifecycle and correct the issues before they impact customers or take immediate action in the case of customer impacted situations. This process is not only cost effective but it also helps protect the brand and ensures that customers have a positive experience. Volvo also performs detailed forensic examinations to cars that were involved in accidents to understand possible problems with the vehicles and take the necessary measures to help prevent them. Volvo also recognizes the importance of real-time systems (Minelli, Chambers & Dhiraj, 2013). Volvo Production System Academy is the center for innovation, research and development in the Volvo Group that provides the fundamentals for the Knowledge Management (KM) initiatives. Volvo Production System (VPS) integrates all areas: Product Development Process (PDP), Sales to Order (StO), Order to Deliver (OtD), and Delivery to Repurchase (DtR). VPS is the framework for Volvo’s manufacturing operations. Its objective is to foster best practice methods and implement advanced manufacturing technology (Turban & Volonino, 2011). VPS connects all these areas and provides Volvo with information that is transformed into knowledge that is available at any time globally providing a strong advantage and support for the company. Even though knowledge is an intangible asset, it provides information to improve and generate new products and services. An example of how Volvo implements and utilizes real-time information systems is the Volvo Mobility System (VMS). Volvo cars are equipped with sensors and CPU’s embedded throughout the car. These sensors assist Volvo in evaluating and monitoring car activities. These activities include air bag functionality, brake functionality and etc. Volvos can even evaluate how well a car responded to an accident. Information collected from the CPU’s and sensors are then rolled into Volvo’s Data warehouse for storage. Once the data has been stored into Volvo’s data warehouse, someone will analyze this information and use the information for improvement and research (Volvogroup.com). Volvo went with Microsoft data management because they felt that Microsoft was an excellent leader in collaboration tools. Most companies are using collaboration tools such as SharePoint. This really helps Volvo ensure the safety of their customers. Big data is allowing Volvo employees to get real time information on a cars defect. This will save their customers a lot of headache of having to come back to the shop to get something fixed on their car. With real time data Volvo will already have a report of issues with the car even before inspecting the car. Cloud computing is booming in its own way to transform big data challenge into a great opportunity. It is also interesting to find how this technology will help in image searching techniques. Volvo uses the Enigma 3C platform in its vehicles used for after sales and diagnostic information software (Provost & Fawcett, 2013). It is a web browser based interface which also keeps an update record of services and parts. This helps Volvo identify areas of concern in vehicles within the first 1,000 units rather than in the first 50,000 units. This saves Volvo countless in funds as well as helps maintain user appreciation of vehicle and a more enjoyable user experience (Turban & Volonino, 2011). This approach to big data has proven to be beneficial to Volvo both financially and from a branding perspective. By using a familiar interface the employees have probably worked with before, Volvo is cutting costs on training employees on new software applications and saving money by using software works well together with other applications.

3. Identify the real-time information systems implemented and evaluate the impact of these implementations. Information Technology plays a vital role in all of today’s successful business environments. Companies primarily rely on their computers and software in order to provide them with accurate information in order to effectively manage their daily business activities. Financially, Volvo has been able to save countless amounts of revenue by correcting deficiencies long before mass amounts of their product are distributed. This gives an advantage over its competitors who do not have similar systems implemented in their vehicles, because the competitors are unable to complete turnaround in identifying concerns in the early release of their vehicles. Also Volvo leverages their tracking system which makes logistics more streamline and efficient as well as minimalizing turnaround time (Provost & Fawcett, 2013). Since Volvo Car Corporation has converted their entire IT infrastructure over to the cloud it makes the business more vulnerable to intrusion and inactive periods of time during upgrades and repairs. These issues can increase the price of their vehicles and decrease the amount of customers willing to purchase a Volvo vehicle. Volvo is using Big Data to set itself apart from its competition by staying on top of improving employee knowledge about the updated software application, cutting costs by using the collected data to improve its customer relationships, making it easier to communicate with suppliers and vendors, and implementing intelligent business system (Minelli, Chambers & Dhiraj, 2013).

4. Argue how the Big Data strategy gives Volvo Car Corporation a competitive advantage. In conclusion, Volvo has made countless proactive measures in ensuring they provide the best quality in class of vehicles. Also the use of integrating information systems into the vehicles improves the user experience which adds value to their entire product line. Other companies would be wise in acknowledging the brilliance in Volvo’s information system implementation strategy. The cloud infrastructure has permitted Volvo the capability to principally focus on building quality vehicles, marketing their vehicles, and selling vehicles. By utilizing this knowledge, Volvo is able to deliver better service to its customers (Minelli, Chambers & Dhiraj, 2013). Volvo analyzes the data and provides feedback to dedicated design engineers that are able to translate the customer needs into prototypes that are tested and optimized in order to help customers improve efficiency, assure safety and minimize environmental impact. Most people who are in the market for purchasing a vehicle will be more prone to purchase a vehicle for its quality and reliability. Volvo has proven that they are very competitive and forward thinking. They have literally driven their business into the future. I think Volvo has made a smart move when deciding to integrate cloud into its network. I think many more car corporations will follow Volvo’s lead and also start using the cloud technology. Volvo is way ahead of the game and I’m sure their sales will definitely show for it. Volvo will continue to led in its field as long as they continue to improve on expanding the knowledge and competency of its workforce, cut out unnecessary spending, curb manufacturing issues before it became a big issue, and fully utilize the advantages Big Data has to offer.
References
Minelli, M., Chambers, M. & Dhiraj, A. (2013) Big Data, Big Analytics: Emerging Business Intelligence and Analytic Trends for Today's Businesses. Hoboken, NJ: John Wiley & Sons.
Provost, F. & Fawcett, T. (2013) Data Science for Business: What you need to know about data mining and data-analytic thinking. Sebastopol, CA: O'Reilly Media Inc.
Turban, E., & Volonino, L. (2011) Information technology for management (8th ed.). Hoboken, NJ: John Wiley & Sons.
Volvogroup.com (2012) 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 on April 23, 2014