Volvo Car Corp captures numerous amounts of data from its vehicles and information systems. This data are transmitted to the clouds and then back to the manufacturer for analysis. Volvo believes that, in a world where smart technological innovations is the way to go, it is important to leverage the numerous amounts of data generated from its vehicles and convert them to usable analytics. The vehicles are fitted with numerous sensors and CPUs that capture data and use it within the vehicle itself after which it is transmitted via the clouds back to the manufacturer.
Clouds are undoubtedly the best cheap and virtually unlimited storage for large volumes of data. Considering the volumes of data streamed into Volvo centralized analysis hub, clouds are the best option for them. Volvo generates terabytes of data from its vehicles, customer relation systems, dealership systems, and product design and development systems among other departments. The clouds are cheap with no installation and maintenance, has no physical presence hence reduced risks, requires no environmental and personnel to power and manage it. As a result, it provides a clear business advantage.
Analysis of large volumes of data in the clouds provides a host of advantages to the company. First, the data patterns provide a mechanism to detect potential issues and defects in the early process of a particular brand. Potential mechanical problems may be detected early enough before the user is exposed to them. Through well crafted analytics, the defects are analyzed and solved through adjusted manufacturing processes or supplier improvements. It becomes economical to the company to repair the flaws when spotted in the first 1000 vehicles than when it is spotted after half a million units have been produced. The customer impacts are also detrimental when flaws are detected in numerous volumes of vehicles already sold. Customer trust is crucial for business and growth of a company, and a recall of the huge number of vehicles has an impact of tainting the company image and hence sales.
Secondly, large scale data capture and analysis is principal in car safety improvements. The company Safety Center performs detailed and close to accurate forensic examinations of Volvo vehicles involved in accidents. Huge volume of digital information derived from the state-of-the-art facility improves knowledge about technical aspects of the vehicles. Remote sensors and software deployed in the vehicles are analyzed and constantly improved to enhance safety. For instance, airbag deployment is studied to determine if they are accurately deployed in a set of conditions. Rich Strader, the company’s outgoing CIO is of the opinion that the voluminous data obtained can be sufficiently used to add value across the chain.
The company has implemented a range of information systems to aid in the management and operation of its operations. These include customer relation and management systems, supply chain management, product design and development systems, and manufacturing systems. CRM is used to manage the interaction of the company with current and future customers. It integrates multiple channels such as social media, telephone, email and search to organize, automate, and synchronize sales, customer service, technical support and marketing. SCM integrates a number of features such as value chain planning and execution, product lifecycle management, manufacturing, and order orchestration. Product design and development systems take care of the vehicle design and development processes. The information system is instrumental in the design and development of new models as well as the re-design of faulty models. Analysis of streamed data provides an insight in re-design and improvement of safety-oriented, stylish and reliable models.
Volvo acknowledges the fact that customer desire cars built to individual specifications and delivered in short lead-times. In order to keep up with this trend, it has adopted a comprehensive IT infrastructure and information system that oversees efficient order execution and integrated manufacturing and information flow.
Big Data gives Volvo Car Corporation a competitive advantage over it competitors in the manufacturing industry. The ability to analyze the data provides enormous breakthroughs in terms of safety, quality, customer satisfaction and cost efficiency. The availability of up-to date, quality-controlled data is changing decision making processes within the organization leading to gains in quality, warranty costs, customer satisfaction and profitability. In addition to these, Volvo is famed for safety-oriented manufacturing. Features such as anti-lock braking systems, side impact protection, 3-point seatbelts and energy absorbing bumpers are the main drivers for improved safety and growth. The company approximates that with the vast amount of data in its use; future designs of its cars will not kill or injure anyone by the year 2020.
The company started collecting read out data in the year 1999 as a window for improved performance and mechanical failure analysis in the real world field conditions. The systematic utilization of this data has subsequently led to improved performance in production quality and design. The data obtain has also reduced the company’s operations, maintenance, licensing and other parameters that were initially not available. For example, the returns on initial project costs rose to 135% after elimination of three single-purpose data marts and shifted to the clouds. The new Teradata systems expanded access to more than 300 users in various departments who were initially restricted by performance constraints.
References
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