Introduction
With data volumes, “big data” expected to go through unprecedented growth, CIO’s need to ensure that business value is maximized and companies gain a competitive advantage over their competitors. With Volvo as a corporation collecting large amounts of data, it needed to ensure that the data is converted into something resourceful, and that would improve the overall customer experience.
How Volvo Car Corporation integrated the cloud infrastructure into its networks
The ability to collect large amounts of data without impacting on the performance of an organization is invaluable. Many organizations are faced with this challenge when collecting and transferring large amounts of data. Volvo Corporation collects terabytes of data from sensors embedded in their vehicles, their factories to even their customer relationship management systems. Through the cloud, these data streams are then transferred and archived into data warehouses from where they can be analyzed and retrieved for future referencing. The data warehouses are owned by Volvo and provide employees with regulated access. As at 2010, Volvo had eight major business units spread across continents and different countries. It also had different levels of support to customers. These ranged from customer relations management systems to hotlines and office support. Employees at the various business units and countries were linked together through Volvo’s cloud by a Saas software. Software applications were used by employees, suppliers and vendors to access the data warehouse and cloud services. Web portals were also made available to involved parties to facilitate collaboration. Volvo’s support infrastructure also includes high performance multiprocessors with high speed network links. This is to ensure fast and efficient transfer of data across stations.
How Volvo Car Corporation transforms data into knowledge
Once data streams have been collected and stored in the data warehouses, Volvo transforms this data into knowledge by combining the data and analyzing it to provide inferential information. By combining and analyzing the data, Volvo is subject to potential problems that might occur later in the field. Flaws can also be identified before they are exposed to customers. Volvo can then apply corrective procedures such as adjusting manufacturing processes therefore avoiding huge losses, and while at the same time maintaining its safety record as a company. Data from cars involved in accidents is also collected and analyzed to provide information that will assist in improving the safety of the cars. Such data provide Volvo with insights to aid the company in providing improved services to their customers and also stay ahead of the competition.
Real time information systems and the impact of their implementation.
Volvo has embedded numerous sensors and CPUs in their cars to provide real time information. Cameras that can automate parking and sensors embedded on various parts such as the breaks are examples of real time systems being employed by Volvo. In real time systems, data is captured for use within the car itself to facilitate time sensitive decisions. Data collected from the real time monitoring system dictates how the vehicles will respond to real time events. The data is also transmitted through Volvo’s cloud to the data warehouses for further analysis. Real time analysis helps improve the safety of Volvo cars while at the same time reducing the scale of occurrence of a problem. Real time information systems also help Volvo as a company to fix problems at an early stage hence saving lots of money and resources.
How the Big Data strategy gives Volvo Car Corporation a competitive advantage
The fact the Volvo is able to draw insight from the “Big Data” it collects gives it a competitive advantage over its competitors. Through analysis of the data collected, Volvo is able to improve customer safety, optimize and improve its manufacturing process and also improve customer interaction. Through early warnings from data collected, Volvo is able to contain problems before they spiral out into a damaging scale. Early detection of problems enables early correction. This minimizes expenses while at the same time maintaining the positive experience of the brand. This gives Volvo a competitive advantage as a leader in quality delivery.
Volvo also gains competitive advantage over its competitors from the safety of its cars. Volvo achieves this by performing detailed forensic examinations of vehicles involved in accidents. Through such examinations, the company is able to extract huge amounts of information to show how a vehicle responded in an accident situation. The data collected also helps the car manufacturer make suitable adjustments that will ensure the vehicles perform even better in the future. This gives the Volvo comparative advantage over its competitors.
Through real time systems, Volvo is able to anticipate consumer demands and monitor their habits. This ability to anticipate consumer demands while at the same time rapidly tackling rising problems gives it a competitive advantage over its competitors.
References
Fijitsu (2011). Global Intelligence for the CIO. Issue Eight. We Need To Ignite an Energy Tech Revolution, Retrieved from Fijitsu. http://www.fujitsu.com/downloads/ABOUT/icio/I_Global_Intelligence_for_the_CIO_-_Issue_08.pdf
Praveen, A. (2011). Big Data and Little Data. Retrieved from Forbes http://www.forbes.com/sites/dell/2011/10/31/big-data-and-little-data/
Mark, M. (2011). How the Cloud Helps Manufacturers Address ‘Big Data’ Challenges. Retrieved from All About B2B. http://www.gxsblogs.com/morleym/2011/10/how-the-cloud-helps-manufacturers-address-%E2%80%98big-data%E2%80%99-challenges.html
