Week 3 Case Study 1: The Big Data Challenges
Dr. John Niemiec, Ph.D.
CIS 500 – Information Systems for Decision-Making
Date of submission: 10/26/14
Big Data is a term used to describe the voluminous amount of structured and semi-structured data generated by companies. The term is used when referring to petabytes (PB), exabytes (EB), and zettabytes (ZB) of data. Companies face challenges when it comes to capturing, storing, searching, and analyzing Big Data. The Volvo Car Corporation faced this problem because of the massive amount of data it was streaming from its vehicles. Volvo Car Corporation is a manufacturer of quality automobiles, with a legacy of safety and human-centric car designs. Founded on April 14 in Gothenburg, Sweden, its first car affectionately known as “Jakob” left the factory in 1927. The Volvo Car Corporation is now one of the car industry’s most-recognized brands, with an extensive and proud history of world-leading innovations. The company takes human-centered design seriously and is always determined to develop some of the safest cars on the road. The company sells approximately 400,000 cars each year across the globe (www.microsoft.com).
In 2000, Volvo Group sold its car division Volvo Car Corporation to Ford Motor Company for $6.45 billion. When Volvo separated from Ford in March 2010, it was leaving an IT infrastructure that entailed a tangle of different systems and licenses. There was a great need to develop a new independent IT infrastructure that could offer better business intelligence, improve collaborations, and enhance communication capabilities. As a result, Volvo Car Corporation integrated a cloud-based solution, named Windows Azure, in an effort to address its needs for a cost-effective infrastructure that provided the ability to efficiently be able to handle a high volume of traffic as well as serve a global audience with high performance (www.microsoft.com). Volvo collects terabytes of data from sensors embedded in their cars, from their customer relationship management (CRM) systems, from dealerships, product development and design systems, and from their production/factory floors. Utilizing the cloud, Volvo then transfers and archives the Big Data to its Volvo Data Warehouse where it can be stored for Long Term Archival and Retrieval or it can accessed by Volvo’s employees. In 2010, Volvo expanded across eight main business units and twelve support areas with production plants in 19 countries. They have employee web portals, as well as supplier and vendor web portals to improve collaboration. Volvo has a high-performance infrastructure that comprises of corresponding multi-processing, high-speed networking, and efficient I/O storage.
Volvo Car Corporation transforms this data into knowledge by combining all of the data streams into Volvo’s Data Warehouse and analyzing the info to obtain valuable information. It is utilized to optimize manufacturing processes, enhance customer interaction and increase safety. This also enables the corporation to obtain early predictive information on issues such as manufacturing defects prior to them occurring and exposing the customer to the problem. Volvo’s vehicles have been famed for its primary value, safety. Rated one of the safest, may be attributed to their ability to review safety and system data collected from their vehicles. The company has a goal in place that, by 2020, no one will be killed or injured in a Volvo car (www.thebigdatainsightgroup.com). In addition, they have the ability to develop the most effective maintenance plan for their vehicles because they are aware when specific components requires repairs.
A real-time system is an IS that provides fast enough access to information or data that an appropriate decision can be made, usually before the data or situation changes (Turban & Volonino, 2011). Volvo utilized...
References: Fujitsu (2011) Global Intelligence for the CIO Converting Data Into Business Value At Volvo,
Case Study, http://www.i-cio.com
Turban, E., & Volonino, L. (2011) Information technology for management (8th ed.). Hoboken,
NJ: John Wiley & Sons.
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