: Volvo Corporation - Case Study Example

As Johannessen, Halonen and Orsmark (2011, p. 52) point out, all these complex software integrated efforts intend to deliver green, safe, and connected vehicles. Volvo Car Corporation, the finest global car manufacturer has gained worldwide recognition for its unique designs and innovative technology-integrated safety systems. The case of Volvo Cars is the best example of how a firm can generate business value from all its functions and competitive advantages. The success of the Volvo cars lies with the way it utilized IT in its overall business performance.

The IT focused strategy assisted the firm to ensure continued product quality improvement; and it also maximized the firm’s cost effectiveness in the long run. Evidently, the company has been flexible enough to let its products undergo continued change activities so as to make IT an integral part of its business improvement. A Volvo car itself creates a “data-rich IT environment’ with hundreds of sensors and CPUs integrated throughout the car. Diagnostic Trouble Code (DTC) that are stored in Engine Control Units (ECU) will give information about faults associated with ‘engine, transmission, braking and traction control systems, cruise control, climate control, passenger compartment, and instrument panel’(Teradata).

The data collected from cars is streamed into the centralized Data Warehouse “alongside customer relationship systems, dealership systems, and product development and design systems” (Case Study). The Volvo Cars achieved its cloud infrastructure objective using Accelerated Solutions Environment (ASE) which ensured ‘large-scale facilitated sessions that could accelerate timelines, gain alignment, and mitigate risks’ (Capegemini Consulting). The cloud infrastructure allows Volvo to transform the collected data into knowledge.

The complied data can indicate even mechanical problems ‘that might have been identified later in the field’. In other words, this technical feasibility allows the manufacturers to detect potential flaws of a particular part even before the customer becomes aware of them (Case study). In such circumstances, Volvo takes immediate actions to address the issue by adjusting its manufacturing processes or demanding its suppliers for making improvements. As Strader states, it can ‘stop an issue when spotted in the first 1,000 units’ at relatively low expense, and retain customer loyalty and goodwill (Case Study).

This is the way how Volvo transforms data into knowledge. The software Volvo uses enables the real-time analysis of the data collected and thereby accelerates its decision making processes. This real-time analysis further helps Volvo to provide the customers with better service and good driving experiences. In fact, this real-time information system is the most important factor that allows Volvo to outsmart their competitors in terms of safety concerns. The system also helps the manufacturer to determine the most effectual protection plan, for it gives clear knowledge about product requirements like recheck or replacement of a component etc.

it seems that Volvo values the huge volume of data collected more than any other competitive advantage of the industry, because as Strader says, the collected information is the basis for all further improvements throughout the firm’