The Amazing Ways Volvo Uses Big Data, Machine Learning and Predictive Analytics

By Bernard Marr, CEO, Advanced Performance Institute This article is by Featured Blogger Bernard Marr from his LinkedIn page. Republished with the author’s permission. Cars are increasingly generating more and more data as they become ever more connected and empowered by smart, Internet of Things technology. The need to capitalize on this data is forcing auto manufacturers to rethink their data strategies. Thanks to modern telemetry, vehicles have been gathering and transmitting data on how they are used for several decades. But the real explosion in data volume is down to customer data available from the applications and services available to today’s motorists. The generally accepted definition of a “connected car” is a vehicle which can access online information and use it to assist in the maintenance and operation of the vehicle, as well as enhance the comfort and convenience of drivers and passengers. Research suggests that by 2020, 75% of new cars shipped will fit this definition. The glut of data that will come with connected cars presents unprecedented opportunities for insight, but also significant challenges. Swedish auto manufacturer Volvo has a reputation for safety, and so made upholding this one of the priorities of its data strategy. Additionally, it focuses on minimizing the impact of mechanical or systems failures, and detecting what features and functionality its customers want from their connected car. Their director of business intelligence, Jan Wassen, tells me “We are trying to coordinate both creating and enabling tools for analytics, as well as making sure it is being triggered within areas where we should be active. “There are clearly different areas where we have seen the need for this, and seen different opportunities. Then there are some areas where we haven’t seen so much.” Identifying areas where analytics could provide the most benefit is part of Wassen’s job. Since Volvo launched its first car with internet connectivity in 1998, it has worked to evolve its data strategy, initially working on combining warranty claim data with telemetry to predict when parts would fail or when vehicles would need servicing. The growing complexity of this dataset, along with the richness of the insights, prompted the business to vastly upscale its analytics technology, and today, it works with Teradata to carry out predictive, machine-learning driven analytics across petabyte scale datasets. Their Early Warning System analyses over one million events every week to discern their relevance to breakdown and failure rates. As well as predicting failure and breakdown rates, the company has put data to use in order to uphold its reputation as a maker of safe vehicles. One pilot project launched last year and scheduled to run until 2017 involves 1,000 cars fitted with sensors to detect driving conditions. The focus here is on monitoring the vehicles’ performance in hazardous situations such as when roads are icy. Data is uploaded to the Volvo Cloud and also shared with the Swedish highway authorities. The third focus of Volvo’s analytic strategy is improving driver and passenger convenience.