MANAGEMENT INFORMATION SYSTEMS

CASE-2

Submitted To:

Prof. Sujeet Kumar Sharma

Prof. Jang Bahadur Singh

Submitted by:

Group 5

1903020 K Kripakaran
1903025 Mohanapriya J
1903028 Naveendhar V
1903036 Sanjeevi H
1903047 Vignesh P D
1. What is VW group’s strategy 2018? What role could Big Data play in this strategy?
Volkswagen group is planning for positioning themselves as a global and environmental
leader among automobile manufacturers in 2018 by its key 4 strategic goals,
 Deploy intelligent innovation & technologies to become world leader in customer
satisfaction and quality
 Tap above average market share in major growth markets to increase global sales
above 10 million a year
 Increase return on sales before tax by 8% to build Solid financial position
 Become top employer across all brands, companies, and regions to build a first-
class team.

Furthermore, the major aim is to become the world’s finest and successful automobile manufacturer
in correspondence to the above stated goal. However, the key points on which the strategy is
focusing include,
 Product - innovation and technology for improving performance, quality & brand popularity.
 Customer - aligning with market/customer needs for increasing customer satisfaction.
 Organization – employee satisfaction & productivity improvement.
 Shareholder - profit maximization by process standardization & production efficiency.
 Environment – New ecological standards & environment friendly orientation.

Role of BIG DATA:

Product Improvement: Proliferation of sensor-enabled (IOT) devices can generate an ample
amount of Bigdata capable of measuring, recording and transmitting performance in real time to
understand Usage pattern, driving behaviour for each models/regions, parts quality, maintenance
rate, wear & tear, predictive maintenance, develop new models, etc,. These Big data can be used to
for addressing the above key aspects of Product & Customer strategies.
Manufacturing Efficiency: Deploying Industry 4.0, to get feedback from the machines to
understand the wear and tear, design defects and usage of iPads in manufacturing plants to monitor
the aggregate performance of the firm. These Big data can be used for analytics, manufacturers can
discover new information and identify patterns that enable them to improve processes, increase
supply chain efficiency and identify variables that affect production.
Consumer Preferences: Similar to the FMCG sector, there is a lot of scope for the automobile
sector to collect Individual Brand wise customer feedback on past performance, their preferences,
their likes, their expectations to increase their desirability to own a VW vehicle. Data mining from
online activities (Ecommerce, social networking, etc,.), Search history, Data collected from apps,
Service history, Service feedback can provide Big Data may which can predict the consumers
preferences and the latent needs of the customers / automobile industry.
Organization Improvement: All entries in TAB by the sales/service staff members on daily
customer discussions, performance by a sales/service team member, customer visits, enquiries
generated, over period performance improvement, etc,. kind of data can give a significant insight
about the employee performance, strengths, weakness, skill sets required, knowledge gaps, etc,.
These would also guide the organisation to recruit the right fit for jobs by which VV can achieve the
objective of best employer.
Environmental Orientation: Most of the above big data will also help the company to understand
the level of New ecological standards (Vehicles, powertrains & lightweight) required & move
towards environment friendly orientation by identifying the potential customers for electric cars and
building the capabilities within the company and in the market for electric cars within VV customers
which could be an potential shift for VV towards their strategy for environment friendly orientation.
The Bottom Line on Big Data:
As the most successful manufacturing leaders already know, Big Data analytics are no longer a “nice
to have” option for manufacturing enterprises. Companies must find a way to improve efficiency and
generate insights, and Big Data analytics provide the competitive edge companies need to succeed in
an increasingly complex environment.

2. If you were the business head within VW Group, how would you leverage Big Data to help
the company achieve this strategy?
As a Business Head, In order to achieve the 10 million sales, I would uplift my current
capabilities in the below areas through big data.
 Leveraging huge existing customer base & information’s for increasing sales,
 Cross Sell – Ducati customers, Commercial vehicles customers, Smaller vehicle to
high end customers, Fleet/Leasing customer,
 Upsell – Upgrade of First time users (Passat, Polo & Golf) and Premium vehicles
(Bentley, Lamborghini, Bugatti, Porsche) to high profile customers identified using
the credit history/finance history of financed customers & Insurance information.

 Leveraging the experience curve & economies of scale,

 Engine Improvisation
 Parts & machinery cost optimization
 Improve productivity & Quality
 Improve production efficiency & flexibility
 Process Standardization – reducing throughput time
 Decision of discontinuance of low volume brands like - Sharan, Suran, Scirocco,
Polo Classic/Sedan, Eos, Phaeton, Parati
 Evolve the scope of electric vehicles - Government stake in VV group
 Aligning to Product match
Improve Customer Satisfaction Quality match
Improve customer experience

 Build big data utilization & analytic capabilities

From IS Strategy perspective, there are multiple areas for the company to address. Let us break it
down into problem solution approach.
o Databases in silos prevents to derive value from existing data
o Different streams have different ERP systems. If each team has their own databases,
the cross functional knowledge transfer could be hindered. Creation of central data
lake from all the upstream applications using data operations team would be the first
step.
 o Data Operations and Management team must be set up to handle data cleaning and
collection into a single sustainable data lake.
o IT infrastructure team should work alongside data management team to procure
licenses for different ETL tools like Informatica. The Finance, IT and Data Analytics
teams should collaborate to identify ETL tools that can be used to bring any volume
of data.
o Server Maintenance team should work with IT for handling the server space and
database administration.
o A central data lake with data from different upstream applications should also have a
data quality team, placed to check the quality of the incoming data.
o IT should work with the Business Strategy team for understand the scope of the
infrastructure, tools, keeping in mind the long-term data volume that is expected
Synthesis – Data Volume scope, Data source integration, Data Quality Management
- Data incoming from different geographies could face legal action if customer data is used.
(GDPR – Europe)
o Data Governance team must be set up to partition data has sensitive information and
easy information.
o Sensitive information should be used based on protocols produced by the
Government. The projects that use sensitive information should undergo mandatory
training so that the data is handled carefully.
Bottomline – Governance team when established, prevents legal action on VW
- Information that is available is not utilized well
o Setting up In-house analytics team could help VW leverage the power of data into
actionable insights.
o With the help of Infrastructure and IT team, analytics tools must be licensed and
managed.
o Tools like R, Python, Alteyrx, Tableau, Qlikview require enterprise licenses and they
possess capabilities for handling big data.
o Data Access management team to facilitate access to certain data for analytics teams
Bottomline – Inhouse Analytics team to convert data to insights.
- Current data is available, but trend is not predicted
o Big data infrastructure like HDFS, model deployment , Spark Engine and specialised
personnel like ML Engineer, Data engineer have to be recruited
o Model deployment, model processing and model connection network with the
downstream application needs high computing power and enough storage. Cloud
services can be utilized to take the benefit of predicting the future from unstructured
data.
How would I leverage the benefit of this set up?
- Connected Vehicles
o Data from vehicles can be used to monitor
 Driver behaviour
 Vehicle Health
o Customer alert systems for fuel, part change, service
 o Infotainment recommendation based on usage
o Based on usage behaviour, improve part quality
o Predict the burden on the customer after warranty ends
o Predict part failure
o Customer targeted marketing campaigns for accessories
o Dealer Monitoring and customer renewal prediction
o Customer reward programmes for shared vehicle campaigns
o Improve Voice assist based on machine learning models
o Driver sleep alert system based on video analytics/ usage behaviour
o Vehicle design based on customer feedback
o Social media listening data to capture customer sentiment, competitor sentiment
o Data collected from Apps synced with car to enrich customer experience
From the manufacturing perspective
- Data from industrial robots, Factory of Tomorrow, would generate tons of data which can
predict failure of these machines. The wear and tear of the machines and pro-active repair
alert systems could keep the assembly line moving.
- Image tagging can help find errors in the car before delivery
- Early Outlier detection system to prevent recall after delivery
- Vehicle Quality check in short, medium and high term in service based on test vehicles
- Identify part combination to reduce customization and reduce costs

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