Information Technology Ferrari S p A Nerissa Fernandez

Information Technology @ Ferrari, S. p. A Nerissa Fernandez Rick Paturzo Pieralberto Deganello IPD-499

Overview • Company overview (Nerissa) • Role of information technology (Pier) w F 1 w Manufacturing w Operations • A global presence (Rick) 2

Company Overview • Ferrari who? w Manufacturer of Italian racing cars and highperformance sports cars w Located in Maranello, Italy Emilia-Romagna region w Manufacturing since 1946(? ) w Racing since 1929 w Employees (2003): 2968 w Sales(2003): $1, 582. 8 million w Market share: < 1% 3

Company Overview • Founder – Enzo Ferrari (1898 – 1998) w Worked for Alfa Romeo w Scuderia Ferrari 4

Company Overview • History of the logo w w Italian WWI hero – Count Francesco Baracca Prancing stallion Yellow – the color of Modena, Enzo’s hometown SF – Scuderia Ferrari literally means “Ferrari Stable” but is translated as “Team Ferrari” 5

Company Overview • Ferrari in the racing world w Italian Races § Alfa Romeo’s racing team w Grand Prix § Michael Schumacher 6

Information Technology • Formula 1 w Racing division governed by International Automobile Federation (RIA) w One of the most expensive sports in the world; teams collectively spend > $2. 8 billion to compete w Extremely technology centric § It all started with turbos in 1992… § 1/10 th of second separates the winner from everyone else § Strict rules over engine and car design encourage aggressive technology investment for competitive advantage 7

Information Technology • Formula 1 is the focus of Ferrari’s technology investment w Racing is Ferrari’s heritage w Integration is a competitive advantage § Ferrari only company that designs and manufactures both engine AND chassis w Car design cycle ≈ 9 months § Design = 6 months § Manufacture = 3 months § Technology key to meeting timeframes! w F 1 technology then trickles down to commercial vehicles § Paddle shifters, independent suspension, disc brakes… 8

Information Technology • Primary uses for information technology w Telemetry § Real-time collection/analysis of car performance during a race § Over 500 different characteristics measured in real-time w Design § Engine • Weight reduction • Power (engines already produce > 800 bhp) § Chassis • Weight reduction • Aerodynamics/Downforce 9

Information Technology Key Information Technology Providers • PTC • w CAD/CAM software • Ricardo w Dedicated CFD program for engine flows • CRF (Fiat Research Center) w Combustion research • • SKF w Bearing technology • General Electric w Commercial aircraft engine operation new material research Shell w Lubricants w Data acquisition packages • Massachusetts Institute of Technology AMD w Data center • Acer w Workstations 10

A Global Presence • Ferrari sells ≈ 4, 300 high-performance sports cars a year w Prices $140, 000 - $260, 000 w To safeguard exclusivity and high value, the company has set a self-imposed production limit • Models w F 430 w Scaglietti 11

A Global Presence cont… • Beginning in 1979, the North American import and distribution of Ferraris was handled by Fiat Sp. A w In 1990 Ferrari North America was established w The company imports and distributes its vehicles from Maranello, Italy § The exports are done through a network of more than 300 sales and service centers in 45 countries 12

Ferrari Clientele • Ferrari's main markets are: w w w United States Germany Great Britain Italy The countries of the Pacific area Switzerland § 90% of all production is exported. § Total units sold worldwide: 6, 099 (Ferrari 4, 072, Maserati 2, 027) Major market sales in 2000 § The portfolio of orders taken by the dealership network is far higher than the numbers of cars that Ferrari can actually deliver. 13

Outsourcing • Ferrari Outsourced Engine Development w Ferrari and Tata Consultancy Services (TCS), Asia’s largest software company, have concluded a deal which calls for TCS to provide IT and engineering services for the development of Ferrari’s Formula 1 racing car § TCS solutions would include car electronics, safety, aerodynamics, and troubleshooting 14

Competition • Ferrari’s are considered high-end luxury vehicles • Main competitors w Lamborghini § Gallardo, Murcielago w Porsche § 911 GT 2, Boxter S, Carrera GT w Aston Martin § V 12 Vanquish S, DB 9, V 8 Vantage 15

References • • • Car and Driver, Ferrari Outsource Some Engine Development, http: //www. caranddriver. com/article. asp? section_id=30&article_id=8966&page_number=1 Car and Driver, Lamborghini readying for a run at Ferrari for U. S. market dominance, http: //autoweek. com/article. cms? article. Id=2696 Car and Driver, Fiat Juggles Maserati and Ferrari Brands http: //www. caranddriver. com/article. asp? section_id=30&article_id=9233&page_number=1 Autoweb, Consolidated Results for Ferrari S. p. A. Group http: //autoweb. drive. com. au/cms/A_53935/newsarticle. html Ferrari. com http: //ferrari. com/FWorld/fw/index. jsp Howstuffworks. com, How Enzo Ferrari Works, http: //auto. howstuffworks. com/enzo 1. htm Hoovers. com, Ferrari Sp. A http: //www. hoovers. com/ferrari/--ID__59581 --/free-co-factsheet. xhtml Nationmaster. com, Ferrari, http: //www. nationmaster. com/encyclopedia/ferrari Consolidated Results for Ferrari S. p. A Group http: //www. maserati. org. au/notebook/MASERATI/masernews/maspg 34_0501. html http: //www. andersoneconomicgroup. com/Pubs/autodata_releases/111004 auto. htm 16

Questions? 17