Information Technology @ Ferrari, S.p.A

Nerissa Fernandez Rick Paturzo Pieralberto Deganello IPD-499

Overview

• Company overview (Nerissa) • Role of information technology (Pier)    F1 Manufacturing Operations • A global presence (Rick) 2

Company Overview

• Ferrari who?

 Manufacturer of Italian racing cars and high performance sports cars       Located in Maranello, Italy Emilia-Romagna region Manufacturing since 1946(?) Racing since 1929 Employees (2003): 2968 Sales(2003): $1,582.8 million Market share: < 1% 3

Company Overview

• Founder – Enzo Ferrari (1898 – 1998)   Worked for Alfa Romeo Scuderia Ferrari 4

Company Overview

• History of the logo   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  Italian Races  Alfa Romeo’s racing team  Grand Prix  Michael Schumacher 6

Information Technology

• Formula 1  Racing division governed by International Automobile Federation (RIA)  One of the most expensive sports in the world; teams collectively spend > $2.8 billion to compete  Extremely technology centric    It all started with turbos in 1992… 1/10th 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    Racing is Ferrari’s heritage Integration is a competitive advantage  Ferrari only company that designs and manufactures both engine AND chassis Car design cycle ≈ 9 months    Design = 6 months Manufacture = 3 months Technology key to meeting timeframes!

 F1 technology then trickles down to commercial vehicles  Paddle shifters, independent suspension, disc brakes… 8

Information Technology

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

Information Technology

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

A Global Presence

• Ferrari sells ≈ 4,300 high-performance sports cars a year  Prices $140,000 - $260,000  To safeguard exclusivity and high value, the company has set a self-imposed production limit • Models  F430  Scaglietti 11

A Global Presence cont…

• Beginning in 1979, the North American import and distribution of Ferraris was handled by Fiat SpA   In 1990 Ferrari North America was established 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:  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.

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Outsourcing

• Ferrari Outsourced Engine Development  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  Lamborghini  Gallardo, Murcielago  Porsche  911 GT2, Boxter S, Carrera GT  Aston Martin  V12 Vanquish S, DB9, V8 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?articleId=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/enzo1.htm

Hoovers.com, Ferrari SpA 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/maspg34_0501.html

http://www.andersoneconomicgroup.com/Pubs/autodata_releases/111004/111004auto.htm

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Questions?

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