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)

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%

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

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”

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

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

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…

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 Aerodynamics/Downforce

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

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

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

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.

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

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

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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