Ducati Motorcycle Holdings Nick Kaiho and Mike Ulinski

About Ducati ► Based out of Bologna, Italy ► Manufacturer of High-Performance Motorcycles ► Strong Racing Heritage

About Ducati ► 1139 Employees ► 6.6 % of Motorcycle Market Share ► $522 Million in sales (2004)

Company History ► 1926 – Founded by Ducati Family and Investors  Manufactured radio components for the war effort  Moved into other electronics manufacturing during the 1930s  Largest manufacturing company in Bologna during the 30s

Company History ► First Ducati Motorcycle The Cucciolo (puppy) was a 48cc Motorized bicycle

Company History ► Developed their “Desmo” Valve System. ► Wins Three 125cc GP races This valve design is unique to Ducati, and is still used today

Company History ► Produced the fastest 250cc Motorcycle Available The Mach 1 had 24 Horsepower and a top speed of 105 MPH

Company History ► 1985 – Purchased By Cagiva  Was state-owned since 1954  Deep financial problems

Company History ► Introduced the 916 Ducati won 8 out of 10 World Superbike titles

Company History ► 1996 – Purchased by Texas Pacific Group  Deep financial problems again.  New Cash Led to Manufacturing Turnaround ► Expand facilities ► Reduce Waste ► Introduction of IT in production

Information Technology ► Overview  Enterprise Resource Planning  Computer Aided Design  Computational Fluid Dynamics  Ducati.com  IT Partners

Information Technology ► Enterprise Resource Planning  IBM Business Planning and Oracle E-Business Suite IBM Business Planning and Oracle E-Business Suite IBM Business Planning and Oracle E-Business Suite ► Supply Chain Management ► Customer Relationship Management ► Inventory ► Quality Control

Information Technology ► Computer Aided Design  Ducati 999 was their first motorcycle designed entirely using CAD

Information Technology ► Computational Fluid Dynamics  Fluent CFD  Used for the design of the 999 cooling system

Information Technology ► Ducati.com  Current Model Lineup Current Model Lineup Current Model Lineup  Dealers, Maintenance DealersMaintenance DealersMaintenance  Apparel, Accessories ApparelAccessories ApparelAccessories  Racing Events Racing Events Racing Events  Community Community  Tech Cafè Tech Cafè Tech Cafè  Investment Investment

Information Technology ► Ducati.com  Created in July 2000  A fully-owned subsidiary of Ducati Motor Holdings  13 Full-Time employees (2004)

Information Technology ► IT Partnerships  AMD and Ducati Corse (racing division)

Outsourcing ► In 1999, decided to focus on design, manufacturing and R&D. ► Outsourced:  Spare Part Management  Motorcycle Distribution  40% of Motorcycle components

Outsourcing Problems ► Found that they could produce many of their parts cheaper than outsourcing. ► Took back much of the outsourcing of components

Ducati Today ► Market Share (2002)

Ducati Today ► Market Share By Country

Ducati Today ► Revenues (millions of Euros)

Ducati Today ► Revenues by Product

Ducati Today ► Racing Victories ( )

Ducati Today ► Company Problems again?

Ducati Today ► Company Problems Again?  Although they have record revenues, their have had a net loss for two straight years

Buy a Ducati! ► Questions?