Information Technology @ Ferrari, S.p.A

Nerissa Fernandez Rick PaturzoPieralberto Deganello

IPD-499

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Overview

• Company overview (Nerissa)

• Role of information technology (Pier) F1 Manufacturing Operations

• A global presence (Rick)

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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%

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Company Overview

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

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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”

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Company Overview

• Ferrari in the racing world Italian Races

Alfa Romeo’s racing team

Grand Prix Michael Schumacher

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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

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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…

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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

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Information Technology

• 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

Key Information Technology Providers

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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

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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

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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

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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

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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?