Ferrari is a manufacturer of high-performance sports cars and racing cars located in Maranello, Italy. Information technology plays a key role in Ferrari's business, especially their Formula 1 racing division. Ferrari uses IT for telemetry to analyze car performance during races in real-time, as well as for design including reducing weight, improving power and aerodynamics. Key technology providers include PTC for CAD/CAM, Ricardo for engine simulation software, and AMD for their data center. Ferrari sells around 4,300 cars per year globally and has outsourced some engine development to Tata Consultancy Services.

1. Information Technology @
Ferrari, S.p.A

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

3. 3
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%

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

5. 5
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.

14. 14
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?