Ducati Motorcycle Holdings

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Ducati Motorcycle Holdings

• Nick Kaiho and Mike Ulinski

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About Ducati

• Based out of Bologna, Italy
• Manufacturer of High-Performance Motorcycles
• Strong Racing Heritage

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About Ducati

• 1139 Employees
• 6.6 of Motorcycle Market Share
• 522 Million in sales (2004)

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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

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Company History

• 1946 - First Ducati Motorcycle

The Cucciolo (puppy) was a 48cc Motorized
bicycle
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Company History

• 1958 - Developed their Desmo Valve
  System.
• Wins Three 125cc GP races

This valve design is unique to Ducati, and is
still used today
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Company History

• 1964 - Produced the fastest 250cc
  Motorcycle Available

The Mach 1 had 24 Horsepower and a top speed
of 105 MPH
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Company History

• 1985 Purchased By Cagiva
• Was state-owned since 1954
• Deep financial problems

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Company History

• 1994 - Introduced the 916

Ducati won 8 out of 10 World Superbike titles
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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

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Information Technology

• Overview
• Enterprise Resource Planning
• Computer Aided Design
• Computational Fluid Dynamics
• Ducati.com
• IT Partners

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Information Technology

• Enterprise Resource Planning
• IBM Business Planning and Oracle E-Business Suite
• Supply Chain Management
• Customer Relationship Management
• Inventory
• Quality Control

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Information Technology

• Computer Aided Design
• Ducati 999 was their first motorcycle designed
  entirely using CAD

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Information Technology

• Computational Fluid Dynamics
• Fluent CFD
• Used for the design of the 999 cooling system

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Information Technology

• Ducati.com
• Current Model Lineup
• Dealers, Maintenance
• Apparel, Accessories
• Racing Events
• Community
• Tech Cafè
• Investment

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Information Technology

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

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Information Technology

• IT Partnerships
• AMD and Ducati Corse (racing division)

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Outsourcing

• In 1999, decided to focus on design,
  manufacturing and RD.
• Outsourced
• Spare Part Management
• Motorcycle Distribution
• 40 of Motorcycle components

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Outsourcing Problems

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

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Ducati Today

• Market Share (2002)

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Ducati Today

• Market Share By Country

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Ducati Today

• Revenues (millions of Euros)

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Ducati Today

• Revenues by Product

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Ducati Today

• Racing Victories (1988-2002)

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Ducati Today

• Company Problems again?

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Ducati Today

• Company Problems Again?
• Although they have record revenues, their have
  had a net loss for two straight years

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Buy a Ducati!

• Questions?