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Ducati Motorcycle Holdings

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.

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Ducati Motorcycle Holdings

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  1. Ducati Motorcycle Holdings Nick Kaiho and Mike Ulinski

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

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

  4. 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

  5. Company History • 1946 - First Ducati Motorcycle The Cucciolo (puppy) was a 48cc Motorized bicycle

  6. 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

  7. Company History • 1964 - Produced the fastest 250cc Motorcycle Available The Mach 1 had 24 Horsepower and a top speed of 105 MPH

  8. Company History • 1985 – Purchased By Cagiva • Was state-owned since 1954 • Deep financial problems

  9. Company History • 1994 - Introduced the 916 Ducati won 8 out of 10 World Superbike titles

  10. 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

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

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

  13. Information Technology • Computer Aided Design • Ducati 999 was their first motorcycle designed entirely using CAD

  14. Information Technology • Computational Fluid Dynamics • Fluent CFD • Used for the design of the 999 cooling system

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

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

  17. Information Technology • IT Partnerships • AMD and Ducati Corse (racing division)

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

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

  20. Ducati Today • Market Share (2002)

  21. Ducati Today • Market Share By Country

  22. Ducati Today • Revenues (millions of Euros)

  23. Ducati Today • Revenues by Product

  24. Ducati Today • Racing Victories (1988-2002)

  25. Ducati Today • Company Problems again?

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

  27. Buy a Ducati! • Questions?

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