La Dallara e la Motor Valley 27 ottobre 2018 Products and Services Design, developingDesign, developing and manufacturing and manufacturing racing racing cars cars F2,F2, GP3,GP3, F3,F3, GrandGrand--AmAm,, IndyCarIndyCar,, IndyIndyLightsLights,, FormulinoFormulino VW,VW, WorldWorld Series by Renault,Series Sports by Car, Renault, FE… Sports Car, FE… ConsultingConsulting to to manufacturing manufacturing firms firms of racing of racing cars cars Audi,Audi, Ferrari, Ferrari, Honda, Honda, Lamborghini,Lamborghini, Lotus, Maserati, Porsche,Porsche, Toyota,Toyota, FormulaFormula 1. 1. ConsultingConsulting to to manufacturing manufacturing firms firms of high of performancehigh performance road cars road cars Alfa Romeo, Bugatti, Ktm, ecc. Alfa Romeo, Bugatti, Ktm, ecc. Products and Services – Dallara Stradale TRANSFORMATION Group History 2007 - 2018 CONSOLIDATION 1998-2007 Organization DEVELOPMENT approx. 670 employees 1985-1997 Organization START –UP approx. 100 employees 1972 - 1984 Organization Company Premises approx. 30 employees Wind Tunnel IT - 08 Organization Company Premises Profess. Simul. I T -10 Expanding production site 4 employees Company Premises New factory USA -12 Profess. Simul. USA -14 New offices and Technology production site (1991) DARC IT – 16 Company Premises Expanding the knowledge New factory IT - 17 “garage”, then small of carbon fiber Technology applications and factory (a) 1.st chassis in carbon Capital expenditure aerodynamics and vehicle c.a. 20 MEuro applied R&D fiber dynamics (b) Aero development – c.a. 18 MEuro Capex Technology -1st Wind Tunnel with Sales Turnover First use of carbon fiber moving carpet (84) Sales Turnover material in chassis Export market share 55% cars and spare parts, 45% -2nd Wind Tunnel (95) overtakes domestic Engineering consulting. market share 90% export share Sales Turnover Sales Turnover Increased export sales Domestic sales and limited mainly in the US Racing export sales 4 The Dallara “Core Competencies” 1. Design using composite carbon fiber 4 . Prototype manufacture and development - Outdoor testing 2. Aerodynamics Style Concept/Regulations 3. Vehicle dynamics The Diverging Trends Contiunosly Diverging Trends Expensive products are becoming more expensive 1. Innovation “Only I” (not “Me Too”) 2. Marketing: let people know you are 3. Brand making a unique product (“people do not know what they want, the want what they know”) And “in beteween”? Key Differentiation Point : the Service not the Product Cheaper Products are becoming more cheap: 1. Low Cost Production Base 2. Economy of Scale Available Company Strategies to Face Business Challenges Queen Attack Horse Manouvre Moving in all directions Attack but sliding laterally •Competing openly •Keeping same business area •Focusing maximum efforts •Moving technologically beside current Attack •Growing in the same business area position Attack Castling Playing another game Focusing on defense Changing field •Defending current positions •New market positioning New value •Leveraging on brands, patents, style •Investing in knowledge Defense •Cost reduction Paradigm Product Development Standardization Lean Design before Lean Production DDS - Dallara Design System PRODUCT COSTS / PROCESS DEVELOPMENT TPT/ PRODUCT PERFORMANCE COSTS PRODUCTION TARGET COSTING PREDEFINED STANDARDIZED PRODUCT ITEM STANDARDIZED BILL OF MATERIALS CATALOGUES TECHNICAL SOLUTIONS CONTINUOS PRODUCT / PROCESS DEVELOPMENT STANDARD MILESTONES DESIGN MANUALS COSTING DESIGN – PRODUCTION- SUPPLIERS REVIEW DURING PRODUCT DEVELOPMENT SUPPLY CHAIN 8 Technologies to support the know-how DATA INFORMATION KNOWLEDGE COMPETENCE (Reports, Documents, (Figures, Dates, Names, etc.) (Concept, Relationships) (Ability to act) Multimedia) BUSINESS PROCESS CONTENT MGMT SYSTEM INTERNET, INTRANET, MGMT SYSTEMS (BPM) (CMS) EXTRANET ERP DALLARA DESIGN SUPPLY CHAIN THE EMPLOYEE SYSTEM (DDS) MANAGEMENT CUSTOMER APPLICATIONS BUSINESS INTELLIGENCE COLLABORATION & ANALYSTICS SOCIAL Car development process and the introduction of the simulator Before After Virtualization & Cloud to Achieve Process Speed FROM FROM PRODUCT CONCEPT PRODUCT DESIGN TO TO PRODUCT MANUFACTURING PRODUCT DESIGN & DISTRIBUTION Pre-Manufacturing Manufacturing & Distribution IS Technology IS Technology VIRTUALIZATION Pre-Manufacturing IS Technology Structural analysis Design Driver is the focus at every process stage Style Concepts Regulations Prototype Manufacturing Aerodynamics Vehicle dynamics 3D Prototyping The Innovation Process BEFORE CONCEPT DESIGN PROTO TESTING - Aero - Manufacturing - Static Test - Vehicle Dynamics - Indoor Test - Carbon structuring - Outdoor Test - Packaging NOW CONCEPT TESTING The higher frequency of trial and error allows for a faster innovation pace Manufacturing & Delivery IS Technology Supplier Partners Employees Customers Enhanced Resources Partnering system BoM Activity Warehous Purchasing Manufact. Mgmt Mgmt e& Logistic Design Analytics Sales Quality RFID The Italian Motor Valley Key Data OEMs Ferrari, Maserati, Ducati, Dallara, Lamborghini Pagani Turnover 2013 6.6b€ Employees 7,500 _____________ Half of Midland Turnover and 1/5 of the workforce 15 A flexible Supply Chain to adapt itself quickly to the pace of a new product development process DALLARA Design and Know-how from Manufacturing PARTNERSHIP other Industries Process definition Supplier Each supplier is explicitly bound to an agreement which limits to 40% the revenues generated by another single member, thus incentivizing the quest for new customers who brings new requirements and therefore additional know-how and innovation. The Pyramid Shift: Knowledge gets the bigger share of all BEFORE AFTER Knowledge Knowledge Engineering Engineering Manufacturing Manufacturing “In the New Economy, knowledge is not just another resource alongside the traditional factors of production – Land, Labor and Capital – but the only meaningful resource today”. Peter Drucker, 1993, Post Capital Society Dallara Learning Organization Problem solving Knowledge Testing transfer LEARNING COLLABORATION ORGANIZAT ION DARC Learning from other esternal Learning from experiences previous experiences The sustainability of the Company is based on the systematic growth and feeding of local competences PARTNERS UP TO HIGH SCHOOL SPECIALISED SCHOOL UNIVERSITY STATE Regione Emilia-Romagna CTS - COMITATO TRAINING TO LOCAL FORMULA SAE ITALY Provincia Parma TECNICO SCIENTIFICO UNEMPLOYEES (Autodromo Varano de’ con IT - ITSOS «GADDA» Melegari) EDUCATION ENTITIES: FORNOVO -PR MIUR TRAINING CENTER Provveditorato RIQUALIFICATION RESEACRH PROJECTS I.I.S.S. Gadda-Fornovo di Taro PROJECT I.T.I.S. Berenini-Fidenza FORNOVO – PR TRAINING STAGES TRAINING CENTERS: Forma Futuro ITS MAKER FORMAZIONE Centro Servizi PMI UNIVERSITARIA (Piccola e Media Impresa) MUNER Cisita Parma Imprese (Unione Parmense Industriali) Dallara Academy LOCAL COMPANIES PROMOTION OF THE HYSTORICAL AND CULTURAL IDENTITY OF THE «VALLE DEL CENO» TERRITORY 19 Dallara Academy Mission Conclusions NEW PARADIGM, THE KNOWLEDGE NOT AS FACTOR TO BE ADDED TO LABOR, LAND AND CAPITAL BUT THE ONLY FACTOR TO BE COMPETITIVE SOCIAL CAPITAL REPLACES THE PHYSICAL CAPITAL FACTOR: HUMAN CONNECTIONS AND NETWORK PLUS KNOWLEDGE SHARING KEY TO TAKE DECISION AND ACT FAST DATA OVERFLOW: ARE WE READY TO MANAGE AND TO GET THE BEST FROM THE AVAILABLE DATA? CONNECTING THE DOTS: IS THE COMPANY ABLE TO SEE ABOVE THE SIGLE AVAILABLE (AND ADVERTISED…) TECHNOLOGY TO ENSURE AN HOLISTIC APPROACH?.