Ducati Case Study Analysis: Business Systems and Strategy

This case study analyzes Ducati's implementation of new digital technology, specifically the Ducati Communication System (DCS), to address business challenges such as high competition and tougher economic conditions. The analysis explores the motivations behind the technology, potential cost-cutting measures, and the importance of improved communication with dealers. The study highlights the capabilities and benefits of the DCS, including its role in capturing global sales activities, improving customer relationships, and enhancing dealer responsiveness. It also examines the need for a change management program and other factors contributing to the system's success, such as partnerships with Accenture and Apple. Finally, the case study reviews the DCS application and discusses future improvements for a better user experience.

Running head: DUCATI CASE STUDY
Ducati Case Study Analysis
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DUCATI CASE STUDY
1. Motivation of Ducati for implementing new Digital Technology
Ducati Motor Holding manufacturers motorcycles and have become popular for the in the
entire world for the precision engineering, sleek designing and lightning speed of products. The
organization is owned by the organization of Audi through the Italian subsidiary, called
Lamborghini. The main four models of the products of this particular organization include
Diavel, Hypermotard, Monster, Superbike and Super Sportter. The organizational management
of Ducati has taken the decision to implement new digital technology in their business. It would
be a brand new dealer communication app for the mobile device and it would be referred to as
Ducati Communication System (Functional Business Systems. 2014). As a result, the respective
interface of the technology would allow the dealers to easily find, send as well as receive all
types of confidential information, required for placing orders and even tracking them by delivery
and production. The main motivation of this particular digital technology is the present business
challenges, related to high competition and tougher economic conditions in the entire world.
2. Costs could be cut or not cut by Ducati
Ducati should cut their costs of products like motorcycle to a certain amount, so that
these are being afforded by all customers. One of the major business challenges that the
organization is facing currently is improvement of the sales process (Functional Business
Systems. 2014). As a result, it is needed for them to ensure that the product cost reduction might
help in increasing sales to a high level. The second cost that is needed to be cut by Ducati is the
cost of operations. It would be effective for them to ensure that the manufacturing costs are
lowered and challenges are reduced effectively.
3. Reason for improving Communications with dealers

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It is extremely important as well as noteworthy for the company to ensure that the
communications are improved to a high level with the respective dealers of the company
(Functional Business Systems. 2014). These dealers are responsible for running all the parts of
the business and also comprise of a robust tool for execution of their operations, growth,
development as well as customer goals. With proper improvement of communication with the
respective dealer, Ducati would be capable of capturing or consolidating the global or local sales
activities, spare part, warranty or service activities; hence improvising the overall organizational
capability for responding regularly towards changing consumer demands (Lloyd, 2020).
Moreover, team morale would be improved and there would be chances for stronger
partnerships. The customer relationships would also be improvised and productivity would be
increased to a high level.
4. Explanation of the Capabilities as well as Benefits of the Ducati Communication System
The high performing Ducati Communication System or DCS was being implemented in
around 88 countries within 4 continents. This particular system serves over 55000 customers in
the entire world within 7 languages. It helps for leveraging the dealer communication and as a
result, Ducati would have the capability of capturing as well as consolidation of global as well as
local sales activities, spare parts, and warranty or service activity (Functional Business Systems.
2014). Hence, it can easily and promptly improvise the organizational capability for responding
daily for changing consumer demands. The second distinct benefit of the Ducati Communication
System is that the dealers would be able to run all types of parts of the business and even
comprise of a robust tool for execution of their operational attributes, better growth or
development as well as customer goals.

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The next distinct as well as noteworthy benefit of the Ducati Communication System is
that the dealers would be responding more quickly for customer demands as well as market
conditions, making every dealership easy for the clients for completing business. Another
distinct and significant benefit of the Ducati Communication System is that the dealers are highly
prepared with the leading practice for the procedures for helping those in better serving of clients
within the most simplified method (Baller, Dutta & Lanvin, 2016). As a result, the dealer system
is one of the most creative as well as effective user experiences within the respective industry.
Furthremore, the DCS is a user friendly and reinforcing the brand of Ducati.
5. Reason for Implementing a Change Management Program
A change management program was required to be deployed in Ducati. One of the major
reason for implementing such distinct change management program is that there had been
several business challenges and issues related to competition (Functional Business Systems.
2014). The organizations in the entire world are facing high competition as well as economic
conditions after the meltdown of finance within 2008. Geographical diversity is yet another vital
reason for such challenge. Moreover, the motorcycle dealerships were needed to be focused on.
The other major factors for the program include improvement of sales processes, engagement of
customers in designing of the motorcycles and decreasing the operational costs.
6. Other Factors contributing to the success of Ducati Communication System with
explanation of their contributions
The Ducati Communication System or DCS has become extremely successful and
effective for ensuring that maximum effectiveness and efficiency is being gained under every
circumstance (Functional Business Systems. 2014). The main idea was to restructure the dealer

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operation, communication tool as well as business procedures for aligning them with the leading
industrial practices. Apart from the business challenges, the other factors that contributed
towards the success of this particular system are partnership with Accenture and Apple and
intuitive user experience (Marchewka, 2016). Ducati has selected Accenture for helping to
redesign the processes and operations and ensure that integrated communication application is
improved. As a result, the users get access of the back end systems. Apple even provide access to
the configurator application over the iPads for ensuring that a customer is able to configure their
dream motorcycle. Hence, the dealers can easily communicate within real time with the
colleagues for completing their sales without any delay.
7. Reviewing the Ducati Communication System application with future of the application
for better experience
The Ducati Communication System iPad application is responsible for allowing the
employees in both dealership and manufacturing headquarter interconnect with one another. It is
an extensive core functionality assessment and then mobilized a team for designing, developing,
testing, implementing as well as rolling out a new dealer’s communication application for
Ducati. Better configuration is required for the application for ensuring that the user gets a better
experience in future.

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References
Baller, S., Dutta, S., & Lanvin, B. (2016). Global information technology report 2016. Geneva:
Ouranos.
Functional Business Systems. (2014). Chapter 9. Ducati Case Study. [Retrieved online].
Lloyd, I. (2020). Information technology law. Oxford University Press.
Marchewka, J. T. (2016). Information technology project management: Providing measurable
organizational value. John Wiley & Sons.