Ducati Case Study: Information Systems and Business Strategy

This case study examines Ducati, a motorcycle manufacturer, and its challenges stemming from increased market competition and technological advancements. The company faced issues such as miscommunication with customers and data silos, impacting its sales process and customer engagement. To address these problems, Ducati implemented a SAP-based ERP system and developed the Ducati Communication System (DCS) app. The DCS app, integrated with iPads for dealers, provided a single point of access to Ducati's back-end systems, enabling efficient order management, tracking, and real-time communication. This digital transformation improved dealer communication, streamlined operations, and enhanced the customer experience, leading to positive feedback and improved business outcomes. The case study highlights the importance of information systems in resolving operational challenges and fostering business growth through enhanced customer relationships and operational efficiency.

INFORMATION SYSTEM
Business information system
Name of the Student
Name of the University
Author’s Note

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Abstract
The information system is beneficial segment for any kind of business. Within the
organizational business, there exists various kinds of departments like sales, marketing,
finance, accounts, human resource etc. All of the departments, must have the technology of
information system by which they can enable their processes easily. In this report, it follows a
case study which is based on certain a company named Ducati organization. This is a motor
manufacturing company which is accountable for delivering motorcycles across the world.
But due to competitive environments, the company has confronted such issues and in this
report, it has to mention how the issues can be solved by utilizing the information system.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Identification of issues...........................................................................................................3
Facts affecting on issues.........................................................................................................4
Solution for solving the issues...............................................................................................5
Contingency plan...................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Every organization conducts their business by integrating with several departments
including financial department as well as marketing, sales, human resource or operations and
also IT department (Shalender & Singh, 2014). Moreover, the growing up technology
involves within the businesses helping them to achieve the success point. The success of the
business depends on such external factors including customers as well as competitors and
also partners. Among them, the customers consider as the most vital part for any
organization. The good relationship with the customers enhances the business in better
experiences. Within this report, it follows the issues addressed in the case study of Ducati
(Agarwal & Vrat, 2014). This report must present the reasons for the issues and also provides
the solution for mitigating them. In the report, it has to describe how the technological app or
software helps to enhance the business process.
Discussion
Identification of issues
Ducati is a motor manufacturing company accountable for delivering motorcycles
across the world. Because of some factors like precision engineering as well as lightning
speed or sleek design, the company has earned their popularity. The prices of their products
begins from the margin line of $15,000 to $90,000. As per the analysis of the market report,
in the year of 2013, the net sales of this company was $518 million (Danda, 2015). The
company has executed their business with success. But due to technological enhancements,
there happened a huge competition within the market and for that, this company has
confronted such customers’ oriented issues like miscommunication with customers about
their services (Athukorala & Kohpaiboon, 2014). Moreover, the company did not reach to all
of the customers across many geographical locations. For that, it has considered as the

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marketing challenge for this company. However, the two major issues has raised for this
organization involving the communication issues and also data silos.
Facts affecting on issues
As described within the case study, the Ducati Company is a motor manufacturing
company and has earned their popularity due to precision engineering as well as lightning
speed or sleek design (Seidel et al., 2014). But because of technological advancements, the
competition comes into the market and for that, the company has challenged such issues
about communication problem with customers and also insecurity of data. For this reasons, it
has to affect the economic growth of the company.
 Lack of communication with customers – The communication is an indispensable
part for any kind of business growth. For that, the dealers of the company cannot
communicate with the customers about their products or services after selling process
(Grube & Wynn, 2019). Moreover, the geographical location has created a barrier for
the dealers of the company and for that they cannot make the communication
properly with the customers. It causes the degradation for the company and cannot
carried forward to their business towards the achievement of the success due to tough
competition.
 Data silos – The data silos refer as the concept of secure the information so that it
does not leak into the outside world of the company. However, the customers based
information or the business oriented information, those are too much important asset
for the organization during the timing of tough competition. Each of the business
develops their own strengths by integrating the information system within the
business to grow up their business strategy. As making a comparison with this case
study, the Ducati organization has confronted this insecurity issues in their sensitive

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information. To solve this issue, it needs to develop a security software or application
by which the company can secure all of their sensitive information.
Solution for solving the issues
For solving these issues, it requires to develop a system software by which the
organization can provide the exact solution for mitigating these issues. As discussed within
the case study, the major issues that has detected within the operational section of the
organization are such as miscommunication issues with customers and also data insecurity
(Singh et al., 2016). For resolving these challenges, the company needs to follow such
important factors including improvement of the sales process as well as making engagement
between the customers and company’s designing products and also reduce the operational
cost.
Moreover, in this situation, the company needs to develop an application of SAP
along with the ERP system (Enterprise resource program). The SAP is a helpful application
for any kind of business and some of the benefits of this application are:
 Customized solution – Depending on the diversity in needs of each of the company,
the application provides the customized solution based on their requirements (Hayen
& Holmes 2014). The solution generally depends on the operational as well as
departmental needs. Because of having flexibility within this SAP based ERP system,
the application provides the customized solution for the company so that they can
easily communicate with their customers by using those customized solutions.
 Increment of productivity as well as efficiency – Since the SAP application provides
the real time information to the workers or dealers, it is too much easy to work or
handle the queries of the customers faster. Various departments can easily
communicate with the customers and it is the effective procedure for upgrading the

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information. In this case, the customer relationship system helps to ensure the
organization so that the company can make the improvement in the customer service.
 Cost efficiency – Since all of the operational activities are executed by using
information system, therefore, it decreases the internal operational cost (Singh & Best,
2015). Moreover, in the case of manual operation, lots of manpower require to
execute all of the operational activities. But the installation of SAP helps to reduce the
manpower for the organization which leads to the decrement of the internal
operational cost.
 Data analysis and also reporting – Data analysis and reporting is one of the
important part for any kind of business. During the competitive market, each of the
organization requires to analyse the business data for knowing their business strategy.
Moreover, the installations of SAP helps to analyse the business data for this
company. However, this system provides the exact reporting to the businesses and
update the transactional information for understanding the business condition.
Another factor is the security which is obvious part for the business information. This
application provides the proper security to the information so that any unauthorised
persons cannot enter within the system.
 Maintenance of continuous operations – With the help of this system, the managers
of the company can make the direction to all employees for achieving their goal. This
process helps to speed up the decision making process and for that the application can
provide the update to each of the department of the organization.
As discussed in the case study, Ducati company has developed a SAP based ERP
application by which they have created a link of communication with the customers. Though,
that the lack of communication with the customers considers as major issue for this

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organization. But after installing the SAP software, they have overcame the communication
related issues and are successful to make the strong bonding with the customers.
Contingency plan
During the execution time of the business, the company has confronted the issues of
lack of communication with the customers and also data insecurity issue. For solving these
problems, it requires to recommend the solutions based on an application of SAP along with
the ERP system. Though this application is beneficial for any kind of company, therefore, it
helps to communicate with the customers as well as increment of the productivity or
increment of the operational efficiency etc. Based on this recommendation, the company has
developed an application named as Ducati communication system.
By using the applications, the geographical locations consider as the barriers for the
dealers. They can communicate with all of the customers or can track their orders. According
to the reviews of the dealers, they can easily find as well as send or receive all of the data
(Yahya et al., 2018). This process helps to enhance the business process. The dealers can
update variety of business related information through this medium so that they are visible for
the customers.
If it is checked by the customers’ point of view, it can be seen that the customers are
too much happy by installing this application. They have installed the application on their
iPads and by this medium, they can easily handle this application for communication
purpose. They have provided the positive feedback to the company like “great time saver” or
“game changer” etc.
Moreover, the dealers can check the sales activity across the world as well as service
activity so that the company can improve their business strategy based of changes of the
customers’ demand. However, this application helps to robust the operational growth of the

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business. Integrating the information system with the application helps to provide the
effective work environment for the company so that the can grow their business (May et al.,
2017). This application is very user friendly as well as sleek which enhances the company’s
brand. In this way, the organization of Ducati also happy with this application for grow up
their business.
Conclusion
In this section, the the Ducati Company is a motor manufacturing company and has
earned their popularity due to precision engineering as well as lightning speed or sleek
design. But due to technological advancement, the company has faced such issues like
miscommunication with customers and also data insecurity. If the company has the
communication issues or data insecurity, therefore it requires to develop the SAP application
by using the information system. Moreover, the company has developed the DCS app which
depends on SAP application. By using this application, the company can enhanice their
business growth. In this way, Ducati Company has developed their business in a success
point.

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References
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