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ERP Software Systems and Formula One (F1)

ERP Software Systems and Formula One

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ERP Software Systems and Formula One (F1)

Abstract
Formula One is the absolute epitome of motorsports. Its history goes back to the late 1800s when
automobiles were just being invented. The racing spirit was alive even back in 1895 when men
raced their automobiles in Paris at whopping speeds of 15-17 kilometers per hour. In the 1920s
and 1930s race cars were reaching speeds of 150 kilometers per hour and races were actually
done on circuits and road courses. After World War II technology and speeds reached a pivotal
point where rules and regulations had to govern the race cars, the drivers and the races. The
Fdration Internationale d'Automobiles (FIA) was formed to not only design the rules but open
the racing to the international community and Formula 1 came to be.. After the FIA was formed
race cars and speeds reached close to 200 mph but the technology was behind the speeds. Race
engineers became a profession whose whole purpose was to design better race cars, that were
safer, faster, lighter and more economical. With the invention of the computer and soon to be IT
technology, the race engineers had a promising future and were able to accomplish their tasks.
The budgets of the race teams sky rocketed as technology was used for this industry. Many of the
features of todays automobiles were tested and designed in Formula 1. Anti-lock brakes, all
wheel drive, disk brakes, carbon fiber, just to name a few all were developed in Formula 1. The
addition of IT however was when the technology really grew. Computer chips, software, data
bases, wind tunnels all helped with design. Racing teams them jumped on the band wagon of
analytics, ERP, BI and are using this IT technology to really develop and cut back on times and
expenses. McLaren has partnered with SAP. Lotus with Microsoft and their ERP software,
Ferrari now uses a BI/analytics software that measures over 100 point of data just on the front
wing. This report is on the new software that has partnered with Formula 1 and will change not
only race teams and their cars but how we drive our daily automobiles.

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History of Formula 1.
It is virtually impossible to talk about Formula 1, its technology, its effect on the motor car
production history without talking about the history of it.
The automobile racing history really started in 1895 with several races being held in
France. The first organized event was actually a Reliability Trial run from Paris to Rouen in
1894 over a distance of 126 km. It was organized by a newspaper, Le Petite Journal, and the
winning "horseless carriage" had to be "safe, easily controllable and reasonably economical to
run." Twenty one entries left Paris on July 22nd for Rouen that day, the first one across the finish
line was a steam tractor and unfortunately for the driver, the race officials decided that his car
was not a practical road vehicle and instead awarded the prize jointly to the next two leading
cars, a Peugeot and a Panhard-Levassor. The winning average speed was a whopping 17
kilometers per hour (kph). Many town races were run in the following years including Paris to
Bordeaux and back. This 1895 event, a true race, was won by Emille Levassor. Driving a 2cylinder, 4-bhp Panhard-Levassor he drove 48 hours 48 minutes virtually non-stop. Because his
car only had two seats instead of the required 4 seats, he was denied the prize of 31,000 francs.
What is amazing is that his statue overlooks the finishing line at the Porte Maillot in Paris. In this
same race Michelin showed up in a Peugeot, with his car sporting rubber tires. He took huge
amounts of criticism for his air filled tires, only because the roads in those days were very rocky
and poor. I would imagine that somehow Michelin got the last laugh.
In the early 1900s Peugeot and Mercedes were rivals in the race circuits in France where both
manufacturers entered actual race teams. In 1906 The French held the very first Grand Prix for
manufactures over a 64-mile triangular course 130 miles west of Paris near the quiet town of Le

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ERP Software Systems and Formula One (F1)

Mans with the Bollee automobile factory close by. The race would start on Route 23, the Paris
road. Each leg of the course was approximately 20 miles in length with sharp corners at La
Ferte Bernard, St Calais and St Mars-le-Briere. In a couple of places short sections of wooden
track connected the roads. Forty miles of barricades were constructed to control the spectators
with a tunnel under the race track to allow safe passage. The race had 32 starters from 12
manufacturers, to include Clement-Bayard, Darracq, FIAT, Hotchkiss, Lorraine-Dietrich, Itala,
Mercedes, Panhard and Renault, with single-car entries from Gobron-Brilli and Gregorie. Each
team had a number with a letter identifying the individual cars. An example of this was the cars
the red cars of Renault, they had the numbers and letters codes 3A, 3B and 3C on their sides. Of
the cars that started the race, only 11 remained after 12 laps split over two days. The winner was
Ferenc Szisz, a Hungarian, driving a 90hp Renault. His Renault utilized detachable rims created
by Michelin which enabled him to change his tires in 2 to 3 minutes instead of the normal 15
minutes. Another important event that same year was the inaugural Targa Florio, the race
covered three laps of 148.832 km over mountain roads unchanged since the Roman-Carthage
Punic Wars of 260 B.C.
Lets skip forward to the 1920s and 1930s, race cars were reaching speeds of 150 kph and
automobiles were being specifically for racing. In 1930 Alfa Romeo decided to enlist a new
company to direct all of their racing efforts. This company was called Scuderia Ferrari and was
run by Enzo Ferrari. Shortly after WWII The Fdration Internationale d'Automobiles (FIA) was
formed to organize the sport at an international level. A formula was set for 1947 that allowed
1.5-litre supercharged or 4.5-litre unsupercharged cars. This was the true beginning of F1 and the
hunt for horsepower, lighter cars and more technology. This forming of the FIA and Formula 1

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ERP Software Systems and Formula One (F1)

brings us to modern F1. I realize that I have skipped about 40 + years of racing but the cars after
the 1960s really started to stay the same as today. More horsepower, lighter cars with more
technology to include automatic transmissions but all very close in design and engines. This is
where the introduction of IT, computers, specific software have really come into play in F1. Race
engineers are hired to design complete cars that includes wind tunnels, IT professionals are hired
to develop systems specific to Formula 1 and the teams. The budgets have gone from about
$100,000 for a race team in the 1960s to multi-million budgets where teams spend over a
$100,000 just on brake pads for a season.

Technology and F1
The technology developed in the Formula 1 racing industry soon makes it way to the cars you
and I drive. Lets just look at a motor in the 2016 Formula One car. It is a 1.6 liter turbo charged
six cylinder that produces close to 1000 horsepower (HP), turns the motor at 19000 rpm, goes
down the track at 220 mph and all in a car that weighs only 1200 pounds. Two years ago the
Formula required a 2.4 liter V8 that was normally aspirated (fuel injection) that produced 1000
HP, had to be regulated to stop the rpm at 19000 and also pushed the car down the track at over
200 mph. As I mentioned in the history section, the cars and motors have not changed to much
since the 1960s, just the technology helping them get down the track. This technology has made
its way into your daily driver. You really justify in saying that Formula One is a laboratory and
testing ground for modern road cars.
Formula 1 technology is not only driving us into the future of the automobile, but its
also pioneering the groundbreaking technology thats reshaping our everyday lives. The

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ERP Software Systems and Formula One (F1)

McLaren Formula 1 team recently developed sensors to track its race cars engine, transmission,
and other mechanically vital systems. Now doctors are using those same sensors to monitor the
performance of new drugs during clinical trials. The automobiles we drive are constant
reminders of this F1 technology, as mentioned, Formula 1 cars used to be powered by large 4.5liter engines, modern Formula 1 race cars have seen their engines downsized and streamlined in
the same way that family sedan engines have been. Now, 1.6-liter turbocharged V-6 engines
power Formula 1 cars. Other innovations or technology that has come from F1 R & D is antilock brakes, all wheel drive, carbon fiber, disc brakes, synchronized transmissions, aerodynamics
and wind tunnel testing, tire design and strength, multi function steering wheels. Engine oil and
how it breaks down, additives that cause less friction, all came from F1 R & D. Traction and
electronic stability control, both of which were recently federally mandated as required
equipment in new vehicles. The Kinetic Energy Recovery System (KERS), this captures energy
that would otherwise be wasted in braking and transfers it back to the car. Several high end
automobile manufacturers are using this now, Ferrari, Porsche and McLaren. KERS technology
will end up in daily drivers as FIAT and Ford are both researching it. In response to new FIA
regulations that limit wind tunnel testing, Dell and Intel built a computer capable of testing
thousands of different designs in a digital wind tunnel to see which ones work best. The designs
that made progress and worked in computer testing then get produced and tested in a real wind
tunnel and end up out on the track.
Formula One isnt just a bunch of rich teams sending their highly-paid drivers out for a
spot of weekend racing, it is a hugely sophisticated test-bed to ensure that the cars youll be
buying in the future will be safer, smarter, stronger, faster, more efficient and more capable.

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ERP Software Systems and Formula One (F1)

Since F1s inception, and really automobile racing in itself, F1 has repeatedly lead the auto
industry in innovation. As a result of this R & D, Formula 1 cars often give us a sneak peek at
the future of the automobile.

Formula One and IT (F1 IT)

So where does IT come into play? Now that I have discussed how Formula One came to
be and the history behind it and have discussed some of the technology that has been developed
through F1 R & D, you will be able to see where IT really has a place in F1. A simple question
and actually a statement, did you know that a modern Formula 1 car will not even start without a
laptop?

The true spirit of F1 is really in the cars, the men, the teams, the money, the sponsors, any
stakeholder all have a huge part in Formula 1, but it is about the car. When the car crosses the
finish line, the team celebrates, when the car wrecks or breaks down, the team feels the pain. So
why the car, it is the reason engineers, the software, the money, the R & D, is all centered, it is
about the car. IT has been developed and deployed in Formula One teams for the simple reason
of making the car faster. The teams are obsessed with and focus on efficiency, horsepower and
design. This includes other aspects of the team such as HR, accounting, wind tunnel testing,
finance and manufacturing. This is why Lotus F1, a British Formula One team reached out to
Microsoft, to use software and IT to get ahead of the competition.

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ERP Software Systems and Formula One (F1)

Lotus F1 partnered with Microsoft Dynamics and in particular AX, to the point where the

Lotus car will have the Microsoft Dynamics logo on it. Why Microsoft Dynamics AX? It is an
ERP that has now helped with every aspect of the Lotus F1 team. The team principle of Lotus
F1, Graeme Hackland, looked at 13 other ERP solutions and chose Microsoft Dynamics AX. He
said the team wanted to be in a position to win and AX allows the team to study large amounts
of data from the design stage to race day. AX will enable the team to analyze in real time and
help the team members stay ahead of the competition by boosting performance and horsepower,
diagnosing problems and improving team performance. Hackland also said that Microsoft
Dynamics AX gives them the edge they need.
I contacted Microsoft and tried to get a copy of AX, since our school is not an education
partner (yet), I could not get one. They did send me a link to get Microsoft Dynamics CRM. I
decided to research what AX is and what is needed to operate it. The cost of the actual software
is approximately $750,000 (750 K), it allows for up to 2,250 end users, it requires a Microsoft
operating system, go figure, It requires SOA, .NET and Cloud architecture. Microsoft Dynamics
AX works with several database platforms such as MS SQL Server, Oracle, Cloud-Based (Saas),
Microsoft Azure. Microsoft says Dynamics AX is a complete ERP that can be adapted to be
industry specific. It has modules for Materials Management, Production Management, Sales and
Order Management, Financial Management, Customer Relationship Management, Services and
Support, and Additional Capabilities.
After the cost of the AX software, the entire Lotus F1 teams IT capabilities were all changed
to one large server, the entire Lotus team has now been trained on AX and its use. I do not have

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ERP Software Systems and Formula One (F1)

the exact figures for the implementation of Microsoft Dynamics but I did find out that it took 3
years. One quick note is that Microsoft does not charge for updates to their software as does
SAP. Further research on implementation of AX has me to believe that Lotus F1 spent

approximately 3 to 5 million dollars on this software and the hardware to use it. This however as
stated is now deployed company wide and is used in every aspect of the business.
McLarens Formula One team has adopted SAP as their ERP software. In my presentation or
Power Point I use McLaren as an example and how SAP has changed their business. After
visiting two businesses in Butte that both have SAP and understanding the costs, I will not touch
on that in this paper. I do believe that as I researched McLaren, their team, their autos bot race
and street, I can see where SAP was a good choice and cost was not an issue. McLaren will reap
the same befits that Lotus F1 did in that SAP will have a module for every aspect of McLarens
business and allow the company to be cohesive. SAP can and will effect McLarens HR,
accounting, R & D, procurement, design, its employees and data from the race car.
Formula 1 is the most watched sport in the world, with TV, live races that attract thousands,
on road courses through streets like Monaco or multi-million dollar courses across world in
many countries. Brazil, U.S., China, Singapore, France, Italy, Spain just to name a few all have
beautiful race tracks. But lets look at the why ERP and Formula 1.
F1 is a sport where every thousandth of an inch can make a difference, constant changes in
design, aerodynamics, engine design, business operations, finances, business processes,
sponsors, even drivers all effect the team. Think about the ability to collect thousands of bits of
information in wind tunnel testing, direct race track data of tire temperatures, engine

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ERP Software Systems and Formula One (F1)

malfunctions or peaks, data from points of the car like the front wing, brake pads and be able to
collect and analyze it. That is why the Formula One teams are moving to ERP and even
predictive analytics. Formula One depends on its sponsors, and the success of the team is based
on who it has a sponsor and at the end of the season, how they ended up in the championship
points. Implementing ERP software and its systems can and will change F1, allow teams to win
races and build faster more efficient cars.
In the technology section I touched on Dell and how it built specific software and computers
to capture data and technology for an F1 team. Dell did not build an ERP system but did build a
specific server just for an F1. This server was really a super computer that allowed the team to
actually build a car and get it on the track. F1 is one sport that cannot operate without
computers, as mentioned earlier, a modern F1 car will not start without a laptop.

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ERP Software Systems and Formula One (F1)

Conclusion

Formula One is the epitome of motorsports and automobile racing. It has a history that goes
backto the late 1890s with race cars traveling at speeds of 15 to 17 kilometers an hour. It was the
spirit of those men that jump started automobiles and racing. In the 1920s the automobile
industry and grown to production in the U.S and Europe. The 1920s also brought more speed and
race car specific design with cars reaching 150 kilometers an hour. These cars race on purposeful
tracks and circuits. One of the most famous tracks was in the city of LeMans, France. After
WWII the The Fdration Internationale d'Automobiles (FIA) was developed and Formula One
came to be. The cars design and speed really developed through the 1960s and 1970s and with
the invention of the computer in the 1980s, Formula One race teams starting using the computer
to help with logistics and design. The technology of Formula One grew immensely as the power
and technology behind computers grew at a rapid pace. Dell built a specifics supercomputer for
one Formula 1 team that helped with design and data collection. Now F1 race teams use
computers for every aspect of the teams. This includes design, development, procurement, R &
D, wind tunnel testing, accounting, HR, and real track time analysis. One of the teams, Lotus
Formula 1 now uses Microsoft Dynamics AX, an ERP. This ERP has changed the Lotus F1

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ERP Software Systems and Formula One (F1)

teams dynamics so that every aspect of the business falls under one roof, so to speak. McLaren
F1 has bought and deployed SAP as its ERP for the team. The money involved in Formula One
has reached a point where a typical teams budget is a billion dollars a year, so buying a multimillion dollar ERP software program and the hardware to implement it, is not beyond reach, in
particular when it allows the team to save money and more important, seconds.

References

No Author. (2012, November 13) Kirill Tatarinov Visits Lotus Formula One Racing Facility to
Launch Microsoft Dynamics AX. Retrieved from
http://community.dynamics.com/ax/b/erpsoftwareblog/arcchive/2012/
No Author. (2012, September) Lotus F1 Team Calls on Microsoft Dynamics AX for Winning
Formula. Retrieved from
http://www.erpsoftwareblog.com/2012/09/lotus-f1-team-calls-on-mirosoft-dynamics-ax-forwinning-formula/
Pederson, Christian. (2012, March 19) Microsoft Dynamics and Lotus F1 Team. Retrieved from
http://www.msftdynamicsblog/archive/2012/03/09/microsoft-dynamics-and-lotus-f1-team/
No Author. (2015) Chasing the Perfect Lap. Retrieved from
http://www.sap.com/customer-testimonials/automotive/mclaren-group.html
No Author. (2012, May15) McLaren Group accelerates into the future with SAP. Retrieved from
http://www.mclaren.com/formula1/partners/SAP/mclaren-group-accelerates-into-the-future-withsap/
No Author. (2013) McLaren F1 Dashboard. Retrieved from
http://stillbrandworks.com/sap/f1-dashboard/

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