Sports Industry Data and Analytics - Takeaways from 2022 - Part 2
Accelerating your analytics success at 230 + mph – Formula 1 & Indy Car Interactions.
2022 has certainly accelerated fast; literally and figuratively, and as spring/summer sports enter their home stretch, the Fall/Winter professional and collegiate sports season is upon us.??
In the first installment of this article series, I referenced the incredible digital transformation the sports industry has seen during the past few years and where I believe the industry is headed in its use of data, advanced analytics, and AI. From here on out, I will highlight some of the exciting events and interactions I've had this year and the data and analytics takeaways from each.
Over the past few months, I've had the pleasure of listening to and learning from some of the foremost experts in Formula 1 and Indy Car Racing. In this article, I'll touch upon how these two segments of the racing industry have accelerated success through their use of analytics and highlight how their success is primarily driven by embracing a data-driven culture, understanding their data through the use of powerful analytics - and then applying insights and lessons learned at a moment's notice.
I couldn't be more literal in using the word "acceleration" as I'm referring to a sport that sees its athletes race at speeds of over 230mph! And when I refer to "athletes," I'm referring to the entire organization's race team, from the drivers to the engineers, to the marketing staff, leadership, and everyone in between. All of whom have essential needs to consume data. This data-driven mindset and analytics culture throughout these two industry segments have elevated the sport and the respective organizations that lead the pack.
I will not disclose any trade secrets by any individual Indy Car and or Formula one team but refer to some of the common areas of focus in which data and analytics are applied. The secret sauce is how these organizations (or any organization) deploy, operationalize, and use analytic insights.
The bottom line; understanding your data, knowing what to measure, and having your team act on the insights to create advantages, drives optimal outcomes and leads to winning races and championships in the race car industry.
Lessons Learned from Mark Gallagher – Formula 1 Racing Industry Veteran:
Mark Gallagher has spent his career working in the global sports business of Formula One motor racing. This includes 15 years spent on the management boards of two well-known teams, Jordan Grand Prix and Red Bull Racing, and later as Managing Director of the Cosworth Formula 1 engine company.
Gallagher now runs his own Formula 1 consulting business – Performance Insights – and works with a number of teams, commercial partners and drivers. His third book, "The Business of Winning – Transformation from the Formula 1 Track to the Boardroom," was published on October 3, 2021.
SAS's Executive Vice President and CSO (EMEA and AP) Riad Gydien had the pleasure of interviewing Mark as part of our SAS Innovate Tour series and took a deep dive into how F1 racing has accelerated its digital transformation and has created a culture of winning and data and analytics success.?
As Mark stated, what's most important to success on the track is largely in part to:?
All are equally important! The obsession for continuous improvement is always present and the ability to embrace change across all facets of the business environment is crucial to success, as Mark states.
Much like in Indy Car and other car racing formats, understanding the data and acting upon the insights at a moment's notice lead to better outcomes and, ultimately, winning.??Areas of data and analytics focus in F1 racing include but are not limited to:
Remember that these races are very similar to some of the Olympic Sports (e.g., 100m dash) in which the difference between winning and losing can be a fraction of a second and require a photo finish. People, Technology and Teamwork are the main driving forces behind why Mark's former team at Red Bull holds several Formula One world records, including a pit stop time of 1.82 seconds. And to think, 10+ years prior, an average pit stop time was 15 seconds.
To win a race in these sports, it can cost teams tens of millions and even hundreds of millions of dollars. However, money only gets everyone so far, and you have to buy into the culture Mark describes to see the type of success that the stronger teams have.
Indy 500 Practice and Qualifier Weekend:
On Friday, May 20th, I had the pleasure of attending an event hosted in part by an incredible SAS Partner, Pinnacle Solutions Incorporated , in their hometown of Indianapolis, Indiana, at the Indianapolis Motor Speedway. This coincided with the Indy 500 qualifying weekend and practice rounds. I've been to a few NASCAR tracks over the years, but this was my first time to what many describe as the holy grail of Indy Car Racing. At 560 acres with a 2.5-mile track, most would not be surprised to learn about Brickyard Crossing, an 18hole Par72 course inside and adjunct to the track. I knew it existed, but to see it in person was incredible.
Learning from my friends at Chip Ganassi Racing:
Chip Ganassi Racing has a storied past and bright future and is home to some of the best Indy Car, Extreme E, and IMSA teams and drivers. "One Team. One Goal" is their mantra and guides them in how they apply the use of data and analytics to drive successful outcomes across their organization.
I had the pleasure of getting down to pit lane and saw some of how the CGR team operates on race day. Again, no trade secrets will be disclosed here, but in a sport that starts with all teams being about as equal as they can be (car regulation, testing rules, tire choice, engine choice, etc.), they certainly have found ways to stay competitive and drive a culture of success by understanding their data. As you can see, the following focus areas are very similar to Formula 1 racing.
1) Devotion to Data and Analytics
2) Optimizing Race Strategy, Race Cars, and Drivers
3) Applying Data Across the Organization
For those who don't know much about Indy Car Racing and as mentioned above, it's a very regulated sport with all teams running on the same chassis and aerodynamic kit. Power comes from two engine manufacturers (Honda or Chevrolet), and the tire supplier is currently Firestone. Many other rules govern the race car (e.g., fuel system, brakes, wheels, electronics, fuel, etc.), parts, pre-race testing, and the actual race day.
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This regulation makes it even more critical for the entire race team to fully understand data to create competitive advantages. As noted earlier in the article, advantages that can buy a fraction of a second ultimately lead to winning a race or championship.?
The Indy Car:
Indy Cars have approximately 140 sensors (Formula 1 has 200-300 on average) that track and measure just about everything the engineers need to analyze. This data is transmitted and communicated through wireless telemetry for real-time analysis. These sensors can produce millions of data points to be examined by engineers.
In addition to sensor data, several other data sources are analyzed, including historical race data, driver, and team personnel feedback, computer simulation, and more. Needless to say an incredible about of data points and volume of data are analyzed in each race and throughout the year in hopes of gaining a competitive advantage on race day.
Conclusion and Key Takeaways :
These experiences and interactions were truly fascinating and allowed me to dive deeper into a part of the sports industry with which I've had limited interaction. Although I'm only scratching the race car industry surface, the takeaways noted below align with how leading organizations from around the globe implement a successful data and analytics strategy. These companies embrace change, know their data, subscribe to the notion of Truth in the data, and have learned to make insights actionable.
1) It's not just the tech; it's People, with the Technology, and most importantly, Teamwork
I couldn't say it better, an important mantra we often speak to at SAS. For an organization to accelerate its analytics journey and success, companies must build a culture that embraces data, analytics and teamwork.?
2) The Truth is in the data
As I mentioned in an opening series article last year, "Let me say upfront that analytics is not meant to rip and replace every facet of good old-fashioned decision making." But "Using data and analytics will help empower leaders to make better decisions, faster, and based on the facts." And in this case, the truth, whether good or bad, is that data can surface crucial insights to help you make better decisions.
3) Embrace Change
Change can be one of the biggest challenges for any individual or business. The old saying, "If it isn't broke, don't fix it," can cost organizations more than increased revenues if they're unwilling to embrace change and look to the future. F1 and Indy Car have attained a level of success and analytics maturity because they embrace the change and are always looking forward.
4) The "team" does not just include the race car drivers:
Organizations like F1 and Indy Car have embraced the notion that data and analytics consumers are not limited to data scientists and engineers but several teams across the organization. In this case, the drivers, the trainers, pit crew, marketing, leadership, partners and everyone in between. This culture and realization allows the entire organization to move forward together.
5) Avoid decision gridlock
Organizations can be overwhelmed and struggle with how and where to start their analytics journey. They try to accomplish and analyze too much at once and ultimately get into a "decision gridlock and paralysis." Start small, think big, and commit to a data and analytics culture. The rest will fall into place.
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I ask and encourage you to comment and share your data and analytics success stories, your challenges, and experiences with me throughout this journey. And most importantly, what do you think the future use of data holds for the industry?
Stay tuned for part 3 – An interview with Dr. Deborah Stroman from the Center of Sports and Business Analytics!
Click Here to Learn More about SAS in Sports.
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Indy Car Rule Book
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Sensor Research
https://www.eetimes.eu/in-formula-1-engineers-are-essential-members-of-the-team/#:~:text=The%20average%20F1%20car%20has,around%204%20GB%20of%20logging.