Auto Dealer Software Data Integration Experts Blog

The answer to this questions is complex. It is also crucial to understand due to the fact that the answer feeds return on investment discussions. Integrations that are one sided in value for the auto manufacturer or auto dealer tend to struggle and/or fail. Due to the complexity of the topic, I'll focus on a small piece of it; creating a business case based on actual vs perceived value.

Data sharing between auto manufacturers and auto dealerships has become essential in the retail automotive industry. Successful integrated solutions have lead to more efficient business processes, improved customer satisfaction, increased revenue and more. To be successful, the integration must offer actual, as opposed to perceived, value to all companies involved.

I will use a common integration scenario to in an attempt to explain what I mean by creating a business case from actual vs. perceived value.

Integration Scenario: An auto manufacturer develops an integration that will eliminate a manual processes by receiving data electronically from a dealership directly to their back-end systems. The integration project will require auto software providers to add new screens to current application and the ability to automatically send the data. The new screens will eliminate the need for the dealer to rekey data into an auto manufacturer web site.

Value to the auto manufacturer: I think the value for the auto manufacturer is pretty clear.

Value to the dealer: The opportunity to automate a manual process. The value will depend on a cost analysis of the two processes, but has the potential to have a high value.

Value to the auto software provider: The ability to earn revenue. How/what revenue can be earned is determines by considering actual vs. perceived value. The following are just a couple examples of actual vs. perceived values:

• Actual Value
  • The auto manufacturer pays the auto software provider to develop the new screens for the integration.
  • Dealers are required to use the new integrated process. This assures the new integration has a value in the market.
• Perceived
  • The new integration will add enhanced functionality. Albeit an enhancement, there is still no guarantee of revenue if dealer are not required to use the new integration.
  • This is a mission critical integration that dealers will want. This is based on pure opinion and does not offer an auto software provider any assurance of revenue.

Rich has over 19 years automotive solutions experience with auto dealer management software. Over his 15 years with Reynolds & Reynolds (then UCS), his responsibilities included dealer management software support, auto dealer software installation, auto manufacturer account management and dealership consulting.

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