畢博咨詢報告－Driving Change in the dealer IT Enviorment

WhitePaper:

AUTOMOTIVEANDTRANSPORTATION

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

INTHISWHITEPAPER:

1.ExecutiveSummary

2.SeamlessIntegration:

LinkingVehicleManufacturers

withDealerCommunities

3.TheCost-DrivenDSP

SupportModel

?

?

?

?

?

DealershipEnvironment

DealershipInstallation

OngoingSupport

EconomicModel

PricingModels

4

.AddressingtheChallenges

ofDSPs:SixStrategiesfor

VehicleManufacturers

?

?

?

Strategy1:LeveragetheInternet

Strategy2:DrivetheChange

Strategy3:De?neandExecute

aRoadMap

?

?

Strategy4:DriveStandards

Strategy5:ReengineerDealer

CommunicationSystems

?

Strategy6:FocusonRevenue

5.Conclusion:Establishing

aClearPathofValue

WHITEPAPER

1

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

ExecutiveSummary

SeamlessIntegration:

LinkingVehicleManufacturers

withDealerCommunities

Intoday’sautomotiveindustry,vehiclemanufac-

turersmustcontinuallyidentifynewopportunities

forefficiencyimprovementandcosttakeoutto

maintaintheircompetitiveadvantages.Currently,

somemanufacturersseektoextendthemakeupof

theenterprisesothattheycanshareinformation

andapplicationswithdealersinrealtimeaswell

asprovidenewproductsandserviceselectronically.

Bymakinginnovativeconnectionswithdealers,

theyexpecttoachievemoreaccurateplanning,

fasterresponsestomarketshifts,signi?cantcost

savingsandincreasedsales.Torealizethesebene?ts,

however,vehiclemanufacturers?rstneedtodevelop

strategiesforaddressingthechallengesposedby

thedealerservice/systemsproviders(DSPs)that

controltoday’sdealerinformationtechnology(IT)

environment.

Afewwell-establishedDSPscurrentlysupplythe

majorityofautomotivedealerswithturnkeyIT

systems—alongwiththeassociatedservicesand

support—thathavebecomeessentialtoeffective

day-to-daybusinessoperations.Knownasdealer

managementsystems,thesesystemsenabletheeffi-

cientperformanceofback-andfront-officetasks

suchasinventorymanagement,salesandservice

management,?nancing,accountingandhuman

resourcesmanagement.SeeFigure1.

FIGURE1.

COMPONENTSOFADEALERMANAGEMENTSYSTEM

HUMAN

INVENTORY

Inthefollowingdiscussion,weprovidevehicle

manufacturerswithinsightsthattheycanleverage

tobeginaddressingthesechallenges.Webeginwith

anoverviewofthesystemsthatdealersusefor

everydayoperations,describingboththeneedfor

integrationandthemarketdynamicsthatmakethis

integrationdifficulttoachieve.Next,wediscussthe

importantroleplayedbyDSPsintoday’sdealer

ITenvironmentandofferspeci?cinformation

abouttheDSPbusinessmodel.Finally,weoutline

potentialstrategiesthatvehiclemanufacturerscan

usetocollaboratewithorworkaroundDSPsin

leveragingnewtechnologiesandbuildingmore

productiverelationshipswithautomotivedealers.

RESOURCE

MANAGEMENT

MANAGEMENT

SALESAND

SERVICE

ACCOUNTING

FINANCING

Inadditiontopurchasingdealermanagement

systems,dealersmustpaythecostofoperating

andmaintainingdealercommunicationsystems,

whicharethesophisticatedapplicationsthatmost

vehiclemanufacturershavealreadydevelopedand

deployed.Thesemanufacturer-mandatedsystems

supportcriticalfunctionssuchaspartsorderingand

warrantyclaimsprocessingandformanintegral

partofdealers’day-to-dayoperations.

2

BEARINGPOINT

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

Asaresultofallthesecomponents,dealersincur

Mostvehiclemanufacturershavedeveloped,for

speci?csituations,strategiesforcopingwiththis

lackofintegration.However,continuous,seamless

integrationbetweendealermanagementsystems

anddealercommunicationsystemshasyettobe

achieved.Thissituationresultsinprocessinefficien-

ciesfordealers,DSPsandvehiclemanufacturers

alikeandresultsinrisingmaintenancecostsfor

dealers.Italsoleavesvehiclemanufacturerswithout

real-timeviewsintotheirsaleschannels.Inaddi-

tion,dealerscontinuetostrugglewiththemultiple

entriesrequiredfromdealercommunication

systemstodealermanagementsystems.Thischal-

lengeisparticularlytroublesomeformulti-brand

dealersthatmustenterthesameinformationthree

orfourtimestosupportthemanufacturer,thedealer

and,insomecases,thedealer’sparentbusinessunit.

substantialcostsinoperatingthesesystems.For

example,dealercommunicationandmanagement

systemseachrequireexpensivein-dealerhardware

topowerthevariousfunctions.TheITcostto

managebothsystemscanaverageapproximately

0.6percentofrevenuesforatypicaldealergroupor

addapproximately$100pervehicle.

Fromtheperspectiveofvehiclemanufacturers,

however,thegreatestchallengeposedbyDSPsis

thatanintegrationcapabilityisnotbeingbuiltinto

thedealermanagementsystemstheyprovide.

BecauseDSPsretainandattractdealerclients

chie?ythroughcost-drivenstrategiesthatfailto

rewardinnovation,theyhavelittleincentiveto

createacommondatamodelacrossapplications

andorder-managementsystems.Asaresult,

externalintegrationbetweendealermanagement

andcommunicationsystemshasbecomevirtually

impossibletoachieveatalowcost.Thissituation,in

turn,preventsvehiclemanufacturersfromrealizing

thefullbene?tsofmoreeffectivelycollaborating,

exchanginginformationandsharingapplications

withtheirdealercommunities.SeeFigure2.

Automatedprocesses,rapidtransactionsandtight

integrationbetweendealercommunicationand

managementsystemswillbeachievedonlyif

manufacturersadapttoorcreatechangewithin

thepreexistingITsystemscurrentlybeingsupplied

byDSPs.However,reformingtoday’sdealerIT

environmentisasigni?cantchallenge.Although

profitpotentialexistsinthedevelopmentof

customizedextendedapplicationsandincreased

collaborationwithvehiclemanufacturers,DSPs

believethattheseadvancescouldcannibalizeexist-

ingmarketshareandopenthedoortogreater

manufacturercontrolandcompetition,thusunder-

miningtheviabilityoftheDSPbusinessmodel.

Nonetheless,thereareseveralstrategies,discussed

later,thatvehiclemanufacturerscanpursueto

addressthechallengesposedbyDSPs.

FIGURE2.

INEFFICIENTBATCHMETHODOFDATAEXCHANGE

DEALER

INFRASTRUCTURE

BUSINESSAPPLICATIONS

ANDSERVICES

MANUFACTURER

WHITEPAPER

3

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

?

?

Theuniquereportingandintegrationrequire-

mentsofeachvehiclemanufacturerfranchise

withwhichthedealerisaffiliated.

Externalintegrationbetweendealermanage-

mentandcommunicationsystemshas

becomevirtuallyimpossibletoachieveat

alowcost.Thissituation,inturn,prevents

vehiclemanufacturersfromrealizingthe

fullbene?tsofmoreeffectivelycollaborating,

exchanginginformationandsharing

applicationswiththeirdealercommunities.

Anymulti-franchisebusinesslocationsand

reportingstructures.

?Hostingaspartofsystemarchitecturesthatcan

varywidelyinage,capacityandload.

?

Integrationbetweeneachofthedealer’sown

businessunits/locations.

?

Potentiallynumerousintegrationpoints

withvehiclemanufacturerandthird-party

applications.

TheCost-DrivenDSPSupportModel

Unlikeorganizationsinmostotherindustries,auto-

motivedealersrelyonverysmallinternalITstaffs

toruntheirbusinesses.Dealersrequireadifferent

levelandtypeofsupportthatgenerallyexceedsIT

supportprovidedinotherindustries.Thisresults

incomparativelyhighsupportcosts,sodealers

relyheavilyonDSPsfortheirITassistance.The

majorityofdealershipITsupportiscenteredon

respondingtousererrorsratherthantotechnical

issues.Becausedealerpersonneltypicallyarenot

savvycomputerusers,theyoftenrequirealevelof

supporthigherthanthatrequiredevenbyaverage

computerusers.

DealershipInstallation

Theintroductionofnewsoftwareandsolutions

usuallyrequiresthatDSP?eld-supportstaffvisit

thedealershiptoperformtheinstallation.The

installationcaninvolvenewhardwareandaunique

customconfigurationrequiredbythedealer’s

ITarchitectureaswellastestingofthenewproduct

forcompatibilityandperformance.Inaddition,

varyingamountsoftrainingandinstructionmay

berequired.Also,duetotheheavydemandsof

thedealerretailenvironment,newproductsoften

mustbeinstalledafterbusinesshours.Allofthese

variablesservetodriveupsupportcosts.

DealershipEnvironment

Thedemandingnatureoftheautomotiveretail

environmentrequiresrock-solidperformancefrom

supportingITsystems.Ifthesemission-critical

systemsfail,everydepartmentofthedealershipcan

befrozeninapro?t-draininglockdown.Despite

therelativelylimitedoptionsavailabletodealers

choosingadealermanagementsystem,eachdealer’s

ITimplementationwillbeunique.Forexample,

thedealer’sITsystemmustbecompatiblewith:

OngoingSupport

Themission-criticalityofautomotivedealerIT

meansthatDSPsmustofferhighlyavailable

supportservices.Theratioofsupportresourcesto

customersismuchlower,however,thanwouldbe

thecasewithsoftwaresupportcompaniesserving

otherindustries—asituationthatresultsinhigher

costsforbothDSPsandtheircustomers.Themajor

DSPshaveeachintroducedASP-basedsolutions,

butthesesolutionshavenotbeenwidelyadopted,

4

BEARINGPOINT

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

largelybecausetheyfailtosigni?cantlylower

user-errorsupportdemands.

Dealer-drivenportalscanremoveexpensive

serverhardwareinthedealership.Thedealer

needsminimalhardware,suchaspersonal

PCsandahigh-speedInternetconnection,

andallsoftwarecanbecentrallyhosted

andsupported,whichcangreatlysimplify

maintenanceandupgradeprocesses.

AsinanymodernITsupportorganization,there

aremultiplelayersofsupportindealersystems,

rangingfromusermanualsandonlinedocumenta-

tiontophonestaffand?eldstaff.Increasingly,

themajorlineofsupportforadealermanagement

systemcomprisesremote,phone-basedsupport

professionalswhocandialintothedealer’ssystem

todiagnoseandsometimesremotely?xsoftware

andcon?gurationproblems.Again,themajorityof

thesecallstypicallyconcernusererrorsasopposed

totechnicalones.

DSPsallocatesupportresourcesbasedonthe

requirementstheyprojectforeachproductasitis

introduced/upgraded.Whensupportresourcesare

stretchedthin,customersatisfactiontypicallydrops

precipitously.Tokeepcustomershappy,DSPsmay

needtoallocatelargesupportresourcestonew

products,thusdrivingearlycustomeracceptance

andsatisfaction.Astheproductmatures,support

resourcescanebbwithdemandtothepointof

diminishingreturns(i.e.,whenadditionalresource

investmentwouldgenerateonlyminimalcustomer-

satisfactionreturns).Ofcourse,duetothemulti-

taskingresponsibilitiesofthesupportorganization,

thisshiftcanbemoreofanaccountingformality

thananactualresourceallocation;however,large

supportcampaigns,suchasnew-productintroduc-

tions,mustbeclearlytrackedandaccountedfor.

Oneofthemajortrendsdrivingtheconvergence

ofdealercommunicationandmanagementsystems

istheuseofWeb-basedapplicationstohelpreduce

theseon-siteservicefees.Tothisend,dealer-driven

portalscanremoveexpensiveserverhardwareinthe

dealership.Thedealerneedsminimalhardware,

suchaspersonalPCsandahigh-speedInternet

connection,andallsoftwarecanbecentrallyhosted

andsupported,whichcangreatlysimplifymainte-

nanceandupgradeprocesses.

EconomicModel

Giventheshrinkingpopulationofthecurrentbase

of22,000new-cardealersintheUnitedStates,the

opportunitytospreadoutsupportcostsisdimin-

ishing.Assumingthatdealersmainlypurchase

additionalapplicationsfromtheirDSPs,and

factoringoutsmallerdealers,theexpectedmarket

foraverysuccessfuldealerITproductisonlyabout

Thepricepointforsupportisbasedontheprojected

utilizationofthesupportresource.Apro?tmargin

isbuiltintotheprice,andexpensesarefactoredinto

thebusinessmodelofeachDSPproductset.As

arule,effectiveproductstrategymeanskeeping

supportcoststoaminimum.Theneedforlow

supportcosts,however,canresultinincreased

researchanddevelopmentresourcesbeingexpended,

whichcandriveupoverallproductcosts.For

example,extensivetestingofuniquedealer

managementsystemcon?gurationswilldriveup

5,000units—arelativelysmallcustomerbaseacross

whichtoshareresearch/developmentandsupport

costs.Giventhelengthysalescyclesformost

products,DSPsoftendonotprojectreturnsuntil

threeto?veyearsafterintroduction.

WHITEPAPER

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DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

theresearchanddevelopmentcostsofthenew

PricingModels

productbutultimatelylowersupportcosts.The

challengeforDSPsistocorrectlyprojectthepoint

ofdiminishingreturns.

PricingmodelsarefairlyconsistentacrossDSPs,

withfeesdividedbetweenhardwareandsoftware.

DSPstypicallyincludefeesinthefollowing

categories:

Althoughsupportcanconstituteamanageable

revenuecenterforDSPs,support-intensiveprod-

uctstendtocreatedissatis?eddealercustomers.

Consequently,acriticalquestionforDSPsisthis:

Howmucharedealerswillingtopaytoavoid

support-intensiveproducts?Theapparentanswer,

however,usuallyis“notenoughtocovertheeven-

tualcostofsupport.”Thissituation,inturn,

motivatesDSPstopricesupportfeesandsoftware

licensingseparately.

?

?

One-time,up-frontfees.

Monthlysoftwarelicensingfees(oftencatego-

rizedas“supportfees”inotherITmodels).

?

Monthlysupportfees.

Someproductsalsoincludetransaction-based

pricing.Inaddition,thereareotherclassesof

feestiedtohardwareandthenumberofusersand

locations.

Becausedealersunderstandthatsoftwareupdates

areneededtokeeptheirsystemscompatiblewith

vehiclemanufacturerrequirements,theyperceive

valueinpayingforsoftwarelicensing,whileseeing

theneedforsupportasafailureonthepartofthe

DSP.Consequently,supportfeestendtobelowand

licensingfeestendtobehigh.Itislogicaltoassume

thatfeescollectedforsoftwarelicensingoften

underwriteactualsupportcosts—especiallyatthe

beginningofaproduct’slifecycle,whensupport

expensesareattheirpeak.

Whiletheuseofmonthlysoftwarelicensingfees

representsabreakwithITindustrynorms,thesefees

doinclude,amongotherthings,theresearchand

developmentcoststhatresultfromtheneedtoregu-

larlyupdatesystemstomeetvehiclemanufacturer-

speci?edreportingrequirements.Figure3shows

twoexamplesofDSPproductpricingstructures.

FIGURE3.

EXAMPLESOFDSPPRODUCTPRICINGSTRUCTURES

UP-FRONT

COSTS

MONTHLY

SOFTWARE

LICENSING

SOFTWARE

SUPPORT

TOTAL

ANNUAL

COST

SUPPORT-

SPECIFIC

SUPPORTAND

LICENSING

(PERLOCATION)

PERCENTAGE

PERCENTAGE

Accounting

(GeneralLedger)

$2,500

$1,875

$200

$150

$35

$26

$5,320

$3,990

7.89%

7.89%

53%

53%

PartsInventory

6

BEARINGPOINT

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

3

.De?neandexecutearoadmap.

.Drivestandards.

Assumingthatdealersmainlypurchaseaddi-

tionalapplicationsfromtheirDSPs,and

factoringoutsmallerdealers,theexpected

marketforaverysuccessfuldealerITproduct

isonlyabout5,000units—arelativelysmall

customerbaseacrosswhichtoshareresearch/

developmentandsupportcosts.

4

5.Reengineerdealercommunicationsystems.

.Focusonrevenue.

6

Strategy1:LeveragetheInternet

Vehiclemanufacturersneedtodeliverinformation

todealersinthemostcost-effectiveway,and

thiscanefficientlybeaccomplishedthroughthe

creationofadealerportalthateffectivelybypasses

thedealermanagementsystem.Forinstance,one

manufacturercurrentlyallowsitsdealerstoorder

theirowninventoriesonline.Thesystemtracks

salestrendsdaybydayanddealerbydealerto

helpassemblyplantsdeterminewhattobuildand

toadvisethemarketingdepartmentonwhatto

promoteandwhere.

Becauseothercostsaresmallwhencomparedwith

softwarelicensingfees,thetruecostofsupportcan

beestimatedonlywhenthelicensingandsupport

feesareaggregatedandlookedatasapercentageof

thetotalcost.Ofcourse,untilanentirelynewsoft-

wareupgradeandtheassociatedup-frontfeesare

required,thefuturedealercostexclusivelycomprises

supportandlicensing.

Bymoretightlyconnectingdealersandmanufac-

turers,portalscanhelpmanufacturersdesign,

develop,plan,purchase,manufacture,distribute

andsellvehiclesbasedonreal-timeinputrather

thanontraditionalbuild-to-forecastmodels.

Portalssupporttheentiresalesprocess—from

makinganoffer,to?nalizingthecontract,todeliv-

eringthevehicle.Theyenablesalesrepstocon?gure

andlocatevehiclesattheimporterorwholesaler’s

AddressingtheChallenges

ofDSPs:SixStrategiesfor

VehicleManufacturers

HowcanvehiclemanufacturersworkwithDSPsto

savemoneyfortheirdealersandthemselves?Which

applicationsshouldmanufacturersconsiderprovid-

ingdirectlytotheirdealercommunities?Which

willyieldthehighestreturnoninvestment?Which

aretheeasiesttoimplement?Howcanmanufacturer

productsbelaunchedtodealercommunitiesin

conjunctionwithDSPstohelpensureproduct

acceptanceandadoption?

Onevehiclemanufacturercurrentlyallows

itsdealerstoordertheirowninventories

online.Thesystemtrackssalestrendsdayby

dayanddealerbydealertohelpassembly

plantsdeterminewhattobuildandtoadvise

themarketingdepartmentonwhatto

promoteandwhere.

Thepotentialstrategies,eachwithspeci?cadvan-

tagesanddisadvantages,areoutlinedasfollows:

1

.LeveragetheInternet.

.Drivethechange.

2

WHITEPAPER

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DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

sitebydeployingreal-timedataandpowerfulsearch

Strategy3:De?neandExecuteaRoadMap

criteriato?ndvehiclesthatmatchwhatagiven

customerwants.

ManyDSPshaveresistedincursionsbyvehicle

manufacturersintotheirmarketspace.However,

dealer-facingapplications,“free”dataandseamless

integrationcouldhelpDSPsremainsuccessful.If

vehiclemanufacturerscouldde?neandexecute

systemsroadmapsandbringtheDSPsalonginthe

process,itwouldbemucheasierforDSPstoplan

forthenewsystemsandconnectivity.Thepotential

downsideforDSPs,however,isthatbarriersto

marketplaceentrycouldbelowered.Fromthis

perspective,platformcomplexityisaDSPallyin

termsofmaintainingmarketshareandpro?t

margins.Tobringnewapplicationsandservicesto

dealers,vehiclemanufacturerswillneedtomake

?rmcommitmentstofollowthroughwiththeir

initiatives.Thefailuretodosowouldbeseenby

DSPsasatrustviolation.SeeFigure4(page9).

Inaddition,customerservicemanagerscanhandle

maintenanceandrepairmoreefficientlybylocating

andorderingsparepartsusingaWeb-basedcatalog.

Becausetheportalseamlesslyintegratesindependent

onlineservices,themanagercanalsoorderparts

fromthird-partyvendors.

PROS

CONS

?

?

Real-timeinformation

?WouldexcludetheDSPs

Bene?ttobothdealer

andmanufacturer

?Perceivedlossofcontrol

bydealers

Strategy2:DrivetheChange

Vehiclemanufacturerscandrivechangeaslongas

thevaluepropositionisbalancedamongallparties

involved,aswhenthediscontinuanceof?cheand

papercatalogscreatedanewmarketforelectronic

partscatalogs.Withrespecttoelectronicparts

catalogs,thevaluelayinsigni?cantlylowercostsof

production,accesstofreshinformationandthe

integrationofsolutions.Inthismodel,thebene?ts

areclearforallparties.InthecaseofDSPsupport,

onemechanismwouldbetomandatethelowest

levelofconnectivityfromdealertomanufacturer.

PROS

?Dependableview

CONS

?Couldslowdevelop-

mentofapplications/

services

ofthefuture

?

Reducedsupportcosts

?Singlevehiclemanufac-

turercannotdrive

Strategy4:DriveStandards

Manyvehiclemanufacturersbelongtothedealer

standardsgroup().This

standardsbodyhasbeguntheprocessofestablish-

ingintegrationandconnectivitystandardsforthe

automotiveretailspace.Thisorganizationwillbe

neededtohelpbringthedealers,DSPsandvehicle

manufacturerstogetherformutualbene?t.

PROS

CONS

?

Commoncomputing

platform

?Costspassedon

todealers

?

Easierintegration

?Singlevehiclemanufac-

turercannotdrive

8

BEARINGPOINT

DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

FIGURE4.

Strategy5:ReengineerDealer

NEW,DYNAMICMETHODOFINFORMATIONSHARING

CommunicationSystems

Oneofthemaindrawbacksofdealercommunica-

tionsystemsisadesignthatcausesDSPstochange

theircoresystemsforeachvehiclemanufacturer

eachtimeanassociatedapplicationorintegration

pointischanged.Adifferentmodelwouldarchitect

athinclientback-endthatcontainsrulesandtables

andlettheDSPsprovidetheuserinterfaceand

back-endintegration.Thisscenarioisdepictedin

Figure5.

DEALER

INFRASTRUCTURE

BUSINESSAPPLICATIONSANDSERVICES

PROS

CONS

INDUSTRYITSTANDARDS

?

Fastapplicationand

integrationchanges

?Couldsavesupportand

ongoingcharges

AUTOMOTIVERETAILPORTALS

MANUFACTURER

?

Costlyonaone-time

basis

?Singlevehiclemanufac-

turercannotdrive

FIGURE5.

REENGINEEREDDEALERCOMMUNICATIONSYSTEM

USER

INTERFACE

Inthepast,manufacturershavetakenahands-off

approachandhavenotprovidedstrongsupportfor

standardization.Ontheotherhand,DSPshave

lookedtothestandardsbodyonlytoprotectmar-

ketshare.Asvehiclemanufacturersseektoextend

theenterpriseandcutcosts,thechallengewillbeto

createincentivesforDSPstobeginassistinginthe

establishmentandapplicationofstandards.How

manufacturerswillachievethisadvancehasyetto

bedemonstrated.Thestandardsforumundoubtedly

couldbestrengthened,butitwilltakeaggressive

leadershipfromvehiclemanufacturerstoensure

thatthestandardspenetratethemarketplace.

RULES

ANDTABLES

Strategy6:FocusonRevenue

A?nalstrategywouldfocusontherevenue-sharing

potentialforDSPsanddealers,providingfor

theexaminationofend-to-endcoststructuresand

revenueenhancersthatcouldcreatewin-win

solutionsratherthanadversarialrelationships.For

example,aninitiativetosendservicelabortime

guidesdirectlytodealersfromavehiclemanufac-

turerwoulddirectlyaffectDSPs’incomestreams.

PROS

CONS

?

Recognizedsource

ofstandards

?Doesnothavea

historyofaction

?

Commonforum

forissues

?Singlevehicle

manufacturer

WHITEPAPER

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DRIVINGCHANGEINTHE

DEALERITENVIRONMENT

However,thesolutioncouldincorporateaprocess

butacombinationcouldprovetobethemosteffec-

tiveapproach.AswasthecasewiththeInternet

car-sellingmodel,changewilloccurandsuccess

willbeachievedonlywithabalancedapproachthat

createsabene?cialsituationfordealers,DSPsand

vehiclemanufacturersalike.

thatwouldbroadcastthelabortimeguidemasterto

theDSPlocationandprovidechange-onlyupdates

todealers,resultingincostsavingsforthevehicle

manufacturer,theDSPandthedealer.

PROS

CONS

?

Newviewofthe

oldworld

?Wouldtakeadedicated

sponsortopush

?

Willingparticipants

sharerevenue

?Raisestrustissues

Conclusion:Establishing

aClearPathofValue

Asmanufacturerscontinuetolookforcost-saving

measures,dealerswillalsoseebene?ts.Capital

investmentintheinfrastructureofthecurrentauto-

m