Standards for Technology in Automotive Retail

Standards for Technology in Automotive Retail

Challenges for IT StandardizationJuly 9, 2002

Why we need . . .

U.S. Auto Retail Market

U.S. Auto Retail Market

• Auto Dealers– Own multiple franchises– Have multi-location operations– Need consolidated view of operations

• Dealership Information Technology (IT) needs grow:– 20,000 dealers with different IT needs– More than dealership management system (DMS)– Includes local area network (LAN), PCs, VSATs, and– More Internet access for future DCS applications

• Bottom line – dealers need IT “tools” that add value not complexity and cost to the dealership operation

Dealer Technology Dealer Technology Issues TodayIssues Today

Dealer Technology Dealer Technology Issues TodayIssues Today

• Dealers burdened with many IT systems (DMS, DCS, Dealers burdened with many IT systems (DMS, DCS, and 3rd party) and 3rd party) – Need timely access to information, butNeed timely access to information, but– Lack common method to exchange dataLack common method to exchange data

• Dealers experience increasing DCS support costsDealers experience increasing DCS support costs– EachEach DCS application and OEM link - separate costs DCS application and OEM link - separate costs– Upgrade costs exceed initial development costsUpgrade costs exceed initial development costs

• DCS upgrades increase “load” on dealership systemsDCS upgrades increase “load” on dealership systems– Requiring upgrade, upgrade, upgradeRequiring upgrade, upgrade, upgrade

• Now . . . DCS sales & service applications are Now . . . DCS sales & service applications are moving to the Internetmoving to the Internet

Industry Partners Industry Partners Move to the InternetMove to the Internet

Industry Partners Industry Partners Move to the InternetMove to the Internet

• Dealer’s business partners Dealer’s business partners wantwant to do business to do business on the Interneton the Internet

• Manufacturers’ examples:Manufacturers’ examples:– Replace satellite with Internet connectivityReplace satellite with Internet connectivity– Migrate DCS applications to the Internet – Migrate DCS applications to the Internet –

GM Access and DaimlerChrysler DIALGM Access and DaimlerChrysler DIAL– Implement Internet-based EPC and parts Implement Internet-based EPC and parts

locator applications - DaimlerChrysler and locator applications - DaimlerChrysler and HyundaiHyundai

Industry Partners Industry Partners Move to the InternetMove to the Internet

Industry Partners Industry Partners Move to the InternetMove to the Internet

• Retail System Providers (RSP) are migrating to Retail System Providers (RSP) are migrating to the Internetthe Internet– Many assist dealers by including LAN Many assist dealers by including LAN

cabling and data communications cabling and data communications equipment in DMS infrastructureequipment in DMS infrastructure

– Several have developed Internet-based Several have developed Internet-based versions of dealership DMS applicationsversions of dealership DMS applications

But . .Today’s Dealership But . .Today’s Dealership

Isn’t Internet ReadyIsn’t Internet Ready But . .Today’s Dealership But . .Today’s Dealership

Isn’t Internet ReadyIsn’t Internet Ready

Still Need to Solve Still Need to Solve Dealer IT IssuesDealer IT Issues

Still Need to Solve Still Need to Solve Dealer IT IssuesDealer IT Issues

• Eliminate IT-related duplication– Equipment– Manual re-entry of data

• Develop common ways computers can “talk”, to – Access and exchange information– Improve overall efficiency from increased reusability

• Adopt open systems and networks– Common computer connections– Leverage the Internet– Avoid proprietary solutions

What’s the solution?What’s the solution?How to we get there?How to we get there?What’s the solution?What’s the solution?How to we get there?How to we get there?

www.starstandard.orgwww.starstandard.org

What is STAR?What is STAR?

• STAR - the IT standards organization for the retail automotive industry

• Members - Dealers, NADA, manufacturers, and RSP Vendors

• Purpose - develop common, voluntary IT standards for exchanging business information between dealers, manufacturers, and their other business partners

How STAR OperatesHow STAR Operates

• Membership fees fund staff and other operating costs

• Open to dealers and dealer groups, manufacturers, and RSP vendors

• Benefits - reduce time and cost to develop and support business applications

• Who’s joined?

28 Members28 Members

• NADA• ADP• Arkona• Auto/Mate, Inc.• EDS Automotive Retail Group• PBS Financial System, Inc.• Reynolds & Reynolds• Universal Computer Systems• American Isuzu Corp., Inc.• American Honda Motor Co., Inc.• American Suzuki Motor Corp.• BMW of North America, Inc.• DaimlerChrysler• RouteOne

• Ford Motor Company• General Motors• Jaguar Cars• Kia Motors America, Inc.• Mazda North America Operations• Mitsubishi Motor Sales of America,

Inc.• Nissan North America, Inc.• Procede Software, Inc.• Porsche Cars North America, Inc.• Saab Cars North America, Inc.• Sun Microsystems• Toyota Motor Sales, USA• Volkswagen of America• Volvo Cars of North America

What is STAR Doing?What is STAR Doing?

• Simplify transfer of information - describe business information needs in common formats

• Support the use of the Internet – common, non-proprietary connection for dealers & OEMs

• Address existing DCS applications – parts order, vehicle delivery report, warranty claim

• Describe applications for Internet customers

How Dealers BenefitHow Dealers Benefit

• Access any application from any dealership PC • Increase competition among supporting RSP vendors• Receive new applications quickly

– RSP vendors’ products– Manufacturers’ DCS processing

• Opportunity to lead rather than follow– Participate in setting standards– Define information needs

How Manufacturers Benefit

How Manufacturers Benefit

• Speed development of new dealer-facing computer applications– Use common specifications and realize high

reusability levels– Reduce development time and cost

• Rapid deployment of new standards • Participate in setting standards development priorities• Identify business information needs• Increase competition among RSP vendors

How RSP Vendors Benefit

How RSP Vendors Benefit

• Speed development of new dealer-manufacturer applications– Use common specifications and realize high

reusability levels– Reduce development time and cost

• Increase marketing opportunities– Sell applications rather than require dealer

conquest• Participate in setting standards development priorities• Rapid deployment of new standards