- Multiple disconnected systems are a major stumbling block for retail growth
- Poor data flow and little oversight of vehicle inventory in real-time is a major issue
- Dealers discouraged from making best-in-class supplier decisions in favour of connectivity
Retailers are forced to choose between best-in-class systems which often lack the required integration or taking a ‘one stop shop’ to overcome connectivity issues, according to automotive platform providers Autofinity.
However, both options can be a barrier to growth. Multiple disconnected systems have long been an issue for the sector. Dealers have implemented several applications to meet specific dealership tasks creating data silos with little or no data flow requiring double keying and resulting in inconsistent and inaccurate information contained in several different places.
Many dealership groups have solved the problem by opting for a large ‘one stop shop’ solution but the compromise is often forgoing the choice to implement systems which best meet group requirements.
Andy Whitehair, CEO of Autofinity, said: “We were with a dealer client recently who said when a new employee was taken on, 20 different passwords were required to access the necessary applications for the job function to be performed – just one indication of the scale of the problem dealers face.
“With hardly any data flow between systems, employees waste time double keying or information in some systems remains out of date resulting in inconsistencies and inaccuracies such as the same vehicle advertised on different marketplaces with a different price. It is also likely that many tasks will be duplicated by the different systems in operation which, in itself, has a cost implication.”
Autofinity has identified three main barriers to change:-
- The extent of the implications of so many systems is not properly understood
- The cost of change is perceived as high
- There appears to be no straightforward solutions, so the problem is ignored
Whitehair added: “In most dealerships, an employee will be the bridge between disconnected systems whilst IT directors and their team are focused on ensuring security is in place and the network is operational rather than having an overall understanding of the multiple applications utilised in each part of the business.
“Multiple systems have been an issue for so long that dealers have resigned themselves to living with it. Those who look to change are often swayed by the big providers but often the provision is simply acquired systems which have been bolted together and even then, seamless integration can be elusive.
“Dealers are therefore faced with the option of choosing the best system for a task but accepting they operate in a silo or taking one of the major supplier’s systems even if it means not having the best tool for a certain job.”
Whilst Autofinity’s ViHUB platform integrates with the different systems at work in the dealership and pools information into one rich data source to create ‘a single view of the truth’ which feeds all other platforms, Whitehair recommends a systems audit as a starting point.
Increasingly, retailers are utilising Autofinity’s Transform Consulting arm which provides senior leaders with an understanding of the systems operating across the group, the tasks performed by each and the extent of duplications.