Standards for Technology in Automotive Retail

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Standards for Technology in Automotive Retail
Why we need . . .

• Challenges for IT Standardization
• July 9, 2002

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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

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Dealer Technology Issues Today

• Dealers burdened with many IT systems (DMS, DCS,
  and 3rd party)
• Need timely access to information, but
• Lack common method to exchange data
• Dealers experience increasing DCS support costs
• Each DCS application and OEM link - separate
  costs
• Upgrade costs exceed initial development costs
• DCS upgrades increase load on dealership
  systems
• Requiring upgrade, upgrade, upgrade
• Now . . . DCS sales service applications are
  moving to the Internet

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Industry Partners Move to the Internet

• Dealers business partners want to do business on
  the Internet
• Manufacturers examples
• Replace satellite with Internet connectivity
• Migrate DCS applications to the Internet GM
  Access and DaimlerChrysler DIAL
• Implement Internet-based EPC and parts locator
  applications - DaimlerChrysler and Hyundai

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Industry Partners Move to the Internet

• Retail System Providers (RSP) are migrating to
  the Internet
• Many assist dealers by including LAN cabling and
  data communications equipment in DMS
  infrastructure
• Several have developed Internet-based versions of
  dealership DMS applications

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But . .Todays Dealership Isnt Internet Ready
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Still Need to Solve Dealer 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

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Whats the solution?How to we get there?
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www.starstandard.org
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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

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How 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
• Whos joined?

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28 Members

• 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

• 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

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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

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How 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

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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

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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