One Vision for an IDW

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One Vision for an IDW

• Billions of Dollars Available to Automotive
  Aftermarket if We Just Manage the Data

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Business at the speed of thoughtCrucial data at
a snails pace

• The 160 billion aftermarket Driven by demand,
  fueled by information
• Make, model, year
• Part number and description
• Product attributes
• This data is a precious, perishable asset
• Why does it take months to reach the point of
  sale after its released by the supplier who
  creates it?

3
Whats the problem?

• Billions lost in sales
• Precious resources wasted
• A drain on profitability at all levels
• OE dealers are gaining market share

4
Costing Us Dearly
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Billions Lost to Data-Lag
Problem 1

• Arvin Meritor estimates annual lost sales of gas
  struts to be 33 million
• ABM Industry-wide cost of data-lag is at least
  5 billion annually
• A lost sale is gone forever

Based on a four-month data-lag
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Precious resources are wasted on re-keying and
mapping
Problem 2

• Dana exports data in over 20 formats
• Cost of thousands each
• Projected industry-wide cost millions
• Re-keying/mapping now a cottage industry
• No real added value
• No benefit to suppliers or resellers
• Our industry cannot afford this waste

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A drain on profitability at all levels
Problem 3

• Not just manufacturers
• Parts available, but not the data
• Replacement parts sales missed
• Hot, new accessories miss window
• Frustrated technicians seek parts from
  less-convenient OE sources

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OEM competitors have advantages
Problem 4

• OEMs mounting major aftermarket assault as they
  awaken to 2-4-8 reality
• The triple-whammy
• Wooing motorists
• Pursuing wholesale parts business
• Parts/accessories boutiques
• Many looking at all-makes programs
• They dont need our helpbut theyre getting it

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Problem 4
OEMs have advantages (cont.)

• Real-time parts pricing information
• Firsthand technical data
• Marketing muscle
• Complex machine mystique
• Inventor and creator status

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A Losing Proposition?

• Manufacturers are angry about costs of data prep
  slowness to market
• Resellers are angry about accuracy slowness of
  data to market
• Cant make money doing data syndication

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What does it take to get it done?

• Clear vision of the what
• Trade associations in harmony
• Broad coalition of aftermarket stakeholders
• Egos checked at the door
• A little luck

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Whats the model?

• Must not be tied to one association
• Must be non-profit
• Must represent all stakeholders, large small
• Must be non-competitive to tech providers
• Must be democratic

Aftermarket Catalog Trust of the people, by the
people, for the people
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Benefits of ACT

• Eliminate data lag to counters
• Increased sales
• Reduced migration to OEM dealers
• Drive out redundant costs of mapping
• Save resourcesmoney, time, people
• Mitigate the threat of OEM
• Stop or reverse market share erosion
• Manufacturers control their data
• More accurate, timely and flexible
• Creates access to market
• More data, more places, sell more

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An Essential Element

• A Centralized Repository
• Not an eCat
• No front end
• No back end
• A trade service provider

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One Vision for an Industry Data Bank
Turnkey Data Solution
Turnkey eCat Provider
Data Validation Service
Industry Data Bank
Assisted Data Solution
eCat Customizer
PARTnerShip Network/VAN/FTP
PARTnerShip Network/VAN/FTP
Vendors
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One Vision for an Industry Data Bank
Turnkey Data Solution
Turnkey eCat Provider
Data Validation Service
Industry Data Bank
Assisted Data Solution
eCat Customizer
PARTnerShip Network/VAN/FTP
PARTnerShip Network/VAN/FTP
Vendors
Interactive eCat Customizer
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If We Build It, Will They Come?

• Aftermarket Manufacturers
• OE Manufacturers
• Third Party eCat Providers
• Resellers
• Technology Vendors
• Others

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Technology/Services Required

• Hosting
• Security
• Certification
• Interfaces
• Connection

ACT Should Serve to Stimulate Technology Services
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Whats Critical for ACT?

• Must be efficient
• Fast responsive
• Accurate
• Reasonable
• Must remain current
• Easily updated
• Abreast of technology changes
• Must be universally acceptable

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Aftermarket Catalog Trust (ACT)
A five-phase approach to developing an
independent aftermarket catalog solution.

• Recruitingkey strategic partners.
• Assessmentis it a viable concept?
• Forminga steering committee.
• Gatheringstakeholder support.
• Implementingone way or another.

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Phase One - Recruiting

• Run concurrently with assessment phase
• Specifically directed at key tech providers
• Activant
• Wrenchead
• DCi
• Proposition ACT creates new business
  opportunities

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Phase One Recruiting (cont.)

• Activant represent a critical mass of users buy
  in is essential
• Major retailers intrigued with options created by
  ACT
• Those who play will have faster accesses to more
  accurate, complete source of data than those who
  dont

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Phase Two - Assessment

• Association joint funding of feasibility study
• AAIA, MEMA, SEMA
• Independent, non-stakeholder vendors
• Market savvy
• Technical savvy
• Feasibility assessment, market requirements
  initial plan

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Phase Three Forming

• ACTs charter
• To provide an industry endorsed, open-standard,
  available-to-all, eCat-feeding database
• Forming phase commences with creation of a
  steering committee
• Comprised of 9-15 stakeholder members
• Dissolves when the board is seated

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Phase Four - Gathering

• Steering committee gathers support
• Investors
• Members
• Directors
• Levels of Membership established
• When board is in place, steering committee
  transitions, then disbands

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Phase Five - Implementing

• Implement based on the recommendations of the
  consultants and steering committee

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How Do We Get There?

• Agree that it is a trip worth taking
• Recruit key strategic partners
• Some empowerment of some group
• Fund a feasibility study
• Announce our intensions