The power of choice

The power of choice by Andy Whitehair, CEO, Autofinity

Should dealers compromise their choice of technological functionality by selecting a single provider for the sake of simplicity or should they be free to choose best-in-class according to their own criteria?

It’s a serious question and one that has popped up increasingly in the wake of a new era of ‘one-stop shops’ or walled gardens.

In the early days of digitalisation, the DMS developed as a wider operating system in response to scores of specialist providers which emerged to deliver solutions often to specific dealership tasks. DMS integration with these applications was too often a simple case of ‘computer says no’. A potential reaction to competition or to maintain the highest security levels (take your pick).

As the digital landscape became ever more complex and customers expected the same kind of experience they received from other retailers, APIs (Application Programming Interface, which essentially enables different systems to communicate with each other) became more commonplace.

Out of this scenario, Autofinity came into being with a pioneering platform that connected these hitherto disconnected systems and enabled information to be pooled with a vehicle’s data viewed in one place and written back to other systems.

However, we are now witnessing a reversal of this position as large corporates buy up smaller companies to create exclusive ecosystems.

Such full stack offerings deliver a compelling proposition: purchase all products from the ecosystem to fulfil daily dealership requirements because they complement each other and work so well together.

Here’s why we think dealers should choose products according to their definition of best-in-class

Specialist functions

The limitations of the DMS in the early days saw an explosion of highly specialist applications often focused on selective tasks, such as lead management, vehicle imaging or CRM. Many of these suppliers became experts in their specialism and with enough players in the arena, dealer groups could select those which best suited their requirements. A one-stop shop removes that choice and can result in ‘good enough’ applications at work which, in my opinion, just isn’t good enough.

Flexibility and complexity

The freedom to swap out individual tools as advanced or more competitively priced options emerge is difficult to argue against. The ability to switch readily to more sophisticated, less costly or better suited products is hugely beneficial. In comparison, one-stop shop users are stuck with set applications and may find themselves with reduced bargaining power.

Technical expertise

The lack of technical expertise or tech resource within a dealership group could put off business leaders from selecting the best-in-class solution. The position maybe inarguable but surely such a strategy requires greater oversight and more technical wizardry both of which can be in short supply. However, a central hub or dashboard such as the Autofinity ViHUB system, which manages all the technical heavy lifting of seamless integration, overcomes both the resource and expertise issues.

The seduction of full stack

A comprehensive platform from a single vendor that handles most or all of a dealership’s functions at first sight can be seductive. It promises simplicity and streamlining and even a unified user interface. Convenience and efficiencies are key selling points. Processes, especially across a group, can be more easily standardised and overseen. The necessity of a larger IT team negated. But like anything in life that seems alluring, once the novelty wears off, the reality can be a shock. Vendor lock-in can be a curse and switching wholesale if the relationship becomes unsustainable can be off-putting. Meanwhile, individual components within the suite itself may not be the best fit for the group and a lack of flexibility could reduce the option for customisation. Additionally, it appears that, even applications from a single provider are not in reality as integrated as the marketing suggests.

So, why compromise?

I wouldn’t dream of telling a retailer which option is best-in-class. Only the retailer can decide. Solutions should be determined by individual requirements and only a ‘pick and mix’ approach can deliver. Dealers wouldn’t expect their own customers to settle for something that’s ‘good enough’ so why should they?

A best-in-class strategy should be the only viable option for a single-site operation or a large, multi-franchise nationwide dealership group and everything in between.

As long as seamless integration, a single dashboard and automation is in place.

At Autofinity, we are revolutionising new and used inventory management with overall visibility and the ability to combine and control KPIs such as days in stock all integrated with online marketing. But now we’re fighting a battle on another front as some providers pull up the integration drawbridge.

For dealers who want to implement solutions to suit their individual business needs, interfaces which empower easy integration will help maintain dealer autonomy.