1. Internet-based business model revs up savings for auto dealers - 2001-05-21 - Houston B... Page 1 of 2
Houston Business Journal - May 21, 2001
http://houston.bizjournals.com/houston/stories/2001/05/21/focus6.html
IN DEPTH: E-COMMERCE
From the May 18, 2001 print edition
Industry Applications
Internet-based business model revs up savings for auto dealers
Richard B. Cole
As technology encroaches more into the way businesses operate, industry specific applications are becoming
more prevalent, including those that are not thought of as high-tech. Car dealers, for instance, traditionally rely
on old-fashioned face-to-face customer relationships. But many are beginning to explore technology as a way
to improve upon that service.
Automobile dealers may recognize the potential value of the Internet, but how to establish a fully functional e-
commerce system remains a mystery to many.
Developing a truly functional operational model for either an e-commerce or Internet-based customer
relationship management system only requires a little creativity mixed with an understanding of the business
processes. Combine this with a working knowledge of emerging technologies, and automobile dealers can
easily develop fully functional e-commerce models, increasing both productivity and profitability.
They need to realize, however, that an e-commerce model is part of an overall customer relationship
management program.
For most businesses, using the Internet as a backbone allows connection to not only potential customers, but to
current customers, vendors, lenders, manufacturers, businesses and a host of others. But there are a number of
areas that are unique to automobile dealers because of the connectivity issues that must be addressed.
For an automobile dealer, creating a fully integrated e-commerce model for existing operations can establish
double-digit growth sustainable with minimal increases in support systems.
Fully Internet integrated dealers must operate two connectivity platforms simultaneously. One is for the general
consumer, and the other is for internal business functions. This requires integrating multiple levels of security
and working with third-party vendors to integrate the technology while staying within the limitations of the
consumer segment while harnessing the power of the business segment.
Basic connectivity. A dealership's first step towards success with an advanced online system relies
heavily on providing Internet access for everyone at the dealership. This basic connectivity establishes
the foundation. Once the proper connections are made, the dealer can operate an advanced local area
network integrated with an advanced communications platform for both interdepartmental
communications and external communications.
The platform allows dealers to begin integrating technologies available in both the consumer and industrial
markets that have become readily available.
For example, programs for reading documents sent in Adobe Acrobat Reader can be downloaded at no cost.
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2. Internet-based business model revs up savings for auto dealers - 2001-05-21 - Houston B... Page 2 of 2
Adobe Acrobat, the prominent document transportation program, allows documents to be sent over the Internet
without loosing any formatting while allowing them to be read on any personal computer. Unless they are
extremely large, documents can easily be sent as e-mail attachments.
Thus, creating the platforms allows dealers to not only simplify, but improve communications between the
dealer and the customer base.
Training programs. Distance learning applications allow dealers to control the content and the
continuity of company training programs. Consistent training programs can be accessed during slow
periods or even from an employee's home.
Dealers also can implement testing programs that confirm the intended knowledge was not only reviewed by an
employee, but that the employee retained the knowledge as well.
Human resources. Technology is also available that allows automobile dealers to establish an online
human resources department that gives employees 24-hour access to an abundance of information,
including company training programs, forms, policies procedures and employee benefits. Combined
with features from a distance learning program, the dealer can ensure that an employee's knowledge of
specific policies or procedures has been obtained.
Video conferencing. Interdepartmental communications also can increase operational efficiencies.
Integrating simple technologies such as Web cams operating on local area networks, which make video
conferencing possible, eliminate unnecessary trips for face-to-face meetings. Such imaging technologies
also are becoming an increasingly valuable tool for communications with customers as more become
connected to the Internet using broader bandwidths.
Process integration. Dealers can also interface current databases and automate a number of business
processes, freeing up employees to handle other matters. Combined with wireless applications, such as
the pocket PC, employees can access updated information at anytime on or off the premises.
Creating an e-commerce operations model for the automobile dealer can vastly improve efficiency and
profitability of the business. All it takes is a little creativity and a little know-how. As technology continues to
evolve, bringing more and better connectivity for both businesses and consumers, dealers taking advantage of
these technologies hold the power to implement best practices with advanced models resulting in maximized
productivity and efficiency in all departments.
RICHARD B. COLE is CEO of Katy-based FirstAlliant, a business development firm that specializes in
integrating technology into operational processes in industries including automotive and health care.
© 2001 American City Business Journals Inc.
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