Auto Dealer Monthly, June 2017

Te c h n o l o g y 16 auto dealer today June 2017 its cheaper than the high end stuff This is an example of being penny wise and pound foolish Consumer grade equipment typically delivers slow performance and using different brands can result in compatibility issues This sets the stage for a slow network that crashes a lot Who wants that The second part of the integration equation is connecting the sellers network to yours An evaluation of the sellers carrier bills is a good place to start New equipment and new connections will likely be necessary Security data backup and disaster recovery will also need to be addressed 4 Contractual Obligations During the exploratory or negotiation phase of the acquisition its a good idea to review any signed contracts the selling dealership has with DMS CRM and other technology vendors Most vendors wont have a problem making exceptions for a buy sell but there may be some legal implications Finding out early what they might be enables you to factor these costs into your purchase price Its also a good idea to notify the sellers technology vendors far in advance It can take anywhere from a few months to a year to transition a dealership to a new DMS Dont worry about confidentiality Again vendors typically have an established process for buy sells that includes notifying as few people as possible The sooner you get started the better 5 Phone Systems Last but not least theres the phone system to consider Do you want the new dealership to tie into your existing phone system Will their carrier support your system Does your carrier support their system At the very least voice prompts will need to be changed at the appropriate time Again vendors and carriers should be notified in advance so they can prepare for the transition Acquiring a dealership is a big decision that involves big bucks Theres a lot to consider from who the new GM will be to the marketing of a new brand to the smooth transition of employees Dont let the IT infrastructure be an afterthought Waiting until the last minute can cause downtime reduced productivity and employee frustration It can also result in large costs you werent anticipating Ideally your IT team will have the full 60 to 90 days to prepare Erik Nachbahr is the founder of Helion Automotive Technologies and has expertise in transforming dealer networks into vehicles for mission critical applications Email him at erik nachbahr@ bobit com 50000 The amount a dealer group was fined after purchasing another dealership with unlicensed software on its computers 100 MBPS Average throughput of network switch installed three plus years ago 1 GIGABYTE Average throughput of network switch installed today 500 The amount of internet bandwidth usage increased in auto dealerships in 2017 vs 2014 SOURCE HELION 5X Faster wireless speeds delivered by enterprisegrade routers vs consumer grade routers 25 Average number of enterprisegrade wireless access points necessary for location based software in auto dealerships 5 YEARS The useful life of PCs and servers