Much has been made of the
ongoing data-access debate. My question is how it impacts F&I departments.
Several readers have said there are other more critical issues to be concerned
about than whether the newest software tool can communicate with their DMS. I
beg to differ.
During a recent visit to a
dealership, I saw the indirect effect of this debate. Taking me through his
department’s processes, the F&I director I met with popped open the
dealership’s menu. It was an
OEM-branded menu system.
Before running me through the selling features, he started to type in a fake
deal. Before he finished, he stopped and shook his head. “We have to type in
every deal because the menu can’t pull from the DMS,” he said. “Even on an
OEM-branded menu?” I asked.
As a magazine editor, you
learn that the less you retype something, the more you cut down on that one
chance for error. It’s not a fail-safe rule, but it is a more “efficient and
secure” way of doing things. So why are F&I professionals being forced to
retype deal and customer information into a menu? It wasn’t like the dealership I visited was
using some fly-by-night menu solution, where “unfettered” access could lead to
an unauthorized individual possibly reaching and breaking through an OEM’s
firewall through a dealer’s DMS.
But is that it? Is that the
only link between this debate and F&I? No, not actually.
Other dealers I’ve talked to
say the debate is also hampering moves toward e-contracting. One F&I
director I spoke to said the hold-up on access has caused his managers to enter
deal and customer info as many as five times to get an e-contracted deal to
accounting. Gee, wasn’t e-contracting suppose to run things more efficiently?
The debate so far has really
centered on the discussion between Reynolds and Reynolds, and Open Secure
Access (OSA), a coalition that’s been doing the talking for many third-party
vendors. Reynolds, by the way, was the DMS provider for the two dealers I
mentioned previously.
There’s been little to report
since the two squared off in February at the National Automobile Dealers
Association (NADA)’s annual convention. In late June, however, OSA released its
finalized Data Security Guidelines and the floodgate opened again.
Reynolds, who hasn’t budged
on its stance to allow OSA to govern DMS access by third-party vendors,
responded with a release of its own. It announced that it had added to its list
of approved vehicle data transfer partners. Two more releases followed. One
talked about how its Reynolds Certified Interface (RCI) program surpassed 100
third-party companies. The other was about a new OEM integration initiative
with General Motors and Chrysler.
Allan Stejskal, president of
OSA, said Reynolds has made several solution providers wait since last fall for RCI approval. He also talks
about the scuffle between Reynolds and Honda earlier this year over Honda’s use
of ADP’s Digital Motorworks (DMi) to extract dealer data.
“OSA has no problem with
Reynolds being another competitor in that [data transfer] space, not
arbitrarily locking DMi out of the
system,” Stejskal said. “That’s bush league.”
What’s bush league is this
debate turning into a marketing tool for those involved, as well as those
standing on the sidelines. The one thing the debate has done is forced dealers
to consider debate-free solutions, and technology providers are responding. DealerTrack
now has Arkona, and Microsoft should be ready to unveil its new DMS by the 2008
NADA show.
Bob Schaeffer, Reynolds’
director of data services, said the company’s contention with OSA’s guidelines
is that they don’t go far enough in making third-party providers responsible
for anything that goes wrong with the system. What he’d like to see is OSA
establish a way to audit what is pushed and pulled from a DMS, and have the
coalition establish a certification program he likened to ISO-9000.
As for why Reynolds is
pulling modems out of dealerships, Schaeffer (who did review
OSA’s guidelines contrary to some news reports) said the move involves the
company’s continued effort to provide
dealers with a more efficient and secure process of transmitting data. He added
there are only two providers that require the use of modems (DMi being one of
them). Stejskal says there are more companies than that.
It’s no secret what Stejskal
thinks about Reynolds’ stance. As for Schaeffer’s contention that OSA isn’t
going far enough, Stejskal said the certification program OSA is considering
mirrors programs used by the credit card and healthcare industries. As for
keeping third-party companies honest, he said that’s the core goal of OSA — to
ensure full communication between dealers and their third-party solution
providers. If anything, he said, the guidelines provide a way to keep these
software providers accountable.
Well, thankfully both sides
are fighting for what’s right for the dealer. However, this situation needs a remedy
… and fast. There’s an indirect need in the F&I office.