Information TechnologyMIM

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The June issue of MIM featured an article (Does ‘the host’ have the most?) focusing on the trend for inter-

net hosted services from dealer management systems provid-ers. It compared the benefits of lower internal costs and cen-tralised support against on-site servers, specialist support and other maintenance overheads.

Although a key system decision, most dealerships have to manage other specialist software, ranging from manufacturer and parts on-line systems to CD installations and local spreadsheets. So the DMS will be only one feature of the IT environment on top of the required infrastructure and other IT costs.

Hosted DMS systems can put some constraints on

business flexibility as well as providing greater flexibility in other areas. Bear in mind also that if you can’t remove local support and integration costs ‘the host’ can be an expensive option. Equally if IT is mainly confined to ‘back office’ or is fairly standard in the way that your franchisor prescribes it, there are savings to be made.

Assessing the right direction for your business can be made easier and clearer by using a new software tool designed with over 20 years of automotive systems and IT sourcing expertise built into it. Through a simple Q&A process, the Clarity ™ IT Sourcing Diagnostic allows managers to profile their business and see whether a

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With all the IT systems now available to dealerships – from on site systems to ‘Cloud’ computing – what should the decision process be? Tony Feeney FIMI provides a guide to making the correct choices.

hosted model might be the right route for them. It also assesses the right direction for desktop software and PC purchasing, data network operation and staffing dependencies. Risk profiles for each area are developed and a diagnosis given for the most suitable direction in each IT investment area – ready

for the business to engage the supplier market.

Above is an example of output.

One of the early users of the tool is John Hendy, IT and HR director at Hendy Group, who says: “I thought it was incredibly efficient in the way it handled things. I used it to checkpoint where we as a group were and to put some structure behind what we’d already done and future options planning. The volume of analysis that comes out the back of it was quite impressive, and it was good to sit down and read it all and re run it.

“By using the tool, you can

model different options and have confidence that the output gives you that guide that would help you go out into the market and say ‘I think I can outsource, and these are the things I would need to be covering’.”

Opting for a hosted service also doesn’t necessarily mean being dependent entirely on a

DMS supplier. RDS Global Ltd is one provider of hosted DMS and support services to a number of franchised and aftermarket businesses. Chief executive officer Chris Smith says: “Our customers include some of the largest, independently owned franchised retailers in the UK, ranging from the Shetland Isles to Southampton. Having ‘grown up’ in the motor retail sector, we know that we have to match our style of service to style of business and one size definitely does not fit all! We can host the major DMS provider software and then tailor our network provisioning, computing

device and support services by focusing on the overall IT service provision, not just the DMS sale.”

Smith added: “We use the Clarity IT Sourcing Diagnostic tool from Procertis as it gives a fast, reliable and independent assessment of the business IT position. All DMS and service providers should use this

approach, so you know the way a business is being advised is for the customer’s benefit and not just to suit a delivery model.”

So what’s the bottom line? l A decision to host your systems has a lot of business dependencies outside a DMS software choice.l Assess the profile of your IT use and demands against the drivers of cost and efficiencies before investing in your own IT equipment or resources.l Consider the flexibility you will need in the business and acceptable risks for IT and data before deciding on a delivery model.

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Tony Feeney FIMI is chief executive officer of The Integration Executive Ltd, which provides tools and resources customised to deliver return on investment from organisation improvement programmes. To acquire or run the diagnostic for your business or for further information please contact tony@integexec.com or david.brown@rds-global.comClarity is a registered trademark of Procertis Ltd. www.procertis.com

Hosted Systems?How to avoid ‘clouding’ the issues!

Diagnosis:

This profile would indicate a marginal benefit towards looking to third party businesses to provide client devices on a leased, asset-managed basis. However your score position is not conclusive. Owning the client assets could still provide some benefit but this depends on staffing and licensing profile.

Advisory notes:

A number of factors could have contributed to this final position so it is important to check the amber line on your score to see if there are a large number of contending factors operating in your business that have moved your overall score more towards this central position. Key factor drivers for client device decisions are complexity of support and diversity of device types, volatility in user profiles and management, specialist use and their role in end user contribution to business performance. Your scenario responses have balanced these drivers to this position.

The Scenario Results Analysis and Business Disconnect tabs provide the detailed breakdown to the responses and resulting relationship rules which have influenced this position outcome. Review these to manage your key risks and in forming action plans to obtain the desired sourcing arrangement.