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March 21, 2006

A DMS is not a magic bullet

What's the main problem with dealer management system implementations?

Well, assuming a quality DMS, I'd say it's that dealers tend to think that a DMS is a magic bullet, that in and of itself it will solve whatever problems they may be having from an organizational standpoint.

Myth be dispelled! Not even wonderful Autologica :) will magically fix a dealership. I'm sure you've read of the high failure rate of CRM deployments that typically come about due to the excessive (unfounded?) expectations involved.

With a DMS, the outcome won't be as catastrophic as with a CRM (where failure signifies non-adoption and a wasted investment), as the dealership will usually deploy successfully and widespread use will ensue. But the problems that were there before will probably still exist.

Of course this can be prevented.

How? By attacking the root of the problem: bad or non-existant processes in each department.

We recently formed an alliance with ADC-Automotive Dealer Consulting LLC, a cconsultancy firm based out of Virginia and Puerto Rico that specializes in providing process improvements and training to automotive clients in throughout the Caribbean and Latin America.

Now, when we work together on a project, ADC analyzes the dealership from top to bottom, puts best practices/processes into place, and only then do we deploy Autologica, configuring it to meet the dealer's precise needs.

And that's the closest to a magic bullet that I can think of...

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