Understanding Software-as-a-Service (SaaS)

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In last week’s entry on the Ideal DMS Model, the idea of Software-as-a-Service was discussed. Software-as-a-Service refers to an internet-based solution, eliminating the need for costly on-site servers. In a typical business setting, the SaaS has a couple of key characteristics:

*      All of the users activities are managed from a central location, that allows the user to access applications remotely via the internet.

*      All the features are updated on the remote server, and thus the updates do not need to be handled by the customer.

*      Fast releases of new features, since the entire community of users benefits from new functionality

*      Single database with real-time data

*      Track & record finances as they occur

*      Real time actual cost of vehicles when you need the information

*      Real time posting vs. end-of day batch

*      With data that is always current you are more efficient and make the maximum profit on each vehicle

*      Know real-time vehicle costs

*      Prospect follow-up

*      Perform a multi-company vehicle lookup and transfer

*      Analyze individual salesperson and sales team data

*      Sell Service Contracts independently of car deals

*      Calculate Return On Investments by vehicle

*      Keep costs that are always up to date

*      Scalability to your dealership size with potential to grow as your business grows

*      Built-in data redundancy

Clearly, Software-as-a-Service is key to the ideal DMS model.

Understanding the Ideal DMS Model

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Welcome, I’m Allan Stejskal VP and General Manager of DealerTrack DMS.
We have now discussed todays traditional DMS model, now let’s discuss the ideal
DMS model. The ideal DMS model is founded on the principle of “Software
as a Service” (SAAS), where the technology is provided via Internet,
eliminating the need for costly on-site servers.

With this DMS model of tomorrow, the responsibility shifts from the
dealership to the DMS provider. Routine DMS maintenance items like
installation of software upgrades, management of factory integration
points, and maintaining a secure environment for the server all become
duties that the DMS Provider takes care of, as opposed to the customer.
In addition, the SaaS model is considerably less expensive for the
dealership. The dealer only needs to lease space on the DMS Provider’s
server, rather than purchasing and maintaining an on-site server. By
reducing upfront server costs and ongoing maintenance costs, the
dealership can easily increase their bottom line by just switching to a
DMS using the SaaS model.

Roman Stanek, CEO and Founder of Good Data explains “Back in the old
good days of enterprise software, we did not need to worry about our
customers. We delivered bits on DVDs – it was up to the customers to
struggle with installation,
integration, management, customization and other aspects of software
operations. We collected all the cash up front, took another 25% in
annual maintenance. Throwing software over the wall: that’s how we did
it. Sometimes almost literally, I now live in the SaaS world. My
customers only pay us if we deliver a service level consistent with our
SLAs. We are responsible for deployment, security, upgrades and so on.
We operate software for our customers and we deliver it as service.”

Moreover, the ideal DMS model offers complete interdepartmental
integration. This means that the F&I, Parts, and Service Departments are
all integrated with the centralized Accounting Office. One customer
database, containing the customer’s contact information and all history
within the dealership, exists that is shared between departments. In
addition, one vehicle inventory database is shared between departments,
making it easy to create deals in the F&I Department, perform Service
and sell Parts to inventory vehicles. Rather than wasting time on double
entries, dealership personnel becomes more productive as information
only needs to be added to the DMS once.

The ideal DMS model has an “Open Architecture” structure
that not only facilitates, but encourages, third-party integrations.
Rather than assuming the DMS is the end-all solution for dealerships,
the ideal DMS recognizes that specialized companies provide unique
software solutions that the dealership can benefit from. As third-party
software vendors integrate with the DMS and data is shared, the
dealership becomes more efficient.

Advancing your DMS is the first step towards the becoming a dealership
of tomorrow, and SaaS technology is essential to that progression. An
increase in efficiency and productivity directly correlates with an
increase in profit. Finding a DMS solution that uses the ideal model
will help your dealership reach profitability, efficiency, and
productivity goals.

Understanding Key Problems with Traditional DMS Providers

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Welcome, I’m Allan Stejskal VP and General Manager of DealerTrack DMS. The traditional DMS model was developed in the late 1970s. The original software materialized out of a need to better manage accounting processes and keep track of parts inventory. While the traditional software was revolutionary for its time, the growing needs and demands of dealerships in today’s society have rendered the software outdated and incompetent. Consider, for example, the lack of interdepartmental integration that a traditional DMS system offers. As the requirements of the dealership developed into needing a better way to create deals, sell F&I products, manage vehicle inventory, and run an efficient Service Department, the traditional DMS model evolved by creating multiple databases, causing the need for duplicate data entry and batch processes. Rather than overturning their system and making smart, time-saving changes, the traditional DMS model reacted to change by creating “Band-Aid” fixes and building on antiquated technology. Also consider how the lack of open architecture hinders the efforts of third-party companies to use data stored in the traditional DMS. Integrations offered are cumbersome at best. Typically, the only option when wanting to use additional software providers requires time-consuming double entry. The promise of providing an integrated and efficient software to completely manage all dealership operations has not been reached by the traditional DMS model.

DealerTrack DMS 10.3 Release

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We are pleased to announce the DealerTrack DMS 10.3 Release.

To view and download the 10.3 Release Notes click here.
To register for Internal Release Training classes click here.

The DMS 10.3 Release will be distributed starting Thursday, August 12th and ending August 24th. Customers will receive an email notifying them when their system has been updated. Customer training webinars are available and will be held August 12th and 13th.

The DealerTrack DMS 10.3 Release

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The DealerTrack DMS 10.3 Release will be added to the DMS between August 12 and August 24, 2010. You will receive email notification letting you know the specific date your system will be upgraded.

To learn more about the enhancements and changes coming to your system, review these Release Notes or attend a Free Customer Training Webinar.  Free Customer Training Webinars for the DealerTrack DMS 10.3 Release will be held as follows:


· Thursday, August 12, 2010 from 1:00 pm to 2:30 pm MST. To register take this link: http://www1.gotomeeting.com/register/996744753
· Friday, August 13, 2010 from 10:00 am to 11:30 am MST. To register take this link: http://www1.gotomeeting.com/register/945947329