DMS Blog

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.