Software as a service in automotive is today’s theme, and the central message is that this unique blend of software and service delivery is here to stay—for good reason. To many large enterprises software as a service—or SaaS—can mean less packaged software purchases that require volumes of consulting services to make it all work. To IT executives it indicates an important trend that is supportive of more flexible architectures. At Oxlo it means leveraging a common infrastructure to drive real-time, efficient interaction between business partners in automotive retail.
This is not a new idea.
In automotive there are a few cases that share some interesting parallels. Covisint is a great example. Originally founded in 2000 as AutoExchange by DaimlerChrysler, Ford, General Motors, Renault and Nissan as a high-profile online marketplace for automotive suppliers and manufacturers, they coordinated procurement and supply chain activities. They originally struggled with resistance from suppliers in the early days but have more recently flourished – and Compuware purchased them in 2004. DealerTrack on the other hand has taken this strategy to F&I on the demand side of the industry, focusing on message-based services that support the lending process. Originally supported by major banks, DealerTrack is now publicly owned and is expanding into more hosted applications. Oxlo started with a balance of fixed ops, service, F&I and other demand-to-manufacturer message-based services and is growing into business intelligence services in addition to more robust business process support services.
There are other SaaS examples in automotive, but these three, particularly because they are broadly recognized and successful, suggest the particular power of a business-to-business integration hub in automotive. The point here isn’t to pat ourselves on the back, but rather think about the reasons that this particular type of SaaS approach works in this industry, and where this type of service is headed.
What’s common? All focus on message-based services. All connect many to many. All alleviate an operational burden from their business partners. All have honed services to fit the very unique business processes at work in their markets. All are expert at security and reliability.
So where else can automotive benefit from a message-based service? Remarketing or used vehicles? Incentives? Motorcycles, trucks or heavy equipment? Aftermarket suppliers to retail?
All … obviously.
I have to say I agree for the most part. However there is something I'm not getting. How will this help remarketing or used vehicles?
Posted by: Jane | March 17, 2008 at 08:56 AM