HOW TO EVALUATE DEALER MANAGEMENT SYSTEMS How to Evaluate Dealer Management Systems by Laurn Rice, VP & General Manager, ADP Lightspeed Most marine dealers have little, if any, experience managing a software evaluation and implementation process. So how can you be expected to accurately evaluate dozens of alternatives (all of which promise the same dazzling benefits) while juggling a busy day-to-day schedule? This article brings together the best ideas from thousands of dealers in multiple industries to help you effectively choose and implement a software solution. Many dealers think choosing a dealer management system is simply a process of considering reputation, basic functionality, and cost. While those three items are a good start, there are at least 10 criteria dealers should consider when selecting software. Each of these criteria should be thoroughly evaluated before making a final decision. level system that lacks advanced integration. A sales deal, for example, in one system may have several hundred feature sets while another system may offer half the functionality. Implementing a dealer management system is a significant investment of time, money, and effort at multiple levels within the dealership. Dealers who are not fully committed to the effort will fail. One best-practice is to create a crossfunctional team—including the Dealer Principal/General Manager, department managers, and the accountant—to evaluate and choose a solution. Including department managers in the evaluation process will promote buy-in to the final decision, and will go a long way toward successful adoption. Second, you should determine what’s most important to the dealership. In some dealerships, for example, a strong customized reporting package is most important but for others it may be the rental module. Does the software under review offer the breadth and depth of functionality needed for the dealership? Is the user interface clean and intuitive to make training easier? Is every module integrated to eliminate the need for re-keying information? Does it increase efficiency across the dealership? Here are 10 criteria to consider: 1. Functionality You should start by creating a requirements document that details the functionality, by department, that is required for the type of dealership. Smaller dealers often require less depth of functionality while larger dealers will quickly become frustrated with an entry- 2. Implementation Even with the best software, a poor implementation process can ruin the chance for success. Software vendors should clearly outline how the implementation process is organized, including key dates and responsibilities. Can the vendor provide a step-by-step checklist for implementation? Does the vendor have enough resources to Copyright © 2007 ADP, Inc. implement the system in a timely manner? How experienced is the implementation team? 3. Training Good dealer management systems are not of the plug-and-play variety; they require thorough training to understand the advanced functionality and sophisticated processes that need to happen to maintain proper checks and balances. You need to create a plan for initial and ongoing training. How much training is recommended by the vendor? What training and support programs are offered (onsite, classroom, computer-based, etc.)? At what cost? How many trainers does the vendor have on staff? What is their background? 4. Support What types of support are available? Toll-free? Web-based? Email? How large is the customer support staff? What areas of expertise are covered (i.e. accounting, parts, hardware)? Does the vendor offer support hours that adequately meet business hours? When calling support, is live staff immediately available? What is the average hold time? What about after-hours support? 5. Services Vendors should offer a variety of services that complement the software, such as advanced training, consulting, data analysis, or office forms and supplies. What other services does the vendor offer? Will the vendor help the dealer get a complete picture of the dealership’s performance? Can the vendor help you compare your performance against similar dealers in other areas? Can the vendor help you run your business—not just the software—more effectively? 6. Technology The technology a vendor chooses will have a significant effect on the performance and stability of the product. Why did the vendor make the technology choices it made? Are the technology choices cost-effective for the dealer? Is the system platform and architecture stable? How often does the system crash? How quickly does it perform common commands? How up-to-date is the technology? What databases are supported? 7. Vendor Because technology changes so quickly, many dealers evaluate software more on the merits of the vendor than the feature set of the software. Is the vendor financially solvent? How long have they been in business? What other markets do they sell to? What share do they own in each market? How often does the vendor issue new releases? How many developers (full time equivalents) are dedicated to the product? How quickly do they adapt to new trends? 8. Timing Before beginning the evaluation process, you should set a timeline for the project, including target dates for vendor evaluation, vendor selection, and target completion. A typical implementation (ordering hardware, installation, data conversion, database configuration and customization, and training) can take about 90 days, depending on the vendor. Can the vendor meet your timeline? When is the next software release? Is internal staff available for the implementation process? 9. Compatibility Is the vendor (salesperson, implementation, training and support team) professional and courteous? How active are customers in directing future functionality of the product? How well does the vendor listen to its customers? Is the dealership ready and committed to make the required changes? Do they work with the best partners in the industry? 10. Cost The total cost of implementation typically includes fees for software, hardware, database configuration, maintenance, software support, hardware support, and training. You should weigh the total cost of each vendor, not just the sticker price, compared to the value they deliver in the categories listed above. You should also prepare for some short-term loss of productivity while employees become accustomed to new software, and in many cases new processes. How will the software make the dealership more profitable over time? Is there a budget for upgrades and additional users as the dealership grows? 800.521.0309 | adplightspeed.com ADP Lightspeed 5184 Wiley Post Way Salt Lake City, UT 84116 adplightspeed.com 800.521.0309