Managed Service vs. Professional Service

Posted by Motive Retail on Jun 8, 2012 5:25:04 AM

When it comes to rolling out new integrations with dealers, some automakers have turned to their IT services partners for support. Certainly this works well for the design and development of the back-end systems, communications infrastructure and the Web Services that will be used to implement the integration with dealers. The expertise and business model of IT professional services firms is well suited to this sort of work. Ensuring that these integrations are efficiently and correctly implemented by dealer system providers, though, is a different matter.

There are many reasons why a managed service approach to working with DSPs is more effective:

1) Although internal development projects have a start and a completion, DSP certification is an ongoing process. New DSPs come into the market. Dealers often choose to change their DSPs. DSPs modify their own systems over time in ways that can “break” the integration. A managed service that persists over time to meet the needs of a dynamic dealer systems market is the only way to keep up with developments on the dealer side.

2) A key strength of professional services firms is their knowledge of the people, processes, systems and technical architectures within their client’s organizations. They know how to do their work in ways that are efficient and produce results for their clients. On the other hand they don’t know the people, processes, systems and technical architectures in the DSP organizations. A managed service focused on working with the DSPs does have this knowledge and can produce the same type of efficiencies and results with DSP integration that the professional services firm produces internally.

3) Where a professional services firm may develop tools and processes to support DSP integration on a time and materials basis, the managed service provider already has the tools, templates, methodologies and processes in place. This reduces both the cost and time-to-market for an automaker to integrate its systems with DSPs. And though a professional services organization may have good ideas about how DSP support tools and processes should work, those ideas have not been tried, refined and proven over time like those of the managed service provider.

The bottom line is that the professional services firm may be an excellent choice for implementing the systems that operate behind the automaker’s firewall, but the managed service provider is the right choice for integrating those systems with the DSPs. Contact us or visit us on www.motiveretail.com to check out the apps used to support DSP integration in the Motive Integrator portal and learn more about our approach to DSP certification.

Topics: Industry Observations, Dealer Systems Integration, Automakers

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