Technology Upgrades: Is it Time To Act?

Posted by Motive Retail on May 20, 2015 5:54:31 AM

"I Never Worry About Action, Only Inaction" Winston Churchill Humans are pre-programmed to avoid risk and seek safety. We only overcome the need for safety when we believe that the reward will be bigger than the risk. The limitation of that thinking is that risk/reward is a matter of perception (influenced by many factors) and thus not always based on fact. If our perception is that the risk is greater than the reward, we often choose inaction. We may falsely believe that the best choice is no choice; to maintain the status quo. This can be especially true with technology. Some OEMs have a measure of fear, uncertainty and doubt that causes delays in upgrading their technology infrastructure.

This can be caused by:

  1. Perceived cost

  2. A previous technology change that did not deliver as promised

  3. Users who have become attached to legacy systems and processes

  4. A lack of a clear path forward or sense of overwhelm

Delaying upgrades to critical infrastructure can have a significant effect on your organization’s competitiveness and brand reputation. Older systems often do not allow for an agile and mobile workforce, fail to meet the ever increasing expectations of consumers and business partners, and frequently represent significant security risks. Target’s 2013 security breach caused a 46% drop in profits, class action lawsuits totaling more than $10 million and the firing of their CEO. Let’s face it, no company wants to be the next poster child for an insecure system.

A frequent cause of upgrade inertia has been the lack of viable, easy to implement solutions. Looking at the topic of dealer retail integration we often see the inaction dilemma caused by the choice between developing solutions internally and using outside technology resources.

While internal solutions can initially look very attractive, these solutions can be an extremely expensive and time consuming process. Internal development is often hampered by a lack of connection to the real world integration problems that dealers face and the natural desire to put the needs of the OEM first. This often results in solutions that do not fully serve the most pressing needs of the dealer. This translates into lower levels of solution adoption and implementation; the very problems that you are trying to solve.

Another option for OEM’s is to seek solutions from outside vendors. With very few technology vendors possessing expert knowledge of the unique requirements for retail integration in the automotive industry, technology companies with little or no industry specific knowledge are tasked with creating “one-off” integration solutions that don’t fully address the needs of the OEM or the end user. Additionally, these solutions are not fully scalable and have to be re-created each time a new integration needs to be implemented. Higher costs and slower time to market are the natural result.

Recent advances in industry specific SaaS type solutions are giving OEM’s the ability to leverage existing, proven technologies, at a much lower cost and enjoy a faster implementation/adoption curve for new dealer integrations because many of the development unknowns have been reduced or eliminated. Motive Integrator is an example of this type of solution. Developed by Motive Retail specifically to address the issues of OEM and DSP integrations and improving dealer operations, Motive Integrator features:

  • Industry Standardized Architecture

  • STAR Standards Compliance

  • Robust Security

  • Easy Scalability

  • Universal Compatibility With All Systems

At the end of the day, all business decisions involve a measure of risk. The very decision to start a company or pursue a new market are perfect examples. New solutions to integration have greatly reduced the risk of moving forward with upgrades and avoiding the inaction dilemma.

Topics: technology, data security, STAR Standards Compliance, Motive News

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