Integration as defined on Dictionary.com:  an act or instance of combining into an integral whole. Okay...that doesn't really help.  How about Wikipedia?  Awesome - they have an entry for "System Integration":  is the bringing together of the component subsystems into one system and ensuring that the subsystem function together as a system. There's a lot more here.

That's the web-technical definition, but why the hell am I writing about it?  Jeff and I get on the phone when one of us is taking a long drive because we have longer phone calls than most friggin' women do!  Yesterday evening Jeff was on the road and we had a few things to discuss about DealerRefresh.  After we got some house keeping out of the way, we started discussing the various things we've been tackling at work lately - no bosses - we're not sharing information (for those of you who don't know, Jeff and I actually have some competing stores).  We were discussing the different problems we have in diagnosing inventory issues and somehow that led to the integration topic.  After debating over who is currently dealing with more BS around getting systems to cooperate, I ended up volunteering to write this article (is that what happens when you deal with a ton of BS?).  Anyway, that's how we got here.

I'm sure Jeff and I aren't the only people who have to pop aspirins on a daily basis because systems don't "integrate", but we are wondering why vendors toss the "integration" word around like it is a free Ferrari.  Up until yesterday evening I believed integration to be something along the lines of Microsoft Windows and Microsoft Word where everything is virtually seamless and there are rarely conflictions.  Not like Insert DMS Name here and Any Vendor Name here.  After reading some definitions of the word "integration" I'm starting to realize that integration can simply mean that two systems work together.  Technically our vendors do this through feeds and the word "integration" (at least I assume) is used because it sounds better in a sales pitch.  So if you input your inventory into ADP and HomeNet pulls it out, sugar coats it, then sends it to the web you could actually call that an integration between ADP and HomeNet where ADP would be the subsystem of HomeNet in the situation where your goal is to get inventory on the web.

What to talk to your vendor about when they do throw out the word "Integration"?

If you've read this far, I'm sorry, I definitely put a lot of worthless junk together in 3 paragraphs that could have been said in 3 sentences, so let's get to something valuable:

Two things first:

1. I am just someone who has always been on the dealership side of things - I am no expert on coding a data feed.  I haven't read a book or attended any classes on it.
   
2. Working out a data feed is extremely frustrating and doesn't happen just by pushing a button.

If a vendor tells you he integrates with so-and-so, your first question should be:  How? Is it done by pushing CSV files to a FTP server that happens every couple of hours or do you have straight access to push data in real time to the other vendor's system?  So the first question is How? and the second question is How often?

If you're talking to a vendor who says they can push/pull with your DMS (ADP, Arkona, Reynolds & Reynolds) then that sparks a few more questions on the How?

1. Have you paid your DMS dues and have actual certification to push/pull directly with them? - most of the time this is going to be a No...I'll explain and criticize this in a later posting.
   
2. Are you installing something on my network that accesses our DMS?  Technically this would be a hack.

• If you're installing something on my network, then I need to know if you're exploiting a hole in my DMS that could be closed any day.  That isn't a big deal to me, but what is your contingency plan if that hole is patched?
  
• If you're installing something on my network to access the network just like a regular user, then great!  Unfortunately, in today's DMS world, this is the best way for a vendor to gain access if they haven't been through certification.

I'm sure at this point in the article, I have ticked off all the DMS companies...and I will address that in another article later.

Some new types of "integrations" have been happening in these recent years.  Used car pricing tools have the ability to push the pricing of a vehicle to an inventory aggregator such as HomeNet, VINSolutions, your CRM or even your web site host.  This type of data feed is done a little differently because it typically is done on a car by car basis instead of just sending a CSV file full of changes to a FTP server.  This, to me, seems to be the cleanest and closest thing to what I would consider "integration".  I have been watching this happen between vAuto and HomeNet for a while and it is almost real time with delays being as long as 30 minutes (no big deal).  Soon I will be watching this same type of integration between another set of vendors and am very excited.  I hope this data sharing between the more proactive vendors will lead to a new type of "integration" for the industry.

Sharing of dealership data is a must in this digital age.  We either need our vendors to speak to one another or a single system that can do it all...and do it all well (so don't get anymore plans to try that again big DMS guy).  I believe "integration" should be a "standard" option on all models, but it seems to only be coming with the faster and more luxurious European cars (Dealer.com, vAuto, iMagicLab).  As the Big 3 (ADP, Arkona, and Rey Rey) keep trying to be the old guard they're just slowing the progress of the industry.  I believe the day is coming where a DMS is just going to be a vault of information that nobody actually works out of, and other vendors will provide the user interface.  This will all be done through data feeds...or "integration".
Please leave your comments and suggestions.  Because I am far from an expert on data feeds and "integration" I will add your suggestions to this article.

In this article, I am making the assumption that your legal team has approved all your contracts and security clauses on sharing data.

Guest Posting by Dale Pollack

As of late, I’ve come to understand that the biggest deficiency in the dealership today is the lack of expertise in sourcing used vehicles.  For years, dealerships have relied on a steady stream of trade-ins. Only a small percentage of dealers actually developed strong wholesale sourcing competencies. Sure, most dealerships knew how to send their used car manager to the auction now and then to pick up a few cars here and there, but that’s a far cry from having true wholesale proficiency.

I’m particularly struck by the lack of developed talent and process around the wholesale sourcing of used vehicles at some really large dealerships and enterprise groups. In fact, it is these dealerships that have the greatest deficiencies. Really large stores and enterprises historically needed wholesale sourcing competency the least because they had the most trade-ins.

I’m still not prepared to declare a “shortage” of used cars, because I believe that this term engenders the notion of a crises, and crises often evoke irrational responses. To be sure, there is not presently a shortage of used cars, but they are getting harder to find for reasonable prices. I think that it is incumbent on every dealership to assess its wholesale sourcing competency as we move through a year that will have a tightening supply of used vehicles.

The wholesale sourcing position does not need to be staffed by a full-time employee, as it can often be handled by a local wholesaler.  Regardless, however, whether you use a wholesaler or full-time employee, there needs to be a lot of thought around how they are compensated and the criteria that they use to decide what to purchase and how much to pay.

I would strongly urge you to think about compensating such individuals not based on how many cars they buy, but rather on how quickly the cars they buy turn. This keeps your buyers focused on purchasing the right vehicles at the right price. Everyone should remember that it’s better to be light and right in inventory than long and wrong even in today’s used car wholesale marketplace.
About the Author: Dale Pollak's career in the automotive industry has spanned more than two decades. He is the author of Velocity

and founder of vAuto. Be sure to subscribe and read his blog DalePollack.com.

Web2Carz.com, Ltd Releases First Fully Integrated Auto Dealer Inventory Listing Application for the iPhone

Web2Carz.com Ltd., today announced the release of the first fully integrated auto dealer inventory listing application for the iPhone. Unlike other auto classified listing applications, the Web2Carz iPhone application has been designed to run natively on the iPhone and the iPod Touch platforms. With its intuitive navigation and streamlined design, iPhone users can search a national database of cars for sale, view images, see detailed listings for each car, read CARFAX  reports, and much more. HIGHLAND PARK, Ill.--(BUSINESS WIRE)

Consumers can quickly contact a dealer about a vehicle listing by using the iPhone one-touch call feature or sending an inquiry right from the Web2Carz application. Auto dealers can post their inventory to Web2Carz.com and the iPhone application at no charge and receive free sales leads. To date over 500 dealers have inventory listed.

“Web2Carz.com continues to develop the latest in technology to help our auto dealers sell more cars while improving the bottom line. The best thing about the Web2Carz iPhone application is that we are exposing the dealer’s inventory to a whole new audience for free. It’s 100% free Internet advertising. Dealers can post their inventory and receive free sales leads with no setup fee, no monthly fee, and no limit on images. It’s a win-win proposition,” said Alex Bravy, Web2Carz co-Founder.

Click to expand...

The iPhone application has been set up for complete ease-of-use and one click navigation. Key features include:

• Search by Make and Model
  
• Search within a Zip Code and distance range or use current location (optional)
  
• Sort by Price, Year or Mileage
  
• Filter by Max Price and/or Max Mileage
  
• Auto Save of Search Criteria
  
• Tap the CARFAX ™ logo to view a car history report
  
• 'Tap the Phone Number to call the Seller
  
• Auto Save of User Contact Information

The iPhone is packaged with a variety of applications or iPhone web apps that make it a wonderful browsing experience for the user, therefore, applications on iPhone are growing extremely fast in popularity. The approximately 1.3 million iPhone users nationwide tend to use their handheld device more than others to access the Internet. In fact, a recent study found that nearly 85 percent of iPhone purchasers regularly use their handheld device to access content on the web.

The beta version of the Web2Carz iPhone application was demonstrated at the 2009 NADA show and convention in New Orleans, January 24-27, at the Web2Carz.com booth and received a very positive response from the dealer community as well as industry insiders. The link to the application for iPhone users is: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=306066084&mt=8. (Users need to have iTunes for this link to work). For more information call 847-780-4821 or visit www.Web2Carz.com

About Web2Carz.com:

Web2Carz.com is a full service online vehicle research portal founded in 2006, which offers new and used car inventory, reviews, quotes, buyer tips, and options for finding car financing. Their mission is to bring simplicity to the world of Online Full Service Automotive Portals. Drawing on industry experience, they have built a national network of service providers and relationships providing customers with the ability to search a network of dealerships, lenders and other automotive related product offerings from a single online destination.

Web2Carz.com targets the niche market of car buyers in need of special financing. It is the only site currently in this market that offers these buyers such a robust set of features, from new and used vehicle research to financing options.

As the site receives a high volume of unique visitors, Web2Carz.com also has a business-to-business model and supplies auto dealers with high quality leads with an above average conversion rate. For more information visit www.web2Carz.com or call: 888-807-7227.