1. Standards for Technology in Automotive Retail Challenges for IT Standardization July 9, 2002 Why we need...

2. U.S. Auto Retail Market Auto Dealers –Own multiple franchises –Have multi-location operations –Need consolidated view of operations Dealership Information Technology (IT) needs grow: –20,000 dealers with different IT needs –More than dealership management system (DMS) –Includes local area network (LAN), PCs, VSATs, and –More Internet access for future DCS applications Bottom line – dealers need IT “tools” that add value not complexity and cost to the dealership operation

3. Dealer Technology Issues Today Dealers burdened with many IT systems (DMS, DCS, and 3rd party)Dealers burdened with many IT systems (DMS, DCS, and 3rd party) –Need timely access to information, but –Lack common method to exchange data Dealers experience increasing DCS support costsDealers experience increasing DCS support costs –Each DCS application and OEM link - separate costs –Upgrade costs exceed initial development costs DCS upgrades increase “load” on dealership systemsDCS upgrades increase “load” on dealership systems –Requiring upgrade, upgrade, upgrade Now... DCS sales & service applications are moving to the InternetNow... DCS sales & service applications are moving to the Internet

4. Industry Partners Move to the Internet Dealer’s business partners want to do business on the InternetDealer’s business partners want to do business on the Internet Manufacturers’ examples:Manufacturers’ examples: –Replace satellite with Internet connectivity –Migrate DCS applications to the Internet – GM Access and DaimlerChrysler DIAL –Implement Internet-based EPC and parts locator applications - DaimlerChrysler and Hyundai

5. Industry Partners Move to the Internet Retail System Providers (RSP) are migrating to the InternetRetail System Providers (RSP) are migrating to the Internet –Many assist dealers by including LAN cabling and data communications equipment in DMS infrastructure –Several have developed Internet-based versions of dealership DMS applications

6. But..Today’s Dealership Isn’t Internet Ready

7. Still Need to Solve Dealer IT Issues Eliminate IT-related duplication –Equipment –Manual re-entry of data Develop common ways computers can “talk”, to –Access and exchange information –Improve overall efficiency from increased reusability Adopt open systems and networks –Common computer connections –Leverage the Internet –Avoid proprietary solutions

8. What’s the solution? How to we get there?

9. www.starstandard.org

10. What is STAR? STAR - the IT standards organization for the retail automotive industry Members - Dealers, NADA, manufacturers, and RSP Vendors Purpose - develop common, voluntary IT standards for exchanging business information between dealers, manufacturers, and their other business partners

11. How STAR Operates Membership fees fund staff and other operating costs Open to dealers and dealer groups, manufacturers, and RSP vendors Benefits - reduce time and cost to develop and support business applications Who’s joined?

12. 28 Members NADA ADP Arkona Auto/Mate, Inc. EDS Automotive Retail Group PBS Financial System, Inc. Reynolds & Reynolds Universal Computer Systems American Isuzu Corp., Inc. American Honda Motor Co., Inc. American Suzuki Motor Corp. BMW of North America, Inc. DaimlerChrysler RouteOne Ford Motor Company General Motors Jaguar Cars Kia Motors America, Inc. Mazda North America Operations Mitsubishi Motor Sales of America, Inc. Nissan North America, Inc. Procede Software, Inc. Porsche Cars North America, Inc. Saab Cars North America, Inc. Sun Microsystems Toyota Motor Sales, USA Volkswagen of America Volvo Cars of North America

13. What is STAR Doing? Simplify transfer of information - describe business information needs in common formats Support the use of the Internet – common, non-proprietary connection for dealers & OEMs Address existing DCS applications – parts order, vehicle delivery report, warranty claim Describe applications for Internet customers

14. How Dealers Benefit Access any application from any dealership PC Increase competition among supporting RSP vendors Receive new applications quickly –RSP vendors’ products –Manufacturers’ DCS processing Opportunity to lead rather than follow –Participate in setting standards –Define information needs

15. How Manufacturers Benefit Speed development of new dealer-facing computer applications –Use common specifications and realize high reusability levels –Reduce development time and cost Rapid deployment of new standards Participate in setting standards development priorities Identify business information needs Increase competition among RSP vendors

16. How RSP Vendors Benefit Speed development of new dealer-manufacturer applications –Use common specifications and realize high reusability levels –Reduce development time and cost Increase marketing opportunities –Sell applications rather than require dealer conquest Participate in setting standards development priorities Rapid deployment of new standards