1. Leveraging Technology For Data Analytics Kumar Kathinokkula F&I Administration Solutions, LLC. September 9, 2015

2. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. Whierarchy of Data Analysis What will happen? Why did it happen? Whether it is good or bad? What happened? 2

3. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. Why Data Analytics? 3 To answer why the past happened Why have water pump losses increased significantly? Why are sales falling at my 3 rd largest dealer group after giving them more products to sell? My GAP losses have been really low – can I really reduce my reserve requirements? And then act on it to improve the future Find specific vehicles where water pump losses are higher, class them differently Penetration is down. They are putting too many products on the menu and not managing to sell any of them. Used vehicle values have been high – if they fall, I am really at risk. Model the risk and reserve appropriately.

4. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. 4 Who needs it? Internal customers Underwriting Sales Claims Customer service Executives External customers Agents – which dealers to pay attention to Dealers – which products and F&I managers to pay attention to Everyone needs it

5. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. What is a good solution? 5 Any solution is good if people use it. Data must be: – Clean – Consistent – Coherent – Current Easy to use Mobile Fast Reliable

6. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. Building a Good Solution 6 Capabilities are provided by people, processes and tools. People Technology Process CAPABILITIES

7. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. 7 What will you need to deliver? Data Where is it? How clean is it? How is it stored? How much of it is there? How much more will we create? People Leadership Special skills Process Make measurement a culture Make clean, consistent data a priority for everyone Deliver reliably – and fast Technology What suits our needs? How much does it cost – acquisition as well as maintenance for just the capabilities you need How much work do I have to do to implement it – build vs buy? Is it a good long term investment?

8. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. How to Deliver 8 Deliver low-effort, high impact solution first. Even if this is not everything that everyone wants. Don’t be afraid to fail – but fail small, fail fast, and learn fast. Make the most of what you already have. Tolerate the fewest moving parts to delivery anything. Measure usage – build this in from day one. Rigorously maintain, continuously enhance.

9. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. Relational Warehouse Good transactional data SCS Auto™ The F&I Admin Solution 9 SSIS SSRS

10. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. Relational Warehouse SCS Warehouse Good transactional data SCS Auto™ OLAP Cubes The F&I Admin Solution 10 SSIS Power View BYD – Build your own dashboards Highly interactive Hundreds of data points – more added continuously Fast OLAP analysis Microsoft is a visionary & a leader in BI Suite of highly parameterized interactive, scheduled and published reports SSRS

11. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. The F&I Admin Solution 11

12. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. The F&I Admin Solution 12

13. Leveraging Technology for Improved Data Analytics September 9, 2015© 2015 F&I Administration Solutions, LLC. Why Microsoft 13 Easy to use Excel-style interface Built on existing F&I Admin strengths and infrastructure Ability to integrate with SCS Auto for security and data ownership Cost effective. Relatively widely available talent pool Proven leadership in vision and ability to execute