Dealership Newsmaker Q&A Brian Lindenmeyer

Dec. 14, 2015
Brian Lindenmeyer is a solutions consultant at International Business Systems (IBS), a global enterprise resource planning/warehouse management system/supply chain distribution system provider. He discusses the use of data analytics among automotive OEMs, and how that can impact the aftermarket.

Automotive original equipment manufacturers (OEMs) continue to add more connectivity and telematics options to their vehicles, and are expanding their data analytics capabilities to use the data generated by customer vehicles to guide product development and gain an advantage when it comes to dealership service.

Brian Lindenmeyer is a solutions consultant at International Business Systems (IBS), a global enterprise resource planning/warehouse management system/supply chain distribution system provider. He spoke to us about the use of data analytics among automotive OEMs, and how that can impact the aftermarket.

How is the increased push for more data collection and analytics among the OEMs affecting the aftermarket?

I own a 2016 VW Golf with the Car-Net connectivity service. I got a call from the auto dealer I acquired the car from telling me they were notified that the rear third brake light was malfunctioning. That's big data, and it's helping the dealer that sold me the car try to keep me in-house for service.

At the same time, when I get outside of the dealer environment I have acquired accessory parts from Alibaba or Amazon or eBay, those companies are all looking for ways to capture customers that are increasingly connected. It's about being able to use technology to make better business decisions.

Aftermarket providers are potentially going to be looking at spending habits or purchasing habits. How do I get this person to order from me month to month to buy replacement parts?

How do smaller aftermarket players take advantage of these capabilities without a huge investment in analytics capabilities? How do they compete against what the OEMs and dealers are able to do?

I would separate the aftermarket into business-to-business and business to consumer, which have very different views on this. But how does a mid-market or small part parts provider keep up with having the right data to make the right business decisions and grow profitability? There are a ton of cloud service providers that have the storage bandwidth for the data, and you only pay for what you use. A lot of those cloud data centers also have some analytics offerings. You don't have to invest in your own data center or servers or software. It's available today in the cloud.

Where are the biggest opportunities for analytics?

We focus on distributors. They can take data from our system and create a dashboard of what is relevant for them as a distributor. You can add outside data sources that would, for  example, tell you that all of a sudden the Kia Soul is the hottest selling subcompact SUV, and you should carry parts for it. That outside data is combined with your sales data, and that can be done through an analysis package.

What are the biggest obstacles?

There's always an unknown to this, and that creates discomfort. You can take that baby step into looking at external customer data to get market insight, and then get into real-time analytical reporting on statistical trends. You can look at what happens when you change your case pack quantity or provide a discount. There could be opportunities for bundling products that you never thought of bundling before.

Big data starts out as traditional business intelligence, but then you create opportunities for innovation around your business that allows you to transform. If you look at it that way, that helps take away the unknowns and gives you a reason to consider that roadmap. It will be organizationally transform in the end.

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