Guest Editorial
Getting On-line Will Benefit The Collision Industry
by Erick Bickett* In my 40 years of life I have experienced many changes in technology. We all experience the changes in one way or another. Some of us may perceive benefits from the changes, some of us may not, but we are all affected.
Life is change. We see this change in our businesses through new technology, new products, updates of existing products and in new ways of doing business. More than ever, you must be prepared to look at all of your operating philosophies and re-evaluate, using the new paradigm that exists, enabled by new technology. Those companies that are vested in the old business practices will lose market share to those implementing solutions that maximize on the available technology.
Constantly emerging technology makes life easier on us, enhances entertainment value, makes us more efficient, more effective, and gives us better access to information instantly. This last benefit is the one that intrigues me most. We are truly in the information age. This phenomena has been called the "de-monopolization of information." The enabling technology for this is the Internet.
There has always been a great wealth of information and knowledge in the world. This knowledge and information has been stored in books, in the minds of people, or within organizations. Over the last 10 years, people have learned that it is easier and more efficient to manage the information by storing it in computers. Educators use computers to store data and have integrated computers into the teaching curriculum. Business uses computers to manage sales and inventories, calculate profitability, predict the future through projections and manage human resources. What all this amounts to is that there is a tremendous amount of information stored on computers, that if accessible, could benefit all.
The Internet is the conduit that connects all these computers. It has two primary purposes. It can be used to communicate and trade information (as in e-mail, electronic business documents and transactions). Nearly anything you can think of or need can be accessed by logging on to the Internet and browsing (surfing) the computers that are linked to it. The Internet also provides methods to find information. In a traditional phone book you can find a name, phone number and address; with the yellow pages you can get a little more information. But with the "Internet phone book" (search engines), you can search by key words, name, product and location, and by selecting your choice, you can go there -- electronically -- at the speed of light to buy, read, learn or communicate with the destination you have chosen.
The Internet makes your computer a two-way communication device and phone. A phone with far more ability than you can ever imagine. This linking of computers is shrinking the world, making it unnecessary to travel long-distances to carry on with your daily life and business. It is a catalyst that enables an opportunity to provide a better product or service. Imagine doing business today, or even decades ago, without the conventional phone. You would be lost. It’s the same situation for business owners today who try to conduct business without so much as a stand-alone personal computer (PC). First you must computerize before you can get up to speed with connectivity or the Internet.
There is one more very important piece to this puzzle that must be understood. It is not enough just to hook computers together. These computers need software that can interpret and translate information from other computers, even computers at other companies. If we all stick to "off-the-shelf" software -- software that is sold to the masses and is designed to communicate with all -- the costs will be affordable to all.
Do not confuse the Internet with proprietary networks and software. For example, at present, collision estimating systems offered by ADP, Mitchell and CCC are largely proprietary solutions. These systems allow connectivity only with other companies that use the same product. This can be a frustrating situation for collision repair professionals. Primarily, these information providers sell systems to insurance companies, not collision repairers. By this, I mean that if a provider wins an insurance company sale, then shops that want to do business with this insurance company must purchase the same software and in some cases, even the same hardware. This drives up the cost for everybody. In my four locations I spent $40,000 last year for these proprietary packages. At a 5 percent pre-tax margin, I must receive $850,000 in insurance business just to pay for these systems. I enjoy a thousand times more functionality and access to information in my $499 off-the-shelf Microsoft Office package. Hopefully, we will one day see the functionality of collision estimating products become the true test for their popularity with shop owners.
As with any massive change, some people will not adapt and will become casualties. Others will adapt and benefit from the changes. The best way to stay in the game is to stay informed and try to understand the dynamics of the changes. We, the collision repairers, need critical mass and we need to get on-line. By getting on-line you will start to experience the power of sharing information. You will start to understand the opportunities. You will not stand for closed, proprietary solutions. You will motivate those you exchange information with to get in the game. We will see the real benefit of this information revolution if everybody is on-line!
* Erick Bickett is the owner of AutoCenter AutoBody, a collision repair business in Anaheim, Calif. Bickett is a founding member of the Collision Industry Electronic Commerce Association (CIECA) and is also a member of the Automotive Service Association.
ASA Main Page || AutoInc. Main Page
TechTips || Stat Corner || News Briefs || Directions
News Briefs Extra || Taking The Hill || More Info About AutoInc.
Networking Your Shop || Chairman's Message || Tech To Tech
Guest Editorial || Selling Diagnostic Labor Profitably || ASA Addresses Insurance Issues
AutoInc. Magazine ®, Vol. XLIV No. 7, July 1996