You've got estimates to write, parts to order, phone calls to return to the insurance adjuster, the customer and the parts supplier. Then, there are vehicles to repair, photos to be developed, invoices to mail, and where did you put that last assignment that was faxed over by the insurance company? Probably the last thing on your mind is electronic data standards!

But you can't afford not to take the time to understand how electronic data standardization will help streamline your business, increase your productivity, lower your overhead costs and enhance your profitability. In the past few years, we have witnessed an explosion in technology with a host of new technology offerings in the collision repair industry. What does all this mean to collision repair professionals?

Since we are on the cusp of another wave of technological advances, I believe it means that collision repair professionals have the opportunity to shape the future of their businesses before someone else does it for them. In a nutshell, data standards create a set of rules that enable different computer programs to electronically exchange data. What this integration means to your collision repair business is the following:

• Reduction in Operating Costs - Data standardization will enable the integration of computer systems for both internal and external processes. For example, how much of your employees' time would be freed up if status information could be shared across multiple systems used by your shop, your customers and your insurance partners? Standards will enable the sharing of estimate data, photos and billing information with your trading partners in an open environment. This means you will need less redundant software and proprietary systems to conduct business, thereby lowering the labor cost to operate and maintain all of these systems.

• Reduction of Cycle Times - Some of the biggest slowdowns in the repair cycle are a result of scheduling delays with the initial estimating of the vehicle damage by the insurance company or the delays caused by the inspection of supplemental damage. Data standards and improved electronic communication will enable collision repair shops to securely send estimate and digital photos (by using any estimating system and a camera) to a customer or an internal desk reviewer at the insurance company and therefore eliminate the delays caused by on-site inspection. Electronic status updates, parts ordering and invoicing are additional potential areas that can affect the reduction of cycle times.

• Freedom of Choice - If different estimating systems can electronically speak in the same data format, then the need for multiple applications goes away. You can now buy an estimating system based on the value it adds to your business and still provide the same value to your partner's business. And by the way, choice is good for the customer. It creates a competitive market place where services are bought and sold based on price, functionality and service.

So what can you do to ensure that you are part of shaping the electronic future of your business?

1. Support and become active in industry organizations like the Collision Industry Electronic Commerce Association (CIECA); the Association for Cooperative Operation, Research and Development (ACORD); and the Collision Industry Conference (CIC).

2. Ensure that these issues are addressed in collision repair organizations where you are currently a member.

3. Require the use of open standards when selecting vendors and partners.

4. Support vendors who use and support industry standards.

Many people say that technology and the Internet have leveled the playing field. Let's make sure we all know the rules of this new game and that we all have a say in how those rules are implemented. Your business depends on it!

Chuck Rich is president, chief operating officer and board member of ProcessClaims. Rich is a former president of Paradigm Consulting, where he assisted several companies in the insurance industry with streamlining operations, expanding revenues and improving profitability; and a former vice president of national accounts for CCC Information Services.

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