Computerizing Your Business Can Be Easy
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Computerizing Your Business Can Be Easy

Having a computerized management system for your business can provide an enormous benefit for your shop productivity. Finding the right software package for your business, without wasting time, without having to review every package on the market and without spending a fortune on a "consultant" can be difficult. Are you frustrated and confused about what type of system to use and where to begin searching for one? Don't be. Selecting a computer system for your shop can be much easier than you may think; and if you stick to some very basic guidelines, the whole evaluation process should not take much time.

The reasons you need a computer system are simple. A good computer system will help increase your profits. You will free up more of your time. It will help organize your business. Whether you like the idea or not, you are likely going to have to computerize eventually. If you're going to do it anyway, it makes sense to do it sooner because you will gain the benefits sooner.

Hardware
When buying computer hardware, make sure it will satisfy your needs. Many salespersons in the computer industry tend to forget the reasons why you are looking for a computer system. In fact, many of them do not even understand your business. The "bells and whistles" that are provided with many new technologies sometimes make you less productive. But generally, computer hardware is relatively easy to buy; spec sheets and price typically mean a lot. Purchasing a computer system has become as easy as purchasing an appliance for your kitchen. Although qualities do differ between brands, the gap has closed tremendously over the past few years. It is hard to go wrong with most modern PCs on the market today.

Software
The computer's software is much more difficult to purchase than hardware. More importantly, the software selection is the most critical component of your computer purchase. A computer without good software is nothing but a machine. Good software is what turns a computer into a "tool."

So, what makes a good software package "good?" A software product should be viewed as a dynamically evolving item. Software that does the job for you today may need some modifications in the future. Therefore you should purchase software that will be upgraded periodically. This is especially true if you ever plan to make any changes to the way you do business.

How do you find the right software package for your needs? You certainly do not want to start by reviewing all of the software on the market. Why? Because there are a lot of packages out there. Assuming that you review one package per day, five days per week, it would take four months to review 100 packages. During those four months, at lease 25 percent of the reviewed packages will have already changed.

Because a good software package should evolve through upgrades and it's extremely difficult to review all of the programs out there in a timely manner, the company behind the software product should be your first consideration.

Finding A Vendor
Identify the three to five most impressive vendors with which you may want to do business. In evaluating the companies, there are several aspects to consider:

• Look for a strong commitment to the product and to you, the customer.
• Look for a strong, stable company. This does not necessarily mean to look for larger companies. Regardless of size, stability - for both the company and the software product - should be a prime concern.
• Be sure to research startup companies more carefully than companies that have been established for years. At any particular time, there are more than 100 companies offering software for automotive repair businesses. It is certainly true that every established company was once a startup, and it is also true that many products offered by startups are quite good. However, it is an important reality that startups are more likely to fail than to succeed. Can you afford to take the risks they are taking?
• Typically, you should look for a specialized company dedicated to a single product line, and one that is truly focused on the ongoing development of the software you're shopping for. When a specific software package is the lifeline of a company, you will often find a strong commitment to you, the user of that software.
• Look for a company that develops new products and new features on an ongoing basis.

Evaluating Software
Upon identifying a few companies that you feel comfortable with, order a demonstration of their software. Don't settle for a quick demonstration by a fast-talking salesperson. Spend a little bit of time with each package until you feel like you have given each a fair evaluation. Make sure you are the one controlling the keyboard. Try to center the evaluation around what you expect to do with the package in your shop. Be efficient and pay close attention. Don't assume that package B will handle a particular operation like package A handled it. Budget time to do the evaluation thoroughly, and work through it. Your evaluation time will be well worth it, since your selection will be with your for many years.

When evaluating software, don't always believe that better-looking is better. Graphics software user interfaces have become prettier, but having a better-looking interface does not necessarily mean it will make the user more efficient, just as a facelift on a new car makes the car appear better, but that doesn't necessarily mean it operates better.

Don't settle for a package simply because it is inexpensive - you wouldn't purchase any other tool for your shop that way, would you?

Once you've selected the company you want to partner with (and it will become a partnership), you can begin to evaluate what specific product features you want from your software (since many product lines offer separate features to choose from). If you only want the basics at this point in time, such as invoicing, select a package with an upgrade path - you might decide later to do more with your computer system. Remember, upgrading is usually easier than switching packages.

Following a systematic approach should minimize the amount of time you spend evaluating computer systems and management software. This will allow you to benefit from this technology sooner, and this is certainly a case of "sooner is better."

Arn Rasker is president of Centrum Business Systems Inc.

People in general want software that utilizes the newer technologies available, said Randy Kau, product manager for ADP. Specifically, shops want more customized reports and management software that will help them figure out what problem areas they are experiencing with their business operations.

Independent shops typically do not pay enough attention to getting enough discounts from their parts suppliers, scheduling and making sure their profit centers are what they think they are, said Charlie Van Wickel, group vice president for CCC's Autobody Division. Management systems are focusing on those items in addition to operating analysis and accounting features, he added.

Consolidation
There is a tremendous amount of consolidation taking place in the collision industry - independent body shops are joining franchises and other groups, according to Van Wickel. This allows body shops to better communicate and pool resources to find out what inequities exist in certain databases, and they are thereby able to make their claims more visible and heard, he said. "As the franchises grow, they will pay careful attention to databases and we'll quickly correct inequities that come up from time to time." Consolidation is a positive step to address industry issues, he said, and he expects that eventually 30 percent to 40 percent of body shops will be incorporated into a franchise or other similar group.

Multiple shops that have consolidated might want to have a management system that connects the multiple locations, said Gange. Mitchell has already started testing networking features among multiple locations. "Multi-shop configurations will be an issue in '98 and '99," said Gange. Management software providers will have to deal with this issue, he added.

Problems with past systems were that the software was difficult to use, and it was difficult to train customers to use it - thereby making the systems not as profitable, said ADP's Kau. This has introduced the need to design a system that is easy to learn and easy to use. "We want to better deliver on our product," said Kau. The software is being made more user friendly through enhancements such as more visual displays. In addition, more extensive training is offered to make sure customers know how to use the product they've purchased.

Training is especially important since consolidation is a trend in the industry, Kau said. "Multi-sites want to have consistency and more efficiency." The way to do that, he added, is to offer consistent training to employees among multiple locations within a consolidated group. Efficiency through modules

Traditionally, shops have had to pay a large one-time fee for a software package that contains many different features, some of which might not be utilized or even needed, according to Van Wickel. Now, instead of paying a lump sum for an entire package of software features, shops can decide which modules they want to use and pay on a monthly basis for only those modules, he said.

The trend now is to make software that is usable to the whole industry as a basic product, but offer features that accommodate specific sectors of the industry, said Kau. This also helps meet the needs of the software users as they change. When you acquire the basic base software, you can then choose what modules you want to purchase to satisfy your needs - and if your needs are different in six months, you won't have to go out and purchase a whole new software package to satisfy those needs.

According to CIECA, the organization's Estimating Management Standard (EMS) is under review for the purpose of enhancement. The standard is also being studied for additional capability, such as for use in creating a turnkey EDI translation package.

Frame equipment manufacturers and paint system vendors have approached CIECA about adapting EMS to allow integration of their systems with management systems. At this time, the organization is seeking industry comments about this request.

CIECA reports that its Imaging Action Team is reviewing the draft implementation guideline for the 841 transaction, which is known as the Specifications/Technical Information transaction. This EDI standard will be used for communicating digital photographs in relation to vehicle damage estimates and other actions. The transaction allows for encapsulation of a digital file within it. The draft standard is being submitted to CIECA members for approval as an industry implementation guideline.

The organization has also just released version 3.0 of its Hardware Guidelines to help collision repairers with advice concerning computer hardware. The guidelines provide recommendations on speed, hard disk space and memory requirements. For a copy, contact CIECA, (313) 699-0097.

The CD-ROM product was introduced in April 1997 by the Inter-Industry Conference on Auto Collision Repair (I-CAR) and included 66 collision repair procedures for plastic repair, welding, bumpers, doors and hoods and refinishing. I-CAR anticipates that the product will include between 120 and 180 procedures in 20 different content areas when it is complete.

Each procedure is presented in 12 categories: purpose, referenced documents, equipment and material requirements, damage analysis, personal safety, environmental safety, vehicle protection, repair procedures, use of recycled parts, inspection and testing, and definitions.

The first 66 procedures released represent the most used procedures, according to Christine Senkerik, I-CAR's marketing manager. The procedures have all undergone an extensive review process by 400 people from all industry segments, including collision repair businesses, insurance companies and glass companies. Each additional procedure will also go through similar reviews.

Shops can use the product in several ways, including as a quality control tool, an in-house training product to increase technician efficiency and when working with insurance companies to determine procedures that need to be included in repairs. Senkerik said the product was also developed to benefit consumers by providing them with the best product when their vehicle is repaired. The procedures can be printed and given to consumers.

I-CAR hopes for industry-wide acceptance of the procedures. "We are very happy and thrilled with the product and think it will be a great benefit to the industry," said Senkerik.

In the United States, the annual cost for the CD-ROM and quarterly updates is $425; $395 for I-CAR Gold Class Professionals. In Canada, the annual cost is $535 and $495 for Gold Class Professionals.

A sample CD-ROM is available at no cost from I-CAR, (800) 422-7872 or in Canada (800) 565-4227. Anyone interested in participating in future procedure development should contact I-CAR at (888) 872-7990.

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