The Internet has truly become a cultural phenomenon. In a very short period of time, it has impacted our world tremendously. It has become an enormous part of our lives. And, it is certain to play an even bigger role in the future.

With its rapid evolution has come legions of "dot-com" companies - companies that do business mainly on the Internet.

Just a few years ago, the dot-com revolution was alive and kicking. And although a virtual e-commerce and dot-com decline came out of a failing stock market and, more recently, the fallout of Sept. 11, there are many success stories that should be emphasized.

In fact, during the so-called dot-com bust, consumers were surfing the Web at a rate of 50 percent more than they did during the apparent "boom." The decline resulted from the enormous number of sites offering the same goods and services as competing sites. Consumers still surfed, but the buying potential greatly decreased due to a virtual dot-com overload. Recently, however, Forrester Research reported 36.5 million Americans have purchased products online, and this figure is predicted to reach 50 million by year-end 2004. And as the holiday season rolls around once again, e-tailers are preparing for another successful endeavor, capitalizing on the 51.3 million users that visited their online stores last year, according to Jupiter Communications. In addition, customer satisfaction with the e-marketplace is up as well, peaking at 72 percent in 2001. This is compared to a dismal 55 percent only a year before.

But more importantly, the Internet is fundamentally changing the way we do business. According to Forrester Research, 60 percent of small businesses will have a Web presence by year-end 2004. And currently, 66 percent of small businesses now purchase goods and services online. What does all this mean? It means that small businesses - more importantly, independent repair facilities in the automotive industry - are poised to become major players in the recurrence of another dot-com revolution. The Internet and all its capabilities are far from defunct. In fact, the possibilities are just beginning to surface within the industry. With changing business practices and the scarcity of time that affects us all, the Internet is continually delivering rich content and business solutions that can successfully be used by owners and managers of automotive repair shops.

Locating Parts and Equipment

In the most recent Babcox Internet Study, 50 percent of respondents use the Internet to locate parts and equipment. Perhaps this sector of the industry is most represented in the e-commerce segment. At the recent Aftermarket e-Forum, held in July in Chicago, Malcolm Davidow, vice president of CompressorWorks, said, "E-commerce in the automotive industry has been going on for 20 to 30 years ... We just never actually called it that." The way shops order parts has dramatically changed over the past few years. Paper catalogs were eventually replaced by "green-screen" technology, allowing shops to connect directly to parts distributors through a computer terminal. But since the adoption of current Internet standards, the procurement of parts has become even easier. The Internet has truly opened the door for a more efficient and quicker parts ordering process.

The Internet provides a substantial electronic catalog solution. There has been some reluctance in using online electronic catalogs or "e-cats," as they are often called. But, as a younger generation of technicians, parts and counter people, and shop owners begin to take charge, it's only a matter of time until paper catalogs give way to the Internet's capabilities. E-cats provide more comprehensive, timely and accurate information for shops attempting to order late model parts. In fact, current e-cats provide links, pictures and specifications for each part, causing a diminished rate of error when ordering parts. Bryan Murphy, president of Wrenchead Inc., said that a product in an e-cat that is imaged is 20 times more likely to sell than those products without pictures. And with the assumption that "a picture is worth a thousand words," most e-cats provide pictures of parts that repair facilities want to see.

The online parts ordering process is becoming somewhat more mainstream in the industry. Car-Part.com, a provider of Web services for recyclers, recently partnered with CCC Information Services Inc., effectively helping speed up vehicle-repair estimates. With this partnership, CCC's Pathways collision estimating product will use Car-Part.com's database containing 43 million parts from 1,300 recyclers with its integrated Recycled Parts Services (RPS) feature. This integration will allow collision repair facilities, insurance adjusters and independent appraisers to quickly access a database that includes location, availability, brand and price of recycled parts in order to speed up the estimating process.

Internet Auto Parts Inc. (IAP) is also revolutionizing the online parts ordering process. This industry-sponsored, Web-based aftermarket parts procurement system began beta testing in August. When released to the industry next month, IAP will allow shops to determine the part number required and locate, price and order the part in "30 seconds or less," according to Dr. Glenn Staats, president and CEO of IAP. Since IAP is essentially an industry-sponsored e-store, repair facilities should be able to work with their current parts vendor. According to Staats, an average size parts store can only satisfy 65 percent to 70 percent of demand from its current inventory. IAP will allow repair facilities to search for parts by keywords, specific jobs or by catalog lookup, consequently increasing this percentage.

Basically, when a repair facility uses IAP, the service searches through the facility's preferred vendor store. If the part is not located there, it searches a sister store, followed by the distribution center and then the direct manufacturer. If the part still is not located, the service begins a search in another vendor's store, sister store, distribution center, etc., until the part is found. This process is quick and seamless for the repair facility. But the extensive e-cat of IAP allows for a successful online parts ordering experience.

The future of online parts ordering should be prosperous. Murphy contends, "If it's not in an electronic catalog, it's not going to be sold."

Service Technology and Bay Productivity

In an ideal, technologically advanced service bay, each bay would be equipped with a computer connected to the Internet in order to receive the latest industry updates. And although many shops simply can't afford such design, one or two Internet-connected computers can bridge the information gap essential to independent repair shops. Obtaining updated service information is an integral part of shop operations, and the Internet can form the communication backbone of the process of obtaining such information. The awesome potential of the digital age is demonstrated through the connectivity of the different entities of the industry.

Receiving data from vehicle manufacturers and industry leaders is essential to the success of any independent repair facility. In the "old days," books and compact discs with read-only memory (CD-ROMs) that contained the data needed to repair vehicles were essentially out-of-date from the moment they arrived in the shop. But technology has created the digital pipeline needed to transmit such information directly to shops. With the creation of digital subscriber lines (DSL), information can now be streamed into shops in virtual real time. The major information providers offer Web-enabled solutions for repair facilities. And by January 2003, the retrieval of onboard diagnostics information will be available via the Internet.

Technologically advanced shops have seen an evolution of data from paper to CD and now, the Internet. And information providers will begin to force shops to migrate to electronic communications due to overall cost of paper products versus electronic products.

But the streaming of vehicle information isn't the only entity of the service bay that has migrated online. Automotive Information Systems Inc., which markets its products under the brand name IDENTIFIX, introduced IDENTIFIX-ONLINE in late July. IDENTIFIX-ONLINE's diagnostic systems, an interactive diagnostic tool, guides technicians to a solution faster than factory flow charts, and features tests and likely causes for frequent diagnostic problems 24 hours a day, seven days a week. Technicians can also access fuel pressure charts, original equipment (OE) maintenance schedules, reliability data, fuel pressure specifications, and antilock brake systems (ABS) information.

Even the most advanced repair facilities are tethered by wires. But the future of Internet connectivity in the shops includes wireless technologies that will connect the service bay to the information providers and diagnostic material.

Business and Management Solutions

The automotive industry, in particular the independent repair shop, is gradually merging into the Internet age. This is due, in part, to a growing amount of online management solutions being offered.

The Automotive Service Association's recent "How's Your Business?" survey shows 51 percent of mechanical repair businesses have a Web site, up from 36 percent the year before.

In the same respect, 55 percent of collision repair businesses surveyed reported having a shop Web site, an increase of 8 percent from the previous year.

As time restraints deterred shop owners from establishing a Web presence, more management services have emerged to help implement the process.

E-mail communications and maintaining a shop Web site is at the forefront of online customer management. In Mitch Schneider's management course titled "At the Speed of Thought: Solutions in a Web-Enabled World," Schneider contends e-mail service reminders result in an over 8 percent response rate. This is compared with a 1 percent to 2 percent response rate for direct mail reminders. Companies like Cartrak Online and YourFacility.com allow shop owners to establish such a marketing plan and help the Internet play a role in the repair facility's marketing plan. Mike Whitaker, director of marketing for Cartrak Online, said, "The Internet is still at the beginning of its evolutionary development. No one can say where it will end up, but it is here to stay. Like the evolution of computers in our industry, the Internet will play an increasingly important role in shop operations as time goes on." To that end, Cartrak Online provides a venue for shops to create a Web site, send e-mail service reminders, and allow customers to schedule appointments online.

Online Training and Education

Currently, universities all over the world offer college degrees that can be obtained through courses offered via the Internet. More recently, the automotive industry has adopted similar practices for training purposes in an effort to diminish the technician shortage that plagues the industry.

iATN (www.iatn.net) is the world's largest community of automotive technicians and repair shop owners and ultimately reinforces the training technicians receive by further broadening their knowledge. Since its inception, iATN has grown to become an industry leader. The Web site offers its members a channel of communication to discuss nearly every facet of the automotive service industry through the site's 20-plus bulletin board style discussion forums. Brent Black, iATN founder, said, "Even though iATN members are from all over the world and have unique backgrounds, they all work in the same field, so they all face the same challenges. iATN feeds every technician and shop owner's need for real-world information about their industry."

But iATN's capabilities do not end with discussion forums. Automotive service professionals from around the world meet periodically to participate in Tech-Night, a live conferencing event and virtual classroom hosted by iATN. During these TechNights, service professionals interact and exchange technical information in real time on specific topics chosen prior to the event.

Melior Inc. (www.melioronline.com) offers a wide range of Web-based technical training. What makes Melior's technical training unique is that courses are interactive and can be accessed on both a 56k modem or digital subscriber line (DSL) connection. In addition, students have access to a personal tutor who can be contacted by e-mail or phone, affording the multimedia experience a personal flare as well.

TrainingForTechs.com provides a central location for technicians to find training courses and products in their area. Technicians who are members of this free service receive e-mails about offered courses, based on their personal settings. This site is gaining momentum in the automotive industry, reaching more than 3,500 technicians, shop owners and managers.

AutoInc.'s Dot-Com Directory

This is the third year that AutoInc. has examined the Internet's influence on the automotive industry. This year, we have extended our coverage to include a pullout directory to serve as a yellow pages-type listing of industry companies with a Web presence. This directory was developed using survey responses and additional Internet research. AutoInc. does not endorse the companies featured, but has included them as a benefit to its readers. Space restrictions limit us from including all automotive-related Web sites.

In detailing specific services offered by these companies, we have focused on 10 general categories. The companies surveyed selected the categories that best represented their services. We have also included the specialty of each company - whether it caters to the mechanical or collision sectors of the industry. In some instances, the companies selected both sectors as their specialty.

Click here to view a PDF copy of the 2002 directory.

The Future

We have yet to see the Internet's complete capabilities. Companies are continually developing online products catering to our industry. And as speed increases, you can only imagine the possibilities.

If you are considering an online alternative to traditional shop operations, do your research. Above anything else, you must do what's best for your business. Shop owners must begin to embrace technology, but only at their own pace.

Future technicians have grown up embracing the Internet technology that is opening so many new doors in the industry. The online services in the automotive repair industry will capitalize on these new techs.

The technological evolution of such companies will continue, making future endeavors ultimately unpredictable. Dr. Alan Kay, a pivotal researcher in modern computer science, once said, "Don't worry about what anybody else is going to do ... the best way to predict the future is to invent it."

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