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DMS (Next Gen Dealer Management Systems DMS)

A Next-Gen Dealer Management System (DMS) is needed to address the evolving challenges faced by dealerships and automakers. Traditional DMS are outdated and inflexible. Next-Gen DMS will be cloud-native, mobile-accessible, and offer on-demand scalability. They will leverage newer technologies like APIs, microservices, and serverless architecture. Even in 2025, dealerships will remain important for many customers, demonstrating the ongoing need for digital DMS to manage dealership operations effectively.

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Ulfa Akhil
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0% found this document useful (0 votes)
388 views13 pages

DMS (Next Gen Dealer Management Systems DMS)

A Next-Gen Dealer Management System (DMS) is needed to address the evolving challenges faced by dealerships and automakers. Traditional DMS are outdated and inflexible. Next-Gen DMS will be cloud-native, mobile-accessible, and offer on-demand scalability. They will leverage newer technologies like APIs, microservices, and serverless architecture. Even in 2025, dealerships will remain important for many customers, demonstrating the ongoing need for digital DMS to manage dealership operations effectively.

Uploaded by

Ulfa Akhil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Next-Gen Dealer Management

Systems (DMS) in the


Automotive / Manufacturing space
Dealer Management System

A typical Dealer Management System (DMS) A DMS is going to be an important entity in


addresses diverse requirements the supply chain landscape because
encompassing pivotal areas like pre-sales traditional dealerships will continue to be
(lead/enquiry management), sales, important in the coming decade. According
purchasing, service/after sales, inventory to a survey by EY in Germany for automotive
management, financial accounting, HR and dealers:
CRM. It connects OEMs and companies,
Amongst automotive customers, the first
distributors, dealers and customers,
visit (to the dealership) is the most crucial
providing a flawless and enriched
where the role of sales personnel is
operational experience. A DMS is a dealers’
very prominent.
ERP, enabling dealerships to perform their
day-to-day operations effectively.

Sales

CRM Accounts

Service &
Payments
Warranty
Dealer
Management
System
Reports &
Returns
Dashboards

Inventory Communication

Planning

Dealerships and their Even in 2025, 58% of the


salespersons are most respondents will still

27% 58%
important followed by price choose a traditional
and brand of the car, feels dealership over other
27% of new vehicle buyers channels to buy a new
in Germany. vehicle.

Data source:
https://www.ey.com/Publication/vwLUAssets/ey-automotive-retail-2030/$File/ey-automotive-retail-2030.pdf
For many customers, dealerships will still Dealers and distributors in most industries
provide additional information, which is (auto, manufacturing, retail, telco, etc.)
difficult to get online. This clearly indicates will all have some form of a DMS.
that dealerships are going to be one of the
Being one of the oldest to experiment and
mainstays of the supply chain ecosystem,
implement Dealer Management Systems,
and hence the need for a digital system to
Wipro has rich experience in implementing
manage them.
complex yet successful DMS for automotive,
Starting from decentralized thick clients telecom and retail companies across
and maintaining heterogeneous systems to the globe.
centralized DMS applications, Dealer
Management Systems have come a long
way since they started being popular in
the early-nineties and have now become
an integral part of the supply chain network.

Need for a paradigm shift

Advancement in technology supported by These growing challenges have given rise to


changes in government rules and policies, the requirement of dedicated
and ever-changing consumer behavior have Next-Generation Dealer Management
opened doors for multiple and specialized Systems (Next-Gen DMS).
ways of connecting with customers and
Following are some of the recent industry
delivering the required products/services.
use-cases that underscore the need for a
This has created multiple levels of
Next-Gen DMS.
challenges in the supply chain ecosystem in
manufacturing, consumer goods and
automobile sectors globally and locally.

Extending network
A leading paint manufacturing company has Requires manufacturer to procure another
been using a DMS for their distributors kind and set of licenses since the existing
across multiple countries since the last few licenses are of different modules. The
years. This DMS is for their distributors and manufacturer envisages huge cost of
now they want to extend to the leaf nodes of licenses in doing this, and this becomes a
their supply chain i.e. dealers and retailers. major bottleneck.
Functional & Technical Scalability Legacy technology and end-of-life hardware
A large passenger car manufacturing make it very difficult (and costly) to make a
company is already using a DMS that has small change in this DMS.
been in use for a few years now. Per
business demands, several changes/
enhancements are required.

Capital Investment Upgrading the solution requires huge capital


An automotive leader in India is using a investment on license and infrastructure, yet
decade-old DMS and spending hugely on does not promise the experience and
recurring licenses. Usability issues, scalability of modern cloud-native
performance and customer experience applications.
demands an upgrade of its DMS and
system software.

Accessibility Lack of mobile apps and anytime-anywhere


A major tractor manufacturer is using a DMS access creates a challenge for the field
hosted on their premises. During the festive force and restricts operational capabilities
seasons and month/year end, there is heavy of dealers.
rush and dealers face performance issues
on-premise setup accessible over WAN.
Trends in DMS

Although dealer management systems have These emerging trends are causing dealers
matured over the years, following are some and OEMs to rethink their current dealer
trends in the DMS space that will drive them management solutions and undergo a
forward in the next phase: significant transformation in order to remain
relevant and viable over the next decade.

Delivery Low Browser,


Pipeline Everything as Domain Driven Chaos Bandwidth Device
Value Stream

Value Stream
(CI,CD) DevOps Code Design Engineering Accessibility Independence

Serverless &
Tech debt Platform 12-Factors & Event Adaptive Cloud
Architecture

Architecture
elimination Modernization APIs Services Architecture Architecture Architecture
Traditional DMS

Application Orchestrated Smart Predictive Web Traffic

Next-Gen DMS
Intelligence

Intelligence
Monitoring Virtual Agents Automation Dashboards Reporting Analysis Auto Scaling

Agile Multi- Design Test Driven Autonomous No-shore


Culture/People

Culture/People
Principles disciplinary Full Stack Dev Thinking Development Teams Model

Penalty & Periodic


Limited Rewards Upgrade Periodic Open As A Service
O&M Model

O&M Model

Sourcing Virtual Rollout SLA-driven Delivery Consulting Innovation KPI Model

Dealership Platform Ecosystem This can be made possible by increasing


Per a McKinsey study, dealerships (or OEMs) high-frequency customer touchpoints
of the future will be investing heavily in across the lifecycle and by creating a
creating a platform ecosystem that sticks, ‘stickier’ environment. Developing stronger
led by various partnerships and integrating customer relationship models and
systems. This will engage the customers understanding the customer in a 3600
seamlessly in online and offline interactions, manner, creating personalized offerings for
and push dealerships to think of a customers based on their loyalty, providing a
variety of offerings. seamless service process, insurance
management, seamless parts-ordering and
It has become a necessity to increase the logistic experience are some of the ways by
customer’s loyalty and wallet share. which this can be achieved.
Exceptional Customer Experience An issue or task-based help menu should be
The term ‘Customer’ refers not only to the provided whenever a user faces an issue.
end purchaser who owns the product, but Integration with smart assistants such as
also to the users of the DMS application i.e. Alexa and Siri will not only help the dealer
the dealers. Providing exceptional customer but also their customers by making it
experience is of prime importance for the possible to schedule appointments and
Next-Gen DMS. Providing a system which know the status of their vehicle under
has all the functionalities relevant to them service. Use of virtual reality for test drives
with uninterrupted ‘anytime, anywhere’ and augmented reality for remote repairs are
access will be critical. User-friendly already making waves.
applications with easy navigation, ease of According to another survey by McKinsey
performing operations and ease of getting that explores more of customer experience:
help whenever required will provide a
Next-Gen DMS with an edge.

This delivers an important insight that


servicing of a car is more important for the
customer rather than purchasing it. This is
“Among customer journeys, service true especially with the next generation of
experience is more influential than customers who are digitally more aware.
purchase experience” If the traditional time taking and low
customer delight areas like service booking
or appointment, vehicle pickup and drop,
transparency in service completion status,
estimated cost, online payment through
wallets or cards, customer feedback, etc. can
be digitally simplified, then it will definitely
provide a good customer experience.

Purchase of Car 22% 26% 52% Very Influential

Influential
48%

Not/Less/
Somewhat
Influential
Servicing of Car 22% 31% 47%

53%

0% 20% 40% 60% 80% 100%


Connected & Autonomous Cars This becomes more important in situations
The next decade will be of connected cars where many vehicles are pending for repairs
and autonomous cars. With the and technicians need to finish their work as
advancement in IoT, sensors and machine soon as possible (e.g. opening the
learning, it is now possible to obtain vehicle dealership after a long period of lockdown/
data remotely, opening up new ways of holidays). The Next-Gen DMS should be
operating automobiles. A DMS can now compatible with these IoT devices and
provide vehicle details in terms of actual sensors, and should make use of the data
mileage, kilometres run, performance of the received from these devices to ease the life
vehicle, issues if any, etc. through such of dealers.
sensors, assisting technicians in analyzing
vehicles in lesser time.

Flexibility for Stakeholders Analytics-based (data-driven) Decisions


With constantly changing technology, The Next-Gen DMS should use the power of
regulations, market conditions and other data not just from within but from the
factors, new stakeholders/influencers/other external system and social media as well. It
vendors are arising, and it becomes should help showroom sales executives in
important to align them with the existing closing deals and service advisors in
supply chain. The Next-Gen DMS should be predicting vehicle/product failure. AI-based
flexible enough to accommodate them with analytics can help with this.
less effort.

Learning Management Solution Connected Applications


Most traditional DMS applications are not Uninterrupted and seamless access of
ticking all the boxes especially when it the DMS and many related and dependent
comes to training, learning management and applications will also be very important.
other HR capabilities. Since the market With increasingly niche technology solutions
dynamics are constantly changing, it is like GPS, e-commerce, IoT, learning
important to have a technically and management, analytics, artificial
functionally updated dealership workforce. intelligence and mobility, it is mandatory to
The Next-Gen DMS should provide use these technologies in the DMS
dealerships and their workforce the ecosystem for various purposes and from
facilities to share their training/learning various geographical locations. For e.g. from
needs, to attend courses and evaluations to the comfort of a home to a noisy traffic
keep them updated in various aspects of situation. Hence, seamless integration
their jobs. with these technologies/applications
and uninterrupted access to them
will be mandatory.
Headless DMS Support
As mentioned earlier, the Robust and uninterrupted support to the
‘anytime-anywhere’ access to the DMS is dealerships and their users will also be of
mandatory. Considering the advancement in very critical importance. A traditional
mobility of other devices, it is very difficult helpdesk may not be useful and may have
to predict the form factor. Adapting to a constraints in terms of time, availability,
Headless Architecture will ensure that the cost, geography, etc. Leveraging AI-based
Next-Gen DMS suits any form factor since chatbots for answering user queries and
the backend is detached from the frontend. resolving many automated tasks will ease
the pressure on the frontline helpdesk
employees.

Less Time to Go to Market Compliance


It is expected that a Next-Gen DMS should Adhering to various compliances and
be up and ready in a fraction of the time standards will also be equally important for
taken today and should leverage a successful DMS application. Next-Gen
configurations over customizations. DMS applications must comply with
standards like local taxation, GDPR and
other local standards and policies.
The Wipro Vision of a Next-Gen DMS

Wipro has been in the Dealer Management Having extensive experience in the DMS
System space since the late 1990s and is ecosystem, we envisage the following
the proud creator of Wipro DMS 1.0, which tenets for a Next-Gen DMS or DMS 2.0.
has been successfully implemented at
many automotive and telecom companies.

5
Tenets of Modernized Low Cost DMS

Ease of Business Agile by Design

Intuitive and Robust Microservices- Optimal


Progressive Ease of
responsive grievance based API-first usage of
tracking scaling
interface handling architecture resources

Prompt & Responsive API for Business Continuum

Reduction in
Ease of Flexibility to
processing time Tightly Enhanced trust Centralized
monitoring adapt btusiness
& faster TAT bound SLA & user feedback API gateway
and management needs
for changes

Anytime Anywhere Access

Minimize infra dependency by Headless DMS with


Cloud native application
cloud offerings (PaaS/SaaS) Omni-Channel accessibility
1. Ease of Business 2. Agile by Design
A Next-Gen DMS must provide the various A Next-Gen DMS should also be scalable
functionalities required by OEMs and in terms of accommodating more number,
companies and their supply chain partners. types of users and business requirements.
The solution should cater to the need of It should be flexible and agile by design. In a
each stakeholder in the supply chain, which few recent cases, we found that the existing
ultimately provides the ease with which DMS are not scalable enough in these
business can be done. In most cases, a aspects so this becomes a major drawback.
tailor-made bespoke solution is required to The microservices-based API-first
meet a customer’s expectations. architecture can help in attaining
these goals

3. Prompt and Responsive 4. API for Business Continuum


Traditional dealer management solutions There are several peripheral apps that either
take years to build trust with users. A need data from the DMS or share their data
new-age DMS should provide various means with the DMS. Various ERP applications,
of connecting with its users and hence CRM applications, mobile apps, IoT
provide faster resolutions to their issues. applications, warranty systems, loyalty
Faster go-to-market and TAT for any change management systems, etc. exchange data
will help OEMs implement business with dealer management solutions. The
requirements with ease, which in turn centralized API gateway provides the
increases the level of trust. flexibility to connect easily with such apps
per business requirements. It also makes
monitoring and management easier.

5. Anytime Anywhere Access Adopting to cloud will ensure seamless


connectivity with minimum downtime.
Omni-channel presence is the need of the
With these tenets in mind, Wipro is
hour and like other solutions, it is a must for
designing a DMS 2.0 solution. The
DMS applications as well. For instance,
illustration below provides a glimpse of the
when a dealer management system is being
functional architecture put forward for the
accessed from the remotest areas of the
inception of a Next-Gen DMS.
country, where connectivity remains a
challenge, it is imperative to access the
application through various form factors,
especially from mobile devices where offline
access can be made available easily.
Devices Stakeholders
Engagement
System of

Customers Channel Partners Vendors OEM

System of
Presentation

Responsive Web Interface Mobile App


Integration
Layer

Session Customer
Caching Web Traffic Crash Analytics Portals
Management

E-commerce
Enquiry & Product Product Service OEM & Dealer
Lead Management Sales / After Sales Dealer Master CRM
Innovation
System of

ERP
Inventory Used / Refurbished Financial Claims, Rebates,
HR
Application Layer

Management Product Sales Accounting Reimbursements CRM

Reports & KPIs & Matrices Access Logging &


Administration E-product
Dashboards Logging Management Error Handling
Catalogue

Scheduled Event Load


Auto-Scaling Monitoring IoT
Jobs Handling Balancing

Report Data Rule Validation Model Analytics


Caching Pre-processing Book Book Catalogue
Loyalty
Programs
Sales DB Services DB Inventory DB Master DB CRM DB BLOB Storage
Data Layer
System of

Traffic
Record

Analytics

Multi-Model Transactional Read


Geo Replication Data Sync Job Automation Notifications
Capabilities Replication Redirection

The role of dealerships in the success of Wipro’s DMS 2.0 is designed to be the core of
enterprises is unquestionable. Wipro’s the supply chain and keep pace, innovate
Next-Gen DMS is envisaged to make the and enhance to meet changing customer
DMS truly digital and connected in order to demands and business strategies, and will
serve its true purpose of enabling dealers to prove to be a true Next-Gen DMS.
manage their entire business from a single
platform. At the same time, the role of digital
will also increase as technology flourishes
and the supply chain industry continues to
enhance customer experience for new as
well as used products.
About the authors

Pradeepsinh Rathod
Pradeep is a consultant with over 14 years of experience in the dealer
management space. He leads the DMS and mobility initiative for Modern
Application Services at Wipro India. Pradeep has worked on many large
dealer management projects as a business analyst. He is also experienced in
implementing dealer management solutions at dealerships and understands
dealers’ operations.

Amin Rehman
Amin is a Senior Solution Architect with over 13 years of industry experience.
He leads the presales and practice for Customer Experience projects for
Modern Application Services at Wipro India. A developer at heart, Amin
enjoys designing digital and cloud-native solutions for his customers.
Wipro Limited Wipro Limited (NYSE: WIT, BSE: strong commitment to sustainability
Doddakannelli, 507685, NSE: WIPRO) is a leading and good corporate citizenship, we
Sarjapur Road, global information technology, have over 180,000 dedicated
Bangalore-560 035, consulting and business process employees serving clients across six
India services company. We harness the continents. Together, we discover
Tel: +91 (80) 2844 0011 power of cognitive computing, ideas and connect the dots to build
Fax: +91 (80) 2844 0256 hyper-automation, robotics, cloud, a better and a bold new future.
wipro.com analytics and emerging technologies
to help our clients adapt to the digital
world and make them successful.
A company recognized globally for its For more information,
comprehensive portfolio of services, please write to us at info@wipro.com

IND/TBS/MAY-DEC 2020

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