Grow or go: navigating the technology speedbumps in the motor industry - Bistech

Three ways IT can help dealerships thrive in a rapidly consolidating market.

‘Grow or go’ is the phrase used by many motor dealerships to refer to the increased consolidation of the marketplace, with many notable acquisitions in recent years. And while the big are getting bigger and the small are selling their shares — all amid challenges such as supply chain issues and rising costs — those in the middle are torn on which way to go. Opportunities to acquire are presenting themselves more and more frequently, and motor dealerships need to be agile to react quickly to market changes.

This is where technology can help.

Start with the network

The bedrock of any successful multi-site business is its connectivity. Dealerships are beginning to realise the benefits of technologies such as SD-WAN when considering longer-term business strategies. Cost-effective, secure and flexible, this modern way of networking is proving popular with companies who wish to quickly incorporate sites within their existing infrastructure.

And with cyber threats constantly evolving, cyber security can never be compromised. Adopting a SASE approach which converges networking and security — alongside proactive solutions such as Managed Detection and Response (MDR) — is helping protect businesses in today’s daunting cyber security landscape.

The power of the cloud

Historically, one of the major challenges when buying or selling a business was how to best utilise physical infrastructure on site without writing off a previous significant investment.

Cloud hosting has not only freed up space on site and reduced operating costs through a decrease in maintenance and power consumption, but it’s also removed the headache of what to do with hardware when it goes end of life or is simply no longer required.

Another reason dealerships are adopting cloud services is their consumption model, through which you only pay for what you use. This enables them to scale their services up and down depending on their needs — perfect for a time when so many businesses are being consolidated.

Connecting the dots

Customer loyalty is increasingly difficult to maintain as the retail world continues to shift online. But many still value relationships built over time and the peace of mind that comes from working with trusted names and faces.

Ensuring your communications solution provides multiple contact options and easy, flexible and adaptable interaction is vital for ensuring a smooth transition period.

The motor industry has always had an acquisitive nature, but the current consolidation of the marketplace is rapidly increasing. There are certain to be many more changes on the horizon, so developing a long-term IT strategy to futureproof your business is essential.

Bistech works as a strategic IT partner with over 1 in 4 of the AM100 dealerships, leveraging technology to enable its customers’ growth. Call our expert team today on 03330 11 22 55 to understand more about how we’re helping dealerships adapt.