From showroom traffic to virtual visits: Adapting automotive retail to the digital age
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Earlier in November, we hosted an automotive webinar that took a deep dive into the exciting evolution of automotive retail in our increasingly digital world. The event brought together thought leaders, influential decision-makers, and representatives from the automotive business landscape, all eager to explore the unfolding dynamics of the industry.
Titled “From showroom traffic to virtual visits: Adapting automotive retail to the digital age,” our webinar was privileged to host a distinguished guest speaker—Frank Böhmerle, Chief Technology Officer at AMAG Automobil und Motoren AG. His insights illuminated the technological frontiers shaping the automotive landscape, providing a compelling narrative on how our industry is navigating the digital era.
The future of automotive retail
Magnus Guðjónsson from our automotive industry pre-sales team, served as moderator for the session and set the stage by illuminating the expansive landscape of the future in automotive retail. Acknowledging the vastness of the topic, he artfully conveyed that the journey ahead cannot be fully unraveled in a single session. Magnus underscored the essence of not just transitioning from paper-based processes to digital but advocated for a more profound shift towards integrated, connected systems.
In navigating this digital frontier, Magnus placed a spotlight on the critical role of customer relationships in this evolving landscape. He emphasized the urgency of comprehending and adapting to shifting customer preferences. According to Magnus, dealers and automotive retailers must diversify their offerings, even if it means forging unconventional partnerships and collaborations, in order to meet the evolving needs of their customer base.
The notion of thinking outside the box became a recurring theme as Magnus encouraged both Annata and industry players to venture beyond their comfort zones. He emphasized the importance of fostering partnerships for technical solutions within the industry and reiterated the adaptability of businesses to market trends as a guiding principle throughout the webinar.
Automotive retail is changing fast
Phillip Parfitt, a pivotal member of Annata’s Automotive industry team, leveraged his extensive international experience to shed light on the industry’s transition toward a more digitally-centric paradigm. Offering insights into strategies for staying ahead in the rapidly evolving automotive market, he underscored the importance of a proactive approach and the risks associated with inertia.
Identifying three fundamental shifts impacting the automotive industry, Phillip emphasized the transformation in how vehicles are bought, sold, and used. The preferences of future generations, particularly in online interactions and social media for experiential and social aspects rather than the vehicle itself, are reshaping industry dynamics.
Describing the changing landscape of vehicle purchases, Phillip highlighted the trend of automotive manufacturers (OEMs) gravitating toward direct-to-consumer models, posing a potential challenge to traditional dealerships. This shift suggests a move towards a more limited product range with an emphasis on online purchasing directly from OEMs. Additionally, there is a notable shift in the concept of vehicle ownership, moving towards renting for specific purposes rather than traditional ownership.
Transitioning from dealer to retailer
Phillip emphasized the evolving role of dealers, transitioning from mere vehicle sellers to retailers with a customer-centric focus. This shift, driven by changing consumer needs and ownership dynamics, is hindered by traditional technologies like Dealer Management Systems (DMS), prompting the industry to embrace API models and certification pushed by OEMs.
The issue of customer data ownership emerged as a critical dilemma, with OEMs claiming ownership. Phillip urged the industry to find ways for all parties to access and utilize this data. The revenue model is anticipated to shift from transaction-based vehicle sales to selling services and subscription models. As the industry undergoes this transformation, operational efficiency, especially with the impact of electric and hybrid vehicles on aftersales services, becomes paramount.
Highlighting the criticality of consistency in service offerings for customer retention, Phillip stressed the importance of dealers choosing the right technology, processes, and systems to maintain this consistency, thereby impacting the retailer’s brand. In summary, the key trends involve dealers evolving to focus more on retailing and less on traditional vehicle sales, necessitating adaptations in technology, business models, and customer engagement strategies.
AMAG’s forward-looking perspective
Frank Böhmerle of AMAG brought a visionary perspective, focusing on creating a more people-centric, sustainable, and digital future for the automotive industry. As Head of Strategy, Projects, and Innovation at AMAG Retail, Frank’s insights illuminated the ongoing transformation of the sector, with a particular emphasis on sustainability and digital innovation.
He underscored the need to adapt to megatrends shaping the industry, pointing out Switzerland’s unique characteristics as a small market with four official languages.
Frank delved into the changing purpose of vehicles, recognizing that in smaller cities and rural areas like Switzerland, the transformation might not be as rapid as in megacities. He highlighted the impact of technological changes, such as connected cars and autonomous technology, on the automotive business. The shift from hardware to software and the importance of meeting customer expectations for omnichannel experiences were also key considerations.
The discussion explored the critical role of employees and the necessity to place both customers and staff at the center of the transformation. Frank presented a scenario analysis projecting a 70% decrease in EBIT until 2030 if no action is taken. This emphasized the urgency for AMAG to focus on efficiency, customer loyalty, and the digitization of processes and customer interfaces.
To counteract the decline in traditional vehicle sales, Frank outlined a comprehensive restructuring process that involved focusing on five strategic areas. These areas included increasing efficiency and customer loyalty in the core business, digitizing processes and customer interfaces, and exploring new business models such as retail as a service, mobility as a service, energy services, car as a service, and advanced mobility solutions.
Frank emphasized the importance of people, culture, leadership, talent management, and education in driving the transformation. He discussed the need for a flexible organizational structure and the implementation of technology solutions, including the adoption of Annata to facilitate faster and more efficient adaptation to new business models.
Frank shared real examples of AMAG’s initiatives, such as partnering with Tesla, Lucid, and launching the Oride brand for mobility solutions beyond traditional car sales. He highlighted the establishment of a high-performing charging network and the acquisition of Helion to integrate car batteries into energy solutions for homes.
AMAG’s future of automotive retail
The presentation concluded with a vision of integrated dealership spaces offering a range of services, including charging stations, micro-mobility, car wash, mobility hubs, convenience stores, showrooms, workshops, and test drive facilities, showcasing AMAG’s commitment to becoming a comprehensive mobility provider.
Phillip emphasized the importance of adopting a platform-based approach with a standardized technology stack to address challenges in the automotive industry, particularly for companies like AMAG. The focus is on using standardized software and tools that come with built-in capabilities, including features related to machine learning and generative AI, such as Microsoft’s copilot.
He highlighted the shift from being a traditional dealer to becoming a retailer, with a strong emphasis on customer-centricity. The goal is to build a comprehensive 360-degree view of the customer within a unified system. Many businesses face the challenge of harmonizing multiple DMS (Dealer Management System) and CRM systems, and Phillip discussed the use of common data models to facilitate this integration.
Phillip clarified that Annata sees itself as more than just a DMS; it aims to be future-oriented and offers capabilities beyond traditional systems. While supporting the functions of legacy DMS and dealer systems is essential, Annata strives to provide a more comprehensive solution that aligns with the evolving needs of the automotive industry.
As the session concluded, the floor opened to a dynamic Q&A session, allowing the audience to engage directly with the wealth of insights shared by Frank, Magnus, and Phillip.
Their collective expertise on automotive retail, spanning visionary perspectives, industry landscapes, and technological innovations, provided a profound understanding of the current challenges and opportunities within the automotive sector. The relevance of their insights to the present-day automotive industry cannot be overstated, offering valuable guidance for navigating the digital transformation era.
For those who found this session enriching and enlightening, we invite you to stay connected with us for our upcoming webinars, where we continue to delve into the forefront of industry evolution.
If you missed any part of this enlightening discussion, the complete recording is available for your viewing, ensuring you don’t miss a moment of the valuable insights shared. Your journey into the future of automotive excellence has just begun—stay tuned for more thought-provoking discussions and innovative perspectives.
Hydrogen-powered commercial vehicle purveyors selects Annata to fulfill global scale ambitions
North America
Manufacturer
In 2020, Annata was chosen by a heavy truck manufacturer to assist in developing their business processes and the systems required to support them. The company has more than 400 employees to support its rapid growth as a leading automotive innovator in zero-emission vehicles and trucks.
After a rapid and intensive validation cycle, Annata was chosen because of Annata’s 20-year automotive industry experience and extensions to the Microsoft Dynamics platform that formed the basis of the manufacturer’s finance and manufacturing systems.
Designed with cloud scalability and agility built in, the solution covered all critical processes. To ensure a complete and compelling customer experience, Annata’s solution will ensure the organization is well connected to customer behaviors, both pre-and post-sale for years to come.
The company decided to engage in a multi-year partnership with Annata after the success of the solution implementation. Annata provided the manufacturer with industry insights and experience to drive more value in all its business processes.
Annata picked for superior material handling performance by Leading North American equipment dealer
North America
Dealer
A prominent material handling equipment dealer, with a network spanning over 60 locations across North America, is committed to delivering a comprehensive range of services, including new and used equipment, rentals, parts, service solutions, and training, with a strong emphasis on exceptional customer service.
The collaboration between Annata and Microsoft that led to the successful partnership with the customer was built on a foundation of team expertise and trust, ensuring a strong working relationship.
In their initiative to replace the current system, the company aspired to migrate to a modern, Azure cloud-based platform to optimize their Microsoft Dynamics investment. The primary goals included achieving business transformation, ensuring scalability, and eliminating system performance constraints.
The decision to upgrade to Dynamics 365 stemmed from challenges such as instability, poor performance, and growth limitations experienced in their previous solution installation.
The overarching objective was to address these issues and enhance the overall efficiency and stability of their operational environment. Annata’s offering stood out with its comprehensive equipment lifecycle functionality, addressing the customer’s specific needs in a tailored manner. System performance and adherence to Independent Software Vendor (ISV) compliance were pivotal aspects that contributed to the decision, assuring the customer of a robust and reliable solution.
Annata’s commitment to ongoing development, reflected in their ecosystem investment and roadmap, aligned well with the customer’s long-term goals. Microsoft’s Proof of Concept (POC) support played a crucial role in demonstrating the capabilities of the proposed Dynamics 365 solution.
The success of the partnership was further cemented by the strong collaboration and partnership ethos shared between Annata and Microsoft, ensuring a holistic and effective approach to meeting the customer’s requirement.
Automotive powerhouse selects A365 for next-level business optimization
North America
Distributor
A privately-owned enterprise with a significant presence in the automotive industry, operates as a key distributor for a globally recognized automotive brand. As the largest independent distributor for this brand on a global scale, the division serves a network over 150 independent dealerships.
Previously relying on an outdated “Green Screen” system and managing a complex network of around 200 applications, the company recognized the need for a transformative change. The existing system, developed over 25 years, had become inadequate for evolving dealer needs, leading to technical debt rather than delivering value. To address this, the enterprise sought a modern solution to meet the dynamic requirements of the automotive industry and enhance overall operational efficiency. The Microsoft Dynamics 365 and A365 combination were selected to improve forecasting, streamline vehicle ordering processes, and reduce lead times from inspection to final delivery.
The enterprise now leverages the full A365 platform, including warranty management and rental services, to optimize its operations. The pivotal factor in selecting this solution was the ability to offer a platform tailored to the automotive industry, providing comprehensive visibility, management, and controls throughout the entire vehicle lifecycle. This capability formed the cornerstone of a compelling value narrative, resonating strongly with a diverse group of stakeholders.
The decision to choose Microsoft Dynamics and A365 exemplified a strategic approach, wherein technology was prioritized first, aligning subsequently with the market for a systems integrator. This decision underscored the strategic fit of the chosen technology to the specific needs of the enterprise, setting the stage for a successful implementation and business transformation.
Key automotive importer and dealer adopts A365 for comprehensive operational enhancement
Latin America
Importer and dealer
Founded in 1963 in Latin America, this key player in the local automotive industry has solidified its standing among the top groups in the sector. Over six decades, the company has maintained consistent growth, establishing a robust financial foundation.
Central to their success is a commitment to transparent management, enabling them to overcome challenges. The company prioritizes key strategic pillars, including business sustainability, delivering exceptional customer experiences, nurturing a skilled workforce, embracing technology, and forming strategic alliances. These pillars reflect the company’s comprehensive approach to ensuring long-term success and resilience in the dynamic automotive industry.
To enhance their operations, the company opted for Dynamics 365 Finance & Operations combined with A365 and Dynamics 365 Customer Engagement combined with A365. In the evaluation process, various global and regional players were considered, with the chosen combination ultimately selected based on key factors.
The decision to choose this particular combination was influenced by factors such as embracing new technologies for future growth, an abundance of experienced consultants for technology implementation, a holistic solution with cloud hosting and flexible services, and an excellent cost-benefit Total Cost of Ownership (TCO) ratio.
Additionally, the choice of Annata was motivated by their extensive expertise in the automotive sector, a strong market presence, a robust research and development (R&D) plan, and certification capabilities with a cost-effective Total Cost of Ownership (TCO).
This combination of solutions was deemed the optimal choice, aligning with the organization’s strategic goals and ensuring a comprehensive and effective solution for their business needs.
European vehicle manufacturer unlocks competitive edge with Annata
Europe
Manufacturer
The European automotive manufacturer was increasingly challenged with their internal reliance on their existing systems as they felt that they were losing a competitive edge by not having the ability to benchmark functionality, performance, and cost. To address this, they started to investigate adding D365 as a second practice. They, however, soon found a need to bring in the Annata extended solution to fully understand the capabilities of the underlying D365 platform with the vertical extension for their specific business.
Through the roll-out, the manufacturer was able to move from local, siloed solutions to a common enterprise standard solution which drives down costs, mitigates risks, and improves the customer experience with a consequential uptick in sales. In essence, the customer views the solution as providing the systems that run their captive fleet dealers in-country, as well as providing the integration from captive and non-captive dealers into the central solution.
Annata expands Dynamics solution for South African arm of major importer and distributor
South Africa
Distributor
A South African arm of a major importer and distributor of cars and spare parts was looking to expand the use of the solution into Dynamics 365 Sales. A365 Sales was selected as the preferred industry solution.
The reputation of Annata working with the Microsoft team in South Africa helped to land the deal. The underlying Common Data Model for Automotive was also an important factor in the decision.
The expansion of the use of Dynamics CE for sales was already planned but the business felt that the Annata Sales app would provide ‘out of the box’ functionality and save them a considerable amount of time and effort. The business estimated that implementing the Annata Sales app would save them up to 3 years compared with developing the functionality themselves.
The Annata Sales app provides functionality to handle vehicle configuration, and sales quotations including financing options, trade-ins, test drives, etc.
The Annata Sales app will hopefully be the first of several products that the business will implement. This includes D365 F&O; A365 for Dealer management; Customer service; Annata Dealer portal and; Annata Field Service. The 5-week implementation of the Annata Sales app was another compelling factor.
Japanese multinational automotive manufacturer arm selects Annata to replace existing vehicle division systems
Northwestern Europe
Importer
A division of a Japanese multinational automotive manufacturer serving developing markets chose Dynamics 365 + A365 to replace all their current systems for their vehicle division across Africa and selected countries in Latam and Asia.
The implementation was complex as it involved replacing three heavily customized, on-premise solutions with a standard, (based on a global template), cloud-based offering. The complexity was further increased as the connectivity in some African countries can be intermittent, and delivering a project across many countries requires a great deal of experience and planning.
The solution implemented covered importation, dealerships, aftersales, and service, in addition to rental and fleet in specific markets. The device types cover all vehicles; from motorbikes to cars, lorries, tractors, construction machinery, etc. – and in some markets even boats.
D365 + A365 provided the manufacturer with the confidence that existing processes would all be supported and that moving to the Azure cloud would drive additional benefits.
Annata brings agility to a Chinese electric vehicle manufacturer
East Asia
Manufacturer
The North American arm of a Chinese electric vehicle (EV) manufacturer, with a 450,000-square-foot bus manufacturing and forklift assembly facility, required an agile solution to manage its supply chain, assembly, dealer orders, and post-sales processes for parts, warranty, and dealer management.
The existing solution was unable to support these business processes cost-effectively with the same flexibility and agility. Annata’s automotive original equipment manufacturer (OEM) experience and track record of successful and agile implementations, particularly in the U.S. market were key to winning against other competitors.
Key decision makers of the manufacturer were primarily of Chinese descent, with some residing in corporate offices in China. Working with Microsoft China, Annata was able to leverage its insight into Chinese business culture and its relationships with the business’s corporate IT.
Annata’s ability to adjust to an unconventional sales process and accommodation for cultural differences, coupled with an implementation approach and agile solution that could grow with the North American arm, was key to winning the business.
Swedish commercial vehicle manufacturer partners with Annata to drive the shift towards sustainable transporting
Scandinavia
Manufacturer
A Swedish trucking manufacturer selects Annata and Dynamics 365 to replace their current wholesale and dealer management systems around the globe. By adding A365 to the Dynamics solution, the company is provided with the comfort to cover almost all its operational processes and drive additional benefits by moving to a cloud-based system.
The company’s primary challenge was that it was dealing with large sets of homegrown solutions and legacy vertical solutions with a separate outdated dealer management system that did not communicate with each other. The current on-premise portfolio needed to be replaced with a standard, cloud-based solution, that covers imports, dealerships, aftersales, and service operations, in addition to its rental and fleet-based markets.
Annata, Microsoft, and the manufacturer worked together to build a golden template and blueprint to be used in future rollouts globally. The solution combination adds future capabilities and support for ML, AI, IoT, and more automated business executions, which will have a positive impact on the ROI.
The manufacturer has transformed its dealer management system, replacing its outdated solutions with Annata’s integrated, cloud-based solution using Microsoft’s infrastructure.
RV manufacturer streamlines business processes with Annata
North America
Manufacturer
Annata was chosen as a solutions provider to replace a 20-year-old heavily customized legacy system for an RV manufacturer. The systems in use were not supplying prompt information to the management team and model changes for production were painful to implement.
The implementation was vital to simplify access to data and increase service levels to its different dealers. The manufacturer selected Annata due to Annata’s global ISV status and strong solution functionalities to manage their critical workload, particularly those that require interaction with their dealer channel.
Annata’s robust dealer portal solution has improved dealer relationships with a quicker turnaround on warranty claim decisions and processing.
In parallel, the manufacturer can now leverage warranty rules and validations. The dealer portal is a win for the manufacturer in reducing warranty costs while improving dealer and customer relationships.
The manufacturer expects overall improved management reporting for executives and operations. Operational improvements include rationalized bills of materials, costing, and managing production change orders effectively. The manufacturer expects its dealers to have a more efficient process for warranty claims that will result in a reduced payment time, while still preventing fraudulent or duplicate claims.
Swiss agricultural equipment and machinery supplier accelerates cloud migration with Annata
Central Europe
Importer
As an existing customer of AX and Annata IDMS on-premise, the Swiss company decided to start its journey to the cloud in early 2020. Annata’s finance and operations solution was the core of the solution proposed to the company.
Annata’s full suite of capabilities was implemented and included extensive device management functionalities that support the entire lifecycle of a machine encompassing imports, sales, and lifecycle management with service/work order management, warranty handling, parts management, and rental.
In addition to a proven solution, Annata was the primary choice due to the strongly committed executive management team which is very much supportive of the strategic project goals.
The project enjoys a high focus at the executive management level and is supported by a strong change management approach aiming to avoid unnecessary customizations.
The industry competence of the Annata implementation team was well equipped to mitigate challenges typically encountered when setting up new customer solutions in replace of their heavy customized “homegrown” solution.
Annata selected to digitally transform distribution channel of agricultural equipment manufacturer
Central Europe
Manufacturer
With a primary focus on excellent product quality and outstanding customer service, the equipment manufacturer made a company-wide decision to shift their business process to the cloud using Dynamics 365 and Annata’s Finance & Operations solution.
The solution was rolled out to several major markets within Europe and the Americas in a span of 3-4 years, before offering the industry template to their independent dealer network. Annata was selected as the preferred industry solution partner to move their on-premise solution within their headquarters to the cloud within three months, utilizing its extensive industry and digital competencies in the Annata team.
As soon as Annata engaged with the equipment manufacturer, it was clear to them that the industry IP was key to their goal to digitally transform their distribution channel.
Coupled with finance and operations implementation expertise, the equipment manufacturer was confident that D365 with Annata was the best to provide industry knowledge to help them make the right process choices and a full set of industry functionalities around the full lifecycle of their equipment.
Mexican subsidiary of an international motor company implements Annata solutions to modernize business processes
Southern North America
Manufacturer
A Mexican subsidiary of an international motor company was utilizing multiple and heavily customized legacy systems which were around 20 years old and did not improve the business. The financial reports generated caused many discrepancies in the business which dampened business decisions.
The management was looking for an Integrated system that was consistent and easily manageable, in which all users from different departments could manage business processes in a co-dependent and competent manner.
Annata’s extensive solution provided the Mexican subsidiary with a technology transformation through its transition to digitized workflows.
The new system enabled the company’s dealerships to seamlessly communicate and collaborate with suppliers and service partners, while the company focused on creating an integrated supply chain.
With Annata’s unified solution, the company benefited from providing accurate, analytical data through the implementation of key functions in cost management, inventory management, warranty management, sales, and service departments. It also provided the company with a range of business data (in real-time) for analysis at a reduced time rate and this provided the organization with major improvements in its management reporting.
Hydrogen-powered commercial vehicle purveyors selects Annata to fulfill global scale ambitions
North America
Manufacturer
In 2020, Annata was chosen by a heavy truck manufacturer to assist in developing their business processes and the systems required to support them. The company has more than 400 employees to support its rapid growth as a leading automotive innovator in zero-emission vehicles and trucks.
After a rapid and intensive validation cycle, Annata was chosen because of Annata’s 20-year automotive industry experience and extensions to the Microsoft Dynamics platform that formed the basis of the manufacturer’s finance and manufacturing systems.
Designed with cloud scalability and agility built in, the solution covered all critical processes. To ensure a complete and compelling customer experience, Annata’s solution will ensure the organization is well connected to customer behaviors, both pre-and post-sale for years to come.
The company decided to engage in a multi-year partnership with Annata after the success of the solution implementation. Annata provided the manufacturer with industry insights and experience to drive more value in all its business processes.
Forestry equipment global manufacturer selects Annata for company-wide digitization
Europe
Manufacturer
Operating in forestry markets of more than 40 different countries, the manufacturer had an IT landscape that was complex, fragmented, and varied greatly between countries. As part of their future-proofing efforts, they needed a platform to bolster them as they navigated into the future, providing them with the flexibility required to digitize their entire business.
Annata’s complete set of industry functionalities around the lifecycle of heavy equipment, the strength of the application and platform, as well as in-depth knowledge and vast experience within the industry were reasons why Annata was selected to support them along their transformation journey.
Annata also displayed strong awareness of future capabilities specific to the manufacturer’s needs aside from proving a strong partnership with Microsoft.
Annata’s flexibility, scalability, and capabilities to take on the ever-changing environment in the forestry manufacturing industry have since enabled the manufacturer to maintain a competitive edge digitally.
