Auto and heavy truck dealerships continue to rapidly evolve. This includes a healthy rate of dealership expansions, acquisitions, and remodeling efforts. To maximize dealership profitability and potential during these moves, dealerships must be strategic – which goes without saying. However, many dealerships overlook the critical role of strategic IT in dealership expansions, acquisitions, and remodeling. In this blog, we delve into how strategic IT plays a pivotal role in dealership growth and success.
Acquisitions: Assessing IT Assets
Acquiring a dealership isn’t just about signing papers and shaking hands; it involves a meticulous assessment of assets, including the dealership’s technology infrastructure. Often, sellers may have neglected critical IT upgrades as they anticipated selling their dealership. This can leave the buyer with outdated systems and highly vulnerable to cybercrime.
For buyers, it’s essential to conduct a thorough IT assessment performed by technical IT and cybersecurity experts. If a dealership’s existing technology is outdated or poses security threats, then it’s not an asset – but a liability. Having a bunch of PCs that are 10 years old and running Windows 7 actually hurts the value of your dealership.
M&A Negotiations should include a careful, technical IT and cybersecurity assessment to identify obsolete systems and to ensure that a secure and efficient IT environment exists from the outset.
Expansions & Remodeling: Optimizing IT for Productivity
Expanding or remodeling a dealership presents opportunities for growth, but it also comes with its IT challenges. Strategic IT planning is crucial to creating a productive workspace that supports sales and service operations seamlessly.
Considerations such as the placement of ports for credit card machines, printers, and PCs are vital to ensure efficient workflow. Moreover, factors like Wi-Fi coverage need to be carefully evaluated, especially in buildings with materials that can hinder signal strength.
Involving IT experts in the remodeling process can prevent costly mistakes and delays. Too often, we hear stories of power and data ports placed impractically or buried beneath new floors, impeding daily operations. Collaborating with IT professionals ensures that the new dealership environment is optimized for access to technology, avoiding common pitfalls that can impact dealership efficiency.
The Mission-Critical Role of IT
Auto dealerships rely heavily on technology to drive sales and service, making IT a mission-critical component of daily operations. From managing inventory to facilitating customer transactions, every aspect of dealership functionality is intertwined with technology.
Careful consideration of IT assets isn’t just about immediate success but also future proofing the dealership. Investing in robust IT infrastructure ensures scalability and adaptability to evolving market trends and technological advancements.
An IT team that understands the importance of a well-designed and secure IT environment is critical for dealership success. By prioritizing strategic IT in acquisitions, expansions, and remodeling efforts, dealerships can position themselves for sustainable growth and a competitive edge.
