The secret to funding dealership technical innovation and cyber defense is right in front of you. To see it, you first need to accept the possibility that your dealership might be wasting money. The second thing you need to come to terms with is that to grow your dealership’s revenue and maximize its profitability, technical innovation must be a strategic imperative.

 The Innovation Imperative

The rapid proliferation of software-as-a-service (SaaS) and cloud infrastructure services has created significant challenges for dealerships. More than one-third of desktop software spending is currently wasted, and only 35% of organizations report having complete visibility into their IT assets. This lack of technical oversight stifles innovation by tying up resources in unused, underutilized, and obsolete technology.

 Uncovering Hidden Costs

Gartner reports that organizations overspend on cloud services by as much as 70%. Furthermore, unsanctioned software applications consume 30-40% of IT budgets. Add to this the complexity of software licensing – which presents most dealerships with a significant management challenge. The lack of adequate IT asset management in dealerships results in many failing to remove unnecessary software licenses or shut down unused cloud services. The result is a massive flushing of dealership money down the proverbial toilet. This mismanagement results in ongoing costs that could otherwise be redirected towards innovative initiatives.

 The Dual Benefits of Better IT Asset Management

Effective IT asset management offers a dual benefit: reducing costs and boosting technical innovation. By gaining a clear view of your dealership’s IT assets, you can streamline operations, eliminate waste, and free up resources for technical innovation.

1. Visibility and Control: Achieving complete visibility into IT assets is the first step. Understanding what technologies are in use, who uses them, and for what purpose allows your dealership to identify redundancies and inefficiencies. This visibility is crucial for making informed decisions about IT spending.
2. Cost Reduction: Regularly review vendor contracts to ensure that you are only paying for what you need. Make sure you fully understand the licensing for the technology your dealership uses. Consolidate services wherever possible to reduce costs. Additionally, regularly conduct thorough audits to identify and remove redundant or obsolete software.
3. Optimizing Communication Technologies: As hybrid work models become the norm, dealerships need to reevaluate their communication technologies. Aligning internet, telecom, and mobile phone plans with actual needs can prevent waste. Upgrading from legacy copper lines to digital communications can offer advanced capabilities at lower costs.
4. Auditing and Tracking IT Assets: Implement systems and procedures to audit and track all tech services, devices, and vendors. This prevents overspending, creating a foundation to fuel continuous innovation.

The Secret

Reducing wasteful IT spending frees up resources that can be reinvested in dealership technical innovation and modern cyber defense. This reinvestment can drive profitability by improving customer experiences, streamlining operations, and boosting productivity. It will also better protect your dealership’s finances and reputation from the growing cyber threat. The first step is to assess your dealership’s current situation. If you’d like a free assessment, please let us know.