• DigitalDealer-horizontal-Logo
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda At-A-Glance
      • Exhibitor List/Floor Plan
      • Sponsor List
      • Hotel & Travel
      • Hosted Dealer Program
      • FAQ
      • Mobile App
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Resources
      • Exhibitor Tips
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Best Of Awards
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Contact Us
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe
  • .
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda At-A-Glance
      • Exhibitor List/Floor Plan
      • Sponsor List
      • Hotel & Travel
      • Hosted Dealer Program
      • FAQ
      • Mobile App
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Resources
      • Exhibitor Tips
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Best Of Awards
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe

DealerPoint: May 21-23, 2024
Conference & Expo:
October 8-10, 2024

REGISTER NOW EXHIBIT / INQUIRE
Q

NEWS:

Dealer/GM News | Digital Dealer | Lead Management & CRM | Ownership | Sales & Marketing
July 1, 2011

STAR Standards Lighting the Way

Posts:
Dealer/GM News | Digital Dealer | Lead Management & CRM | Ownership | Sales & Marketing
July 1, 2011

STAR Standards Lighting the Way

I’m not a gambling man, but I bet if I asked 100 dealers on the street what they thought about STAR, the majority of them would think I was asking about science fiction, entertainment or even some sort of new hybrid. However, what I would really be asking about is what they thought about the Standards for Technology in Automotive Retail (STAR) developed by NADA.

When it comes to technology standards, the retail automotive industry has lagged behind many other industries. But standards are important. Think about how you can plug any electrical appliance into a wall outlet. The 110 volt standard allows any plug to work in any outlet nationwide (but not in Europe which has a different standard). Now imagine if different types of appliances had different electrical standards. How inconvenient would that be? Similarly, standards allow you to purchase any brand of printer and it will work with any brand of computer.

Unfortunately this hasn’t been the case in retail automotive. Many years ago OEMs developed their dealership communications systems using closed, proprietary interfaces. The result of this was that many technology vendors were left out in the cold because they weren’t allowed to develop these interfaces. But in recent years, many manufacturers have implemented STAR into their dealer communications systems. This benefits the dealers in several ways:

Increased competition. Open standards literally open up the field to more technology vendors – providing more choices for dealers.  For example, before Toyota implemented STAR in its dealership communications system, Toyota dealers had only two choices for certified DMS vendors. Now that STAR has been implemented, Toyota dealers can choose from among four certified DMS vendors. Kia dealers can currently choose from more than seven certified DMS vendors.

Better communication. STAR has worked with its membership to develop more than145 XML message formats covering more than 40 business areas, from customer relationship management (CRM) to fixed and variable operations. These standard formats enable the dealership to easily connect with manufacturers, third party application providers and other business partners, from banks to parts suppliers. This seamless data exchange allows for real-time transactions in daily business, with more reliable and accurate data. Before STAR, a dealer may have had to manage several vendor relationships for leasing and lending purposes, but a standard format has led to the development of web portals that can aggregate data from multiple lenders in one place.

Reduced IT costs. In addition to lower-priced DMS solutions, open standards reduce costs for dealerships in several other ways. The STAR Dealer Infrastructure Guidelines (DIG) establishes a best practices checklist to develop a common network infrastructure. By using these best practices, dealers can significantly lower IT operating costs. A common infrastructure allows dealers to choose from a wider variety of software, hardware and communications solutions. Open standards also make it easier for IT personnel to access, understand and fix any IT issues that may occur.

Increased productivity. Technology standards can help eliminate redundancies, which in turn leads to greater productivity. For example, one of the STAR interfaces gives dealers the ability to download vehicle invoice information directly to the DMS inventory system. This generates significant time savings as there is no need for an individual to manually type the information into the system. In addition, the accuracy of the information is almost always near perfect. The STAR standard also enables the dealership office manager to download warranty payments directly to the DMS accounting system, again saving time and eliminating errors.

Rapid development of new products. Use of the STAR standard allows for rapid implementation of new computer and communications applications. Since all the OEMs and vendors are writing to the same standard, they can introduce new interfaces quickly, which in turn enable faster throughput for daily business transactions such as parts orders and credit applications.

Access to information. Seamless integration with a manufacturer’s communications system provides dealers with access to more information about prospects and customers than they previously had. For instance, Toyota’s interfaces now make it possible for dealers to see all the services ever done on a vehicle, not just the service history in their dealership (even if the vehicle was purchased in a different dealership). This type of information may make it easier to sell a particular service, or a service contract.

More than 20 manufacturers are now members of STAR, including BMW, Volkswagen, Kia, Honda, Toyota, Nissan, Ford, General Motors and Chrysler.  NADA is the representative body for dealerships, and nearly a dozen DMS vendors have implemented some form of STAR standards in their software solutions.

Although STAR focuses on IT standards, the real benefits come from streamlined business practices, increased competition and reduced costs for dealerships. Dealers who are interested in learning more about STAR can go to www.starstandard.org for more information.

 

 

Dealer/GM News•Digital Dealer•Lead Management & CRM•Ownership•Sales & Marketing

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Posts Dealer/GM News

Nearly 4,000 Car Dealers Ask President Biden to Slow Down EV Push

Car dealers are asking President Joe Biden to “tap the brakes” in his administration’s electric vehicle (EV) push. A total of 3,882 franchised car dealers the U.S., calling themselves the EV Voice of the Customer, published the letter on No
Posts Data & Analytics

Digital Retailing Continues to Grow at Auto Dealerships

A recent report found car dealers offering consumers the ability to do a deal online has grown to 40% in the last year—but an urgent need to cutdown on repetitive steps happening in the showroom. Nearly all car dealers currently using digital retai
Posts Dealer/GM News

Nearly 4,000 Car Dealers Ask President Biden to Slow Down EV Push

Car dealers are asking President Joe Biden to “tap the brakes” in his administration’s electric vehicle (EV) push. A total of 3,882 franchised car dealers the U.S., calling themselves the EV Voice of the Customer, published the letter on No
Posts Dealer/GM News

Ciocca Agrees to Purchase 10 More Pennsylvania Dealerships

The Ciocca Dealership group is growing its holdings in Pennsylvania. The agreement has Ciocca purchasing Apple Automotive, the automotive division of York County, Pa- based Stewart Companies. Terms of the deal was not disclosed, with the final transa
Posts Dealer/GM News

Mercedes Launches First Charging Hub in U.S.

Mercedes-Benz is offering a change to the way Americans charge their vehicles in the same way Starbucks altered the routine of getting a cup of coffee. Mercedes, in a joint venture with MN8 Energy to launch a network of premium electric vehicle (EV)
Posts Digital DealerEveryone

Digital Dealer Unveils New Branding & Announces Launch of DealerPoint, Offering Targeted Networking and Driving Innovation

Digital Dealer has revealed its new branding and announced the launch of DealerPoint, a dynamic addition to its event portfolio.   This unveiling of the refreshed logos marks a symbolic step forward for Digital Dealer, aligning with its commitment
Posts Dealer/GM News

Hyundai Dealers Will Be the First to Sell Cars Through Amazon Platforms

Amazon is getting into the (virtual) car dealership business. At the Los Angeles Auto Show Nov. 16, the Seattle-based online behemoth announced auto dealers for the first time will be able to sell vehicles on Amazon’s U.S. store in 2024—with Hyun
Posts General

GM Workers Approve Union Contract; Ford, Stellantis on Pace to Pass

Despite concerns that resulted in a closer than expected vote, General Motors (GM) union workers approved the deal negotiated by United Auto Workers (UAW) union. The deal was supported by roughly 54% of the more than 34,700 autoworkers at GM who vot

NEWSLETTER

SUBSCRIBE

DEALER MAGAZINE

Dealer Magazine March/April 2023 Issue Featuring an Interview with NADA 2023 Chairman
MAGAZINE

Explore All Our Brands

FOLLOW US ON

  • Follow
  • Follow
  • Follow
  • Follow
  • Follow
© 2023 Emerald X, LLC. All Rights Reserved.

ABOUT    CAREERS    AUTHORIZED SERVICE PROVIDERS   DO NOT SELL MY PERSONAL INFORMATION   TERMS OF USE   PRIVACY POLICY