---

Dealer Information Office (DIO) Key to Automotive Retailers' Success

4 February 1999

Dealer Information Office (DIO) Key to Automotive Retailers' Success As New Millennium Approaches

    TROY, Mich., Feb. 3 -- According to automotive industry
professionals at EDS , the growing importance of information
technology (IT) in automotive retailing will require dealers to put more
emphasis on information utilization, and will drive them to hire specialized
personnel, such as a Dealer Information Officer (DIO), to oversee their IT and
computer systems activities.
    "The differentiator for successful auto dealers will be, in large part,
how well they use and leverage information technology," said Linda Judd, vice
president of EDS' Automotive Retail Group.  "To get the most efficiency out of
their dealer networks, all of the original equipment manufacturers (OEMs) are
looking to establish a strategic advantage through better utilization of their
IT systems.  Add to that the ever-growing sophistication of the consumer with
regard to information acquisition and usage, and it becomes very clear that
most dealers need to better integrate IT with all aspects of their business,"
said Judd.
    Judd said that dealers who want to remain competitive will need specific
personnel dedicated to the implementation of improved IT plans which encompass
all aspects of their dealerships' operations.  "Dealers need to go much
further than just maintaining a system that meets the fundamental aspects of
business operations such as accounts payable, payroll, and service order
generation.  To make that possible, leading providers of dealer management
systems, such as EDS, need to bring a more strategic approach to their
clients.  That's why we at EDS are changing the way we work with our dealer
clients.  We know that to compete, automotive retailers need to become Digital
Dealers(SM).
    Our approach is not just to help dealers convert from the old 'analog' way
of conducting business and implementing technology, but to help them
reevaluate their business operations so they can define and deploy IT as a
strategic differentiator in the marketplace."
    Judd stated that all aspects of the business -- new and used vehicle
sales, service, finance and insurance, marketing, and customer satisfaction
and retention -- can be greatly impacted and improved with the appropriate use
of information technology.
    Judd also cited the growth and evolution of the Internet as a vital part
of automotive retailing as evidence that IT is a catalyst for more rapid
changes than the industry has ever experienced before.
    "Clearly, the use of the Internet by dealers, manufacturers, third
parties, and the consumer illustrates the incredibly fast and profound changes
that the introduction of new information technology can facilitate.  It has
become vital that dealers stay 'ahead of the curve' with regard to technology.
To do that, most dealers will need to reevaluate their business to decide if
they have the right people to support them in the new millennium.  We foresee
the day quickly approaching when all dealerships will have a DIO, or Dealer
Information Officer," Judd said.
    As a preview of how digital dealers will operate in a digital society that
requires them to interface with digital consumers, EDS, in combination with AT
Kearney, will conduct a workshop at NADA 1999 titled The Digital Dealer(SM):
Harnessing the Power of Information Technology.  According to Judd, "This
workshop is designed to spotlight the changes that dealers are facing in every
aspect of their business.  The workshop will explore the rapid adaptation of
IT by other customer-intensive retail industries, and will compare and
contrast analog dealer approaches to business versus those of digital dealers.
An overview of the roles and responsibilities of a DIO, along with a job
description that can be used by dealers when hiring for this new position,
will also be embedded in a multimedia presentation we give at the event.  It
should be really exciting."
    EDS has been a leader in the global information services industry for more
than 35 years.  The company delivers systems and technology expertise,
management consulting, business process management, and electronic business
leadership.  EDS, which reported revenues of $15.2 billion in 1997, offers
solutions to improve the performance of more than 9,000 business and
government clients in about 50 countries.  The company's stock is traded on
the New York Stock Exchange and the London Stock Exchange.  Visit EDS via the
Internet at http://www.eds.com.