special industry presentation - collision industry conference...• our company uses industry data...

Special Industry Presentation

January 2017Palm Springs

Special Industry PresentationFrank Terlep

Founder of eMarketing Sherpas & Co-founder of Agnitia Networks

CIECA BMS: Industry Standard or A New Way to Control, Centralize and Monetize

Industry Data?

January 12, 2017Palm Springs, CA

218

HousekeepingGovernmental Committee

July 2014

Why Am I Here?• Present CIC body information on recent

announcements about CIECA BMS standard• Present potential ramifications of announcement• Determine if this subject is important to the

industry• Determine if CIC should create a task force to

perform more due diligence and take a position

219


July 2014

Why Me?• Created and Integrated Collision Industry Software Platforms

since the 1980’s • Original CIEDIS member• Past CIECA chairman• Created Integrations with Dozens of Data Systems • ”Experience” – Déjà vu All Over Again• Our company uses industry data via industry standards to

help shops market to, sell and service consumers.

Who Are You? Do you Share and/or use Estimate and

Customer Data Today?

1 2 3 4

31%

12%

49%

9%

1. A repairer that shares Estimate & Customer Data

2. An insurer that uses Estimate & Customer Data

3. I am a 3rd party that captures and uses Estimate & Customer data

4. We have no need for Estimate & Customer data

221


July 2014

A History Lesson1980’s: • Information providers begin sharing estimate data via data tapes1990’s: • Information providers wanted to limit access to basic estimate data• Open confrontations at CIC regarding access for basic estimate data• MAX: Computer that shops had to purchase to import data from Mitchell and

ADP• CIEDIS becomes CIECA and the EMS standard is “hammered” out• Created to create open communication and consistency for data sharing Late 1990’s – 2016: • Dozens of companies, products, services and innovations created using the

OPEN EMS standard 2016: • The Cubs win the World Series and one company with large market share (70%?)

announces implementation of BMS and ”the retirement” of EMS.

222


July 2014

EMS: 1990’s - Today

EMS

EMSEMS Data

• Created to standardize data sharing from IP’s to shop management software

• Most companies charged for EMS in the “early days”

• Some companies still charge a small, one-time fee?

• years ago!• EMS is local which means data is

generated and resides at the business

• EMS is presently used in more than 70% of the shops and dozens of 3rd party applications

223


July 2014

Present Situation (EMS) Shop management systems Parts procurement systems Marketing systems Data warehouse and reporting CSI companies Paint companies Equipment companies Insurance companies Repair info companies Online review companies Email companies Social media companies Rental car companies Repair status Claims management Material control Inventory management Etc…Etc…

EMS Data

25,000 Shops

EMS Data

EMS Data

EMS Data

EMS Data

EMS Data

224


July 2014

Present Situation (EMS)Here is what some people say about EMS Today:

Originating in 1994, EMS is now an outdated standard and lacks many of the data advantages of the newer BMS standard. EMS has several limitations including: no encryption, no security logging, and no ability to segment data by use.

Lastly, EMS uses Windows flat file storage which means that it doesn't work well for modern web and mobile platforms that don't use flat-file storage.

EMS Data

225


July 2014

BMS Announcement• “A BMS API that will allow collision repairers to

control the distribution of their data and better secure the data shared with third-party application providers

• <Company> will continue to support the export of (EMS) files for a period of time to allow companies to prep for the change.

226


July 2014

BMS Announcement (Cont’d) • Decision was made to to support the BMS

standard and better secure data shared

• Platform was built using open technology so it would have the dual benefit of providing data security, while enabling new technologies and innovations to connect to the industry and bring new solutions to collision repairers.”

227


July 2014

BMS Announcement (Cont’d) <Company> is making a significant investment in infrastructure, software development, cloud hosting, additional security measures and the ongoing support of API.

It is a standard industry practice for third party app developers to pay a fee for cloud-based APIs in order to offset the costs associated with the development and support of those interfaces (BMS).

228


July 2014

• Existing (EMS) standard for shops will be “retired” in April of 2018

• EMS for independent appraisers WILL NOT be “retired”

• BMS API is not being offered to insurance companies.

The “Fine Print”

229


July 2014

• <Company> may reject or terminate access to the API Documentation for any reason

The “Fine Print”

• <Company> may terminate Agreement and revoke access to Account Information/Data for any reason, at any time!

Data Flow with EMS in Place Shop management systems Parts procurement systems Marketing systems Data warehouse and reporting CSI companies Paint companies Equipment companies Insurance companies Repair info companies Online review companies Email companies Social media companies Rental car companies Repair status Claims management Material control Inventory management Etc…Etc…

EMS Data

25,000 Shops

EMS Data

EMS Data

EMS Data

EMS Data

EMS Data

231


July 2014

Data Flow with EMS Retired(Starting in April 2018)

Shop management systems Parts procurement systems Marketing systems Data warehouse and reporting CSI companies Paint companies Equipment companies Insurance companies Repair info companies Online review companies Email companies Social media companies Rental car companies Repair status Claims management Material control Inventory management Etc…Etc…

EMS Data

22,000 Shops

EMS Data

EMS Data

Shop Data BMS

One Company

232


July 2014

Who Will Be Affected?

Shop management systems Parts procurement systems Marketing systems Data warehouse and reporting CSI companies Paint companies Equipment companies Insurance companies Repair info companies

Online review companies Email companies Social media companies Rental car companies Repair status software Claims management Material control software Inventory management Etc…Etc…

22,000 Collision Repairers

233


July 2014

“It is a standard industry practice for third party app developers to pay a feefor cloud-based APIs in order to offset the costs associated with the development and support of those interfaces (BMS).”

Company Statement

234


July 2014

• EMS: FREE• ACES: FREE (Membership

fees ie: CIECA)• Mitchell: FREE• Mechanical Industry:

$10.00 /Month (10 management systems)

• Calendars: FREE• Contacts: FREE• Email: FREE

“Standard Industry Practices” for Data Sharing and API’s

• YELP: FREE• Google Reviews: FREE• Google Maps: FREE• YP.COM: FREE• Facebook: FREE• IFTTT: FREE• Zubie Telematics: FREE• Edmunds: FREE

236


July 2014

REAL Ramifications !• Any 3rd Party company that wants to use the

new BMS API will need to spend hundreds, maybe thousands of hours to change their existing EMS based integrations!

• This will cost the INDUSTRY tens of MILLIONS of $$$ and delay other development and projects

237


July 2014

• Cost of doing business for shops and all other affected parties goes up• $2.0MM shop potential cost increase: $200/Month

or more• CSI Companies: $1.0MM annually• Shop Management Provider: $50/Month or more

PER SHOP!• OEM Network (1000 shops at 650 RO’s each):

$325,000 Annually!• Parts Procurement Companies; $$$$$$

Potential Ramifications

238


July 2014

• Shops lose ownership and access to their data• Less competition • Less innovation• Access to basic industry data limited or cut off• Existing business models upended• One company gains control of an industry

standard and basic industry data

Potential Ramifications

Do you think that a “for profit”, private equity driven company will be tempted to generate excessive profits and/or prevent competition through the use of data generated via an industry standard?

1 2

6%

94%1. YES2. NO

Should industry participants that already pay for access to BMS be required to pay again?

1 2

92%

8%

1. YES2. NO

Should CIC create a task force/committee to perform more due diligence and provide a position statement?

1 2

14%

86%1. YES2. NO

242


July 2014

Company ResponseOur counsel generally advises against participation in such meetings without appropriate antitrust controls applied, which may significantly limit the topics discussed.

As such, we respectfully decline the invitation to participate. Hopefully, the specifics of the program set out in our press releases and website serve to provide the necessary information to fully understand the program

243


July 2014

My Contact Info

Frank TerlepLinkedIn: www.linkedin.com/in/frankterlepEmail: [email protected]: 619.318.9856

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