Special Industry Presentation. January 2017 Palm Springs
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1 Special Industry Presentation January 2017 Palm Springs
2 Special Industry Presentation Frank Terlep Founder of emarketing Sherpas & Co-founder of Agnitia Networks
3 CIECA BMS: Industry Standard or A New Way to Control, Centralize and Monetize Industry Data? January 12, 2017 Palm Springs, CA
4 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 218
5 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. 219
6 Who Are You? Do you Share and/or use Estimate and Customer Data Today? 1. A repairer that shares Estimate & Customer Data 2. An insurer that uses Estimate & Customer Data 3. I am a 3 rd party that captures and uses Estimate & Customer data 4. We have no need for Estimate & Customer data 31% 9% 49% 12%
7 A History Lesson 1980 s: Information providers begin sharing estimate data via data tapes 1990 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. 221
8 EMS: 1990 s - Today EMS EMS 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 3 rd party applications 222
9 Present Situation (EMS) 25,000 Shops 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 companies Social media companies Rental car companies Repair status Claims management Material control Inventory management Etc Etc 223
10 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. 224
11 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. 225
12 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. 226
13 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). 227
14 The Fine Print 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. 228
15 The Fine Print <Company> may reject or terminate access to the API Documentation for any reason <Company> may terminate Agreement and revoke access to Account Information/Data for any reason, at any time! 229
16 Data Flow with EMS in Place 25,000 Shops 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 companies Social media companies Rental car companies Repair status Claims management Material control Inventory management Etc Etc
17 Data Flow with EMS Retired (Starting in April 2018) 22,000 Shops Shop Data BMS One Company 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 companies Social media companies Rental car companies Repair status Claims management Material control Inventory management Etc Etc 231
18 Who Will Be Affected? 22,000 Collision Repairers 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 companies Social media companies Rental car companies Repair status software Claims management Material control software Inventory management Etc Etc 232
19 Company Statement 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). 233
20 Standard Industry Practices for Data Sharing and API s EMS: FREE ACES: FREE (Membership fees ie: CIECA) Mitchell: FREE Mechanical Industry: $10.00 /Month (10 management systems) Calendars: FREE Contacts: FREE FREE YELP: FREE Google Reviews: FREE Google Maps: FREE YP.COM: FREE Facebook: FREE IFTTT: FREE Zubie Telematics: FREE Edmunds: FREE 234
21
22 REAL Ramifications! Any 3 rd 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 $$$ and delay other development and projects 236
23 Potential Ramifications Cost of doing business for shops and all other affected parties goes up $2.0MM shop potential cost increase: $200/Month or more CSI Companies: $1.0MM annually Shop Management Provider: $50/Month or more PER SHOP! OEM Network (1000 shops at 650 RO s each): $325,000 Annually! Parts Procurement Companies; $$$$$$ 237
24 Potential Ramifications 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 238
25 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. YES 2. NO 94% 6% 1 2
26 Should industry participants that already pay for access to BMS be required to pay again? 1. YES 2. NO 92% 8% 1 2
27 Should CIC create a task force/committee to perform more due diligence and provide a position statement? 1. YES 2. NO 86% 14% 1 2
28 Company Response Our 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 242
29 My Contact Info Frank Terlep LinkedIn: Mobile:
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