Still the same faces (There are just more of us now)

ADP vice president sales and marketing Europe, Vittorio Bozza, gives an update on the future of the new combined Kerridge and ADP organisation.

Why did ADP decide to buy Kerridge?

Increasingly, we find that our customers and manufacturer partners are demanding comprehensive systems with global capability for deployment and support. The two business' actually have very little market overlap globally and the synergies that can be realised by two organisations coming together serves to provide a unique global DMS provider and a first in our industry.

What advantages does the purchase give ADP?

The inclusion of the Kerridge international offices fill the obvious geographic market gaps in ADP's operations and provides the combined company with a world-class and highly regarded range of software products. Kerridge have also demonstrated over many years that they have a highly skilled workforce and a very experienced management team. The merge of the Kerridge software solutions alongside ADP's established layered applications, including our advanced CRM, Business Exchange and ASP offerings gives us an unbridled software and services portfolio to address the growing demands of the market place.

Will Kerridge be re-branded as ADP?

Our brand name is ADP, although we are planning to introduce the ADP brand to the Kerridge markets in a transitional manner. We need time to allow the loyal customers of both organisations to familiarise themselves with the brand values of the combined organisation.

What are ADPs future plans for Kerridge and its own business?

Combined ADP and Kerridge teams are currently working on defining the integration strategy with the objective of taking the very best working practices of both organisations and harmonising the approach across the European businesses. The process has already begun and is likely to run for some months. Once we have the foundations of the new business in place we know we can go to the market with a very compelling proposition. If we examine ADPs strategic objectives for the Dealer Services International organisation we see the commitment to develop world class solutions with a measurable Return On Investment (ROI) for our customers. We will do this by watching the evolving demands of the marketplace, listening to our customer's and manufacturers and approaching all of our business dealings in the spirit of a true partnership.

Where do you envisage future growth coming from?

As ADP's track record has been particularly impressive, we will be especially well positioned with products and deployment capability across the globe. This is very much in line with the strategic objectives of most of the global automotive manufacturers. Our combined business' outside of the North American market now totals over 2,000 employees serving 14,000 customers across 41 countries with solutions available in 15 languages. With this scale of infrastructure we are well positioned to maximise every opportunity.

Will ADP continue to sell Kerridge's dealer management systems?

Absolutely. The Kerridge Autoline products have an enviable record, especially here in the UK and mainland Europe. Few people realise the range of the other markets where they are installed, like China, Japan, Australia, the Middle East, and the Caribbean. We want to build on the obvious global demand for the rich functionality which has been the hallmark of the Autoline generations for many years.

Do you have plans to develop a new DMS?

ADP and Kerridge are especially proud of their pioneering track records for development and will continue to regularly invest a significant percentage of our revenues in research and development, assuring our customers with the best solution at the right time.

How does this deal affect UK customers of Kerridge?

It's a real benefit for our ADP and Kerridge customers as well as our manufacturer partners. ADP have an enviable reputation as a highly customer-focused business and we have a strong commitment to building on the successful relationships which Kerridge have fostered over the last 30 years. We pride ourselves on listening and responding to our customers wishes - it is what ADP term as 'execution mindset'. With the introduction of our expanded services and software portfolio we can offer a broader choice to the market. We know from market research that our layered applications will have particular appeal to many of our customers as they were conceived at the outset to offer real measurable business benefits. This is very important, especially during the tough trading conditions in the market at present.

Who do you see as your main competitors and how do you hope to stay one step ahead of them?

We certainly respect our competitors, but it's clear to everyone that we are in an ever changing market place and our competitors of today may not necessarily be our competitors for the future. We believe that our traditional DMS competitors will find conditions becoming tougher and we can expect to see increasing competition from the global ERP providers that have historically shied away from the retail end of the industry. National DMS providers will come under increasing development pressure as the demand for integrated solutions strengthen.

The costs associated with developing modern integrated solutions will need to be spread out over a much larger user base if they are to be affordable. It's one of the reasons why it's no longer possible to take a parochial view of ones own market. The fact is the dealers principal supplier, the manufacturer, is a global organisation and they prefer to exploit the economies of scale, with systems development, in the same way as they have successfully done with component suppliers. There can be no doubt that the motor industry is going through a difficult time right now with too many new vehicles chasing too few customers. But our willingness to listen to the demands of our users, gaining knowledge from them about where IT can support their business and then developing world class products will ensure that we remain the market leader. The key will be to maintain customer focus.