In his recent blog, David Worlock, BIIA’s chairman, touched upon an important aspect of restoring margins by abandoning print products altogether and concentrate on electronic intelligent instruments or services.
He took a look at AutoTrader UK who put software for classified inventory of used cars into the dealerships: This helped the dealer improve his business while helping him to upload stock to their databases more effectively. They also worked effectively with financial services players involved in the transactions, because their focus was not just joining buyer to seller, but the whole deal and all of the margins created by it.
However what struck your editor of being much more relevant was the fact that David Worlock marveled about his recent taxi ride with Darwin Melnyk, of IRON Solutions (http://www.ironsolutions.com/ ). IRON Solutions, Inc. is the leading source of Equipment Market Intelligence™ and the gold standard authority for used equipment valuation information used by the agricultural, industrial and outdoor power equipment industries in North America. IRON Solutions is an essential business partner for equipment dealers, associations, publishers, manufacturers, lenders and others. IRON Solutions integrated portfolio of services provides industry participants easily accessible and accurate equipment market information to make business critical decisions.
Value is created through a trust network where users are able to see the trading records of dealers; that banks can lend against known and reliable valuations in a market; where inspections and the data arising from them are accurate, and videos are validated …
How does this impact the credit information or credit insurance businesses as well as lenders? Worlock speculates that these emerging trading systems will have built in credibility, thus there will be less of a place for the commercial credit information, or for the bank’s expensive processing and validation, or the credit insurer’s role in risk management? Worlock concludes that one day the knowledge in these B2B trading networks will be so strong that they will be able to certify their own trades, earning extra margins for themselves while reducing the cost if trading to the network participants.
Source: David Worlock Blog