What’s in store for dealers once ADP acquires Cobalt?
Jul 24
With a looming ADP-Cobalt merger, what can we expect in terms of innovation and value? I cannot be sure. Time will tell. With Ralph Paglia at the helm of digital strategy at ADP, a man who fights for innovation amid big corporate culture, a post ADP acquisition of Cobalt seems promising, but can an even larger company re-orient themselves towards innovation? Can an even larger company adapt more proactively, efficiently and effectively to shifts in the product market and needs of the dealer?
Last winter I attended a Dealer dot com hiring event where Industry Relations Director Mike DeCecco made a insightful statement to the effect of the following:
Nationwide, Dealer dot com is now the number one automotive ecommerce website and digital marketing solutions vendor among 120 competitors. And the primary reason why Dealer dot com has grown to the number one automotive ecommerce website and digital marketing solution provider is due to a focus on the dealer and a commitment to innovation. Dealers demand Dealer Dot Com because our reputation is built from the dealer-up not the manufacturer-down.
Now these weren’t Mike’s actual words as I’m recalling by memory an event that took place nearly 6 months ago. But the essence is dead-on.
Companies like Cobalt, a market leader and main competitor, owes much of their growth to a single strategy: land sweeping contracts at the automotive manufacturer level using product price to win, not product innovation. Automotive manufacturers imposed a homogeny of Cobalt products and solutions on their dealer franchisees; most dealers didn’t have much of a say or choice unfortunately. And because Cobalt secured wide swaths of dealership market-share via contract at the manufacturer level, they ceased to value innovation because they simply didn’t need to in order to win over the dealerships.
And that’s why Dealer dot com grew so popular; by focus and commitment to the needs of the dealer – not the manufacturer. Dealers want to retain the free-enterprise liberty of choosing a customer-driven solution from an innovative solution provider for themselves, and not be forced to homogenize with their competitors under one umbrella.
From one automotive digital marketing professional to another, I wonder how ADP’s looming acquisition of Colbalt will shape the post-merger company and if a new spirit of innovation and dealer-focus will prevail by a fresh ADP philosophical infusion.
What are your thoughts?
Thank you for the positive reference to my work within the auto industry, and my commitment to driving innovation and performance enhancing strategies, tactics and technology… It truly is my passion!
In regards to my employer’s acquisition of the Cobalt Group, I do not have any reservation in stating that this will benefit the auto industry as a whole, and car dealers especially… On a personal basis, I am highly motivated and enthusiastic about working with the crew in Seattle to find ways to leverage our combined resources for the benefit of our customers.
Although I have been with ADP for over 3 years at point, I still feel like the new guy, but have learned that (in my own personal opinion) ADP is a far more innovative company than most people in e auto industry realize. This sets the stage for powerful and positive outcomes through combining the people and technologies within Cobalt and ADP into a new enterprise.
Please note that my comments are my own opinions and do not necessarily reflect those of my employer.
Once again, thank you for the encouraging words, and a fascinating perspective on the ADP acquisition of the Cobalt Group.
Thanks Ralph,
I appreciate you taking the time to weigh in as much as I appreciate your work within the ADM Community.
Readers know you well enough having seen that disclaimer before to realize your expressed views are your and youra alone, not necessarily representative of ADP but your own expert opinion as a automotive e-business expert, social media enthusiast.
It is a funny thing but I must ask you about your “new guy feeling” you have been having over the last three years. Does ADP have a cultureshock effect on it’s employees making you feel like the new guy after three years, or is the daily experience at ADP fresh, making each day seemingly like your first day at work? I was on their website not too long ago and I was suprised that a company whose ADP acronym stands for Automatic Data Processing, having created e-business information spanning multiple industries, is infact a progressive new-mentality, employee-centric digital culture that doesn’t pursue self-promotion beyond the scope beyond Human Resource portion of it’s corporate website.