This Week: Kevin Distelhorst

July 10, 2007

Original article at AutomotiveDigest.com

Kevin Distelhorst is GM of IntegraLink, a division of The Cobalt Group since 2000. He co-founded IntegraLink in 1998 to fill the automotive industry's need for a professional data collection firm. Before this, he held a number of positions in which his primary focus was using technology to solve business problems, including vice president of sales and marketing at Management Computer Services and GM of two divisions within Reynolds and Reynolds. Distelhorst holds a BS/BA in accounting from Ohio State University and an MBA from the Wharton School.

1. Tell us the history of IntegraLink

I co-founded IntegraLink in 1998. Our goal was to become the leading independent provider of DMS data collection and normalization services. We achieved that goal. In 2000, we were acquired by the Cobalt Group.

We operate as a division of the Cobalt Group from our headquarters in Columbus, Ohio. IntegraLink collects and normalizes DMS data from over 15,000 dealers in North America. We're proud to serve four of the five largest OEM's and dozens of other marketing and service companies.

IntegraLink is for companies that are looking for a single partner that can manage a turnkey collection and normalization process for DMS data from a company that's successfully scaled to serve thousands of dealers and still be responsive to the customized needs of an individual company.

2. How many dealers do you provide services to today on behalf of your customers?

We have a significant footprint, with over 15,000 of the roughly 22,000 dealerships. That certainly works to the advantage of our new clients, because we already have an established presence with dealers and we know how to get data. As long as the dealership grants access to the new client, we can very quickly help the client get the data they need.

3. Is the trend more for end-to-end service suppliers rather than partial solution providers?

The trend that we've seen has been kind of a flight to quality. Over the past year, we've seen significant sales growth from companies that are looking to move into utilizing DMS data. They have sought out established and proven leaders so that they can have the assurance that the service will continue.

4. What do you see as the greatest challenge that dealers are facing regarding their DMS data?

The greatest challenge they have is maintaining and managing open and secure access of that data to external companies. There are more and more companies who want access to that data, and there's an increasing need, both legally and ethically, to safeguard the data. It's really becoming difficult for dealers to keep track of whom they are providing access to, and whether or not that access is secure. Without open and secure access, those dealers would be shut out of the opportunity to use some of the most innovative and valuable marketing services being offered to dealers today. Those products rely on access to the DMS data.

5. Can you give us an example of some of those marketing programs?

Vehicle inventory is a key example. If you can't get your inventory made available for your dealer website, you're at a real disadvantage to the rest of the market. Consumers expect fresh, up-to-date information, and we focus extensively on timely and accurate data.

6. Do you think the trends overall favor the single supplier as opposed to multiple suppliers?

Our customers are the OEMs and marketing companies. There will continue to be consolidation as more companies choose to use the market leaders. That, in itself, will favor consolidation.

7. What is your most outstanding corporate achievement in the last year?

Over the past year, IntegraLink and The Cobalt Group took a leadership position in forming Open Secure Access. Initially, the OSA was a coalition of companies that were concerned about the future of open secure access of DMS data. Since then, the OSA has evolved into an organization that includes dealers, dealer groups, OEMs, and DMS companies. Through the OSA, several of the leading DMS providers have in fact taken steps to continue and enhance the opportunity to provide open and secure access to their dealers. Frankly, I don't think that would have occurred without the OSA.