February 11, 2016

Disruptive Technology in the Collision Industry

Disruptive Technology

Harvard Business School professor Clayton Christensen coined the term ”disruptive technology” in his 1997 best-selling book, "The Innovator's Dilemma.“

A disruptive technology is one that:
1) displaces an established technology and shakes up the industry, or 
2) is a ground-breaking product that creates a completely new industry.

                             Here are some examples of ‘disruptive technology’
PC - Personal computer displaced the typewriter. It forever changed the way we work.

Email - Transformed the way we communicate.  It largely displacing letter-writing and disrupted the postal and greeting card industries.

Cell Phone - Made it possible for people to call us anywhere, and disrupted the telecom industry.

Laptop and mobile computing - made a mobile workforce possible.

Cloud computing - has been a hugely disruptive technology in the business world.  It is displacing many resources that previously were located in-house.


 Why is PMCLogic a disruptive technology?

Because it changes the way repairers get paid for P&M’s!

Currently repairers are pay for paint and materials on an arbitrarily and flawed methodology based on ‘refinish labor hours’ times a fixed dollar “allowance amount”.  This method of calculating what is due for each and every unique repair is universally recognized as being outdated, inaccurate and totally inequitable.

Why does this flawed methodology continue to be used?  Because until now it has been virtually impossible for a shop to accurately account of the exact amount of paint and materials used on a specific/unique repair.

What has changed?  New technology developed by ComputerLogic, and delivered via their PMCLogic™ Paint and Materials Management System, automatically generates an extremely accurate predictive estimate of the list and quantities of all P&M items that will be needed for each unique repair.  In addition, it interfaces with paint mixing systems to validate how much paint was ultimately used on each repair to insure that the final invoice accurately reflects an honest account of what P&M’s were used for a each specific repair.

Keys to success for ‘Disruptive Technology’:
It solves a problem or satisfies a need better, faster, easier and/or cheaper.

PMCLogic meets all of these criteria.
PMCLogic is better because it generates an extremely accurate predictive estimate of exactly what P&M’s will be used on each unique repair.

It is better because a repairer can easy turn that predictive estimate into a final accurate invoice.  This is because PMCLogic interfaces with numerous other applications that account for or measure the actual volume of paint and materials used for that specific job.

It is better because it automatically notifies the estimator of the P&M items that can be entered as a manual line item on the original vehicle estimate and shown as a ‘parts item’ for supplement payment.

It is better because it captures a ton of information for reporting purposes, such as, job costing, gross profit margin for all jobs paid by a specific insurance company, detailed material usage by SKU, lost opportunity, KPI’s, and more…

It is fast and easy to because it interfaces with all of the estimating systems (Audatex, CCC, Mitchell, Comp-Est and Web-Est) which eliminates the need to re-enter data.

It is cheaper because it pays for itself on just one job per month.  All other money generated and/or saved by using PMCLogic is additional net profit to the shop.

For more information on PMCLogic™ and request a ‘Free Trial’