CCC's DriveLogic to Launch First End-to-End Internet Solution for Auto Collision Supply Chain
3 August 2000
Seeks to Enhance Supply Chain Efficiencies, Cut Average Claims Cycle Time in Half
CHICAGO - CCC Information Services, Inc., a wholly owned subsidiary of CCC
Information Services Group , announced that its e-commerce business, to be
called DriveLogic, Inc., will launch the first comprehensive, end-to-end
Internet collaborative interchange and on-line applications for the automotive
collision supply chain.
Leveraging CCC's 20 years of industry experience, customer relationships
and market leadership, these e-commerce solutions will be designed to
significantly reduce the amount of time needed to get the driver back in his
or her car after an accident. DriveLogic believes that improving efficiency
in the supply chain could reduce the average claims cycle of up to 30 days by
as much as half, greatly increasing customer satisfaction.
"Our vision for DriveLogic is to create a new technology model for auto
claims processing, using the best in today's Internet, wireless, database
warehousing and other technologies," said Githesh Ramamurthy, Chairman and CEO
of CCC. "This is an ambitious undertaking. But with the strong leadership of
Pradip Patiath, who's heading up DriveLogic, along with the talented team that
he has recruited and a commitment to fulfilling our vision, we believe that we
will bring significant new value to our industry."
DriveLogic's strategy is to combine a collaborative Internet interchange
with multiple, integrated e-commerce solutions delivered via an application
service provider (ASP) model. DriveLogic's solutions will target the entire
auto claims process, benefiting supply chain participants and ultimately
consumers by increasing efficiencies and decreasing cycle time. The company
believes that its solutions have the potential to address an estimated
$10 billion in supply chain efficiency opportunity. By way of comparison, the
U.S. property/casualty industry in 1999 earned $13.9 billion in operating
income, according to the Insurance Services Office (ISO).
"The auto claims/collision repair industry today is a fragmented,
information- and transaction-intensive business that could greatly benefit
from DriveLogic's comprehensive solutions," said Patiath, President and COO of
DriveLogic. Industry studies show that, of the nearly one-month average cycle
time in this industry, a vehicle spends 14 to 18 days in the shop -- yet the
time needed to do the actual repairs on the vehicle is only about 18 hours.
"DriveLogic's Internet and wireless technologies will offer a way to shorten
that cycle time by improving information flows and collaboration among related
parties in the claims and repair process."
DriveLogic's solutions will serve automobile insurance companies,
collision repair facilities, appraisers, rental car companies, glass companies
and many other market participants. In addition, through their insurance
companies, claimants will have on-line access to information about their
claims, giving them a "window" to the process that is not available today.
DriveLogic's collaborative interchange and ASP solutions will employ the
latest technology standards and integrate with existing CCC networks and
solutions, as well as the networks and solutions of other companies.
DriveLogic's initial solutions will include:
-- Internet Collaborative Interchange: This is an open,
business-to-business hub designed to link parties in the auto claim
supply chain and integrate the "plugged-in" e-commerce solutions. The
open technology architecture will allow for the easy, seamless
integration of third-party applications. The Internet interchange will
serve as the "backbone" for auto claims, with portals and
enterprise-quality applications provided for parties in the supply
chain.
-- Intelligent Information Products: Mining vast databases of
information, DriveLogic plans to provide a family of decision-making
solutions targeted at improving process efficiencies within the supply
chain. DriveLogic expects these solutions to deliver targeted,
real-time predictive information to the value chain, allowing for
additional severity and loss adjustment efficiencies.
-- Intelligent Resource Management Products: Using sophisticated
artificial intelligence and wireless technologies, DriveLogic expects
to provide a resource management solution over the Internet for
efficient scheduling of appraisals, repair jobs, towing, rental cars
and other related activities. Wireless capability provides great speed
and flexibility, permitting workers in the field, for example, to send
information to and receive information from the interchange.
-- Parts Procurement: DriveLogic's interchange will also integrate with
ChoiceParts, the web-based parts procurement and distribution
marketplace created by CCC, ADP Dealer Services Group, ADP Claims
Solutions Group, and Reynolds and Reynolds Automotive Division earlier
this year. ChoiceParts' virtual parts exchange is designed to serve
the multi-billion dollar auto parts market with unprecedented speed,
accuracy, knowledge and convenience.
-- Repair Portal: DriveLogic plans to create a robust portal featuring
access to industry information and shop marketing and claims status
tools.
DriveLogic is using the ASP model for its flexibility and
cost-effectiveness for users. "Other industries have already endorsed the ASP
model, as demonstrated by Microsoft's recent decision to offer its Office
suite of products in a similar fashion," said Patiath. "The ASP model has
several advantages for our clients, including focusing and leveraging
information technology resources on only the most critical and core business
functions."
DriveLogic decided on a comprehensive approach as a way to gain maximum
supply chain efficiencies. "Other solutions providers are only addressing
parts of the supply chain," said Patiath. "DriveLogic plans to be the first
to put the full-spectrum solution together, through a combination of strategic
alliances and in-house development."
DriveLogic has the unique advantage in the market of leveraging CCC's
connectivity platforms, which already process some 750,000 auto claims-related
transactions per day. These connectivity solutions have been developed and
implemented over the past 20 years, a clear competitive advantage.
DriveLogic's goal is to handle a significantly greater volume of transactions
-- up to triple the number that CCC handles today.
"DriveLogic takes us to the next level in solutions for the auto claims
industry," said Ramamurthy. "We have market-leading tools like Pathways(R),
and a new generation of Internet-based tools like the TL2000 web-based Total
Loss product and Claimscope Navigator. The DriveLogic solution provides
innovative yet complementary technology that will extend added value to the
industry."
DriveLogic today has a 45-person staff in addition to the full support and
resources of CCC dedicated to the creation of the interchange and wireless
solutions. The company is growing rapidly and expects to have a 100-person
staff by the end of the year.
Well-Positioned to Succeed
DriveLogic was incubated by CCC, the leading supplier of solutions to the
auto claims market. Founded in 1980, CCC has a built a strong position as a
provider of auto claims software products and services, with assets and
relationships that provide a formidable point of entry for DriveLogic. These
assets and relationships should serve as the foundation for leadership in the
B2B e-commerce solution space for this industry.
-- Business and customer relationships: CCC's business relationships and
customer base include 350 insurance companies, over 13,500 collision
repair facilities, over 10,000 insurance appraisers, 4,400 auto
dealers, 14 rental car companies and a variety of other supply chain
participants. The company also provides data to the National Insurance
Crime Bureau.
-- Existing networks: CCC has existing connections to customers in the
supply chain to provide total loss valuations,
assignment/estimate/supplement transfer and rental car assignments.
CCC is the leading communicator of auto claims transactions in the
country, handling more than 200 million transactions per year.
-- Existing applications/solutions: Both CCC's Total Loss valuation
product and estimating product have leading market share positions.
CCC also has market-leading Internet-based digital imaging systems,
shop management systems for repair facilities, and various management
information products for insurers.
DriveLogic anticipates launching its interchange and first suite of
Internet and wireless applications in Fall 2000.
About DriveLogic
DriveLogic is a wholly owned subsidiary of CCC Information Services Inc.
focused on providing Internet and wireless-enabled technology solutions to the
auto claims and collision repair industries. By combining these solutions
with the industry expertise, customer relationships and market leadership of
CCC, DriveLogic aims to optimize supply chain efficiencies, bringing value to
parties in the entire supply chain.
About CCC
CCC Information Services Inc., headquartered in Chicago, Ill., is a
leading supplier of advanced software and communications systems to the
automotive claims industry, including information and network services for a
wide variety of claims management solutions. Its value-added, technology-
based products and services increase efficiency and facilitate communication
among more than 13,500 collision repair facilities, 350 insurance companies,
and a range of business partners.
