Resilience in the face of adversity: Brian Benstock's take on CDK's shutdown

CDK Global’s restoration remains underway after cyberattacks shut down its systems. On today’s show, we’re pleased to welcome Brian Benstock, Partner GM and Vice President of Paragon Honda and Paragon Acura, to learn how this is impacting his operations and may impact the industry moving forward. 

Takeaways:

• Despite the system outage, Benstock emphasizes the importance of maintaining a seamless customer experience. His stores have implemented workarounds to ensure uninterrupted customer service, highlighting the industry’s resilience and adaptability. For instance, Paragon Honda’s reliance on the A to Z Sync system has allowed them to continue operations, showcasing the value of backup processes. This redundancy has enabled the dealership to process transactions electronically without access to historical customer data.

• Furthermore, Benstock candidly discusses how the shutdown has revealed the extent of their dependency on CDK’s systems. This dependency underscores a broader industry trend where technology and data play crucial roles in daily operations and decision-making processes. Additionally, the lack of access to real-time data has created significant operational challenges, likened to navigating a ship in fog. This analogy illustrates the uncertainty and complexity dealerships face without their usual technological support.

• Benstock advises against blaming CDK, noting that such attacks could happen to any organization. He highlights the importance of industry-wide collaboration and support as other DMS and CRM providers assist affected dealerships. Nevertheless, the shutdown’s impact on financial reporting and inventory management is significant, yet Benstock remains optimistic. He believes in the resilience of automobile dealers and expects flexibility from OEMs and financial partners during this period.