D-Tools University: Despite Bad Economy, Dealers Invest in Better Business Practices

Outsourcing Requires Process Management

Consultant Kevin Mikelonis of Process Dealer Services Group says that under tough economic conditions integrators are turning to more outsourcing, and that requires better business practices.

"Maybe they're cutting back on rough-in labor and using electrical contractors for that," Mikelonis says. "They need to have better processes in place, like documentation."

Mikelonis, who spoke at DTU, consults on business processes, and creates documentation for home systems integrators.

Also appearing at DTU was Sam Cavitt of the consulting firm Media Environment Design.

He too is seeing a trend of outsourcing, and that includes the use of design firms like his and Mikelonis's.

Dealers have to "create better efficiency," says Cavitt. "If my core competency is sales, and not design, why do design myself?"

He points out that a company's "payroll is fixed costs, but not necessarily fixed need."

That's why outsourcing makes good sense, especially in today's unpredictable economy.


Jacobs, Jacobson, what's the difference? I've been called worse.