ATLANTA -

As consumers, cell phone users, computer owners, Internet shoppers, online bankers and increasingly voracious consumers of all types of content, most people benefit from some form of electronic data interchange on a daily basis. We are literally surrounded with technology that allows us to exchange important data about our lives in a very routine manner.

From simple things like withdrawing cash from an ATM thousands of miles from your home bank, to more complex examples, like registering all of your financial accounts on mint.com to manage them in one place, the Internet-enabled, secure exchange of data makes many modern-day conveniences possible. This technology continues to grow and evolve quickly at the consumer level, and it logically follows that businesses are looking to benefit from similar connections with each other.

We are seeing this come to life more and more in the repossession and remarketing world. As online auctions become more popular, and with more announcements of partnerships and acquisitions between repossession, remarketing and auction vendors, it is clear that data exchange is a cornerstone issue of the industry. Specifically, how vehicle data is used and who it is shared with as it follows that vehicle through the repossession and remarketing life cycle.

The Cost of Good Data

At the consumer level, most data-integration appears to be free. Twitter accounts can automatically update Facebook accounts and vice versa in near real time. Google calendars can synchronize with smartphone calendars over the air. The list goes on, but almost never will a consumer see a “data integration” fee on their bill — if they get a bill at all. This model largely works on a mass consumer scale with standardized connections, where programming, data storage and maintenance are all supported by advertisers and other standard fees.

Repossession and remarketing data represents an entirely different and uniquely complex set of challenges as it relates to data integration, compared to typical consumer transactions. To name a few:

—There are potentially thousands of data elements associated with each vehicle, from vehicle equipment, options, location and condition, to debtor and loan information, legal compliance, documentation and much more.

—Every lender has unique data, processes and systems, creating a different “version” of each of the data elements cited above.

—Every repossession provider also has its own version of that data.

Creating secure, meaningful exchanges of this much data between multiple parties requires the time and expertise of experienced IT personnel, agreed upon data specifications that meet business needs, and stable hardware and software platforms with available backup. Business leaders from each organization need to understand exactly how the data is to be used and shared, and legal agreements should be signed by all parties for accountability. With all of these steps, it’s easy to see how expensive a good data integration project can become.

Remember That Data Isn’t the Asset

There is no doubt that common data translations which allow lenders, agents and auctions to communicate without sacrificing their own processes — the core expertise of AutoIMS for the past 13-plus years — can result in significant savings of time and money. The discernment of how to best establish these connections and who to share data with is a vital component to the ultimate success of any data sharing arrangement.

It is important to evaluate whether the specific data elements flowing to various partners align closely with the prescribed functions of those partners, thus enabling and/or restricting them as necessary, and ensuring all parties are in compliance with legal agreements.

Overall, repossession companies, lenders, remarketers and auctions that focus on driving the highest and most efficient return on the real asset — the vehicle — understand and even embrace the costs of trusted and well-conceived data connections, one of the secrets to their remarketing success.

Joe Miller is the director of customer service for AutoIMS and can be reached at jmiller@autoims.com.