The dealer management system, which is under development for Microsoft by Copenhagen-based Infonizer, will be built to the latest version of Microsoft's Dynamics AX ERP application, said John Reed, director of Microsoft's automotive retail solutions. Microsoft will market Infonizer's system under the name Dealer Management System for Microsoft Dynamics AX.

The system will streamline the automotive retail and service business processes, cut operating costs and increase sales and business opportunities, according to Infonizer. The system will replace the costly, ineffective and often obsolete IT systems currently operating in automotive dealers and services, Reed said.

Infonizer's DMS for Microsoft primarily targets dealer groups and large automotive dealers and services, Reed said.

"Microsoft got into this because there was a large market opportunity, a big sea change in terms of expectations around distribution, and a need for Microsoft to have a footprint in that market in order to meet consumer demand," Reed said. "This is a cooperative effort ' Infonizer develops the application and Microsoft can lend its strength of brand to help propel it into certain markets like the U.S. market."

Reed said the DMS will help dealerships operate most of their core business processes for sales, service and parts as well as their basic business management accounting.