Executive View: In data-driven dealerships, continuity is key

Cap HPI chief Chris Wright discusses the dangers of using unethical data

Today’s dealerships are driven by data, but it’s essential to understand where the data comes from and how it’s collected.

In today’s data-driven world, the internet is a vast repository of valuable information, making data scraping a seemingly attractive method for extracting actionable insights. However, data scraping carries significant risks and challenges for dealers.

Data scraping carries considerable reputational risks for dealers and the technology firms that supply them. Engaging in scraping activities without adhering to legal and ethical guidelines can severely damage a company's standing. Many websites explicitly prohibit scraping in their terms and conditions. Ignoring these terms can result in public backlash and legal action, portraying the company as unscrupulous and disrespectful of digital boundaries.

Scraping personal data without consent violates privacy norms and regulations, leading to a loss of trust among customers. This breach of trust can have long-lasting effects, potentially causing customers to switch to competitors and partners to sever ties.

If your data suppliers are data scraping, they risk being blacklisted by crucial data sources if they overwhelm servers with automated requests. If the source is cut off, the technology and data that drives everything from finance to provenance platforms will be impacted.

Additionally, disseminating inaccurate or outdated information gathered through scraping can harm a company's credibility. Stakeholders rely on accurate data for decision-making, and any lapses can reflect poorly on the company's competence and reliability.

It’s clear the reputational risks of data scraping are significant, necessitating strict adherence to ethical practices and legal standards to maintain trust and credibility. It’s why cap hpi takes the harder but more sustainable approach of working with partners from across the industry to secure data.

Data scraping involves using automated programs or scripts to extract data from websites. The process usually involves traversing web pages, identifying pertinent data, and saving it into local files for analysis.

Websites often have terms and conditions that explicitly prohibit scraping activities. Ignoring these terms can lead to legal disputes, including lawsuits and hefty fines. Additionally, scraping copyrighted content or personal data without permission is unethical and can result in severe legal consequences. The ambiguity surrounding the legality of data scraping necessitates thorough legal consultation before embarking on such activities.

Data scraping is fraught with technical challenges that can disrupt business operations. Websites frequently update their structures, which can render scraping scripts obsolete overnight and disrupt the flow of data into vital dealership technology.

Ensuring the accuracy and reliability of data is a critical concern. Websites may contain outdated, incomplete, or incorrect information, leading to flawed analyses and poor decision-making if the data is scraped.

When data underpins every business-critical platform in a dealership, it’s essential to establish clear guidelines and ethical standards for compliance with legal requirements and respect for intellectual property rights.

Companies should also continuously monitor to understand how the data they use is collected and processed. Fostering a culture of ethical data usage can safeguard a company's reputation and build trust with stakeholders.

Data scraping poses significant dangers for companies and these issues are often invisible without investigation. Legal and ethical challenges, technical hurdles, and data quality issues underscore the need for a cautious and responsible approach.

For any company with ESG (environmental, social and governance) goals, corporate governance is an essential pillar and covers the values and conduct of the business. Using unethical data is a key concern in this area.

Dealers must navigate these complexities carefully to harness the power of data scraping without falling into its pitfalls. By adhering to best practices and ethical standards, businesses can leverage data scraping to gain valuable insights while safeguarding their operations and reputation.

Chris Wright is the vice president of Solera North Europe and heads up Cap HPI