Careers at CDK Global
CDK Global aims to provide technology solutions and digital marketing services to customers operating in the automotive retail sector. The company aims to provide efficient supply chain management systems.
CDK Global’s operations are organised into two main businesses: Automotive Retail and Digital Marketing. These businesses are further divided into three operating segments:
- Automotive Retail North America, through which the Company provides technology-based solutions that help customers across North America manage the sale, financing, insurance, parts supply, and repair and maintenance of vehicles;
- Automotive Retail International, through which the Company provides solutions similar to those offered in its North America segment to customers across approximately 100 countries outside of the US and Canada, including in Europe, the Middle East, Asia, Africa, and Latin America; and
- Digital Marketing, through which the Company provides various digital marketing solutions for, including website development and operation, and management and implementation of digital advertising schemes.
CDK Global previously functioned as a division of human resource management software provider ADP. It was initially set up by ADP in 1972, operating under the name of ADP Dealer Services. The Company was spun-off from ADP in 2014 to form a separate company. ADP stockholders received one share of CDK Global for every three shares of ADP common stock they held on 24th September 2014, with ADP retaining no interest in the newly-formed entity.
As part of its spin-off from ADP, CDK Global was listed on the NASDAQ. The Company continues to trade its shares publicly, and is included in Standard and Poor’s 500 Index. CDK Global has a current market capitalization of $40.39 billion.
Business model of CDK Global
CDK Global provides technology and digital marketing solutions to clients operating across the automotive retail chain, primarily comprising major original equipment manufacturers and their associated retail franchises. The Company categorises its clients across the US and abroad as:
- Automotive Retailers, comprising franchised automotive retail groups, original equipment manufacturer-owned retail locations, and independent used car retailers, to which the company provides technology solutions and digital marketing services;
- Original Equipment Manufacturers, to which the Company provides data management, business intelligence, benchmarking, and dealership management systems integration services; and
- Other Application, Service and Information Providers, to which it provides tools, resources and integration solutions.
The majority of CDK Global’s business in conducted in the US and Canada. The Company also serves customers across Europe, the Middle East, Asia, Africa, and Latin America.
CDK Global provides value to its customers in the following ways:
- Its established brand name and market reputation, being the largest and most established global provider of automotive retail technology solutions;
- The quality and reliability of its solutions, developed by a team of expert personnel supported by market-leading technology partners;
- The reach of its global sales network, having the widest geographic reach in the automotive retail solutions market; and
- The provision of complementary services, supporting its technology solutions with digital marketing services.
CDK Global operates a website as www.cdkglobal.com, through which customers are able to find information on the Company’s services and solutions. CDK Global also operates an online store, which allows customers to purchase certain technology solutions, as well as third-party hardware products.
CDK Global additionally operates its own direct sales force, with teams allocated across the Company’s various operating jurisdictions. The Company has a team assigned to specifically establish relationship with original equipment manufacturers to which it markets and sells CDK Global solutions. It also operates separate team that focuses on making sales to automotive retailers.
While the majority of the CDK Global’s sales are made by its own in-house salespeople, in some cases the Company also markets its solutions through third-party channel partners.
Many of CDK Global’s products, solutions and services can be accessed on a self-service basis through the Company’s online store. This requires no interaction with CDK Global representatives, with customers able to manage accounts and purchases autonomously.
The majority of CDK Global’s sales are made directly, with customers consulting with the members of the Company’s sales teams over a period of time in order to receive a service tailored to their individual needs.
CDK Global continues to provide technical support and learning services to its customers after sales have been made. This includes personal support through web chat and telephone services, and online resources such as guides and tutorials, as well as training services.
Customers are also able to interact with CDK Global through its social media accounts with Twitter, Facebook, YouTube and LinkedIn, and the Company provides details of its upcoming events so that customers are able to interact with the Company in person.
CDK Global is a provider of integrated technology and digital marketing solutions to customers operating within the automotive retail industry.
The Company operates two principal business groups: the Automotive Retail Group, including operations across North America and internationally, comprising the development and provision of solutions designed to automate customer workflow processes, and manage financing, insurance, parts supply, and repair and maintenance of vehicles; and the Digital Marketing Group, comprising digital marketing strategy services, online advertising, and website design and operations.
CDK Global operates principally in North America, but provides services to customers across Europe, Africa, Asia and Latin America.
CDK Global collaborates with a range of companies throughout the process of developing, marketing and selling its solutions. The Company’s most significant partners are technology companies that help it to develop effective and efficient technology solutions. These technology companies comprise:
- Software and Application Developers, that help to develop the Company’s software-based solutions;
- Integration Partners, which assist the Company in integrating third-party functionality into CDK Global products; and
- Strategic Alliance Partners, which share tools and resources with the Company, and collaborate with CDK Global on joint-venture projects.
CDK Global has a number of high-profile partners, including Bull, Cisco, Citrix, Dell, Nortel, Red Hat, Microsoft and Lexmark. The Company is also listed as one of Yahoo’s preferred partners.
CDK Global’s key resources are its technology and solutions, its IT infrastructure, its sales channels, its partnerships, and its personnel. Searches of record published by the US Patent and Trademark Office identified no patent applications filed in CDK Global’s name.
The Company does, however, own a number of patents that were assigned to it prior to it being spun-off from ADP.
CDK Global incurs costs in relation to the development of its products and solutions, the maintenance of its IT infrastructure, the contracting of third party service providers, the management of its sales networks and partnerships, and the retention of its personnel.
As of 30th June 2015, CDK Global employed a global workforce of 8,900 full-time employees, accruing costs in the form of salaries and benefits. It also operates an international network of offices, representing costs in the form of rent and utilities.
CDK Global generates revenue through the development and sale of various technology solutions to customers across the automotive industry, and the provision of digital marketing services. The Company categorises its revenue streams as follows:
- Bundled sales of Dealer Management Systems and integrated solutions, comprising revenue from product installation fess, monthly fees for software licenses, ongoing software support and maintenance services, and revenue generated from other integrated solutions hosted by the Company or installed on-site;
- Transactional revenues, comprising revenue generated on a fee per transaction processed basis in relation to the Company’s solutions that help auto retailers process credit reports, vehicle registrations, data updates, and internet sales leads; and
- Digital Marketing services, comprising revenue from the placement of advertising for clients and provision of websites and related marketing services.
In 2015 CDK Global generated $2.06 billion, up on the $1.98 billion recorded by the Company in 2014. The vast majority of the Company’s revenue is generated by its Automotive North America segment, which accounted for $1.34 billion of CDK Global’s 2015 revenue. Automotive Retail International and Digital Marketing accounted for #346.2 million and $414,1 million respectively.
info: MacDonald has served as CDK Global’s Chief Executive Officer since 2016. MacDonald has held a number of leaderships roles since beginning his career in the 1980s, in particular within companies operating in the automotive sector. He began his career in 1989 at General Motors as part of the finance team in New York. He stayed with General Motors for 13 years, going on to serve in several roles within the Company’s Treasurer’s Office. In 2002 he joined Dell as Vice President and Treasurer, going on to serve as the company’s Vice President and Chief Financial Officer of the Large Enterprise Division from 2008. Prior to joining CDK, MacDonald served as Chief Financial Officer and then Chief Executive Officer at Sunoco. MacDonald holds a bachelor’s degree from Mount Allison University and a master’s degree in Business Administration from McGill University.
info: Amar has served as CDK Global’s Chief Technology Officer since 2016, having served briefly as the Company’s Interim-Chief Technology Officer. He first joined the Company in 2014 as Division Vice President of Product Development. Amar has worked within the technology and engineering space since the 1990s, but began his career in 1989 as an auditor at the Department of Health and Human Services. He joined Hewlett Packard IN 1998 as a research and development strategist and IT lead, going on to serve as Division IT Manager and Product Generation IT Manager before leaving the Company in 2005. From 2005 to 2008 Amar served as Director of Engineering Tools and Infrastructure at Intuit, and from 2008 to 2012 served as Director of Software Development at Serena Software. Before to joining CDK, Amar was Senior Director of Research and Development at Sage. Rajiv holds a bachelor’s degree in Business Administration from California State University.
info: Nietzel has served as CDK Global’s Chief Financial Officer since 2014. Nietzel began his career in 1985 as a member of Procter and Gambles sales and marketing team. He held a number of roles at the company over 15 years, including Finance Director for Gillette in the UK and in Australia, and Director of Internal Audit at Gillette. In 2001 he joined ADP, serving in several senior financial roles, including Chief Financial Officer of the Dealer Services Group and Chief Financial Officer of the Employer Services Group. Prior to joining CDK Global, Amar served as ADP’s company-wide Chief Financial Officer from 2008. Nietzel holds a bachelor’s degree in Finance and Accounting from Eastern Illinois University.
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