1 an introduction to geographic information technologies applications

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1 An Introduction to Geographic Information Technologies Applications

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An Introduction to Geographic Information

Technologies Applications

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Today’s Business Climate(a review of what you already

know!) Global competitionGlobal competition Niche marketsNiche markets Customer relationshipsCustomer relationships Targeting customersTargeting customers Technological Advances Technological Advances

The Internet & other media will create new The Internet & other media will create new virtual marketsvirtual markets

Organizational and market Organizational and market boundariesboundaries are are constantly shiftingconstantly shifting

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Consider American Isuzu’sShift in FocusOldOld

Size & StrengthSize & Strength HierarchyHierarchy IndividualismIndividualism Domestic Domestic

market focusmarket focus Short-term Short-term

profitsprofits CostsCosts

NewNew Organizational speed Organizational speed

& agility& agility Organizational Organizational

decentralizationdecentralization TeamworkTeamwork Global market focusGlobal market focus Consumer Consumer

relationshipsrelationships TimeTime

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What Does This Mean?

Firms need to be able to obtain and Firms need to be able to obtain and manage detailed information in order to...manage detailed information in order to... Manage business processes in a more Manage business processes in a more

flexible manner;flexible manner; Build in mechanisms for listening to Build in mechanisms for listening to

customers;customers; Reduce cycle times to respond more quickly;Reduce cycle times to respond more quickly; Define and manage boundaries; andDefine and manage boundaries; and Develop ways to add value for customers.Develop ways to add value for customers.

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Firms must provide greater value to customers Firms must provide greater value to customers throughout the throughout the Value ChainValue Chain

Geography is an important part of this process!Geography is an important part of this process! Where are we?Where are we? Where are they?Where are they? How do we get it there?How do we get it there?

The The Bottom LineBottom Line is that eventually a product or is that eventually a product or service must be delivered to someone who is service must be delivered to someone who is located somewhere.located somewhere.

The Bottom Line!

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Why GIS for Business? GIS and related geographic technologies add GIS and related geographic technologies add

value to existing corporate data by allowing value to existing corporate data by allowing businesses to utilize locational information businesses to utilize locational information Existing data can be mined for new informationExisting data can be mined for new information New data can be gathered with the goal of maximizing New data can be gathered with the goal of maximizing

the benefits derived from locational information the benefits derived from locational information

Geography is a Geography is a naturalnatural schema for organizing a schema for organizing a firm’s data firm’s data

Thus, GIS can be an integrating force when used Thus, GIS can be an integrating force when used as an as an enterprise-wideenterprise-wide technology technology

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Consider How Levi Strauss & Co.

Views Its GIS It is an “enabling” technologyIt is an “enabling” technology It is used to analyze and It is used to analyze and

visualize business opportunities visualize business opportunities and vulnerabilitiesand vulnerabilities

It spans geographic boundariesIt spans geographic boundaries It integrates information from It integrates information from

various sourcesvarious sources

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Sensing and Responding to Customers

"Companies … can do more "Companies … can do more than use information systems to than use information systems to sense the needs of their sense the needs of their customers. They can also use customers. They can also use technology to respond to technology to respond to customers by creating service customers by creating service experiences for them." experiences for them."

Regis McKenna, "Real-Time Marketing," Harvard Regis McKenna, "Real-Time Marketing," Harvard Business Review, July-August, 1995; p. 90Business Review, July-August, 1995; p. 90

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To Create Service Experiences Firms Must...

Learn to listen;Learn to listen;Create a Create a Learning Organization;Learning Organization;Develop knowledge about customers; Develop knowledge about customers; Incorporate flexibility into the organization;Incorporate flexibility into the organization;Seek to maximize efforts to add customer Seek to maximize efforts to add customer

value; value; Build customer loyalty in order to bring Build customer loyalty in order to bring

them back!them back!

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GIS Enables Firms to VisualizeComponents of the Value

ChainWhere are our supplies?Where are our supplies?Where are our facilities?Where are our facilities?Where are our customers?Where are our customers?How do we bring these factors to the How do we bring these factors to the

right place at the right time?right place at the right time?How do we deliver our products to our How do we deliver our products to our

current and future customers when current and future customers when and where they want it?and where they want it?

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Let’s Get SpecificWho Uses GIS?

Traditional users (both prior to ‘90 and Traditional users (both prior to ‘90 and now):now): The Public Sector:The Public Sector:

Federal agencies: managing natural resources, Federal agencies: managing natural resources, defining political boundaries, insuring defining political boundaries, insuring regulatory compliance regulatory compliance

The military: operational, tactical, and The military: operational, tactical, and strategic decision makingstrategic decision making

Counties and Municipalities: development, Counties and Municipalities: development, taxation, annexation, and emergency response taxation, annexation, and emergency response

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Who Uses GIS?Traditional users Traditional users ((cont.cont.))

The Private Sector:The Private Sector: Utilities: Facilities ManagementUtilities: Facilities Management Natural Resource Industries (e.g., in Petroleum, Natural Resource Industries (e.g., in Petroleum,

Forestry, and Mining): Locating and identifying Forestry, and Mining): Locating and identifying resources, complying with environmental resources, complying with environmental regulations, and managing transportationregulations, and managing transportation

Location-Dependent Firms (e.g., in insurance, Location-Dependent Firms (e.g., in insurance, transportation, real estate, and retail): analyzing transportation, real estate, and retail): analyzing location-specific risk, vehicle routing, property location-specific risk, vehicle routing, property management, and site selectionmanagement, and site selection

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Who Uses GIS?Current Users & Applications: Almost everyone, Current Users & Applications: Almost everyone,

everywhere (ask them, but they probably won’t admit everywhere (ask them, but they probably won’t admit it!):it!): Finance and bankingFinance and banking

e.g., BancOne, Wells Fargo, e.g., BancOne, Wells Fargo, VISAVISA

InsuranceInsurance e.g., Kemper, Wausau, Cignae.g., Kemper, Wausau, Cigna

Real estateReal estate e.g., National Association e.g., National Association

of Realtorsof Realtors

Health careHealth caree.g., Merck e.g., Merck Pharmaceuticals, Pharmaceuticals, Cigna, Cigna,

RestaurantsRestaurantse.g., McDonalds, e.g., McDonalds, Taco Bell, Red Taco Bell, Red Lobster, Domino's Lobster, Domino's Pizza, Arby's, KFC, Pizza, Arby's, KFC, StarbucksStarbucks

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And More Users... ManufacturingManufacturing

e.g., Levi Strauss, Am e.g., Levi Strauss, Am Izuzu, Coca-Cola, Izuzu, Coca-Cola, Champion International, Champion International, OceanSpray, Monsanto, OceanSpray, Monsanto, Johnson & JohnsonJohnson & Johnson

TelecommunicationsTelecommunications e.g., PacBell, US West, e.g., PacBell, US West,

British Telecom, Northern British Telecom, Northern Telecom, GET Mobilnet, Telecom, GET Mobilnet, Australian TelecomAustralian Telecom

TransportationTransportatione.g., FedEx, UPS, e.g., FedEx, UPS, Conrail, Union Conrail, Union Pacific Pacific

Retailing and Retailing and marketingmarketing

e.g., Sears, e.g., Sears, JCPenny, JCPenny, OfficeMax, OfficeMax, Safeway Stores, Safeway Stores,

Natural resourcesNatural resourcese.g., Mobil, ARCO, e.g., Mobil, ARCO, Chevron, Union Chevron, Union Pacific ResourcesPacific Resources

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What Is GIS Used For?Managing and Controlling Managing and Controlling

Operations and Product Flow-Operations and Product Flow-throughthrough Facilities managementFacilities management Vehicle routing and trackingVehicle routing and tracking Site selectionSite selection Territory selectionTerritory selection Sales Force AllocationSales Force Allocation

Manufacturing management Manufacturing management Inventory managementInventory managementSpace managementSpace managementRetail managementRetail managementEnvironmental complianceEnvironmental compliance

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What Is GIS Used For? Identifying and Managing Products and Identifying and Managing Products and

CustomersCustomers Analyze product potentialAnalyze product potential Product managementProduct management PricingPricing Promotional managementPromotional management Test marketingTest marketing Performance modelingPerformance modeling Advertising supportAdvertising support

Customer feedbackCustomer feedbackCustomer profilingCustomer profilingCustomer targetingCustomer targetingMicromarketingMicromarketingMass customizationMass customizationCustomer relationship Customer relationship

managementmanagement

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The Newest Entrant

Location Based Services (LBS) is Location Based Services (LBS) is one of the most recently one of the most recently recognized uses of GIS and recognized uses of GIS and geographic technologiesgeographic technologies Where are users?Where are users? Where are services that users Where are services that users

want?want? How do we bring them together?How do we bring them together?

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LBS and Mobile Commerce

In the context of users who are on In the context of users who are on the move, the issue of LBS broadens the move, the issue of LBS broadens to include questions such as…to include questions such as… where are our customer now and how where are our customer now and how

do we deliver products and services to do we deliver products and services to them wherever they are located?them wherever they are located?

How can we capture new customers by How can we capture new customers by leveraging geographic proximity (i.e., leveraging geographic proximity (i.e., geographic differentiation)?geographic differentiation)?

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But How Is GIS Used? In small scale, charting and mapping applicationsIn small scale, charting and mapping applications

Excel’s Microsoft MapExcel’s Microsoft Map ESRI’s BusinessMapESRI’s BusinessMap

In Desktop ApplicationsIn Desktop Applications ESRI’s ArcViewESRI’s ArcView MapInfoMapInfo

In Enterprise-wide ApplicationsIn Enterprise-wide Applications ESRI’s Spatial Database Engine (SDE)ESRI’s Spatial Database Engine (SDE)

LBS ApplicationsLBS Applications GPSGPS TriangulationTriangulation

TactitianTactitian

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The original goal was merely to keep track configuration The original goal was merely to keep track configuration and location information current and accurateand location information current and accurate

The system has evolved. It is now based on a data The system has evolved. It is now based on a data warehouse that provides real time information about warehouse that provides real time information about Conrail’s operationConrail’s operation In-track transponders provide synchronization points for In-track transponders provide synchronization points for

automatic data collectionautomatic data collection Maintenance crews are equipped with GPS data collection Maintenance crews are equipped with GPS data collection

terminals to enable accurate on-site data collection and terminals to enable accurate on-site data collection and reportingreporting

GIS is used to GIS is used to tracktrack key management and cost information key management and cost information about track ownership, trackage rights, tonnage hauled, and about track ownership, trackage rights, tonnage hauled, and the configuration and classification of rail networksthe configuration and classification of rail networks

For Example, Consider Conrail

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Outdoor Technologies

GIS is used to manage billboardsGIS is used to manage billboards Using GPS, billboard locations and their Using GPS, billboard locations and their

attributes are recorded and downloaded into a attributes are recorded and downloaded into a GIS.GIS.

The GIS is then used to analyze street and The GIS is then used to analyze street and highway traffic patterns and perform highway traffic patterns and perform demographic analysis of neighborhoods demographic analysis of neighborhoods surrounding the billboards. surrounding the billboards.

Subscriptions to the database are sold to Subscriptions to the database are sold to advertising companies for targeted advertising companies for targeted advertisements.advertisements.

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Levi Strauss & Co.GIS is used to …GIS is used to …

Track customersTrack customers Help them find retail stores carrying their Help them find retail stores carrying their

products -- both Original Levi’s Stores and other products -- both Original Levi’s Stores and other retailersretailers

Manage promotions (e.g., site bulletin boards, Manage promotions (e.g., site bulletin boards, select advertising strategies)select advertising strategies)

Locate and respond to customers with Locate and respond to customers with individualized promotions and servicesindividualized promotions and services

As a result, GIS has become a core, As a result, GIS has become a core, enterprise-wide technologyenterprise-wide technology

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American Isuzu MotorsGIS is used to manage customer relationships GIS is used to manage customer relationships

in the in the Dealer CounselorDealer Counselor program program Isuzu’s customer is not only the car buyer, it is Isuzu’s customer is not only the car buyer, it is

also the dealer. also the dealer. The biggest problem dealer representatives have The biggest problem dealer representatives have

is getting face time with the dealeris getting face time with the dealer To add value for the dealer sales representatives To add value for the dealer sales representatives

use GIS to assist dealer sales managers in use GIS to assist dealer sales managers in analyzing sales trends, exploring regional analyzing sales trends, exploring regional markets, identifying and learning about potential markets, identifying and learning about potential customers, and locating other market customers, and locating other market opportunitiesopportunities

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American Honda1

GIS is used to improve marketing operations GIS is used to improve marketing operations by…by… Locating new dealer sitesLocating new dealer sites Target different products to different market nichesTarget different products to different market niches Identify potential markets and market potentialIdentify potential markets and market potential Examine dealer effectiveness in reaching their Examine dealer effectiveness in reaching their

marketmarket Examine promotional effectivenessExamine promotional effectiveness Perform competitive analysesPerform competitive analyses

11 From Business Geographics, March, 1996 From Business Geographics, March, 1996

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The Southern Company1

GIS-based Intranet is used to GIS-based Intranet is used to disseminate GIS data within the firmdisseminate GIS data within the firm Users can access the company’s Intranet to Users can access the company’s Intranet to

view spatial information and use it to view spatial information and use it to generate maps onlinegenerate maps online

Advantages of this approach include…Advantages of this approach include… Ease of useEase of use Universal accessibilityUniversal accessibility Cross platform implementationCross platform implementation Low costLow cost

11 From ArcNews, Spring, 1998 From ArcNews, Spring, 1998

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Sprint1

Sprint’s Enterprise GIS (SEGIS) is a Intranet Sprint’s Enterprise GIS (SEGIS) is a Intranet enabled technology used for a number of enabled technology used for a number of mission critical activitiesmission critical activities Sales and marketing: Managers use GIS to easily Sales and marketing: Managers use GIS to easily

perform customer demographic analyses, territory perform customer demographic analyses, territory management, and sales trackingmanagement, and sales tracking

Network Facilities Management: GIS is used to manage Network Facilities Management: GIS is used to manage fiber optic networks, leased lines, and service facilitiesfiber optic networks, leased lines, and service facilities

Strategic and Tactical Planning: Executives can Strategic and Tactical Planning: Executives can perform competitive analyses, project regional sales perform competitive analyses, project regional sales and population growth, and identify locations where and population growth, and identify locations where resources are neededresources are needed11 From Business Geographics, January, 1998 From Business Geographics, January, 1998

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Detroit Edison1

Detroit Edison’s Geographically Enhanced Network Detroit Edison’s Geographically Enhanced Network Information System (GenIsyS) is used for a number Information System (GenIsyS) is used for a number of critical functionsof critical functions Field personnel use portable computers to look up Field personnel use portable computers to look up

information about service call locationsinformation about service call locations Outage resolution management is supported through the Outage resolution management is supported through the

graphical display of the electric distribution system graphical display of the electric distribution system The Energy Site Selection Service is used to encourage The Energy Site Selection Service is used to encourage

economic development through online dissemination of economic development through online dissemination of information about Detroit Edison’s infrastructure information about Detroit Edison’s infrastructure resources resources (www.detroitedison.com/econdev)(www.detroitedison.com/econdev)

11 From Business Geographics, February, 1998 From Business Geographics, February, 1998

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What’s On the Horizon?Strategic applications for geographic Strategic applications for geographic

technologies will continue to increase in technologies will continue to increase in importanceimportance

An increasing variety of applications for An increasing variety of applications for geographic technologies will be identified geographic technologies will be identified Spatial data warehousesSpatial data warehouses Web-based applicationsWeb-based applications LBS and M-commerceLBS and M-commerce

In most cases, geographic information In most cases, geographic information technologies will be seamlessly integrated technologies will be seamlessly integrated into a variety of applicationsinto a variety of applications

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Questions?Questions?