gis market study

Source: Technology Market Research ABI, Daratech, U.S. Department of Labor, Frost & Sullivan GIS report, Andrew Plackner, Joshua Schechter, Interviews with PM and SM at Leica Geosystems. .

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Market Research GIS


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What is GIS?

GIS is a System of computer software, hardware and data (80% of corporate data has some spatial component), and personnel to help manipulate, analyze and present information that is tied to a spatial location

• spatial location – usually a geographic location

• information – results from analysis of data

• system – linking software, hardware, data

• personnel – who is key to the power of GIS


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Why use GIS?

• Improve organizational integration (management of our organization and resources, common database).

• Make better decisions (i.e. location of a new housing development that has minimal environmental impact)

• Make maps (Making maps with GIS is much more flexible than traditional manual or automated cartography approaches )


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Data sources for GIS Applications

• Digitized and Scanned Maps

• Databases

• GPS – Global Positioning System (locations)

• Field Sampling of Attributes

• Survey data

• Remote Sensing & Aerial Photography


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GPS/GIS Product Segmentation

Data collection Mobile GIS

Mobile GIS integrates GPS technology, portable hardware platforms, and GIS software. It provides field inspectors, maintenance teams, utility crews, emergency repair workers, and manyother field workers timely access to enterprise GIS data while they are in the field. Mobile GIS solutions are able to perform more complex analysis in the field than Data Collection systems. Because users have access to multiple layers and data sources, more complex analysis can be achieved.

Data collection is the process of collecting position and attribute information about real-world features for inclusion in a GIS or spatial database. Features can be any of the following:

• Points (such as trees, poles, or sample sites)• Lines (such as roads, streams, or power lines)• Areas (such as fields, lakes, or wetlands)


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GPS data collection, maintenance system or GIS Mobile

There are 4 main types you can use and integrate by creating a GPS data collection & maintenance System, or Mobile GIS solutions

• GPS Receiver; accuracy 10-20 meter, 1-3 meter, submeter und survey grade (cm) • Field Software; DataPro, ArcPad,…

• Field devices; Handhelds like Panasonic, Palm, …*

• Office Software; Data Pro, Arcview, …

* GPS receiver can be integrated in the devices


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GPS/GIS Overview

Technology/Solutions

Price trends

Markets segments, applications and Endusers

Sales The economic potential

Relative Market share

Rel

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GIS Structure & process

GIS Data

Design

Field work

planning

Set to GPS data

collector

1 2 3

4 5 6


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GPS/GIS Environment The GIS data collecting process (1)

De

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GISData

Design

Schemas defined by: project require-ments, existing GIS data, corporate data (RDBMS) standards

Define the database schema for the data that is to be GPS'ed

FieldWork

planning

Plan collection jobschedule. Define collection process

Plan field-crewwork for GPSing

Transfer data schema to GPS (code list). Set-up configurations Attach accessories

Datacollection

Set up the GPSunit for data collection jobs

The field work

Set toGPS data collector

Collection of GISdata features In the field


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GPS/GIS Environment The GIS data collecting process (2)

De

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If necessary and / or desired

Post processingfor a better accuracy

Postprocessing

Conversion

Conversion of data

to the office software

Translatedata into

GIS format

Insert new featuresinto GIS database

Merge featuresinto existing existing GISlayer OR keep as separate new layer

Move datato GIS

database

Field, collected data to the office

Transfer of fielddata to the office

Upload Data to PC


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GPS/GIS Environment Technology / Solutions

Recreational Vendors GPS/GIS receivers (incl. Software) 10-20 meters accuracy

ManyRecreational

Vendors

Garmin (70 different units), Magellan (26), Pharos (8), Navman (7), Northstar (6), Trackers (2), Lowrance (2), Socket (2), Toshiba (2), Cobra (2)*

* Please read notes under this slide


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Recreational Vendors GPS/GIS receivers (incl. Software) with WAAS (1-3 m accuracy)

* Please read notes under this slide

Estimated sales 2003 5,3 Mill. US$ / 17700 units

Garmin

eTrex Vista300 US$

Magellan (T)

Meridian240 US$

Mapping GPS receivers, Storage* from 50 to 500 Waypoints (locations)

Northstar

951 X1600 US$

Lowrance

15456309 US$

Cobra

GPS500126 US$

6 different products in 1-3 m range

1 2


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Recreational Vendors GPS receivers (incl. Software) with WAAS (1-3 m accuracy)

What can I do with this GPS receivers?

• Collect position information. Features can be any of the following:• "Waypoints“ • "tracklogs" with a name but without complete attribute tables.

• Save the data

• Convert the waypoints and tracklogs to GIS data (shapefiles) using 3rd party shareware solutions

• Export it to an ESRI Arc View Software

• Recreational devices can be plugged into PDAs and PCs running data collection / Mobile GIS software .


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Professional Vendors GPS/GIS Data collectors, Mappers, Mobile GIS incl. Software (submeter accuracy)

Leica Geosystems Mobile GIS (1-3 m accuracy) GS5 (Package) Customer appli. 3870

Data collector / Mapper GS20 (Standard) DataPro 5193

Trimble* Data collectorTrimble Pathfinder Power Terra Syn. 5990

Data collector / Mobile GIS GEOXM Terra Syn./ESRI 5000

CompanyProduct

segmentation Product SoftwareList Price

US$

GS20 (Real-Time Beacon) 7373

GS20 (Real-Time Satellite) 9699

Accuracy

1-3 meter

Submeter

Submeter

Submeter

Submeter

2-5 meter

Trimble Pathfinder ProXR 7495Terra Syn.

GEOXT Submeter Terra Syn./ESRI 6500

Trimble Pathfinder Pocket Terra Syn. 17951-5 meter

1-5 meterGeoexplorer 3c 2495Terra Syn.

GS5+

1-3 meter

1 meter 4870Customer appli.

•Configuration package not clear


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Professional Vendors GPS/GIS Data collectors, Mappers, Mobile GIS incl. Software (submeter accuracy)

Topcon GSM-100 ESRI ARCPad N/AData collector / Mobile GIS

Sokkia Data collector / Mobile GIS Axis 3MAP software orESRI ARCPad 5995

Corvallis Data collector Alto G-12 PC-GPS 3.8 6650

Thales MobileMapper MobileMapper Office

1495Data collector / Mobile GIS

ProMarkII /Ashtech Ashtech Softw. 3995Data collector

1-3 meter

Submeter*

CompanyProduct

segmentation Product SoftwareList Price

US$Accuracy

Submeter

Submeter

Submeter

* Also cm


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GPS/GIS Environment

Where are our sales force selling the GPS/GIS data collector and Mapper GS20? (Spain, France, Germany, Southafrica, Central Europe, Greece, Turkey), (4 dealers from USA & Canada) 76 units

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%

CAD CSE FOR MIN&Q A&FM EXPLO MON&D AGRI BAC&AT FOR&ACCMarket segments

Leica Geosystems Market segments, where GS20 is sold

CAD (Cadastral)

CSE (Civil engineering)

FOR (Forestry)

MIN&Q (Mining and Quarrying)

A&FM (Assets and Facility Management)

EXPLO (Exploration)

MON&D (Monitoring & Deformation)

AGRI (Agriculture)

BAC&AT (Building Construction & A. trades)

FOR&ACC (Forensic & Accidents)


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GPS/GIS Environment

Whom (Customer groups) are our sales force selling the GPS/GIS data collector and Mapper GS20? (Spain, France, Germany, Southafrica, Central Europe, Greece, Turkey), (4 dealers USA & Canada) 59 units

• Land Surveying firms also use the GS20 for GIS purposes


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GPS/GIS Environment

Against which direct competitors are we loosing the sales of GPS/GIS data collector and Mapper GS20? (Spain, France, Germany, Southafrica, Central Europe, Greece, Turkey), (4 dealers USA& Canada) 26 given lost units

0

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30

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%

Pro-Mark 2 Mobile Mapper Ique 3600 GEO XT GEO XM Power mit Allegro Power mit RangerCompetitors products

Lost orders

Th

ale

s

Tri

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le

As

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/ T

ha

les

Ga

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Tri

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Tri

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Tri

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GPS/GIS Environment GIS Market

2001 GIS Revenue (Hardware, Software, Services)1595 Mill. US$

* Utilities refers to Water, Gas, Electricity and Sewers Utilities

How big is the worldwide GIS market for hardware, software & services?


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GPS/GIS Environment GIS Market

GPS/GIS hardware and software data collection and data management market size (2001) L1 8807 units (57 Mill. US$) 2003 – 93,3 Mill./ 16600 units


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GPS/GIS Environment GIS World Market

GPS/GIS hardware and software data collection and data management market share (2001) L1 8807 units

GS5 (563 units), GS5+, GS50 (542 units)

GeoExplorer 3Pathfinder Pro XRPathfinder ProXRS

Axis

Astech (Reliance)


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GPS/GIS Environment GIS World Market

GPS/GIS hardware and software data collection and data management market share (2003) L1 16603 units

GS5, GS5+ (201), GS50 (214),GS20 (838)

GeoExplorer 3Pathfinder Pro XRPathfinder ProXRSGEO XMGEO XT

Axis 3

MobileMapperPro Mark II


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GPS/GIS Environment End users

Users of GPS/GIS data collector and mapper

The Asset Managers

Description The Asset Managers are using GIS to do the job known as AM/FM (Automated Mapping / Facilities Management). Large enterprises, municipalities, and other organizations with a large number of fixed assets need to keep track of those assets. These orgainzations need both graphical depictions of their facilities (drawings, maps, CAD and/or GIS) and information about those facililties (RDBMS, documents, pictures, work orders, GIS).

-- May use GIS and/or CAD, may be transitioning from CAD to GIS-- Often have a very large volume of GIS features that need to be captured-- Often have their own survey or field crews in the organization-- Regulatory and liability issues drive strict data requirements-- Need to inventory and update data regularly-- Maintain data on Enterprise data systems

GPS/GIS Usage -- Have very large data collection jobs, measured in man-years.-- Consider GPS as another means to create a GIS feature.-- Consider GPS a faster alternative to surveying-- Send out multiple crews simultaneously to collect data-- Have very long attribute lists-- Need feature by feature Metadata to ensure/document quality-- Often need to update existing feature and attribute information

Key Benefits -- Want to streamline process getting data from field to Entrprise data center-- Need to keep detailed metadata for QA/QC-- Streamline the field processes to save time (and money)-- Need to handle merging data from multiple crews-- Need to manage the merging of updates with legacy data


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The Custom Collectors

Description The Custom Collectors have every intention of going into the field to collect GIS data. They are heavily invested in GIS or CAD data and enterprise RDBMS (Relational Database Management System). They see collecting collecting GIS data as building coporate assets. The Custom Collectors have a large volume of data to collect, they have considerable attribute data to collect and often have complex rules associated with attribute schemes.To better control the data collection process and ensure the quality and integrity of the collected data, and to streamline the data collection process saving man hours in the field Custom Collectors will develop and/or customize their own data collection tools.

-- legacy data dictionaries and attribute schemas-- Complex feature topology.-- Third party developers serve niche markets-- Overlap w/ the Asset Managers when off-the-shelf solution fall short.

GPS/GIS Usage -- Build special purpose data collection or update applications-- Often built by consultants-- Software running on CE device, PC’s-- Want Plug and Play-- Can easily develop to a clear spec.-- Want SDK’s (Software Development Kit)-- Demand clear documentation and tech support.-- May want to use barcode-- May want to use other input device (ex. depth sounder)-- Might settle for a turn-key data collector IF it fit their needs

Key Benefits -- OWI (Outside World Interface) and/or SDK type control of the GPS-- Well documented systems and software-- Availability of detailed metadata for QA/QC


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The Mappers

Description The Mappers consist of small to medium sized GIS operations, primarily involved with map production on an ad hoc basis. Often they are the "GIS lab" for a larger organization. They use a wide variety of GIS data, much of it purchased commercially, some proprietary data converted form CAD formats, some digitized from paper maps, often data is generated from addresses or descriptive information from various document sources. Often faced with unique data requirements for particular applications. Will go to field to collect GIS data if it is 'better' (easier, faster, more accurate, hands on verfication) than using an in-office method.

-- Heavily invested in a GIS software architecture -- Trust ESRI -- Comfortable with GIS user interfaces-- Underestimate the complexity of GPS

GPS/GIS Usage -- Consider GPS another means to create a GIS feature.-- Need a few features at a time to meet the needs of a specific GIS job-- Collect data today, put it in a map tomorrow.-- Likely to hire an intern to do GPS data collection-- May settle for ASCII output, or handheld GPS with written notes-- Have a simplistic view of GPS tech.-- Price/Feature trade-offs weighed in GPS purchased decisions-- Price/Accuracy trade-offs weighed in GPS purchased decisions

Key Benefits -- Want shortest path to a GIS file format-- Want easy to use tools with little GPS training necessary-- Prefer real-time DGPS


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The Precise Measurers

Description The Precise Measurers have a need for positional data which is very accurate, typically with less than 10 cm of error. Often the goal of collecting GIS data with such precision is so that the data can be used for multiple purposes. The high precision of the data is necessary to support engineering efforts, while the GIS feature topology and attribute information can be used to support other GIS analyses, and enterprise data purposes. For engineering efforts alone traditional survey techniques of data collection would be satisfactory, but the value proposition for the Precise Measurers is to collect feature data only once and re-use it throughout the organization saving duplication in effort. -- May need very precise data for legal reasons (ex. property line data). -- Hydrological and Wastewater-- Underground assets-- Infrastructure

GPS/GIS Usage -- Looking for faster alternatives to Surveying-- Need to collect line and area features and attribute data-- They maybe surveyors tasked with collecting GIS data-- Collect lines and areas node by node (not streamed)-- Will do careful post-processing-- Will use Geoids models, and be very sensitive geodesy issues-- Likely to want CAD output in addition to GIS formats

Key Benefits -- RTK'-- Excellent GPS function (tracking, acquisition, accuracy, etc)-- Good (precise, informative) post-processing software-- Measurement related meta-data (node by node)


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The Streamed Needs

Description The Streamed Needs segment develops GIS applications that work in real-time and rely on a continuous stream of location data from a GPS. The systems this segment develops are designed to meet the needs of a particular job or market. Machine control, and precision agriculture are a couple examples but there are many more. Many Streamed Needs customers are third party developers or value-added resellers (VAR's) writing applications for a particular vertical market. Others in the segment are developing software to do a specific job for a particular organization. These may be done by in house by the company's own staff, or developed by outside consultants who specialize in software and hardware solutions. Streamed Needs users want to take the GPS for granted, turn it on and start reading latitudes and longitudes.

GPS/GIS Usage -- Developing on CE, Pocket PC, Windows, embedded systems-- VAR’s-- Want Plug and Play-- Want streamed GPS, NMEA and/or proprietary format-- Can easily fit their app to a clear format specifications-- May want faster position update (5 Hz)-- Want SDK’s-- VAR's & 3rd Party solutions may want recognizable name on the GPS antenna

Key Benefits -- Need consistent output from the GPS-- Need well documented specifications for GPS and data-- Often want some control of the GPS unit via OWI like functions-- May want SDK tools-- Want rugged unit-- Want a mounting solutions-- Want fast update rate (hz)


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GPS/GIS Environment End users and applications

What for does a GIS user need a GPS/GIS data collector and mapper?

1. The GIS user out in the field wants to know where he is. He likes to see his position marked in a map (in a background map: raster, shape, dxf etc.)

2. The GIS user wants to pan the map he took outside. So, while he is moving the map should stay centered around his current position.

3. The GIS user who is out in the field online wants to download mapsections, rasterimages or geodata, e.g. from ArcIMS, Terramapserver from his environment. Therefore he needs to send the current coordinate to download georeferenced geodata.

4. The GIS user wants to navigate to his location of work.

5. A specific market segment of users need to proof location and timing, e.g. security teams, monitoring teams, police guards. Where has he been when ?

6. The GIS user needs to update changing attributes to positions, e.g. conditions of trees, roads, streetlamps, coastlines etc.

7. The GIS user wants to create his own (georeferenced) maps.

8. The GIS team leader wants to organize his field crew and monitor it.


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GPS/GIS Environment Industry and end users

Industry Function User type Accuracy

Archaeology Mappers GIS 1-5 M

Cartography & Map Production Mappers GIS 1-5 M

Emergency Response Mappers GIS 1-5 M

Environmental Management Mappers GIS 1-5 M

Forestry Mappers GIS 1-5 M

Health and Human Services Mappers GIS 1-5 M

Homeland Security Mappers GIS 1-5 M

Insurance Mappers GIS 1-5 M

Location-Based Services Mappers GIS 1-5 M

Media Mappers GIS 1-5 M

Petroleum Mappers GIS 1-5 M

Public Safety Mappers GIS 1-5 M

Real Estate Mappers GIS 1-5 M

Research Mappers GIS 1-5 M

Resource Planning (Traditional GIS) Mappers GIS 1-5 M

Retail and Commercial Business Mappers GIS 1-5 M

Sustainable Development and Humanitarian Affairs Mappers GIS 1-5 M

Universities and Community Colleges Mappers GIS 1-5 M


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Law Enforcement and Criminal Justice Custom Collectors Lay user 1M

Mobile Workforce Solution Custom Collectors Lay user 1M


Agriculture Asset Managers Field crew sub-meter

Defense and Intelligence Streamed Needs Field crew sub-meter

Federal Government Asset Managers Field Crew sub-meter

Land Information Management Asset Managers Field Crew sub-meter

Local Government Asset Managers Field Crew sub-meter

State Government Asset Managers Field Crew sub-meter

Telecommunications Asset Managers Field Crew sub-meter

Transportation Asset Managers Field Crew sub-meter

Utilities Asset Managers Field Crew sub-meter


Engineering Precise Measurers Surveyors CM

Land Information Management Precise Measurers Surveyors CM

Mining and Earth Sciences Precise Measurers Surveyors CM

Pipeline Precise Measurers Surveyors CM

Surveying Precise Measurers Surveyors CM

GPS/GIS Environment Industry and end users


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What does the GIS user expect from a GPS/GIS data collector and mapper?

Criteria Asset managers Custom collectorsThe

MappersThe precise measurers

The streamed needs

Easy to use H L Essential M H

Easy data flow Essential L M M L

Background maps and images M L M M N/A

Simple data input Essential N/A H M N/A

Touchscreen M H M L N/A

Accuracy required (cm, submeter, 1-3m) CM to submeter submeter to 1-3 m 1-3 m CM (Essential) 1-3 m

Color features L H M L N/A

Compatibility with existing customers equipment or software H H H M H

Customizable for special applications H Essential L L L

Price (ready to pay a GPS/GIS system data collector and mapper up to $1000, 3000, 6000, 8000) once criteria above are fulfilled 6000 6000 1000 10,000+ 3000

Importance (H=High, M=Medium, L=Low)

Essential= they need the performance to buy the instrument

N/A= Not Applicable


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GPS/GIS Environment Sales

Most of the GS20 sales (aprox. 80%) are made through dealers

The GIS sales distribution principle of our main competitor (Trimble)

Dealer 1 Dealer 2 Dealer 3 Dealer 4

BP (Business Partners) BP BP BP BP BP BP BP BPBP BP BP BP BP

Business Partners are software companies especialised in GIS applications for different industries. They provide specific customer software solutions in agriculture, archeology, forestry, insurance, etc.. and have hundreds of customers. These Business Partners intergrate their software solution in devices of Trimble and offer the solutionas a package to the customer.


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GPS/GIS Environment Price trends

• There is a big price erosion in the categories of autonomous (10-20m) and in 1-3 meters once EGNOS is on (polipoly= many vendors and consumers). EGNOS (European Geostationary Navigation Overlay Service) will augment the two military satellite navigation systems now operating and allow users in Europe and beyond to determine their position to within 1-2 m compared with about 10-20 m.

• In the submeter and survey grade we find a oligopoly (few vendors).

• While prices of consumer GPS products are falling, submeter and survey grade GPS equipment at the upper end of the market have maintained higher price levels with increasing contributions from embedded software. That is, as the profit margins for hardware decline, some GPS firms are relying on software to provide added value to their products.


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GPS/GIS Environment Economic potential

GPS/GIS Market segments portfolio

Relative Market share

Re

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row

th

Utilities

Telecommunications

high

low high

Earth resources

Engineering, Transpor-tation, Education

Government


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Selected Criteria (Startpoint 2001)

Installed GIS seats worldwide 3,000,000

Average sales price GPS/GIS (list price 2001) $ 6,500

Price elasticity of demand for GPS/GIS products 2.1

Annual GPS/GIS price erosion 7%

Installed GIS seats per GPS/GIS Data Collector 341


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Criteria

% seats buying GPS/GIS****

installed GIS seats **

new GIS seats*

GIS growth rate*

Average GPS/GIS cost

GPS/GIS units

Revenue

* numbers taken directly form the Frost & Sullivan GIS report** Daratech press release puts 2001 GIS seats at around 3 million*** We have the best understanding of 2001 numbers, so all calculations are bases on those.**** This is a function of price elasticity , GPS prices, and the GIS to GPS ratio assumption in 2001

Andrew Plackner & Joshua Schechter

Predicted sales volume GPS / GIS data collectors and GIS Mobile worldwide (L1)

2001 2002 2003 2004 2005 2006 2007

0.29% 0.34% 0.38% 0.43% 0.47% 0.51% 0.56%

3'000'000

3'626'600

4'339'700

5'148'400

6'061'600

7'094'800

8'258'900

626'600

713'100

808'700

913'200

1'033'200

1'164'100

15.9% 13.8% 13.4% 12.9% 13.1% 12.7%

$ 6'500 $ 6'045 $ 5'622 $ 5'228 $ 4'862 $ 4'522 $ 4'205

8'800

12'259

16'603

21'979

28'544

36'498

46'035

$ 57'200'000 $ 74'102'840 $ 93'339'515 $ 114'915'254 $ 138'791'640 $ 165'042'192 $ 193'596'212


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Predicted sales volume GPS / GIS data collectors and GIS Mobile worldwide (L1)


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SWOT Analysis

Strenghts Weaknesses

• Leica Geosystems is worldwide present

• Leica Geosystems Brand is well recognised in the market

• GS20 can provide centimeter accuracy through Post Processing or alternatively through another GS20 as Reference Station

• GS20 is seen as not easy to use. SM afirm that 1 whole day training is needed. (Andrew, Jens, Michael))

• There is partly a lack of resources to push the sales of the GS20 in the market. These resources refer to people training the customer, selling the systems and promoting the product together with the dealer

• Leica's has a small GIS product range

• The US market is dominated by Trimble and they are the first choice. Many customers do not even think Leica.


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SWOT Analysis

Opportunities Threaths

• There is a big potential considering the number and growth of GIS seats in the market

• The GPS/GIS market is underdeveloped with only 1 significant player (Trimble). There is a huge opportunity to be the other big player.

• Markets in expansion represent a great opportunity for the GS20, where submeter accuracy is sufficient or centimeter accuracy required. These refers specia- lly to Utilities, Government, Enginnering, Surveying

• Don‘t suceed in replace Indigo chip

• Leica's Product development process is too slow and we don‘t succeed in reaching the critical mass.

• Garmin and other recreational GPS receivers represent a clear thread to markets requiring 1-5 m accuracy as they might develop easy software solutions for GIS mobile.


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GPS/GIS Environment

Thank you

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