An Introduction to Geographic Information Technologies Applications

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An Introduction to Geographic Information
Technologies Applications
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Todays Business Climate(a review of what you
already know!)

• Global competition
• Niche markets
• Customer relationships
• Targeting customers
• Technological Advances
• The Internet other media will create new
  virtual markets
• Organizational and market boundaries are
  constantly shifting

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Consider American IsuzusShift in Focus

• New
• Organizational speed agility
• Organizational decentralization
• Teamwork
• Global market focus
• Consumer relationships
• Time

• Old
• Size Strength
• Hierarchy
• Individualism
• Domestic market focus
• Short-term profits
• Costs

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What Does This Mean?

• Firms need to be able to obtain and manage
  detailed information in order to...
• Manage business processes in a more flexible
  manner
• Build in mechanisms for listening to customers
• Reduce cycle times to respond more quickly
• Define and manage boundaries and
• Develop ways to add value for customers.

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The Bottom Line!

• Firms must provide greater value to customers
  throughout the Value Chain
• Geography is an important part of this process!
• Where are we?
• Where are they?
• How do we get it there?
• The Bottom Line is that eventually a product or
  service must be delivered to someone who is
  located somewhere.

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Why GIS for Business?

• GIS and related geographic technologies add value
  to existing corporate data by allowing businesses
  to utilize locational information
• Existing data can be mined for new information
• New data can be gathered with the goal of
  maximizing the benefits derived from locational
  information
• Geography is a natural schema for organizing a
  firms data
• Thus, GIS can be an integrating force when used
  as an enterprise-wide technology

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Consider How Levi Strauss Co. Views Its GIS

• It is an enabling technology
• It is used to analyze and visualize business
  opportunities and vulnerabilities
• It spans geographic boundaries
• It integrates information from various sources

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Sensing and Responding to Customers
"Companies can do more than use information
systems to sense the needs of their customers.
They can also use technology to respond to
customers by creating service experiences for
them." Regis McKenna, "Real-Time Marketing,"
Harvard Business Review, July-August, 1995 p. 90
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To Create Service Experiences Firms Must...

• Learn to listen
• Create a Learning Organization
• Develop knowledge about customers
• Incorporate flexibility into the organization
• Seek to maximize efforts to add customer value
• Build customer loyalty in order to bring them
  back!

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GIS Enables Firms to VisualizeComponents of the
Value Chain

• Where are our supplies?
• Where are our facilities?
• Where are our customers?
• How do we bring these factors to the right place
  at the right time?
• How do we deliver our products to our current and
  future customers when and where they want it?

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Lets Get SpecificWho Uses GIS?

• Traditional users (both prior to 90 and now)
• The Public Sector
• Federal agencies managing natural resources,
  defining political boundaries, insuring
  regulatory compliance
• The military operational, tactical, and
  strategic decision making
• Counties and Municipalities development,
  taxation, annexation, and emergency response

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Who Uses GIS?

• Traditional users (cont.)
• The Private Sector
• Utilities Facilities Management
• Natural Resource Industries (e.g., in Petroleum,
  Forestry, and Mining) Locating and identifying
  resources, complying with environmental
  regulations, and managing transportation
• Location-Dependent Firms (e.g., in insurance,
  transportation, real estate, and retail)
  analyzing location-specific risk, vehicle
  routing, property management, and site selection

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Who Uses GIS?

• Current Users Applications Almost everyone,
  everywhere (ask them, but they probably wont
  admit it!)
• Finance and banking
• e.g., BancOne, Wells Fargo, VISA
• Insurance
• e.g., Kemper, Wausau, Cigna
• Real estate
• e.g., National Association of Realtors

• Health care
• e.g., Merck Pharmaceuticals, Cigna,
• Restaurants
• e.g., McDonalds, Taco Bell, Red Lobster, Domino's
  Pizza, Arby's, KFC, Starbucks

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And More Users...

• Manufacturing
• e.g., Levi Strauss, Am Izuzu, Coca-Cola, Champion
  International, OceanSpray, Monsanto, Johnson
  Johnson
• Telecommunications
• e.g., PacBell, US West, British Telecom, Northern
  Telecom, GET Mobilnet, Australian Telecom

• Transportation
• e.g., FedEx, UPS, Conrail, Union Pacific
• Retailing and marketing
• e.g., Sears, JCPenny, OfficeMax, Safeway Stores,
• Natural resources
• e.g., Mobil, ARCO, Chevron, Union Pacific
  Resources

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What Is GIS Used For?

• Managing and Controlling Operations and Product
  Flow-through
• Facilities management
• Vehicle routing and tracking
• Site selection
• Territory selection
• Sales Force Allocation

• Manufacturing management
• Inventory management
• Space management
• Retail management
• Environmental compliance

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What Is GIS Used For?

• Identifying and Managing Products and Customers
• Analyze product potential
• Product management
• Pricing
• Promotional management
• Test marketing
• Performance modeling
• Advertising support

• Customer feedback
• Customer profiling
• Customer targeting
• Micromarketing
• Mass customization
• Customer relationship management

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The Newest Entrant

• Location Based Services (LBS) is one of the most
  recently recognized uses of GIS and geographic
  technologies
• Where are users?
• Where are services that users want?
• How do we bring them together?

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LBS and Mobile Commerce

• In the context of users who are on the move, the
  issue of LBS broadens to include questions such
  as
• where are our customer now and how do we deliver
  products and services to them wherever they are
  located?
• How can we capture new customers by leveraging
  geographic proximity (i.e., geographic
  differentiation)?

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But How Is GIS Used?

• In small scale, charting and mapping applications
• Excels Microsoft Map
• ESRIs BusinessMap
• In Desktop Applications
• ESRIs ArcView
• MapInfo
• In Enterprise-wide Applications
• ESRIs Spatial Database Engine (SDE)
• LBS Applications
• GPS
• Triangulation

• Tactitian

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For Example, Consider Conrail

• The original goal was merely to keep track
  configuration and location information current
  and accurate
• The system has evolved. It is now based on a
  data warehouse that provides real time
  information about Conrails operation
• In-track transponders provide synchronization
  points for automatic data collection
• Maintenance crews are equipped with GPS data
  collection terminals to enable accurate on-site
  data collection and reporting
• GIS is used to track key management and cost
  information about track ownership, trackage
  rights, tonnage hauled, and the configuration and
  classification of rail networks

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Outdoor Technologies

• GIS is used to manage billboards
• Using GPS, billboard locations and their
  attributes are recorded and downloaded into a
  GIS.
• The GIS is then used to analyze street and
  highway traffic patterns and perform demographic
  analysis of neighborhoods surrounding the
  billboards.
• Subscriptions to the database are sold to
  advertising companies for targeted advertisements.

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Levi Strauss Co.

• GIS is used to
• Track customers
• Help them find retail stores carrying their
  products -- both Original Levis Stores and other
  retailers
• Manage promotions (e.g., site bulletin boards,
  select advertising strategies)
• Locate and respond to customers with
  individualized promotions and services
• As a result, GIS has become a core,
  enterprise-wide technology

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American Isuzu Motors

• GIS is used to manage customer relationships in
  the Dealer Counselor program
• Isuzus customer is not only the car buyer, it is
  also the dealer.
• The biggest problem dealer representatives have
  is getting face time with the dealer
• To add value for the dealer sales representatives
  use GIS to assist dealer sales managers in
  analyzing sales trends, exploring regional
  markets, identifying and learning about potential
  customers, and locating other market opportunities

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American Honda1

• GIS is used to improve marketing operations by
• Locating new dealer sites
• Target different products to different market
  niches
• Identify potential markets and market potential
• Examine dealer effectiveness in reaching their
  market
• Examine promotional effectiveness
• Perform competitive analyses1 From Business
  Geographics, March, 1996

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The Southern Company1

• GIS-based Intranet is used to disseminate GIS
  data within the firm
• Users can access the companys Intranet to view
  spatial information and use it to generate maps
  online
• Advantages of this approach include
• Ease of use
• Universal accessibility
• Cross platform implementation
• Low cost1 From ArcNews, Spring, 1998

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Sprint1

• Sprints Enterprise GIS (SEGIS) is a Intranet
  enabled technology used for a number of mission
  critical activities
• Sales and marketing Managers use GIS to easily
  perform customer demographic analyses, territory
  management, and sales tracking
• Network Facilities Management GIS is used to
  manage fiber optic networks, leased lines, and
  service facilities
• Strategic and Tactical Planning Executives can
  perform competitive analyses, project regional
  sales and population growth, and identify
  locations where resources are needed1 From
  Business Geographics, January, 1998

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Detroit Edison1

• Detroit Edisons Geographically Enhanced Network
  Information System (GenIsyS) is used for a number
  of critical functions
• Field personnel use portable computers to look up
  information about service call locations
• Outage resolution management is supported through
  the graphical display of the electric
  distribution system
• The Energy Site Selection Service is used to
  encourage economic development through online
  dissemination of information about Detroit
  Edisons infrastructure resources
  (www.detroitedison.com/econdev)1 From Business
  Geographics, February, 1998

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Whats On the Horizon?

• Strategic applications for geographic
  technologies will continue to increase in
  importance
• An increasing variety of applications for
  geographic technologies will be identified
• Spatial data warehouses
• Web-based applications
• LBS and M-commerce
• In most cases, geographic information
  technologies will be seamlessly integrated into a
  variety of applications

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Questions?