Effectively Market Your Business Using Electronic Maps Part 2. GIS TUTORIAL University of Redlands 4-15-07

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Effectively Market Your Business Using Electronic
MapsPart 2. GIS TUTORIALUniversity of
Redlands4-15-07

• James Pick

Tutorial supported by U.S. SBA Grant No.
SBAHQ-06-1-0046.
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Outline
20 minutes Introduction to GIS Geographical basis, data, boundary files, mapping, GIS software
10 minutes An Example
15 minutes Worksheet and Discussion
15 minutes GIS analysis and modeling Distance, proximity, buffers, thematic mapping. location quotient The range of techniques available
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Introduction to GIS. Geographical basis, data,
boundary files, map basics, GIS design
elements

• Fundamental Definition of GIS
• A GIS consists of the following elements
• Data-base of attributes
• Spatial information
• Some way to link the two

Source Clarke, 2003.
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GIS as a Toolbox

• GIS can be viewed as a set of tools.
• Sometimes this is called a process definition
  because the subtasks are sequentially arranged.
• An example of using a set of tools as procedures
  is
• Get addresses from a marketing list
• Geocode them (to get XY points)
• Map them

5
Example of Web-based application ordering pizza
on-line
(Source
Pick, 2008)
6
GIS as an Information System

• GIS is a type of information system.
• Data for a GIS are stored in a data-base. They
  are processed and output as maps and other
  related outputs.
• Some definitions can go as far that GIS is a
  spatially-enabled data-base.
• GIS can be used in collaboration with other
  business systems such as accounting or marketing.
• GIS has also be provided from the World Wide Web
  as a Map Service. Google Maps is an example.

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GIS-Intensive Organizations

• GIS developed earlier and much more fully in the
  public sector, while business uses are more
  recent.
• In many city, county, and state agencies in the
  U.S., such as country planning agencies, GIS
  permeates the way people think and interact with
  each other.
• In the business world, many large and
  medium-sized businesses have GIS systems.
• In some businesses, GIS permeates the company,
  such as ESRI, Sears Roebuck, and Rand McNally.

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Impact of GIS on Organizations

• GIS changes job roles, alters teamwork, shifts
  cross-functional information exchange, and
  changes hierarchies.
• For example, historically companies that were
  map-intensive tended to have map rooms with
  skilled personnel to produce, print, store, and
  revise maps.
• If modern GIS becomes pervasive, the
  preponderance of these functions are done
  electronically, but some GIS expertise is needed
  to set up, test, train, and maintain the GIS
  applications.
• End users may also become proficient in GIS.
• In small business, GIS may be supported by one or
  two people inside or outside the firm. Users in
  the firm will be impacted by new capabilities
  intended to increase their efficiency and
  productivity.

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Elements of a GIS

• A GIS
• Accesses spatial boundaries and attribute (i.e.
  non-spatial) data
• Analyzes the spatial and attribute data
• A GIS includes
• A data-base
• Tools, algorithms, and models for manipulate
  spatial data and attributes

10
Design Elements of a GIS
(Source Greene and Pick, 2005)
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Map Layer

• A GIS might have a single map layer, but more
  commonly include two or more layers

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Example of Processing with Simple GIS
(Source Greene and Pick, 2005)
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Relationship of Spatial and Attribute Data in
Multiple GIS Layers
Adapted from West, 2000.
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Baseball example of non-spatial versus spatial
query.

• Keith Clarke gives the example of baseball cards.
  If we associate the X-Y coordinate location of
  the stadium that the player is associated with,
  we are adding a spatial attribute.
• Example of query without the spatial attribute.
  Find all players with a batting average over
  .300.
• Example of query with the spatial attribute.
  Find all players with a batting average over
  .250 and whose location is within 300 miles of
  Yankee Stadium.

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Geographic Location

• How is geographic location determined. Often by
  latitude and longitude.
• It can be by more advanced coordinate systems,
  such as 3-D, but lat-long will do for now.

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Coordinate System Lat, Long

• Locations are represented in a GIS with the use
  of X and Y coordinates, which represent
  real-world coordinates (in 3 dimensions) that
  have been projected onto a two dimensional
  surface.
• The geographic grid of latitude and longitude is
  a commonly used geographic reference system.
• It is not a true coordinate system, however
  because it measures angles from the center of the
  earth in degrees, minutes, and seconds rather
  than distances on the earth's surface.

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Latitude

                            
 The latitude angle lambda
Imagine the Earth was a transparent sphere Its
middle point is O, the center of the Earth. To
specify the latitude of some point P on the
surface, draw the radius OP to that point. Then
the elevation angle of that point above the
equator is its latitude ?--northern latitude if
north of the equator, southern (or negative)
latitude if south of it.
Source NASA, 2006.
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Longitude

 What that value is depends of course on where we begin to count--on where zero longitude is. For historical reasons, the meridian passing the old Royal Astronomical Observatory in Greenwich, England, is the one chosen as zero longitude. Located at the eastern edge of London, the British capital, the observatory is now a public museum and a brass band stretching across its yard marks the prime meridian.

Source NASA, 2006.

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Geographic Information

• A map stored inside a GIS is described by
  coordinates.
• A sophisticated map contains a huge number of
  coordinates. This is possible because of the
  huge gains in storage described in the
  introductory lecture.

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Map Scale and Zooming

• Maps reduce the size of the earth.
• Map at 11 scale means 1 foot on the map is the
  same as 1 foot on the earth. It would be a
  life-sized drawing.
• 1500 scale means that 1 foot on the map is the
  same as 500 feet on the earth.
• An idea of scale is that 140,000,000 implies
  that the circumference of the earth at the
  equator would map to the size of a postage stamp.
  
• U.S. most important scales at 1100,000 and
  124,000 (USGS maps). Also 150,000 is
  important.
• In GIS software it is easy to shift between
  scales, a feature known as Zooming.

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GIS Structures Features and Feature Properties

• GIS structures are put together from points,
  lines, and areas (polygons).
• Points the basic coordinate location zero
  dimensional
• Lines connected together by two points one
  dimensional.
• Areas (also called polygons) bounded by three or
  more points connected by lines two dimensional.
• Points, lines, and areas are features. They are
  further defined by feature properties of size,
  distribution, neighborhood, shape, pattern,
  contiguity, shape, and orientation.

(Source
Pick, 2008)
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Points, Lines, and Polygons
Source Clarke, 2003.
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Summary on Geographic Roots of GIS

• A GIS is defined by location, data, and the
  relationships between them.
• Attribute data are stored in relational tables
• Locations are stored in map layers.
• Data and map layers are related together.

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Summary on Geographic Roots of GIS

• Coordinate systems determine the X-Y locations of
  points. X and Y are defined differently in
  different coordinate systems. The best known is
  latitude and longitude.
• Map scale relates the area on the map to the area
  on the earth.
• Points, lines, and areas (polygons) are the
  spatial features that all maps are composed of.
  Labels are attached to points.

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Design Elements of a GIS
(Source Greene and Pick, 2005)
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GIS Capabilities

• GIS can enhance what is normally in tables and
  add many new insights.
• For instance, if a small businesss 500 customers
  are shown in a table, it is hard if not
  impossible to determine their locational
  patterns.
• GIS can show the locations.
• Further, it an analyze their relationships and
  trends.

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Map Layer

• A GIS might have a single map layer, but more
  commonly include two or more layers

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Addresses of business clients, converted to
points.
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Sometimes the greatest value comes from simply
looking at your data from a different perspective!

• Over 50 of customers live within 2 miles
• Over 80 of customers live within 4 miles

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Retail/Site Selection/Marketing

• Site Selection
• Find best locations for new stores
• Identify inefficient stores
• Trade Areas
• Market Penetration
• Market Share

• Target Marketing
• Understand customer demographics
• Identify untapped enclaves of future customers
• Direct Mailings

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Example Workforce for Industrial Siting - Using
the Location Quotient (LQ)
LQ (Eij/Ej)/(Ei/Et) 100. Where Eij
Employment in sub-area j in sector i Ej Total
employment in sub-area j Ei County employment
in sector i Et Total County employment. A
location quotient greater than 100 indicates
specialization in the category, and less than 100
indicates that the ZIP Code is not specialized in
that category.
(Source Greene and Stager, 2005)
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Location QuotientExample
ZIP Code A has 350 workers in the bottling
industry out of a total labor force of 1,000,
while in the county containing ZIP Code A, there
are 50,000 workers in the bottling industry and a
one million labor force total. The location
quotient is calculated as follows LQ
(EZIP/LFZIP) / (ECOUNTY/LFCOUNTY) 100
(350/1,000) / (50,000/1,000,000) 100 700 Zip
Code A is then said to be specialized in the
bottling industry because the location quotient
is greater than 100. In the Los Angeles County
GIS, the sub-areas are zip codes while the larger
area is Los Angeles County.
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Location Quotients for Manufacturing and
Professional Employment, Los Angeles, 2000
(Source Greene and Stager, 2005)
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Comparison of Professional Employment to the
corridor of Wilshire Blvd.
Location Quotient of Professional Employment for
same area
( Source Greene and Pick, 2005).
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LQs for Nine Employment Sectors, LA
(Source Greene and Stager, 2005)
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Worksheet and Discussion
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GIS Analysis and Modeling

• Descriptive methods
• Buffer analysis
• Map overlays
• Proximity analysis
• Change detection
• Modeling and forecasting
• Statistical analysis

(Source
Pick, 2008)
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The spatial relationships lead to the following
fundamental questions

1. How can two maps be compared with each other?
2. How can variations in geographic properties over
   a single area or GIS data set be described and
   analyzed?
3. How can we use what we have learned in the
   analysis to explain and predict future maps of
   the geography in question?

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Map Overlay Example
(Source Greene and
Stager, 2005)
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Overlaying map layers This example has layers
for city boundaries, transportation, land use,
and business locations.
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Buffer Analysis

• In buffering, GIS software forms bands on either
  side of a points, line, or polygon to perform
  analysis within the bands.
• Simple example to assign half-mile buffers on
  both sides of highway, and ask how many service
  stations are within the buffer

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Example of Spatial Change. Change in population
densities in Chicago, 1940-2000
Source Greene and Pick, 2006
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Proximity Analysis

• It assesses how close certain map objects are to
  other map objects.
• For example, it can determine how close the
  population residing in a census tract is to a
  competing set of grocery stores.

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Understanding the demographics of your market
area.
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Handheld GPS Unit Showing Redlands Streets and
Businesses
(Source
Pick, 2008)
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Conclusion

• GIS can be used to analyze small business
  problems
• Customer mapping can reveal trends important to
  business planning and profits.
• Overlays can increase the information available.
• Time sequences can show changes in business
  activities and markets over time.
• Spatial analysis can lead to better targeting of
  customers, facilities, workers, and other
  business entities.
• GIS is a technology to make more data more usable
  and put it to greater use for efficiencies,
  better performance, and profits.