An Introduction to Geographic Information Technologies Applications

1. An Introduction to Geographic Information Technologies Applications

2. Today’s 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

3. Consider American Isuzu’sShift 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

4. 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.

5. 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.

6. 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 firm’s data • Thus, GIS can be an integrating force when used as an enterprise-wide technology

7. 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

8. 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

9. 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!

10. 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?

11. Let’s 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

12. 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

13. Who Uses GIS? • Current Users & Applications: Almost everyone, everywhere (ask them, but they probably won’t 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

14. And More Users... • 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 • 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

15. 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

16. 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

17. 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?

18. 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)?

19. But How Is GIS Used? • In small scale, charting and mapping applications • Excel’s Microsoft Map • ESRI’s BusinessMap • In Desktop Applications • ESRI’s ArcView • MapInfo • In Enterprise-wide Applications • ESRI’s Spatial Database Engine (SDE) • LBS Applications • GPS • Triangulation • Tactitian

20. 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 Conrail’s 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

21. 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.

22. Levi Strauss & Co. • GIS is used to … • Track customers • Help them find retail stores carrying their products -- both Original Levi’s 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

23. American Isuzu Motors • GIS is used to manage customer relationships in the Dealer Counselor program • Isuzu’s 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

24. 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

25. The Southern Company1 • GIS-based Intranet is used to disseminate GIS data within the firm • Users can access the company’s 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

26. Sprint1 • Sprint’s 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

27. Detroit Edison1 • Detroit Edison’s 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 Edison’s infrastructure resources (www.detroitedison.com/econdev)1 From Business Geographics, February, 1998

28. What’s 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

29. Questions?