Location Intelligence Comes of Age

1. Location Intelligence Comes of Age John O’Hara. Executive Vice President International Pitney Bowes MapInfo PBI internal use only

2. Location Intelligence Comes of Age • Nokia offered to buy NAVTEQ for $8.1 billion, nearly 14 times NAVTEQ's 2006 earnings of $581 million. • TomTom offered $2.5 billion for Tele Atlas, a 32% premium over the stock price at the time. • Pitney Bowes acquired MapInfo in March for $408 million, or approximately 2.5 times MapInfo's 2006 fiscal revenues of $165.5 million. • In August 2006, Intergraph was acquired by a private equity group for $1.3 billion, approximately 2.3 times 2005 revenue. • Oracle buys BEA Systems for $8.5 Bn • SAP offered to buy Business Objects • IBM offered to buy Cognos for $5Bn • Microsoft makes a move to acquire Yahoo for $44.6 Bn !

3. Factors at play • Content is King • Converting Data to business information • location technology is increasingly sought as a differentiator in a business war to connect people and things to places. • The media as “Educator” • Increased awareness of location eg. Google Earth • More targeted marketing and campaigns = intelligence

4. Location-based information and software are no longer just niche sectors. Location technology is a differentiator that now provides larger revenue opportunities in both the consumer and mainstream information technology industry Directions Magazine

5. Location Intelligence Enables Enterprises To Make Better-Informed Decisions LocationAnalysis LocationAwareness • Model market potential and customer buying patterns • Analyze crime patterns based on location, type of crime and time of day • Discover the gaps in wireless coverage • Evaluate market potential and site potential • Determine risk exposure • Locate nearby stores • Find travel directions • View points of interest LocationAction • Plan market-driven network build-out • Open profitable new stores • Deploy police resources more effectively • Measure branch performance against benchmark • Optimize insurance portfolio management LocationIntelligentCompany

6. “L.I.” Customers Extract Business Value From Data In Which Location Is A Key Variable • Tools & applications • Online services • Enterprise platform • Demographics & profiles • Vertical market-specific • International • Analytical services • Implementation & application support Software Data Sets Services Vertical Market Expertise • How can I optimize my store/site (i.e. retailer/ATM) network? • Where are the gaps in my wireless coverage? • What are the risks associated with a concentration of insurance policies in a given area? • How do changing police patrols affect crime patterns in a neighborhood? • Where are my most profitable customers, what is their profile, how do we expect them to behave and can we predict their behavior? • Where should a marketing campaign be targeted?

7. GIS and Location Intelligence Location Intelligence Expanded Markets • Enterprise • Market specific • Business process • Technology capabilities Offering • Integrated capabilities • Platform and data • Vertical market solutions • Location infrastructure GIS Traditional Markets • Departmental • Generic • Niche application • Individual skills Traditional Vendor Offering • Functionality • Toolsets • Technical capabilities • Data creation, management and analysis

8. RESEARCH – Business Week • 30% were familiar with Location Intelligence, versus 47% familiar with GIS, compared to 68% with BI • Took 25 years to build GIS to 47%, 2 years LI to 30% • What if familiarity equaled BI? • 28% were evaluating or planning to evaluate Location Intelligence versus 8% year before

9. RESEARCH – Focus Groups and Interviews • Explore and identify: • Strategic enterprise-wide business challenges and potential for location intelligence solutions • Current awareness and usage of location intelligence, its capabilities and perceived benefits • Key buying criteria • Process • Focus groups across the US with prospects from key verticals • One-on-one interviews with senior level executives across the vertical segments in the UK, Germany, Australia and Singapore • Participants qualified based on company size and decision-making influence (e.g., senior level positions)

10. FINDINGS • The term “location intelligence” is not familiar to senior management in any of these verticals • GIS is very low among senior management • Across all verticals, the use of geographic-based data is limited among senior decision makers • Use of location information varies by vertical, by type of decision, and by the level of access to data • Requires a more visual approach • Where geographic or location data is used, its use is departmental in larger enterprises • senior level exposure only in businesses where location is associated with a strategic competitive advantage.

11. Increased awareness needed at senior levels to help them understand what location intelligence means and how it can benefit them Industry domain expertise in the vertical markets is needed by any player to provide location intelligence Tight links to the ubiqituous BI market The market is growing and MapInfo is a leading player in this space IMPLICATIONS

12. Location Intelligence solves organizational problems Use Drives Technology Application City Development Planning and Coordination Site Analysis Crime Analysis Network Optimisation Insurance Policy Liability Exposure • Specific vertical market data • Reference data • Geographic data integrated with business data • Analytic Models for decisions • Integration into IT systems • Optimising processes • Managing and sharing information

13. Location Intelligence in Public Sector Strategy STATE/LOCAL GOVERNMENT HIGHWAYS & INFRASTRUCTURE PUBLIC SAFETY NATIONAL GOVERNMENT • e-Government • Land & PropertyGazetteer • Economic Development • Service Planning & Mgt: • Social Care • Housing • Leisure • Planning • Revenue collection • etc • Mgt & Maintenance of: • Highways • Parks • Bridges • Street lighting • Waste • Cleansing • Property • Crime reporting • Crime Mapping & Analysis • Emergency Planning & Response • Command & Control • Border security • Counter terrorism • Joined-up Govt • e-Government • CRM • Health Services • Immigration • Asset Management • Environment

14. Location Intelligence Enables Governments To More Effectively Manage Their Assets • Utilized by governments to store and manage information about infrastructure assets such as highways, bridges, parks, street lights and signs, properties and pipelines • enables the management of: • Roads • Bridges and structures • Parks and open spaces • Street lights and signs • Trees • Property • Pipelines. Determining Road Skidding Resistance for Major Highway Interchange Determining Asset Valuation in Relation to Fire Hydrant Coverage

15. LOCATION INTELLIGENCE ENHANCES PUBLIC SAFETY AND THE FIGHT AGAINST CRIME & DISORDER And Predictive Analytics allows areas with similar characteristics to be easily identified, even if they do not currently have the same crime patterns. Preventative measures can then be put in place to avoid it occurring. The time it takes police resources to reach any given area can be understood using drive-time boundaries (isochrones) calculated using road network data and location intelligence Location Intelligence allows patterns of crime, such as burglary, to be visualised and compared with other factors such as local demographics, affluence and lifestage.

16. Insurance The Insurance industry partners with Pitney Bowes MapInfo to: • Improve underwriting decisions by providing more accurate exposure analysis • Manage risk on a portfolio basis and comply with regulatory reporting requirements • Identify market potential, focus sales and maximize producer effectiveness • Streamline claims management processes to increase profitability and customer satisfaction

17. Location intelligence in Insurance • Guy Carpenter • Provides reinsurance guidance primarily to insurance carriers • World’s leading risk and reinsurance specialist • Business Value • Provide faster, more effective portfolio analysis services to it’s customers • Innovative online service integrates with BI platform and replaces manually produced hardcopy maps • Solution: • i-aXis Portfolio analysis service online access for their customers • Developed using Envinsa, worldwide geo-coding and street data • Microstrategy license to integrate portfolio information “…our online risk management platform uses the MapInfo Location Intelligence Component to add the important dimension of location to our reports. A client looking to determine its catastrophe exposure in a specific area can now view this information on a map instantly, with no additional software or training. This allows better, faster decision making and can result in a clearer business strategy.“ • Shajy Mathai, Managing Director

18. Retail Pitney Bowes MapInfo helps the retail, real estate and restaurant industries better understand their customers and markets Major retailers use location intelligence to: • Select optimal sites and close underperforming stores • Develop more successful marketing and merchandising efforts • Optimize distribution strategies and create store profiles • Drive long-term customer loyalty

19. AnySite Enables Informed Site Selection • Used by customers to select location of assets such as stores, branches and ATMs • Critical for analysis of relationship among market demographics, location and performance • Can be used with predictive analytics services to forecast sales and assess product performance Determining “Best” Locations for New Stores and Predicting Trade Areas and Volume in Context of Customer Profiles and Competitive Stores

20. Marks & Spencer Marks & Spencer has more than 400 stores located throughout the UK and 150 stores worldwide, including over 130 franchise businesses, operating in 30 countries • Understand and explore relationship between customers and stores • Geodemographic, lifestyle, consumer research, transport infrastructure • Improved customer knowledge • Determine new store locations • Estimate store performance

21. Financial Services Financial Services providers partner with Pitney Bowes MapInfo to: • Select optimal branch sites and close underperforming branches • Evaluate market potential • Provide world-class customer services (ATM Locators) • Deploy more precise, more effective marketing strategies • Improve time-to-market

22. MasterCard “By choosing Envinsa, we are transforming merchant and consumer data into new revenue-generating services never before possible. We are projecting an astonishing five-year ROI of 1,152%” – Tatiana Mulry,VP of Information Products & Services Global Development Group, MasterCard Only Pitney Bowes MapInfo offered a single, scalable location intelligence platform IT could deploy and manage internally • Sophisticated spatial analysis functions—find location; find nearest; drive-time, position refinement, mapping, routing and more • MasterCard redefined the value proposition for banks participating in its ATM network—service that once cost $400,000 a year, now expected to generate $5 million in revenues in 2004

23. Telecommunications • Pitney Bowes MapInfo location intelligence solutions are used by the world’s largest telecommunications companies to: • -Command and monitor network infrastructure • -Find the most profitable customers • -Open profitable new retail sites • -Evaluate competitive threats Locate Network Resources • Network Engineering • Network Optimization • New Service Launch Locate Customers • Upsell/Cross-sell • Customer Profiling • ROI Optimization • Churn Reduction Locate Markets • Market Optimization • Market Expansion • Market Consolidation

24. Orange U.K. Focus on providing superior network quality and coverage • Provides coverage information to customers • Identifies coverage gaps and issues • Identifies network performance issues

25. Aerial Imagery Proposed cable routes

26. Coverage Locator/Service Availability

27. Next Generation of Location Intelligence • From analytical to transactional • Field Service – fault and location analysis, engineer despatch, monitoring and reporting • Increasing integration with business tools • BI (LIC), CRM, ERP • Increasing portability and ubiquity – mobile phonesPortable Navigation Devices <10% penetration • Diversity and availability of global data • Increased Industry specialisation and applications • Increased visualisation • Integration with 3-D virtual-reality technologies eg.for town planning

30. Architecture Competitions and Comparisons

31. Architecture Competitions and Comparisons

32. Architecture Competitions and Comparisons

33. Could YOU be more Location Intelligence Ask the question… Where? Pitney Bowes Mapinfo

34. John.ohara@mapinfo.com PBI internal use only